Daha sonra dinle
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#179: Money is an abundant resource. I tell you why.
When you’re looking to move accumulated equity, should you do a: 1) Straight sale. 2) 1031 Tax-Deferred Exchange. 3) Cash-out refinance.
Avoid lazy money.
My personal internet bill is $145, cable $126, phone around $100. Who cares?
You learn how much I like to spend on a hotel.
Uber and Lyft are killing the parking business.
Learn how to estimate rental property operating expenses.
Want more wealth?
1) Grab my free E-book and Newsletter at: GetRichEducation.com/Book
2) Actionable turnkey real estate investing opportunity: GREturnkey.com
3) Read my new, best-selling paperback: getbook.at/7moneymyths
Listen to this week’s show and learn:
00:52 Wealthy people’s money either starts in RE or ends up in RE.
02:03 Listener question about 1031 Exchange vs. Cash-Out Refinance.
13:20 Lazy money.
15:04 Other podcasts.
16:09 Free book.
19:11 More on Dave Ramsey.
20:26 Why money is an abundant resource.
24:36 “Uber Really Is Killing The Parking Business”.
29:18 Residential real estate is here to stay.
30:07 “Return On Life” and passivity.
32:47 Don’t underestimate rental property expenses.
Resources Mentioned:
Article: Uber Is Killing The Parking Business
GRE Video: Operating Expenses
GRE Book: 7 Money Myths
Podcast: The Real Estate Guys
Podcast: Cashflow Ninja
Podcast: The Real Estate Way
Mortgage Loans: RidgeLendingGroup.com
Cash Flow Banking: ValhallaWealth.com
Find Properties: GREturnkey.com
Education: GetRichEducation.com
Welcome to GRE, Episode 179. I’m your host, Keith Weinhold.
From Saratoga, Australia to Saratoga Springs, New York and across 188 nations world wide.
This is Get Rich Education and we are cultivating a Real Estate Of Mind here.
That is because wealthy people either start out in RE, or wealthy people’s money ends up in real estate. It’s either one or the other.
...and you know, the most important piece of real estate may very well be - that real estate right between your two ears - your mind
We come from an abundantly-minded place here at GRE.
If you want to learn about combining vinegar and water in a bottle because it’s cheaper than Windex. Well, you’re not going to learn about that here.
If you’ve been wearing the same pair of monthly contact lenses for the last two years...then, well, you didn’t learn to do that here either here.
In fact, money itself is an abundant resource, not a scarce one. We’re going to talk more about that today.
We’re going to talk about passive income and define what exactly that means.
We’re also going to talk about how to best increase your velocity of money. Is it by doing a 1031 Tax-Deferred Exchange or a Cash-Out Refinance - with your income property.
Let’s go to the listener question about this.
Listener Jacob Ayers asks: To move equity, should I do a 1031 Tax-Deferred Exchange or a Cash-Out Refinance?
Thank you for that rather eloquently-stated question there, Jacob - and it is a germane time to discuss this. There’s a lot of equity out there that is ripe for harvest because most markets have appreciated a good 7-8 years in a row here.
Really, this is a question about moving equity to keep it working for you. What is the best vehicle for increasing your velocity of money?
Since the return from property equity is always zero, ideally you want to take a big chunk of it and splinter it off into a bunch of little pieces and that way you can leverage more property.
Let’s back up. There are actually three ways for you to move equity should you so choose that it’s right for you.
The first way is to...
Sell Your Property - That way, you can get all of your equity out.
Now, Jacob, you’re a savvy investor so that’s why you probably didn’t even bring that up as one of the ways that you can move equity. Because, of course, the big problem with this is that when you sell an income property.
You could sell your current equity-heavy property and buy another. But the problem with selling is that you'd probably have to pay capital gains tax, which would reduce the equity you have available to re-invest. You’re also going to have to pay depreciation recapture.
Yep, that is all of the depreciation that you wrote off against your taxes every year that you owned the income property will be recaptured off that first income tax return you file after the building sale.
So you might have a nice gain but the tax hit is harsh.
That is, of course, unless you move your equity in the second of three ways and you perform a 1031 Tax-Deferred Exchange.
If you meet the rules of the 1031 Exchange, you can avoid all of the nasty bite of the capital gains tax and all of the depreciation capture. Yes, it can be 100% avoided.
In fact, the Exchange is the best way to move your equity. If you follow the rules and do the exchange properly, you can move 100% of your net equity, tax-free.
Sometimes people point out that exchanging is really tax-deferred, not tax-free. But, c'mon, the exchange itself, if done correctly, is tax-free. The capital gain is carried to the next property without being taxed. Therefore, in real estate, capital gains is a voluntary tax.
What I mean by that is the gain is not taxed unless the you, the owner, volunteers … by selling the property outright.
Instead of selling, savvy investors continue to exchange until they die and then your cumulative gains over your entire lifetime - they are forgiven upon your death - and that’s because of the stepped-up basis rules.
Be sure to ask your good tax manager about the details of the stepped-up basis rules. I’m not going to get into that here. But that’s why it’s effectively tax-free
But whether you call it tax-deferred or tax-free, exchanging is one of the most powerful things in the entire tax code, but it’s very much misunderstood by many accountants, attorneys and real estate agents.
Actually, during my first-ever 1031 Exchange I soon learned that my income property agent had never gone through this before.
Now I devoted an entire episode to the 1031 Exchange here for you a few months ago, so I’m not going to get into all the details and rules again here.
The most important thing that I can tell you, to pull off a 1031 Exchange, is to enlist a 1031 Exchange Qualified intermediary early on - before you even sell the property that you want to sell.
From the time that you sell the equity-heavy property that you want to get rid of, you have 45 days to identify a qualified replacement property, and 180 days to close on that identified replacement property.
...and there are all kinds of rules and limits around how to identify property. But it must be specific. You can’t say that your replacement property is going to be a green duplex in Kansas City. You’ve got to give a specific legal address.
The episode that I completely devoted to he 1031 Exchange topic a few months ago where I discuss the rules and the critical mistakes to avoid, and the deadlines and everything else for you, that is Get Rich Education podcast Episode #143.
So the first way to access equity in a property is to sell it outright, the second way is through the exchange, and the third way that you mentioned, Jacob, is with the cash out refinance.
The problem with the cash-out refinance is that you typically cannot access all of the equity in a property because you are not selling it like you are with the other two methods.
So if you’ve got 50% equity in a property that you want to get rid of, you can get all 50% out with the straight sale or the exchange.
But you might only be able to access 30% of the property value with a cash-out refinance because you might only be able to get an 80% loan-to-value loan. A bank is going to make you keep 20% equity in there as your skin in the game.
The advantage of the cash-out refinance is that you shouldn’t have to pay tax on the equity that you extract because the IRS classifies this as debt. There’s no tax on debt that you’ve originated.
One advantage of the cash-out refi over the 1031 is that the cash-out refi is faster & less stressful. You can move at your own pace.
With a 1031, you’re selling at least one property and buying at least one property, so now you have all these steps - inspection, appraisal, you’ll incur make-ready expenses, and you’ll often be paying an agent commission too.
With a cash-out refi., you typically just have an appraisal - no inspection, no make-ready, and no agent commission.
But a 1031 is typically the best vehicle for moving equity from a “dollars” perspective.
A 1031 is also a better move if you want to sell a “dog” of a property that you can’t seem to keep rented to decent tenants or something, but yet you’ve built equity in the property.
If you own a property that’s been good to you but it’s become too equity heavy, you might be tempted to do a cash-out refi instead of a 1031, but yet if you can replace your nice cash-flowing property with one that cash flows even better, look at the 1031.
When it comes to the cash-out refi, if you think that’s a better choice, remember - and this is especially true if you’re looking to do a cash-out refi of your own home - your primary residence, you can often take out a second mortgage and keep the first mortgage in-place, untouched.
That might be a good option if you still like your first mortgage’s low interest rate or it’s advanced amortization schedule.
A cash-out refi doesn’t mean that you have to restructure every part of the debt on one property. You can keep a first mortgage in-place and see if you qualify for a second.
Just a word of caution on the second mortgage cash-out refi - if your second is a HELOC - home equity line of credit, those HELOC interest rates are not fixed. They float in lockstep with the Federal Funds rate which is expected to increase.
To be safe, you want the CCR from your new purchase to equal or exceed that of the mortgage interest rate on the property that you just took cash out of.
Although I like the 1031 more than the cash-out refi overall, I can think of a couple other disadvantages of the 1031.
With the 1031 Tax-Deferred Exchange, you might experience a degree of stress, much of it having to do with the timing of meeting those 45 and 180 day milestones that I mentioned earlier.
You don’t really want to be on a 3-week vacation to Peru and Ecuador during a 1031.
On the properties that you identified as replacements for moving your equity into them tax-free, something might get slowed down in your ability to buy them that’s out of control, or if you’re looking to 1031 your equity into new construction property and the new construction is going too slowly, that can create some stress.
With the cash-out refi., you’re on your own deadlines, not the 1031 deadlines that the IRS sets for you.
You know another thing - another small disadvantage with the 1031 Exchange that people never think about - and everyone overlooks this. I didn’t really see it coming until I had the ball rolling with my first-ever 1031.
It’s that during that time - those three months or so after you’ve sold your relinquished property and before you’ve closed on your replacement property, you’ve lost cash flow…
...because there’s that gap there - that delayed exchange gap where you don’t own some property for a period of a few months.
I’ve done a 1031 with a substantial chunk of my portfolio, and I had about three months where a major piece of my cash flow was cut off until I closed on the replacements.
1031s & cash-out refis have definitely been good for me.
I’ve made some mistakes in real estate investing for sure, but having an early awareness of the fact that dead equity isn’t serving me and then actually doing something about it really helped me get me to where I am today.
If you’ve got a lot of equity in a property or a property paid off, you’ve got to realize that your money just got lazy. Not only is it not working for you, you’re paying the opportunity cost of not using it to also leverage other people’s money work for you.
Don’t let your money get lazy.
So when I’ve built up around 35% equity in an income property, that’s when I’m looking forward to moving it. It’s that 35% mark.
With a primary residence, it would be less than 35% because I can pull more out - I can pull out equity up to a higher loan-to-value ratio.
Just think about property that you have 50% equity in. Your leverage ratio is been slashed to 2:1. If you reposition it with 20% down payments on multiple properties, now your leverage ratio is 5:1.
That is just huge, and it’s great as long as you’ve safeguarded controlling your cash flow…
...and we love cash flow - but what has created more wealth for real estate investors is really leveraged appreciation so consider keeping your leverage ratio up there by maintaining small equity positions in a bunch of properties.
You know what else? The more that you learn about the economy, pulling $ out of property and transferring it into another property actually expands credit, that very act expands the money supply, and it stokes inflation…
...and as you know from listening to this show, inflation is actually our friend.
Great question from Jacob - asking about the pros and cons of a 1031 Exchange vs. a cash-out refinance.
By the way, that “Jacob” was “Jacob Ayers” - he is the host of “The Real Estate Way To Wealth And Freedom” podcast. That’s another show that you can listen to.
You know what’s funny - some podcasters don’t want to talk about other podcasts similar to theirs or they’re afraid that they’re going to lose listeners to that other show that they talk about.
Well, I just don’t feel that way - and well, maybe that’s part of my abundance mentality. Of course, I value my listeners and anyone wants more listeners just like an artist would want more people to see what they’ve spend weeks working on - on canvas.
You can check out The Real Estate Guys Radio Show with Robert Helms and Russell Gray. That’s a really good one.
Sheesh, I’ve even got a commercial on my show that tells you about someone else’s podcast - the Cashflow Ninja hosted by my friend M.C. Laubscher. That’s another good show that you can check out. He’s had some great guests on that show like Ron Paul, Robert Kiyosaki, and Jim Rogers.
Once again, Jacob Ayers’ show is called “The Real Estate Way To Wealth And Freedom”.
Uber and autonomous cars are killing the parking lot and that’s going to change real estate. I’m going to discuss that in a bit. I’ve also got some Dave Ramsey fallout from our episode from two weeks ago.
You know, if you want to learn more about the misconceptions around debt and equity - which have been woven into this discussion so far - and how to use debt and equity to your advantage - and in the way that affluent people use them…
...and why getting your money to work for you won’t create wealth and how to get other people’s ethically working for you to create wealth for yourself and a lot more...
I wrote a book less than 9 months ago about how you can do that.
You can get the e-version of my book completely free. Not just a free chapter or something but the complete e-book free...
...Robert Syslo is going to tell you how easy it is to do that now. Go.
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Welcome back to Get Rich Education. I’m your host, Keith Weinhold. We got more great feedback on our episode from two weeks ago when we were talking about the largely - really - antiquated Dave Ramsey ‘debt-free’ School Of Thought.
We’re talking about a School Of Thought that has - in the past - suggested that people eat things like cheap processed Ramen noodles - and beans and rice - so that they’ll have more money in their pocket so that they can pay off a car loan or a mortgage loan.
When you pay down debt that’s lower than the rate of inflation, you’ve actually diminished your prosperity now.
So now you’ve diminished your prosperity and you’ve eaten Granola bars and Cup O’ Noodles so now you’ve sacrificed your health - just to diminish your prosperity - plus...you took your time to learn about how to live like that!?
That is just so absurd, scarcity-minded, and that is not serving people. Ugggh. I’m not going to go on, I don’t want to dip into hyperbole, but hearing about that stuff is just really dispiriting.
If I’m going to use my time to learn about something, I want to learn about how to produce, not reduce.
I think part of that is realizing that money is actually an abundant resource. Yes, money is an abundant resource.
How much currency does the Treasury Department print every day? During Fiscal Year 2014, the Bureau of Engraving and Printing delivered approximately 6.6 billion notes to the Federal Reserve. They produced approximately 24.8 million notes every day with a face value of approximately $560 million.
Those numbers are so large, some people can’t even fathom it.
Those stats right there can actually be picked apart all day. Most dollars aren’t even printed, of course, they’re digital and they’re created out of thin air when dollars are borrowed into creation - but it just gives you some idea of how abundant money is.
Look, my monthly internet bill is $145 and my Cable TV bill is $126 - yes, I have cable because it’s just a nice option and money is an abundant resource. I just learned this because I just saw the bills come in.
You know, I’m just really barely aware of my consumer bills. I’m into expanding my upside instead.
I don’t even know how much my monthly phone bill is. Maybe $100. So for internet, cable and phone combined, that’s...what three hundred seventy-some dollars a month? Is that a lot? It just doesn’t matter that much. I’m focused on what matters.
Expanding the upside. Money is an abundant resource.
How much do you like to spend on a hotel? To me, it seems like $300 a night is a common number to spend at a good hotel.
What about a $79 hotel? I wouldn’t even want to stay there. I might not even want to stay there for free.
But you know what, everyone has learned how to tap into abundance at a different level. Everyone’s got their price.
OK, what about a $2,500 hotel. What if I were staying there? I might think that that price is pretty steep.
I’ve got to admit, I would be asking myself a question like “Now why am I staying at a $2,500 hotel? Is this my honeymoon or something?” Maybe I would soon move to another hotel.
Well, didn’t I just say that money was an abundant resource, so what’s my problem?
Maybe the Amazon Founder, Jeff Bezos - he wouldn’t want to stay in a $300 hotel like I’m more used to and I just think of as standard. He might live in the $2,500 hotel year-round if he had to because it doesn’t matter to him.
See Jeff Bezos and Amazon.com have figured out how to provide more value to more people than you have - and than I have.
Money is an abundant resource. But just because something is abundant, doesn’t mean that it has no value.
Look, the air that you breathe is pretty abundant all around us but it’s also really valuable. We would die without air just like we would financially die without money.
But yet they’re both abundant.
Right now I’m not too far - and maybe you’re not too far - from a parking lot with hundreds of cars in it.
So cars look pretty abundant but each one still has value and utility just like dollars.
So the point is that a scarcity mindset and an abundant mindset are relative in a sense.
But really, if you’re looking to produce before you reduce, it’s an abundant mind.
Money is an abundant resource, and the amount of the world’s abundant supply of money that will be allocated to you on this earth is directly proportional to how much value you create for others…
...how much sound housing you can create for others.
Money is an abundant resource.
Well, way back in Episode 13 of Get Rich Education, more than three years ago, I did an episode called “Autonomous Cars Will Soon Disrupt Your Life and Investments”...and I talked about how this will have implications for real estate investing.
Well, we’re already seeing the world go that direction. In fact, ride-sharing services are accelerating this effect.
Fortune magazine just reported this in the last couple weeks here, in an article titled “Uber Really Is Killing The Parking Business”. In the article, it outlined how
Ride-hailing services like Uber and Lyft are having a negative impact on the demand for parking. The picture, at least for those trying to rent you a parking spot, is bleak.
In the email, unearthed from a company report by the San Diego Union-Tribune, Ace Parking CEO John Baumgardner says that demand for parking at hotels in San Diego has dropped by 5 to 10%, while restaurant valet demand is down 25%. The biggest drop, unsurprisingly, has been at nightclubs, where demand for valet parking has dropped a whopping 50%.
The numbers appear to be estimates, and Baumgardner doesn’t describe a timeframe for the declines.
The assessment, written last September (6 months ago now), is also limited to San Diego, though an Ace Parking executive told the Union-Tribune that it has seen “similar” declines at its 750 parking operations around the United States.
The company is focused on using technology, including better parking scheduling and booking options, to try to remain healthy.
But much more is at stake than the revenues of the parking business – cities stand to benefit immensely as demand for parking drops. Parking spaces and lots generate relatively little tax revenue or economic activity relative to commercial operations, and increasing sprawl may actually harm the economy of cities like Los Angeles.
Even back in 2015, cities were already relaxing zoning requirements that set minimum parking allotments, and there are now even more signs that city planners are thinking differently about parking.
[Now get this] - Perhaps most dramatically, a new Major League Soccer stadium being planned for David Beckham’s Miami expansion team may include no new parking at all – but will have designated pickup zones for Uber and Lyft.
The decline of parking will only be accelerated if and when autonomous vehicles become widespread. That sea-change which will make it easier to locate parking at a distance from urban destinations, and could further reduce car ownership.
That will be bad news for the Ace Parkings of the world – but everyone else should welcome the decline of the urban parking lot.
...and that’s “it” for the article.
I told you back in Episode 13 that this will spell a dramatic shift in the character and makeup of inner-cities and suburbs alike.
Right now, many U.S. cities have central agglomerations where the surface area is 40 to 60% parking spaces. When you hire a ride-share car, you didn’t need to drive your own car to work and you didn’t have to park your car.
Soon autonomous cars are expected to be all over the road and they’ll just always stay in motion.
You know what else this means for homes in the suburbs - homes with garages could become less desirable over time.
Now, they’ll probably just repurpose the garages, but…
In any case, so many trends are changing the way humans interact with real estate and the economy…
The internet diminished the need for office space as that almost completely wiped out the need for things like travel agencies.
The internet reduced the number of all kinds of other business like the number of bank branches.
Of course, Amazon keeps killing off traditional retail consumer good purchases.
Ride-share services and autonomous cars are diminishing the parking business - this one is now happening in front of our eyes - it is happening now - there’s no more “someday” on that one.
...And despite all these trends, the residential real estate space is hardly impacted. That’s why we focus on the residential space here - not only is it easier to understand because you interact with residential space every day of your life, but residential is here to stay.
Well, because we’re around residential real estate every day it’s kind of paradoxical that it’s so misunderstood by so many people.
When you tell a lot of people that you’re a real estate investor, oftentimes they think that you’re a house flipper, and then if they hear that you’ve got rental property, the next thing that they think about is that you must be the landlord.
If you’re either of those things - especially the landlord - you’re not getting a very good ROL - Return On Life.
So let’s talk about passivity.
You have the ability to make real estate investing passive - and at the beginning of this show - it says that you’ve created more passive income from this show than nearly any other show in the world.
Well, even if you’re “hands-off” and you’re not the landlord, it still doesn’t feel so passive if you’ve got a week where your rental property’s roof blew off and you’re looking at contractor quotes that your manager has pulled together for you and managing an insurance claim that you had to put in.
Aren’t you working for your passive income a little bit then?
...and I would say that, yes, you are at that time.
Your property might operate 24 hours a day, 7 days a week for many weeks in a row or even months in a row without your involvement at all.
It probably operates for you passively 98 or 99% of the time or more...passively. That’s why it’s called passive income. For you, it’s hands off. You’re not fixing leaky faucets and you’re not collecting rent checks.
When the problem that you have 1% of the time blows over, you’re right back to passive again.
Alright, compare that to your work-a-day job. What happens when you have a problem at work? You handle it, and what happens when that problem is handled and goes away - you go right back to active income.
At work whether you have a problem or whether things are going fine, it takes your involvement. ...and that’s really my point here for you.
It’s NEVER passive - unless you’ve got some vacation time. Then maybe you can say your active job is just 5 or 10% passive.
In real estate investing with the way we do it, passivity is the norm, not the exception.
So, just keep that in mind if - not if - but when - you have to be resilient during some bumps in your “almost-always” passive real estate investment portfolio.
You know, there is so much that I want to talk to you about every week that I just can barely fit it in. That’s why I do these monologue shows with no guest once in a while.
I haven’t even told you about my recent RE field trips to Florida or Belize yet, though I’m really looking forward to telling you more about those here.
You are really out there taking action so before you go, let me just help you with one other thing while you’re out there looking at properties.
Don’t underestimate the expenses that you project that your property will have.
Of course, your mortgage and all of your other expenses are 100% outsourced to your tenant in a cash-flowing property!
It’s easy for you to remember that you have a mortgage payment (principal plus interest) because that’s your largest expense.
You know that I’ve mentioned that an easy way to remember your other recurring expenses - which are really all of the operating expenses - because mortgage principal and interest are not an operating expenses…
...is with the acronym “VIMTUM” - and I mentioned VIMTUM last week when Clayton Morris interviewed me, but let’s hit each one of these:
Vacancy – This depends on your property type, the local job market, and more. 8% of the gross rent amount is often a good number, equating to about one month per year of vacancy. If you’re in a strong job market, 4-5% might work. You’re guessing here.
Insurance – Your lienholder requires you to have property insurance. Having a policy reduces your risk too. You can get quoted an exact number here.
Maintenance – Now here is where a lot people underestimate this number, which can be 3% to 15%+ of the gross rent amount. This is where you must make your best guess based on the property age, history and other factors.
Taxes – You have a property tax obligation, often 1 to 3% of the property value annually, depending on the area. This is an exact number that’s easy to find in county or municipal records.
Utilities – In a single-family income property, your tenant typically pays utilities. The more units in a property, the more likely you’ll be paying the heat, electric, refuse, water, etc. Utility companies have historical records so you can make a close expense determination.
Management – If you don’t have a Property Manager then your income isn’t passive. If you self-manage, then you must factor in your time expense. Management fees are typically 3% to 10% of the gross monthly rent amount. The more units in a building, the lower the management expense.
People like easy ways to remember things. That’s why I like VIMTUM.
I also made a video for you about these income property expenses where I’m talking directly to you. I’ll put that video link in the Show Notes for you.
So when you connect with an income property provider at GREturnkey.com - if they haven’t - then run your own numbers on an income property using that VIMTUM acronym.
Those providers are at GREturnkey.com - download a market report and get their contact information, and see what they have for inventory. It sure is thin in most markets these days.
I appreciate the time that you spent with me today, but you weren’t here for me you were here for you.
Until next week, I’m your host Keith Weinhold. Don’t quit your day dream!
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#86: Ken McElroy is our guest today. He’s the Rich Dad Advisor for real estate, controls more than 10,000 residential units, and is one of the best-known and most successful real estate investors in the United States.
He reveals where he finds his deals today! Learn about how you can profit by acting just like the bank does.
Want more wealth? Visit GetRichEducation.com and 1) Subscribe to our free newsletter, and 2) Receive Turnkey RE webinar opportunities.
Listen to this week’s show and learn:
02:35 Keith brings you today’s show from Alyeska Resort in Girdwood, Alaska.
05:50 When real estate prices rise, cap rates fall.
7:58 Can’t beat the bank? Then BE the bank. Here’s how.
14:16 Why are (uninformed) people still saving money?
18:50 Here’s where Ken McElroy is finding his deals today. Primary, secondary, tertiary markets.
24:15 When oil prices fall, how soon does it hurt a real estate market?
28:17 Why Ken avoids buying in the U.S. Northeast, Southeast, and upper Midwest.
34:02 Demographics.
36:42 Self-storage units, mobile home parks, luxury real estate, resorts, office, retail, efficiency apartments.
40:40 So many news articles pertain to real estate somehow.
41:36 KENFlix - Ken’s instructional video series.
45:10 Say you’ve been given $10 million. Here’s how to deal with it.
Resources Mentioned:
Ken McElroy’s company
KenFlix
Corporate Direct
Norada Real Estate
Get Rich Education Website
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Keith Weinhold:
Hey, welcome to GRE. This is Get Rich Education episode 86. I’m your host, Keith Weinhold. Here’s hoping that you’ve lived an abundant week. I’m back to help you build wealth for yourself. What we’re talking about is very realistic, extra income and life-changing income for the average Joe here and you won’t end up as an average Joe. You will be able to do what most people can’t because you did what most people wouldn’t.
Today, we’re talking to one of the best known real estate investors in the nation that is Rich Dad advisor, Ken McElroy. Ken’s contributed to our real estate investing education industry with countless real estate investing books both inside and outside the Rich Dad series and at last check, he controlled more than 10,000 real estate units.
I recorded Ken and I’s chat the other day when I was in Anchorage. Today, I’m bringing you this show from the Alyeska Prince Hotel at the fantastic Alyeska Resort here in the rain-forested, ski community of Girdwood, Alaska. Although summer is in full swing now, this is the premier ski resort in the entire state of Alaska in the winter time. In this time of year, we’re enjoying the spa-like amenities, the really luxurious accommodations and there’s an aerial tram that will ride up the mountain later today.
Really a fantastic scene here at this resort nestled in the Chugach mountains. Now, if you look down lower, you can see tidewater. You can see sea level here and if you look up higher, you can see at least five hanging glaciers from this vantage point. You have the paradox of seeing blue Alaska glaciers but because you’re near sea water, you can also see seagulls.
Interestingly here in Girdwood, this adjacent forest is recognized as the northernmost rainforest on earth and its climate is distinctly different from that of my home in Anchorage which is just about 40 miles north of here. I think you’ll like this Ken McElroy interview today. If you’ve ever been around Kenny, he’s very easy to talk to and by the end of this thing, we’re just chatting as I’m throwing questions and ideas out there. He joins me from the Phoenix area today, Scottsdale, Arizona and this is his second Get Rich Education appearance, so here we go.
From the early days of managing properties for others, to being a well-known investing guru and successful entrepreneur, Ken McElroy has considerable experience in property management as well as real estate investing in both Phoenix Arizona and across the United States with 26 plus years of elite level experience under his belt.
He has offered his fans multiple real estate investing books and is a longstanding Rich Dad advisor to the author of the Rich Dad, Poor Dad series, Robert Kiyosaki. Ken’s true passion to educate others has led him to speak internationally on real estate investing, entrepreneurship and the keys to financial freedom. Welcome back to Get Rich Education for your first appearance since you were here on episode 25, Rich Dad advisor, Ken McElroy.
Ken McElroy:
Hi, Keith. Thank you. Great to be on your show again.
Keith Weinhold:
Hey, it's good to have you back. It was good to see you [inaudible 00:04:57] a few months ago as well. How are things going there? When you think about Ken McElroy, I think about the MC Companies deals that you syndicate. You know what, five years ago, I was thinking, Ken is probably looking at so many deals with prices being run down. He must be going nuts with all these deals and today what do you do? The cap rates have run down so much. I mean, what are you doing if you’re not looking for deals or if you still are where are you looking?
Ken McElroy:
We’re definitely looking. We have a full acquisition team out meeting with brokers and flying around looking at markets. It’s harder. That’s for sure. It actually got harder. The reason cap rates are down is when interest rates started going down. Of course lower interest rates lower cost of debt, more cash flow. The prices started going up and we’ve been battling this for a few years. It’s not something that just came about.
Keith Weinhold:
Now first of all, that’s a paradigm to some people. When a market heats up, sometimes people think, “Oh, well then cap rates must be heating up and going up,” but that's actually just the opposite. Sometimes people need to wrap their mind around that since the cap rate is the net operating income divided by the value of a building when that net operating income stays about the same and the building value shoots up faster that lowers one’s capitalization rates.
Cap rates actually get driven down. I guess my thing is since arbitrage really is the cap rate minus a mortgage interest rate, even if cap rates have been driven down say to six-and-a-half on a building and you can still get a mortgage interest rate at five-and-a-half, that's 1% arbitrage. I mean, wouldn’t you still do the deal then? Of course there’s going to be a lot of “it depends” factors but even if cap rates have been driven down to a point where they’re still higher than mortgage interest rates, do you still go ahead? Do you still look?
Ken McElroy:
That’s a really good question. We look at things a little bit differently. I don’t always use the cap rate as a determining factor of whether we buy something. I’ll give you an example. I think cap rates are definitely something you need to watch. If you’re trying to buy a property that is in really good condition and full, and has a stable operating history, then I think cap rate means something, but if you’re buying something that, let’s say has a value add component to it and or maybe some occupancy issues, your cap rate is not going to look good because you’re going to buy it based on the way the property is performing and the way the rents are currently not necessarily on the future.
We do look at cap rate, but mostly we look at cash flow. We start with cash flow and if we can find something that is cash flowing in the first few months of buying it and we can improve it, then of course we’ve got what would be a true value add.
Keith Weinhold:
I think what we’re basically doing here as a real estate investor where you have a cap rate that exceeds an interest rate, kind of what you’re trying to do is be the bank effectively or do what the bank does by borrowing a lower rate and investing at a higher rate. I saw you write a Rich Dad Advisors article recently about how banks work and how we can exploit that as real estate investors. Tell us a little bit about how banks work and how that plays into what a real estate investor does in being the bank.
Ken McElroy:
Sure. This also ties with your last question about arbitrage. For example, we’re in the process of buying a property right now in Mesa, Arizona and the rate that we‘re projecting, the fixed interest rate is going to be under 4%. This is a quote we actually already have. Rates should be under four fixed and we’ll have three years of interest only as part of the loan.
You think of the banks, the reason why the interest rates are so low right now is because there’s a lot of people saving money. The article that I wrote for Rich Dad was … What happens is money like anything is there’s a supply and a demand on money. If there’s a lot of money in banks then the only way banks make money is to lend it.
That’s why they’re trying to get everybody in credit card debt. That’s why you see all these credit cards. That’s why they’re doing it with student debt. They’re doing it with all kinds of things. They’re not doing it right now with the refi. The investor loans and all the cash out refis that they were doing before the subprime crashed, but there’s a tremendous pressure on banks to get money out because that is the way that they make money speaking of arbitrage. If let’s say somebody has $10,000 in the bank and they’re making 1% which I think today would be generous.
Keith Weinhold:
We’re just talking about your everyday depositor.
Ken McElroy:
Everyday depositor, right. That’s an expense to the bank.
Keith Weinhold:
Right. Now, that’s a paradigm for some people. When you put 10,000 in the bank, that is an expense to the bank at that point.
Ken McElroy:
Correct. Right and that’s what I wrote in that article because if you think about it, it’s true, right? I mean if you give the bank money, you’re going to want interest on it so that’s an expense to the bank. Less than 1% is not necessarily very good. Now, the bank has your money and their job is to let it out at say 4 or 5, 6%. That’s how banks make money. That’s not the only way banks make money but that is a big way that banks make money.
Keith Weinhold:
An everyday savings depositor might go ahead and deposit their money in the bank and the bank has an obligation at that point to go ahead and pay that depositor 1% and then what the bank is doing is they’re turning around and they’re loaning it to you like the deal that you just described in Mesa, Arizona for 4%.The bank’s arbitrage in that case is 4-1 or 3% and then what you’re doing with the 4% at that point, tell us about that and how that arbitrage works for you?
Ken McElroy:
That’s exactly how it works. Exactly. I’m glad you’re walking it down this way. Then I borrow the money at four, let’s say, I put it into, in this particular case, it’s a $35 million apartment deal. Actually the deal is 35 million and we’re actually borrowing 28. Now, I’m borrowing 28 million at 4%. Now, I get into the nuts and bolts of how the deal is itself.
The deal of course pays for the mortgage but in addition to that, it generates about 7% cash on cash return on the actual investment. People call it loans, but I call it OPM, other people’s money because that's what it is. People I think sometimes get confused about money. It’s really very simple. If I borrow something from you, you can actually give it to me in a form of equity or you can give it to me in a form of a loan.
It's the same with the bank. The difference is the bank is using your money. You can give it to somebody directly or you can give it to the bank and then of course they’re dishing it out in the form of equity and debt because banks actually do equities too in some cases, a lot of banks. It’s the same thing with a life insurance policy or a 401k or even a pension.
Let’s say you’re a union worker and you pay it to a pension or a teacher or a fireman or a policeman or something like that. That money that you’re putting away gets invested. Unfortunately you’re giving away all your power and not knowing what it’s invested in, but regardless, let’s say over a period of a long time, you’re putting money into a pension or even a life insurance policy for that matter.
The reason why when you get your statements and you see return on that money, it's because it’s invested in something. It’s not just put into the bank. They’re actually physically investing it. Believe it or not, pensions, life insurance companies and banks are all trying to invest in similar things.
Keith Weinhold:
Right. They’re opportunist like we want to be opportunist in a sense when a depositor goes ahead and puts her $10,000 in the bank, that’s the bank’s problem so the bank has a problem and they’re encumbered with those interest payments and they need to flip that around and go ahead and find an investment opportunity to solve that problem.
Ken McElroy:
That’s exactly right. That’s why as you watch, it’s very interesting to watch how banks compete for deposits. They want deposits. They give away free checking and they give away free toasters or whatever they might do and the people are like, “Oh my god. This is great. I get free checking.” What they’re really trying to do is get you to open bank accounts so that they can actually use that money to lend it.
Keith Weinhold:
Really, the genesis of that process is one individual saver and first of all you said there are more people saving these days. Why are they saving more these days?
Ken McElroy:
I don’t think that they’ve completely understand the system.
Keith Weinhold:
They definitely don’t if they’re saving.
Ken McElroy:
Correct. That's one reason. Also I believe that there’s still some hang over from the recession. I live in Phoenix and home prizes are still the inventory and everything that went back to the banks and everything. We’re still starting to see home prizes relatively flat even though they’ve increased a little bit. I think a lot of people got freaked out during the subprime crash. They lost jobs, they lost all the equity in their houses and I think this time around, they’re having a little bit more of a cushion which is probably smart.
Keith Weinhold:
If more people are saving these days, in a sense, that creates more of a problem for the bank if you will because they need to go ahead and get that money reinvested and when more banks have more problems, that's when banks begin to compete for each other and that’s probably why you’re able to get terms like 4% fixed on the Mesa, Arizona apartment building and three years interest only. In the genesis of that, begins with there being more demand for savers.
Ken McElroy:
That’s exactly right. That’s exactly what I would have said. Again, if you can look at it like if there’s a … Let’s say you live in a town where there’s a lot of excess development for houses, the supply of houses are going to keep the prices down and they’ll start to do concessions as they try to move through that. It’s the same with money. People just don’t think of it that way. When there’s a lot of money looking for a home, then the price of money goes down and that's what we’re seeing right now. There’s a tremendous amount of money looking for a home which is why interest rates are low.
Keith Weinhold:
That tells me that I have a problem too. I need to convert more people to Get Rich Education listeners because if there are a lot of savers, none of them are Get Rich Education listeners. I can tell you that. Ken and I are going to come after the break. I’m going to ask him a few more questions about now that cap rates have been run down, where does it go for deals? Does it go into a secondary market? Does it go into a tertiary market and more? You’re listening to Get Rich Education. Our guest is Rich Dad advisor, Ken McElroy. More when we come back. I’m your host, Keith Weinhold.
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Keith Weinhold:
Welcome back to Get Rich Education with our featured guest, Rich Dad advisor, Ken McElroy. Ken, this is a really interesting time here while prices of real estate have heated up and cap rates have been run dow. You are one of the biggest syndicators on the entire globe today so I want to know where in the heck are you fighting your deals today in this market? How are you doing?
Ken McElroy:
They’re hard to find. I will tell you that. We like to focus on … I’ve talked to you before about this. I’ve written quite a bit about it. We don’t like to be a pioneer in any town so we basically can’t invest right now in the primary markets so that’s important to know. The primary markets would be Seattle, San Francisco, LA, New York, Boston, Chicago, those kinds of markets because what I call the dumb money is coming and do it which Wall Street because that’s really other people’s money again like we talked about in the first segment and it’s just being invested by a bunch of people, placing it.
What we’ve had to do is go into second and third tier markets. The third tier markets can be risky however if they’re based too heavily on let’s say one employer or just a few or it could be like a great example would be North Dakota. Everybody went there because of oil. That’s probably the best example. That would be considered a third tier market and I probably got asked at least once or twice a month over a period of two years to go do something up there and I never did because I’ve seen a boom and bust before like that.
Something that is entirely based on oil prices is not necessarily a good spot to be. I think that if you’re looking at it from a what we would call a capital gain standpoint, you might time it right. I’m sure, there’s a bunch of people that made very good money up there during that time but there’s also a bunch of people that lost a bunch just recently.
It could be the exact same thing around a military base or something like that. We’ve had properties in and around military basis and as they deploy, let’s say personnel out into other areas, it reduces the population [inaudible 00:20:52] and things like that. Those third tier markets can be tough and so you just got to be very careful about those. We prefer the second tier although there’s a lot of money moving into second tier right now.
The second tier market believe it or not is something like let’s say Tucson or even Las Vegas. Las Vegas however is also based heavily on tourism so when the economy is doing well, Las Vegas is doing well. Not necessarily the best market because it’s not as diverse as you would want. It is well over a million-and-a-half people now. Again, it’s only based on people flying into town and staying at the casinos and going out and spending a thousand dollars a day on bottles of wine and all that.
I think you just got to be careful of those but there are definitely ways to make money in those markets. What we like to do is try to take a look at where employers are going and try to be ahead of that a little bit. The other thing that can really throw a market off is construction. Some of these small markets like Austin, Texas which is really a second tier market is I think it has 16,000 apartments under construction right now.
It’s heading into some real tough few years ahead of it. Whereas Phoenix, I think has eight and Phoenix is much bigger. You got to look at supply at the same time but as we start to look at these markets, we like Austin, believe it or not and some areas we like San Antonio, we like Tucson. We like of course Phoenix which is where I’m based and we like Tulsa, Oklahoma, some of those markets. Salt Lake City. We’re looking at all those.
Keith Weinhold:
We’re talking about different marketers here and I’m saying this mostly for the benefit of listener primary, secondary or tertiary which is third tier. We’re generally talking about the population, the metro size of an urban agglomeration and typically when you have greater size, you do have more market industry and sector diversification so just a general, just a general correlation, bigger size, you’re more likely to be hedged against economic downturn but there are shorter term things going on as well and it sounds like in Austin, perhaps demand could be lagging behind supply little bit since there’s an awful lot of new construction coming on board. You can’t just look at the size of a metro area and know how safe you are just simply based on the size of it.
Ken McElroy:
Right. I think if you take a look at … The nice thing about real estate is that there’s quite a lag with it. As occupancy rates tick up or rent growth ticks up, you can almost bet that there’s going to be development to throw it off at some point. Banks like to lend in strong markets so if the occupancy and the rent has year over year growth then people are going to be buying land and building. At some point however, there’s too much being built and then the numbers change again.
Keith Weinhold:
With this lag effect in real estate, I want to get a number from you in approximate period of time in which when one sees oil prices fall so dramatically like they have and they really just begin their decline about two years ago, when that really catches up with the market of course there’s plenty of “it depends” factors but for me I live in Anchorage, Alaska. That’s where I am today. I have local rentals and I still have great occupancy.
I have not gotten rent increase in the past two years but I still have fantastic occupancy which is really the important thing. I’ve held on for about two years. What do you think that period of time is where you can see a precipitous decline in the price of barrel of oil to when that really catches up with you and you really have significant effects in vacancies in a market?
Ken McElroy:
We’re seeing it. I can just speak from real experience. We have property in Houston, Texas and it shows up at the moment people lose jobs. If there are jobs that are lost, the people typically move and/or look for other jobs which means sometimes they’re moving. Not necessarily always but whenever you start to see that, it shows up immediately. As oil went down, we definitely saw it within just a few months in Corpus Christi, in the Houston area and then of course it spills over into Dallas, and Fort Worth, and San Antonio and some of the other markets.
On the supply side however, if you’re looking at that, it can take a year-and-a-half, two years before it starts to show up because you have to buy the land, you have to go get the loan. It takes a year to build it. It’s not even ready to be moved into. That’s why I’m saying on the supply side it doesn’t show up as quickly which is nice.
If you already own something then you can really, really, really be careful and watch that supply side. For example, where we actually listed a property in Austin, two weeks ago, and five years, it’s being listed for 10 million more than we bought it for. That’s entirely based on the demand of the market.
Keith Weinhold:
Congrats.
Ken McElroy:
We’ll have to close it but we’ll see where it goes.
Keith Weinhold:
We’re getting a little idea of your deal flow here. Where do you find your deals as far as not geographically but conduit wise? I mean do you have someone to go through LoopNet? I’m sure you’ve got a lot of great relationships with brokers. I mean does some of your deals still come from a resource like LoopNet or are they all pocket listings at this point?
Ken McElroy:
Great question. We look at all of those things. We’re tied in to everything. We like to work with brokers. Here’s typically my experience. A lot of times what happens with the LoopNet stuff is the seller has typically been a little bit unrealistic and maybe they even listed it before. Sometimes you find deals with just top sellers.
I think that we like to work with brokers because that means that the seller has agreed to some kind of value and the broker is putting it out on the market at that kind of value. Nothing wrong with working with sellers directly but my experience is that they’re typically a little bit unrealistic on what they want and you’re not always getting the great deals that you would think by going to a seller directly.
The best deals that we’ve ever gotten were when we bought from banks because what happens when a bank takes back a piece of real estate, it’s actually toxic for them to have that on their books. It affects their ability to lend. I can’t remember exactly what it’s called but I know when we buy it, it’s from the REO department, that real estate owned department of the bank and if the bank has too many assets in that category, then they get penalized on being able to put money out. They’re typically losses on a loan and selling it back out to somebody. The best deals that we’ve ever gotten were buying directly from banks.
Keith Weinhold:
Good to know. I had another question pop in my head. We were just talking about geography a little bit earlier there. We’re talking about buying in primary, secondary or tertiary markets. I know that you an MC Companies which is a large company and you do have hundreds of employees at MC companies, right?
Ken McElroy:
Yes, 350.
Keith Weinhold:
350?
Ken McElroy:
Yeah.
Keith Weinhold:
That’s a lot of a central place for not just buying power but for knowledge and everything else. I want to know why would MC Companies maybe go to a secondary market in the geography where you continue to hang out which is mostly the southwestern United States in the south. Why not try a primary market? For example, I know that there are markets with sweet spots in places like Philadelphia, in Milwaukee. Why not go in a primary market because we do have more and more people moving to cities between censuses and society has urbanized a little bit more. Why not try those out or have you and I just haven’t heard about it?
Ken McElroy:
Another very good question. First of all, just being selfish, I don’t really want to be on a plane that much and so my deal with my family was two hours on a plane. That basically gets me to the western half of the US and the truth is there’s deals everywhere. There’s deals to be had everywhere.
From where we are in Phoenix, I can be in Salt Lake in just little over an hour, all over LA or all over California, an hour to two hours. Same with Washington and Oregon, Idaho, Montana. We’re looking at all of those markets and then of course Texas is just two hours as well. That’s primarily the reason. There’s just a lot to do. There’s a lot of markets and a lot … There’s plenty of inventory but maybe someday we’ll look a little more east.
Keith Weinhold:
I think that’s really an appropriate answer and it just tells the listeners that, you don’t need the entire country. We’re a big country and there’s a lot of deals. There’s even a lot of deals in the town that you live in. It always doesn’t have to be buying the whole real estate investing either. I know a bit about Ken. I know he’s quite a family guy. He’s really involved with his children and every summer you have essentially a retreat with your children where you take a lot of the summer months off.
Ken McElroy:
I do. I take the whole summer off, actually. They get out of school in 10 days and I move. I don’t work all of June and all of July. Then one last thing I wanted to say on that last piece that I think is important because I get, I don't know, hundreds of deals a week to my email just like probably a lot of people. After a while as you start to show up on lists and you don’t even know how, but you’re on people’s lists and in the beginning you’re trying to get on everybody’s lists and now you’re trying to get off everybody’s lists.
Keith Weinhold:
Right.
Ken McElroy:
The point is I get deals from Philadelphia, I get deals from Wisconsin. I probably get five or six deals a week from Florida. I just delete them. This has a lot to do with focus and I think that … I’m trying to be as efficient as I can. We totally understand most of the big Texas markets. We completely understand Oklahoma. We completely understand Arizona.
Not that we just focus on those markets, but those are deals that I can look in less than 10 minutes and know whether or not I want to pursue to the next thing. We even focused on those deals. We looked at 600 deals last year and we made 58 offers and we got into about 28 best in finals. I think it was 28 or somewhere around 30 best in finals and we only have one.
That’s just in the western areas that we’re looking at. You can go crazy looking all over the place and the biggest issue I think people have is when they buy something. Let’s say they live in Phoenix and they buy something in Florida, is not having what I call boots on the ground, not having people there that can help you if something goes sideways or even people there that they can trust.
The intangible are the relationships that we have in those markets with the brokers and the property managers. I can look at something in Dallas on paper and call up some people that I know there and have a rent survey done within 24 hours, whereas in Florida, I get a call. Somebody I don't know. There’s tremendous amount of risk closure, I guess. It’s by just having some of those relationships.
Keith Weinhold:
When you’ve narrowed your focus, you’re just more, I guess, preview to and in tuned with the type of information. We talked about brokers in your relationships but also that type of information where you might learn that at large hospital campus is going to be breaking ground in a certain section of San Antonio and you know that’s going to be good for sustainable demand for renters that can pay incomes for many years so therefore that may increase the chances that you would want to buy a 500 unit complex in northeast of San Antonio or something like that for example?
Ken McElroy:
That’s exactly right. Versus at the same time in the hour, I met get a deal from Florida and it might look beautiful on the brochure and it’s on a lake in Orlando let’s say. I just don’t have the relationships there and of course there’s markets nuances too on one side. I was looking at a deal today in Austin whereas literally the interstate 35 on one side of the street has different rates than the other. Literally on one side of the interstate versus the other. Those little things can show up in every market. You have to know that information before you go in blindly.
Keith Weinhold:
As you’re analyzing markets, are there really, I guess any more broad demographic trends that you see coming in the near term future. You can want to skate to where the hockey puck is going. You want to FOCUS, F-O-C-U-S, Follow One Course Until Successful. What about demographic trends whether that’s people moving to low tech, states or people moving in the central business districts and downtowns? How does that influence what you buy? What are you looking at? What are you looking for? Where are we going to go?
Ken McElroy:
It influences a lot. I mean that’s the other part that I think it’s very fun because what happens a lot of times is people chase real estate because of the price. It’s way down the list for me at least. If you just look at, for example, I know we’ve talked before about seniors, there’s a huge number of seniors that are moving to their primary homes and moving in to rentals.
They want to have a little bit different lifestyle without that anchor on their home. You can track where they’re all going. Most of them are active. That’s one demographic. Another demographic is the millennials which are coming out of school right now perhaps or even maybe they already have or maybe they haven’t at all and they’re living at their home with their parents. That’s a huge number.
I’ve read it could as much as 25 million people living at home right now that are under the age of 25. That’s a renter demographic. You start to see these trends show up and really what generates, I think everything is jobs. Which markets are progressive and which ones aren’t. You start to look at cities, even counties that are shrinking and a lot of that has to do with tax and a lot of that has to do with jobs like … Obviously the one that gets used a lot is Detroit.
Detroit after the cars, manufacturing got outsourced or anything that’s based manufacturing is generally shrinking. Although that I think it’s starting to make some moves back the other way, now you’re starting to see all the tech popup, right? Austin is tech. Silicon Valley of course is all tech but there’s also little other areas that are all competing for tech right now and so those are all good things to watch. Once you figured that out, then the real estate, then you realize that there’s demand in a market, that’s how you invest. You don’t do the other way around and hope.
Keith Weinhold:
You don’t hope and you typically don’t start with a property either. You usually finish up with the property when you’re looking at invest it rather at analyzing a real estate market.
Ken McElroy:
Right. Hope is not a good strategy.
Keith Weinhold:
Never has been, never will be. We’re talking about demographic trends and where people are moving to and people need jobs and jobs produce incomes and that’s largely a residential base phenomenon we’re talking about there. Do you see any, I guess sectors within real estate that are good to exploit in the next five to 10 years other than residential whether that’s self-storage or mobile home parks or a luxury real estate or resort real estate or efficiency apartments for millennials? What’s a good place to focus on there to profit?
Ken McElroy:
The answer is yes on all those things. I’m actually in the process of looking at self-storages. We’re actually building one. We have some in Escrow. I’ve looked at mobile home parks. We have a lot of land. I’ve done condos. We’ve done single family. Primarily we’re known as apartment guys. I just bought an office building about six months ago in Scottsdale.
I’m looking at all kinds of things I guess is the point. Again. I don’t think you should be all in, in one sector but I think you should understand it. They all have different kinds of … They're all different. As an example, if you think about it, office buildings are in trouble right now because online retailing, online retail. Retailers are in trouble. If you look, there’s an article that came out in the national real estate investor magazine that talked about some very big stores are going out of business right now.
In Scottsdale here which is growing incredibly. We had Barneys go out of business in the last month which is at our big Scottsdale fashion mall and Barneys is a big national retailer. You start to look at these companies that are struggling with online retail. I don't know about you but my wife, we have more Amazon boxes showing up at our house from Nordstrom and all kinds of stuff. That’s how she shops now.
I think it’s common sense. If you start to look at those kinds of things, then you start to realize maybe I shouldn’t go into retail or malls. Malls are in trouble right now and office buildings are also potentially in trouble for that reason but not all office building. I bought an office building in Scottsdale and the sizes are 1,500 to 2,500 square feet and there’s like 20 tenants.
Their insurance agents, their CPAs, their lawyers and things like that that aren’t going to be affected at that level. People painting a broad brush and they say, “Oh, office buildings are bad or retail is bad or self-storage is bad,” but it’s not. You just have to look at where it is and is there an under demand or an over demand. I bought land five, six, years ago and everybody thought we were crazy but now that land has doubled in price.
We have the option now to sell it or build on it, both are good options and I’m not sure which we’re going to do. You just got to watch. When everybody is running to the hills, prices are going down, that’s when you want to start to take a look at those things but even then, it’s not necessarily always a good price and a good deal. You just got to be careful.
Keith Weinhold:
Yeah, that’s right. Just like the answer is to most real estate questions. It depends. The answer to most real estate questions is more than one sentence long.
Ken McElroy:
People really get frustrated with that answer and I get it. They want the answer. They want to know my situation is different. They all think that their situation is different. They want the quick answer. It can’t be that way. Just even in your community, in anchorage, you guys have gone through ups and downs in your own community for tourism and fishing and all that kind of stuff, and oil. I think as things happen in different communities around the country, you just got to pay attention to it and try to be in front of it.
Keith Weinhold:
That’s actually interesting when you’re a real estate investor, it just seems like at least one third of the USA Today articles you read, you can tie in to what you can do and what you can invest in yourself. That might be insider information in stocks but you can use every bit of that as a real estate investor.
Ken McElroy:
I think that is a great, great analogy. I actually did a seminar once where we opened up a newspaper in front of the room and we went through it. We said, this is how this article affects real estate. This is how this article affects real estate. This is how this article affects real estate whether it was a downsizing of an employer or an upsizing of an employer or a merger or in interest rates or bank closures or property openings or whatever. I’m telling you, you can open any business journal or any newspaper and most of the articles in there will have some kind of an influence on real estate.
Keith Weinhold:
I believe every bit of that could be true. Ken, by this point, you’ve really amassed so many books that have sold well. I mean you’ve really been one of the more I think prolific contributors to real estate investing education and financial education today. One of the ways you contributed is something I’m very familiar with because I’ve been a long time subscriber myself and that is your video series, Kenflix. Tell us about Kenflix.
Ken McElroy:
Thank you by the way. What happened is the books for me where not planned. Robert became one of my investors, Robert Kiyosaki and then he asked me to write some books on what I do. We donated all our money to charity for all our books. All the book sales all go to our nonprofit and then get distributed out to cystic fibrosis and autism and I think we have 25 charities that we support.
What was happening when the books came out, the emails and you can imagine we’re just pouring in. They’re all good people, really good people asking very good questions. There is just no way I could keep up on it. I mean literally my system will put them into a file and the problem was I would email somebody back. I tried to work this into my work and I just couldn’t.
I would email somebody back and then they have to two or three more questions back which is totally fine. I get it. What I started to do was just take all those questions and the do videos because it’s a lot easier. Also I found that a lot of questions were similar. Not all of them but a lot of them were very similar. The whole idea behind Kenflix was to … It still is. It’s entirely the questions and the videos that I have on there is information that I get from people asking questions. It’s not really something that I thought about it, it’s actually entirely driven by the questions that people have.
Keith Weinhold:
It’s nice. I don't know if they're giving you all the content but they’re giving you leads about the content that they want to hear about back. You’re ahead of me. I continue to get more and more questions mostly through email with Get Rich Education and I know I sure cannot respond to all of them and I feel a little bit bad sometimes but your videos are really well done.
I got to admit, sometimes I watch those videos, a lot of times you have a big easel and a big pad of paper or you’re demonstrating things. I get a couple of ideas from my show. I’m like, “Oh, I haven’t talked about that on my show yet and I really like the way Ken described that visually in the video so Kenflix is totally worth checking out.
Ken McElroy:
Thanks a lot. It’s been a lot fun. The other part that’s been great for me is for my time, we get all the emails from all the people and then we go through them and I’ll go into the studio for three or four hours and I’ll knock out maybe 15 of them. It’s just really nice to be able to accommodate what people want. Direct everybody in one location and also just to help.
Keith Weinhold:
Kenflix, that’s K-E-N-F-L-I-X.com or you can check out ken’s video series. That’s great. Ken, how can our listeners find out more about you?
Ken McElroy:
Either Kenfllix, K-E-N-F-L-I-X or KenMcElroy.com K-E-N M-C-E-L-R-O-Y or our company website is MC Companies, that's M-C-C-OM-P-A-N-I-E-S.com. We’re pretty efficient on getting back to people and happy to answer any questions we can.
Keith Weinhold:
Ken McElroy. Thanks for coming back on to Get Rich Education.
Ken McElroy:
Thank you, Keith. Great chatting again.
Keith Weinhold:
One of the more fun chats with Kenny there. Now, you understood this from earlier right. Now, let’s just say that you’re given $10 million. That’s your liability. You’ve just been given a job. Dealing with that $10 million is your problem. That doesn’t exactly feel like a problem to you. Say that you are the bank and you need to pay a depositor 1% interest on that $10 million, your problem is that now you’ve got to make $100,000 a year in interest payments on that. Therefore, you must, you absolutely must find an investment that pays more than 1% per year because you can’t dip into the $10 million principle.
As a bank, what you do is you go ahead and make a 4% interest rate loan to someone like a real estate investor like me to solve your problem. Now, your profit is the 4% interest rate loan that you made to me minus the 1% that you’re paying your depositor and the spread, that 3%, that's your arbitrage.
Annually, you're profiting 3% on that $10 million deposit. Now, you transfer the problem to me is what you’ve done because now, I need to pay the 4% interest rate over to you. What I do to solve my problem, I do what you, the bank just did. What I do is I go buy an apartment building with the $10 million that I got from you. That apartment building yields an 8% cap rate, we’ll just say, so 8% minus the 4% interest rate and now I have a 4% arbitrage myself so I beat the banks by doing exactly what banks do.
I borrow at a bank for a lower rate and invest it at a higher rate which I will do all day and you know, I’ve got to credit GRE listeners for doing the same thing. You, yes you are acting by purchasing cash flowing turnkey real estate. Turnkey means that you’re buying the property already tenanted, already renovated, already under management and typically warranted for you too. These properties should provide you with passive income from day one.
GRE listeners have scooped up dozens of homes from that extraordinary provider, Mid South Home Buyers in Memphis, Tennessee. That’s it. midsouthhomebuyers.com and for more opportunities in markets outside Memphis GRE listeners are subscribing to our newsletter at getricheducation.com.
You have been an action taker by purchasing properties through the webinar link that we send out in our newsletter. You’ve been buying turnkeys in Philadelphia, Chicago, Kansas City and Indianapolis. With those free newsletters, I only have a webinar link sent out every one to two months. I don’t blow up anyone’s inbox with too many newsletters, I only send out information on opportunities when I feel like I have something of real value to provide to you.
Subscribe to that free newsletter yourself simply by visiting getricheducation.com. Special thanks to Rich Dad advisor, Ken McElroy today. Sincere thanks to you for joining me today. Next week, you’re going to meet a real estate entrepreneur and she has such a fantastic creative system for increasing her cash flow on her buy and hold real estate that I just had to bring it to you because you can use the same technique too. Until then, you might quit your day job but don’t quit your day dream.
Speaker 7:
You’ve been listening to Get Rich Education. Telling you what the wealthy won’t tell you about real estate and investing. If you enjoy the show, please take a minute to visit iTunes and leave your comments.
Speaker 8:
Nothing on this show should be considered specific, personal or professional advice. Please consult an appropriate tax legal real estate financial or business professional for individualized advice. Opinions of guests are their own. Information is not guaranteed. All investment strategies have a potential for profit or loss. The host is operating on behalf of Get Rich Education LLC exclusively.
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Sherkica Miller-McIntyre is on a mission to make real estate investing for women not only a possibility but a reality in real life. She has come to realize that when a person rents a property they are helping other people purchase their house when they could be building an opportunity and a legacy for themselves and their own family. In this conversation, you’re going to hear how Sherkica is working to help women think down their generational line to see how their path toward home ownership and real estate investing can change things long-term. It’s a great conversation that could change your family’s future, so be sure you take the time to listen.
She didn’t qualify to buy a home, but she purchased a home anyway.Every one of us has a story and how it turns out is up to us. Sherkica Miller-McIntyre was in a place where home ownership didn’t seem possible. In fact, she’d been told by an "expert" that she didn’t qualify for a home loan. But she didn’t give up. When she heard about a real estate seminar that was teaching about the possibility of home ownership she decided to attend and learned additional information that made it possible for her to purchase her own home in spite of what she’d been told. She went on to become a real estate agent and now helps women purchase their own home and even invest in real estate for long term gains. You’ll enjoy this conversation, so make some time to listen and learn.
No matter the hurdles, there is a path to getting past them and start investing in real estate.There’s no doubt that whatever you want to do, there will be obstacles you will have to overcome. But be careful. Too many women allow the obstacles to dictate their outcome. They lose sight of their dreams and stop working toward them, simply because they believe the obstacles are too big. Sherkica Miller-McIntyre says that no matter the obstacles in your path, there is a way around them - but you have to want to get past them. In this conversation, she shares the steps you can take to identify the obstacles you face and make a plan to overcome them. It’s an inspiring conversation so don’t miss it!
Sherkica’s mission is to make real estate investing possible for women. It's time for you to get started!Many of us shrink back when we think about buying a home. To go beyond that and think about the possibility of owning investment properties as well… that’s more than many of us can even conceive. But Sherkica Miller-McIntyre specializes in helping women invest in real estate, beginning with the purchase of their own home. She believes that home ownership is possible for anyone and serves as a coach and guide to walk with you every step of that journey. What are you waiting for? What is holding you back? Sherkica offers a free strategy session in this conversation so don’t miss the opportunity to get moving toward a better future.
Your investing goals could be closer than you think. But you won’t know until you take a look.When Rosetta asked her guest, Sherkica Miller-McIntyre for the first steps any woman can take to begin moving toward home ownership and/or real estate investing, she said that the very first step is to understand where you are, where you’re going, and the facts about what stands in your way. It requires hard work and an honest look at your situation, but it’s the only way to know for sure what you need to do to move your life in a different direction. Sherkica’s practical help and insight flow from her experience in helping many women move from being renters to homeowners, and beyond. You can’t miss this conversation. Sherkica shares how you can set the stage for a legacy of home ownership for your family for years to come.
Outline of this great episode [0:29] Rosetta’s juicy introduction to Sherkica Miler-McIntyre, real estate diva. [3:03] How Sherkica was introduced to property ownership and real estate investments. [8:39] Tips for first-timers in the real estate realm: what does it really take to get started? [14:10] Getting past credit problems to make the path to real estate investing possible. [20:33] Sherkica’s world: how she stays focused and productive. [25:21] Why are your goals important to you? It’s important to know the answer. [31:19] Sherkica’s advice for women who are just starting on the entrepreneurial journey. Resources & Links mentioned in this episode www.divasdoingrealestate.com Get Sherkica’s free gift: Schedule your complimentary Dream Session with Sherkica to discover how Divas Doing Real Estate Consulting shall assist you in achieving your Real Estate goals. https://calendly.com/divasdoingrealestate/dream-session-with-hbw BOOK: When a Women Lets Go of the Lies About Sherkica Miller-McIntyreSherkica Miller-McIntyre, a licensed Realtor in North and South Carolina and has successfully owned and operated a real estate and property management firm for 12 years. However, Sherkica not only assists clients with brokerage services, she passionately focuses on educating clients on credit, budget and savings, how to build, maintain and grow wealth through real estate; and, vigorously promotes the benefits of a career within real estate. The goal for Sherkica is to source the root of clients’ doubt in pursuing their real estate goals, then solidly reinforce the idea that freedom from debt, understanding of how credit works and can be used to build wealth, learning to operate on a balanced budget, and income generation provides avenues of life less traveled by most, in particular, women. Sherkica’s ideology is to create a shift in mindsets and self perception, and by doing so women will begin to break generational financial bondage, build their personal legacies and strengthen the communities in which they reside. Through one-on-one coaching, motivational techniques and continued accountability, clients receive personalized “pathways” to their real estate goal, focused on financial, credit, savings, investing and budgeting needs. Sherkica is married to an awesome husband, has four amazing children and a “grandma” to a beautiful Alaskan Husky. She loves to travel, spend time with family and has recently found a new passion in adult coloring books.
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Listen to audiobook in full for free on http://hotaudiobook.com/free Title: Commercial Real Estate InvestingSubtitle: The Ultimate Beginner's Guide to Learn How to Invest in Commercial Real Estate and Build Your Real Estate EmpireAuthor: Mark ThomasNarrator: Robert BarbereFormat: UnabridgedLength: 55 minsLanguage: EnglishRelease date: 10-11-16Publisher: Impact PublishingRatings: 4 of 5 out of 67 votesGenres: Business, Personal Finance & InvestingPublisher's Summary:Discover the ultimate beginner's guide to learn how to invest in commercial real estate and build your real estate empire. Then be able to achieve financial freedom and live the life of your dreams!Real estate has been in existence since people have decided that living in caves was no longer an option. However, most progress in real estate has probably happened in the last two centuries or so with the invention of the elevator. Elevators made it possible for real estate to include high-rise office buildings, multiple-floor residential apartment houses, and shopping malls.Investing in commercial real estate is very different from dealing with residential properties. Oftentimes commercial real estate deals require very little or even no capital. While commercial estate can be very risky, it can also be very safe because of a number of things you can do with commercial buildings that you can't do with residential dwellings. We will discuss all these differences and strategies later on in this book.Most people think that investing in commercial real estate is very similar to dealing with residential properties with the only differences being that that the money amounts are larger and contracts are longer. The reality is completely different.There are a lot of distinctions between commercial and residential real estate when it comes to legal, practical and operational aspects.Investing in commercial real estate is a great way to build wealth. The reason why commercial estate is a great vehicle for generating wealth can be explained in one word. This word is leverage. Leverage when applied to commercial real estate means that your returns from your commercial real estate investments can be much bigger than the time and effort you put into this business. Commercial properties are usually much more valuable than residential real estate such as apartments, condos or houses.Contact me for any questions: [email protected]
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#185: You learn how to market your property well. You will have more interested renters and buyers, better quality clientele, and more and better offers. Curb appeal, photography discussed.
We discuss what makes a good turnkey RE investing provider, including how some property managers want your tenant to turn over so that they receive more leasing fees!
Today’s guest owns a company that builds and provides new construction turnkey RE, which is why they have available inventory today. (Yes, really: today.) I recently visited their offices.
Many managers don’t want to sign tenants to two and three-year leases because: 1) It’s easier to find tenants that sign one-year leases. 2) Managers get fewer leasing fees. Learn why today’s provider doesn’t do that.
We discuss cash flow, rates of return and appreciation rates in Jacksonville, Florida.
Want more wealth?
1) Grab my free E-book and Newsletter at: GetRichEducation.com/Book
2) Actionable turnkey real estate investing opportunity: GREturnkey.com
3) Read my new, best-selling paperback: getbook.at/7moneymyths
Listen to this week’s show and learn:
00:47 A well-marketed property means you have more interested renters and buyers.
03:16 Real estate photography.
08:53 Florida turnkey real estate.
12:30 The strength of the team.
16:23 New construction turnkey.
20:48 Tenant leases of 2 to 3 years duration.
26:46 Why property managers have an incentive to turn over tenancies.
29:38 Sales price $160K-$200K. Average: $1,350 rent, $180,000 purchase price (0.75% RV ratio).
32:26 Appreciation rates.
35:25 Future of rents and prices.
Resources Mentioned:
New Construction Turnkeys: GetRichEducation.com/Jax
Mortgage Loans: RidgeLendingGroup.com
Cash Flow Banking: ProducersWealth.com
Apartment Investor Mastery: BradSumrok.com
Find Properties: GREturnkey.com
GRE Book: 7 Money Myths
Education: GetRichEducation.com
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#180: Stop looking at properties. (What?) I discuss.
Are you in real estate for appreciation, cash flow, or something else?
If you focus on cash flow, does that mean less appreciation, and vice versa?
We discuss when a market becomes "too hot to buy for cash flow” any longer.
The Midwest has more affordable property and better cash flow but less recession resilience.
Dallas-Fort Worth keeps showing appreciation potential, but cash flow is drying up.
When a market heats up, rents don’t “keep up” proportionally to a property’s market value.
We also discuss low appraisals. Appraisals are what the bank uses to verify the quality of their collateral.
Want more wealth?
1) Grab my free E-book and Newsletter at: GetRichEducation.com/Book
2) Actionable turnkey real estate investing opportunity: GREturnkey.com
3) Read my new, best-selling paperback: getbook.at/7moneymyths
Listen to this week’s show and learn:
00:54 Stop looking at properties. (What?)
03:36 The importance of cash flow, appreciation.
07:07 The Midwest: more affordable housing, better cash flow, but less recession resilience.
08:52 Dallas-Fort Worth’s appreciation.
11:00 When a market becomes too hot.
14:48 “Lump Sum Cash Flow” defined.
16:23 With 5:1 leverage and 6% appreciation, $100K becomes $300K in five years.
18:22 Blended portfolio.
21:10 Median rent income vs. median housing value.
25:17 Why low appraisals can occur.
Resources Mentioned:
Dallas property: GetRichEducation.com/Dallas
Kansas City property: GetRichEducation.com/KC
St. Louis property: GetRichEducation.com/StLouis
GRE Book: 7 Money Myths
Mortgage Loans: RidgeLendingGroup.com
Cash Flow Banking: ValhallaWealth.com
Find Properties: GREturnkey.com
Education: GetRichEducation.com
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#173: Don’t move to a low-tax state; let your tenant do it. Quit investing only for the long-term. I explain both.
Alabama is the #1 state for per capita foreign direct investment. We discuss turnkey real estate investing in Birmingham, Alabama.
A revival is taking place in Birmingham amidst economically diverse business sectors.
Long-term tenant retention occurs in Birmingham submarkets due to: 2-year leases, tenant-owned appliances, more.
When you purchase a turnkey property, you’re also “purchasing” a tenant and their income stream. We discuss.
It takes about $24K-$25K to “get into” this market with down payment and closing costs on a turnkey single-family home.
We also discuss how a real estate investor gets started: lender pre-approval, writing an offer, inspection, appraisal, etc.
Learn more and find Birmingham property at GetRichEducation.com/Birmingham.
I bring you today’s show from Orlando, Florida.
Want more wealth?
1) Grab my free E-book and Newsletter at: GetRichEducation.com/Book
2) Actionable turnkey real estate investing opportunity: GREturnkey.com
3) Read my new, best-selling paperback: getbook.at/7moneymyths
Listen to this week’s show and learn:
01:14 Don’t move to a low-tax state. Quit investing only for the long-term.
06:14 Thriving Alabama and the revitalization of Birmingham.
10:00 Downtown Birmingham.
16:05 Primary market drivers in Birmingham: medical, automotive, Amazon sortation, education.
18:46 Neighborhood selection.
21:10 B-Class properties $80K to $125K. $1,000 rent on $104K property.
22:22 Tenant retention.
26:12 Property upgrades.
30:20 Tenant qualification.
32:38 Same rehabilitation company and management company.
36:00 City inspectors.
38:26 How you get started: lender pre-approval, writing an offer, inspection, appraisal, etc.
Resources Mentioned:
GetRichEducation.com/Birmingham
RidgeLendingGroup.com
ValhallaWealth.com
GREturnkey.com
GetRichEducation.com
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#169: If you want profit, your real estate’s rent income-to-purchase price ratio matters most. I reveal the top five cities for this vital ratio.
I discuss how the media often gets real estate investing wrong. I talk about how to handle your relationship with your Property Manager.
Renters have conventionally been young, single, less educated, and low to middle income. You’ll learn about how quickly this is changing. When did renters get so old?
Of all product types, more renters are demanding to rent single-family homes rather than other product types.
Later, Get Rich Education listener Jacob Ayers stops by to chat with me. He hosts The Real Estate Way To Wealth And Freedom podcast. GRE is the first podcast that Jacob ever heard; now he’s on the show.
Want more wealth?
1) Grab my free E-book and Newsletter at: GetRichEducation.com/Book
2) Actionable turnkey real estate investing opportunity: GREturnkey.com
3) Read my new, best-selling paperback: getbook.at/7moneymyths
Listen to this week’s show and learn:
01:04 Top 5 cities with the best ratio of rent income-to-purchase price.
05:03 How the media gets real estate investing wrong.
06:50 Your Property Manager.
11:28 Tenant demographics.
13:26 Surging rental demand for single-family homes.
17:58 I’m soon going on a Florida real estate tour.
21:16 GRE Listener Jacob Ayers chat begins.
23:59 Following money vs. making money follow you.
25:25 Jacob’s first rental property cost just $25,000 in western Oklahoma.
28:33 Jacob’s first mistake involved tenant screening.
30:57 Tips for RE investors with a full-time job.
32:25 Jacob encourages you to get started.
35:47 Live where you want; invest where the numbers make sense.
37:33 Jacob now hosts his own podcast.
Resources Mentioned:
Article: Best Markets For RE Investors
Article: Should You Rent Or Buy Your Home?
JacobAyers.com
Podcast: The Real Estate Way To Wealth And Freedom
RidgeLendingGroup.com
ValhallaWealth.com
GREturnkey.com
GetRichEducation.com
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#159: Negotiation is a substantial part of real estate and investing. We discuss exactly what you do when the tenant wants to pay the rent late.
I tell you exactly how I negotiated the price and terms on the very home that I live in today!
Then our guest, Kwame Christian, Founder of the American Negotiation Institute joins us. He defines negotiation as “A conversation where somebody wants something.”
Three uses of negotiation: 1) Use offensively. 2) Use defensively. 3) Strengthening relationships.
We discuss how you negotiate in a way where you keep a strong relationship with the other party, rather than alienate them.
We talk about how to motivate your Property Manager to work hard on your behalf.
In negotiation, let other party speak first. Let them make the first offer, except when you have more information. We discuss midpoint negotiation.
“Anchoring” is an important part of negotiation psychology. This can help you get a better deal.
Kwame and I discuss what people will pay what an item is worth to them, not you. But what about sentimental value and sunk cost?
In a real estate sellers’ market, should you ask for more than you expect, or only what you expect?
Learn about the negotiation techniques of “log rolling”, multiple offers, and “always get the last concession”.
We discuss introverts and negotiation. Negotiation is a learned skill; it is not innate.
Learn exactly what to do to become a better negotiator in just the next 24 hours.
In negotiation, where do ego and emotion fit in?
Want more wealth?
1) Grab my free E-book and Newsletter at: GetRichEducation.com
2) Actionable turnkey real estate investing opportunity: GREturnkey.com
3) Read my new, best-selling paperback: GetRichEducation.com/Book
Listen to this week’s show and learn:
01:22 Negotiation technique for a late-paying tenant: say these 7 magic words.
03:38 How I negotiated the price and terms on the exact home that I still live in today!
08:49 Kwame Christian interview begins.
10:01 Definition of negotiation.
11:38 Three uses of negotiation: 1) Use offensively. 2) Use defensively. 3) Strengthening relationships.
13:48 How to motivate your Property Manager to work hard on your behalf.
16:40 Let the other party speak first.
19:00 Midpoint negotiation. The psychological principle of “anchoring”.
25:19 People will pay what an item is worth to them, not you.
27:18 Sentimental attachments and sunk cost.
29:50 In a real estate sellers’ market, should you ask for more than you expect, or exactly what you expect?
31:33 Negotiation technique of “log rolling” (presenting a seller with multiple offers).
32:43 Always get the last concession.
34:55 Don’t be a “nibbler”.
36:11 Introverts and negotiation.
38:49 Negotiation is a learned skill; it is not innate.
40:30 Do this in the next 24 hours in order to be a better negotiator.
45:08 Ego and emotion in negotiation.
46:19 Hotel room negotiation technique.
Resources Mentioned:
Negotiate Anything podcast
Negotiation Guide
RidgeLendingGroup.com
MidSouthHomeBuyers.com
GetRichEducation.com
GREturnkey.com
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Wealth is not an accident, it’s a choice. And on today’s powerful episode of The BiggerPockets Podcast, you’ll learn exactly how to make that choice each and every day. We’re excited to bring back two return guests, Hal Elrod and David Osborn, to talk about the choices that wealthy people make to ensure they stay focused on reaching their goals. You’ll hear about Hal’s recent battle with cancer and the mindset that allowed him to overcome the odds and live. You’ll discover how your diet can make you wealthy and how to command your day from the moment you wake—even if you aren’t a morning person. And you’ll discover the powerful concept of having an “air game” in addition to your “ground game”—and how understanding the distinction can make you wealthier than you have ever dreamed. Packed with wisdom, humor, and incredible insight, this show will leave you pumped up and ready to choose wealth.
In This Episode We Cover:
Hal’s cancer survival story and the Miracle Morning movie
David’s latest updates
What their miracle mornings look like
How Miracle Morning for Millionaires came to be
Overcoming the “but I’m not a morning person” objection
How to own your agenda
Choosing to be wealthy
How to find the right group of people
The thing that’s more effective than work ethic
Tips on self leadership
How to develop unwavering focus
And SO much more!
Links from the Show
BiggerPockets Forums
BiggerPockets Podcast 157: A Simple Morning Ritual to Help You Dominate Every Area of Your Life with Hal Elrod
BiggerPockets Podcast 226: From “D-Student” to $400,000 in Annual Rental Property Cash Flow with David Osborn
BiggerPockets Webinars
Illuminate Film Festival
Why I Don’t Want To Get Rich (And Why You Shouldn’t Either) (Article)
GoBundance
Books Mentioned in this Show
The Miracle Morning by Hal Elrod
Miracle Morning Millionaires by Hal Elrod, David Osborn & Honoree Corder
Secrets of the Millionaire Mind by T. Harv Eker
Rich Dad Poor Dad by Robert T. Kiyosaki
Rich Dad’s CASHFLOW Quadrant by Robert T. Kiyosaki
Wealth Can’t Wait by David Osborn
Tweetable Topics:
“It’s not about overthinking things. It’s about finding things that work and putting them into action quickly.” (Tweet This!)
“There’s no way you win in life without having your agenda and being purposeful towards your agenda.” (Tweet This!)
“The economic downturn was my lucky break.” (Tweet This!)
“Work ethic is not enough.” (Tweet This!)
Connect with Hal and David
The Miracle Morning Website
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Are you ready to jump into real estate investing, but don’t believe you can find deals in today’s hot market? In this episode, we sit down with multifamily expert Andrew Cushman, who’s actively doing deals in today’s market — and turning big profits. In this show, Andrew explains how he’s finding deals, what metrics he uses to qualify them, where he’s buying today, and what his secret tricks are for finding the “overlooked opportunities” most investors miss — including how he found an amazing deal in the “trash can” for bad deals!
You’ll love hearing how Andrew creates millions of dollars in equity and builds relationships with deal-finders so that they bring him the best deals first. Be sure to download this episode and share it with your friends, so you, too, can master the secrets that the pros are using to snag killer deals!
In This Episode We Cover:
Andrew’s backstory
How to make deals rather than find them
The ABCD neighborhoods — what are they?
What specific properties Andrew is looking for
His effective screening criteria for finding properties
An in-depth story on one deal
Net operating income (NOI)
Understanding how properties are valued
Challenges Andrew faced over the years
Finding great contractors
Andrew’s many rental property units
And SO much more!
Links from the Show
BiggerPockets Forums
BiggerPockets Money Podcast
BiggerPockets Podcast 170: The Journey From Flipping Houses to Owning 1,470 Units with Andrew Cushman
City Data
Rich Blocks Poor Blocks
Trulia
USA.com
Loopnet
BiggerPockets Podcast 052: Buying Apartment Complexes, Raising Millions, and Building a Profitable Business with Ken McElroy
BiggerPockets Podcast 226: From “D-Student” to $400,000 in Annual Rental Property Cash Flow with David Osborn
Gobundance
Books Mentioned in this Show
The ABCs of Real Estate Investing by Ken McElroy
David Greene’s Long Distance Real Estate Investing
Emerging Real Estate Markets by David Lindahl
How to Win Friends & Influence People by
Fire Round Questions
Help! 1 million dollars to invest! What do i do!?
30 yr or 15 yr mortgage?
Go Solo OR with a big Multifamily investor
Tweetable Topics:
“The person who wants it the most, loses.” (Tweet This!)
“You can completely destroy an investment with the wrong people managing it.” (Tweet This!)
“Don’t wait to buy Real estate. Instead, buy real estate and wait.” (Tweet This!)
“The best way to spot a great deal is to look at 99 bad ones.” (Tweet This!)
Connect with Andrew
Andrew’s BiggerPockets Profile
Andrew’s Linkedin Profile
Andrew’s Company Website
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Here on the BiggerPockets Podcast, we spend a lot of time talking about buying properties—but what about needing to sell them? How does someone get top dollar and get their home sold quickly? Well, today on the podcast, we’re excited to dive deep into this topic with Mindy Jensen, the Community Manager at BiggerPockets and author of the newest book from BiggerPockets, How to Sell Your Home. You might know some of these tips—but others might just blow your mind (and make you thousands next time you sell a property), so grab a pencil and paper and get ready to take some notes!
In This Episode We Cover:
Mindy’s story
How to pay zero dollars in capital gain taxes
The tax exemptions involved with getting married
What exactly a live-in flip is
16 ways to sell your property:
Have a pre-listing home inspection
Clean up your home
Doesn’t pass the sniff test
Great Pictures of your house
Be available
Be informative
Know your competition
Use an agent
Ask your agent
Price it right
List in Peak market time
Double check your listing information
Stage those weird areas that don’t have an obvious use
Leave during your showing
Be prepared to walk away from an offer
Tell everyone you know that your house is for sale
Why Mindy wrote the book
Bonuses!
And SO much more!
Links from the Show
BiggerPockets Forums
BiggerPockets Money Podcast
Email Support
How to Buy Your First (or Next) Property by the End of the Year [The 90-Day Challenge!] (podcast)
What I learned buying a house (blog)
Books Mentioned in this Show
How to Sell Your Home by Mindy Jensen
Rich Dad Poor Dad by Robert Kiyosaki
Long Distance Investing by David Greene
Set for Life by Scott Trench
The Book on Rental Property Investing by Brandon Turner
The Millionaire Real Estate Investor by Gary Keller
The Richest Man in Babylon by George S. Clason
Fire Round Questions
After taking initiative, landing the deal, and successfully completing renovations, how can you be sure your property is going to sell?
Selling home with no agents
How do people work on the timing of selling and buying a home?
Selling challenge
Tweetable Topics:
“Try not to sell a house with a tenant in it.” (Tweet This!)
“Home inspection is totally worth the dollars.” (Tweet This!)
Connect with Mindy
Mindy’s BiggerPockets Profile
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One of the most impactful moments for most real estate investors is meeting a “mentor,” someone older and wiser who can share with them the lessons they’ve learned. That’s exactly what today’s episode of The BiggerPockets Podcast is! Mike Anderson has invested in real estate for over 60 years, doing everything from buying 200 houses per month to owning a mortgage business to storage units and more. On today’s show, he dives into his story and the lessons he’s learned over the past half-century and offers insight and wisdom that newer investors need to hear. This conversation is fun, fast-paced, and filled with knowledge, so hang on for a wild ride!In This Episode We Cover:The story of buying a house for $3,250 (55 years ago)How to buy and sell 200 houses a monthWhat he’s learned about people buying housesWhy you should buy rentals in school districtsA discussion on cash flow vs. appreciationThe concept of “dialing for dollars“Why it’s all a number’s gameThings to note when buying from wholesalersThe usual problems with investorsWhere to get the money for dealsWhy perseverance is keyHow to hire the right peopleHow to continue buying 10 or more houses (and get bank financing)Why he’s concerned about the futureAnd SO much more!Links from the ShowBiggerPockets ForumsBiggerPockets Money PodcastBiggerPockets Podcast 221: Buy and Hold Real Estate—What Works and What Doesn’t with Tim ShinerBiggerPockets Podcast 242: How to Live an Incredible Life Now & Achieve Early Retirement with Josh RandallBiggerPockets Podcast 258: Six-Figure House Flipping with Gabe DaSilvaCraigsListBooks Mentioned in this ShowRich Dad Poor Dad by Robert KiyosakiTweetable Topics:“The essential thing to make money is hard work.” (Tweet This!)“Don’t worry about commissions; worry about your customers.” (Tweet This!)“How are you going to buy real estate if you don’t know what your goal is?” (Tweet This!)“It doesn’t cause cancer to call people on the phone.” (Tweet This!)Connect with MikeMike’s Company WebsiteMike’s Facebook ProfileMike’s Twitter Profile Learn more about your ad choices. Visit megaphone.fm/adchoices
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Investing outside of your local market can strike fear into the hearts of even the most savvy real estate investor. But long-distance investing doesn’t need to be extra risky! In fact, today’s guest argues that it might just be the most profitable investing you’ll ever do. Today’s guest, David Greene, a San Francisco real estate investor and agent, shares his incredible process for finding, rehabbing, and managing properties from thousands of miles away. His approach to building a “Core Four” is nothing short of genius and will transform how you run your real estate business, whether you are buying next door or 49 states away. This is one show that could change your real estate strategy forever!
In This Episode We Cover:
What David’s been up to since the last time he was in the show
How to find the right people to help you find the right properties
How to seek out top-notch lenders
Tips for offering value to people hundreds of miles away
A discussion on whether newbies can invest long distance
The “Core 4” team members you’ll need when investing in real estate out-of-state
David’s thoughts on turnkey companies
How to overcome the fear of trusting someone you work with
All about David Greene’s new book!
And SO much more!
Links from the Show
BiggerPockets Forums
BiggerPockets Podcast 169: Using Hustle and Persistence to Build Wealth Through Real Estate with David Greene
BiggerPockets Podcast 254: Tim Ferriss on Real Estate, Becoming a Top Performer and His Tribe of Mentors
Long-Distance Real Estate Investing by David Greene
Home on Discovery Bay, CA (House Hunter Episode with David Greene)
Rentometer
BiggerPockets Analysis
BiggerPockets Podcast 248: From Shop Teacher to Multifamily Syndicator with Todd Dexheimer
BiggerPockets Podcast 227: From Single Family Houses to $130,000,000 in Multifamily with Joe Fairless
BiggerPockets Podcast 234: Tenants, Evictions, & The Dark Side of No Money Down with Ryan Murdock
Books Mentioned in this Show
A Curious Mind by Brian Grazer
The ONE thing by Gary Keller and Jay Papasan
The 4-Hour Workweek Tim Ferriss
The Millionaire Real Estate Agent by Gary Keller
The Richest Man in Babylon by George S Clason
Principles by Ray Dalio
Fire Round Questions
Out of town financing
From NYC to out of state investing Help
How does investing out of state impact your tax status?
Out of state smaller properties?
How important is it to have an in-state CPA?
Tweetable Topics:
“I’m putting a dream team together that runs on autopilot.” (Tweet This!)
“The market itself is not quite as important as the success you’ll likely have in that market.” (Tweet This!)
“It’s only risky if you’re lazy.” (Tweet This!)
“You’re not going to make money right away when you start first doing anything new. It’s only going to be what you learn that will make money later.” (Tweet This!)
Connect with David
David’s BiggerPockets Profile
David’s Facebook Profile
David’s Company Website
David’s Personal Website
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Today’s guest needs no introduction, but this would look funny without one, so here we go! Today on The BiggerPockets Podcast, we sit down with Tim Ferriss, author of #1 New York Times Bestseller The Four Hour Work Week and his newest title, Tribe of Mentors and dive DEEP into the patterns that make high achievers accomplish so much. This show is unlike any other episode of our podcast, and we can’t guarantee you’ll be the same person when you finish. You’ll also discover Tim’s unique approach to real estate investing, as well as the books, apps, and routines that has made Tim one of the most influential thought leaders in our world today.
In This Episode We Cover:
How the gang connected with Tim
Whether his mom would be impressed by his accomplishments
Why he walks to the beat of his own drum
His recent “silent” retreat
The value of meditation
What you should know about self-awareness training
The ins and outs of the book Tribe of Mentors
Patterns that are common amongst high achievers
The importance of turning off distractions
Principles to live your life by
How to be truly effective
Tips for using money to buy time
The 3 advantages that you can have in any type of investing
How Tim Ferriss invests
What a good investment entails
Indicators of a solid property
How Tim would analyze real estate
The fundamental differences in real estate as an asset class
The “worthlessness” of hard work
How to balance ambition and being contented
And SO much more!
Links from the Show
BiggerPockets Forums
BiggerPockets Bookstore
Duolingo
Alibaba
BP Podcast 213: Investing in Real Estate Without Being a Landlord with Noah Kagan
BP Podcast 245: Creating Wealth that Lasts Generations with Bestselling Author Ryan Holiday
The Summit Conference
Headspace
Tim Ferriss Show: Jocko Willink’s Episode
Tim Ferriss Show: Jamie Foxx Episode
Nuzzel
Moment App
Rescue Time App
Freedom Time App
Fiverr
Tim Ferriss: BJ Miller’s Episode
99Designs
Duodie on Instagram
Books Mentioned in this Show
Set for Life by Scott Trench
The Book on Rental Property Investing by Brandon Turner
The Book on Tax Strategies for the Savvy Real Estate Investor by Amanda Han
The Book on Flipping Houses by J. Scott
Finding and Funding Great Deals by Anson Young
The 4-Hour Work Week by Timothy Ferriss
The 4 Hour Body by Timothy Ferriss
The 4-Hour Chef by Timothy Ferriss
Tools of Titans by Timothy Ferriss
Tribe of Mentors by Timothy Ferriss
Young Millionaires by Rieva Lesonsky
Man’s Search for Meaning by Viktor Frankl
Poor Charlie’s Almanack by Charles T. Munger
The Better Angels of our Nature by Steven Pinker
Principles by Ray Dalio
Warren Buffett Speaks by Janet Lowe
Richest Man in Babylon by
The Radical Acceptance by Tara Brock
Berkshire Hathaway Letters to Shareholders
More Money Than God by Sebastian Mallaby
Liar’s Poker by Michael Lewis
Lifeonaire by Steve Cook
Rich Dad Poor Dad by Robert Kiyosaki
Tweetable Topics:
“I don’t like having my sanity depend on luck.” (Tweet This!)
“When you’re not thinking of the past, you’re not thinking of the future.” (Tweet This!)
“It’s not that you don’t have time, it’s you don’t have priorities.” (Tweet This!)
“It’s not how you do things, it’s what you do.” (Tweet This!)
“Effectiveness over efficiency on all things.” (Tweet This!)
“Thinking is actually asking questions and answering them in your own head.” (Tweet This!)
“There’s no problem with hard work, as long as it applies to the right things.” (Tweet This!)
“In the end, success is sleeping well.” (Tweet This!)
“Worrying is praying for what you don’t want.” (Tweet This!)
“It’s very hard to fail completely.” (Tweet This!)
Connect with Tim
Tim’s Website and Podcast Page
Tribe of Mentors
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Are you in this business to make a quick buck—or are you looking to build generational wealth for you and your family? If the latter is true for you, don’t miss a moment of this powerful show with bestselling author Ryan Holiday.
Ryan, best known for his books, such as The Obstacle Is the Way: The Timeless Art of Turning Trials into TriumphA, Trust Me, I’m Lying: Confessions of a Media Manipulatorr, Ego Is the Enemye, and Perennial Seller: The Art of Making and Marketing Work that Lasts , is also a part-time real estate investor and lender.
In this show, we cover a large variety of topics including hard money lending, vacation rentals, writing books, how the awareness of death can make life better, stoicism, and much, much more.
In This Episode We Cover:
Ryan’s background
The importance of learning from other people
His experience as Director of Marketing for American Apparel
Tips on looking for a mentor
His first real estate adventure
His thoughts on Airbnb
How he gets leads for loans
How to do what you love through passive income
The story behind The Obstacle is the Way
How to react to economy collapse
Advice to investors who only see the obstacle
How to control your ego
Why you should do the right thing despite not sharing it
And SO much more!
Links from the Show
BiggerPockets Forums
BiggerPockets Facebook
BiggerPockets Books
BiggerPockets Webinar
Josh’s Instagram Profile
Brandon’s Instagram Profile
Derek Sivers
Books Mentioned in this Show
Set for Life by Scott Trench
Finding and Funding Great Deals by Anson Young
The Obstacle Is the Way by Ryan Holiday
Trust Me, I’m Lying by Ryan Holiday
Ego is the Enemy by Ryan Holiday
Perennial Seller by Ryan Holiday
The 48 Laws of Power by Robert Greene
Cashflow Quadrant by Robert Kiyosaki
Rich Dad Poor Dad By Robert Kiyosaki
The Millionaire Next Door by Thomas J. Stanley
Fooled by Randomness by Nicholas Taleb
The Black Swan by Nicholas Taleb
Antifragile by Nicholas Taleb
Billion Dollar Lessons by Paul B. Carroll & Chunka Mui
Fire Round Questions
Best Way to Invest a Large Lump Sum of Money ($100-$300K)?
Tweetable Topics:
“Any fool can learn by experience. I prefer to learn by the experience of others.” (Tweet This!)
“Every single business is hiring if you can help them make more than you cost.” (Tweet This!)
“A mentorship is not a destination, it’s a process that ensues.” (Tweet This!)
Connect with Ryan
Ryan’s Instagram Profile
Ryan’s Website
Daily Stoic
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Is it possible to invest in real estate if you live in an expensive market—and earn a teacher’s salary? According to today’s guest, it’s not only possible, but it can be incredibly profitable!
Today’s guest, Michael Swan, is a P.E. teacher who lives in San Diego but has used the valuable real estate concept known as “trading up” to acquire millions of dollars in real estate. You’ll learn why Michael liquidated his entire retirement plan to buy his first few deals, the truth about “luck” and real estate, and some fantastic tips for buying and managing properties—even from a distance. (And if you work a full-time job or make less than $100,000 per year, this show might just change your life!)
In This Episode We Cover:
Why Michael’s nickname is Swanny
How he realized his financial ladder was leaning on the wrong building
Tips for utilizing IRAs and penalties
Whether purchasing 11 condos is a good idea or not
The story of the 15-unit apartment complex
How he went from $5k in cash flow to $24k
Whether luck had to do with his great deals
Tips for buying areas in with both cash flow and appreciation
His formula for financial freedom (using multifamilies)
A discussion on single families versus multifamilies
How to find deals in your market
Tips for seeking out the perfect property manager
How many units he has now
How to tackle big projects
How he manages his work with his time as a teacher
And SO much more!
Links from the Show
BiggerPockets Forums
Zillow
Craigslist
Books Mentioned in this Show
Rich Dad Poor Dad by Robert Kiyosaki
Multi-Family Millions by David Lindahl
Loopholes of Real Estate by Garrett Sutton
The 7 Habits of Highly Effective by Stephen Covey
Think and Grow Rich by Napoleon Hill
The 10X Rule by Grant Cardone
Fire Round Questions
What strategies do you use to find the “right” property manager?
Is a skunk in the yard my responsibility?
Apartment bedrooms 2, 1 or studios
Investing in San Diego
Investing in rental income properties out of state
Tweetable Topics:
“Living in San Diego, if I am able to do it, anybody can do it.” (Tweet This!)
“Luck is when preparation meets opportunity.” (Tweet This!)
“Make sure you make connections with everybody.” (Tweet This!)
“I don’t take advice from someone that has less than me.” (Tweet This!)
Connect with Michael
Michael’s BiggerPockets Profile
Learn more about your ad choices. Visit megaphone.fm/adchoices -
Why do some people struggle finding one single real estate deal, when others are finding dozens each month? What’s the secret to getting consistent leads? According to our guest today, it’s relationships—and specifically, there are four types of relationships that bring him over 100 deals a year.
Today we’re excited to bring back Nathan Brooks as we dive deep into all four strategies he’s currently using to bring in incredible deals. And don’t miss the powerful discussion we had about leadership and the extreme ownership needed to take your business to the next level! This show is as funny as it is informative, so sit down and prepare for an amazing 90-minute episode!
In This Episode We Cover:
Nathan’s quick back story
How he finds all his properties
The importance of building relationships with the right people
The exact phrase he says to agents
How he uses the 80/20 principle in relationships
The four lead sources Nathan uses
Tips for dealing with wholesalers
The property management software he use
How to find and keep great contractors
How to take responsibility for the leadership of your team
And SO much more!
Fire Round Forum Links
Contractor Dilemma – Advice?
60k Prop or 100k Prop? Cash flow vs. Value
Property Manager Vendors are expensive
Failure to launch, no luck so far
Links from the Show
BiggerPockets Forums
BiggerPockets Podcast 087: How to Thrive After The Collapse of a Real Estate Empire with Nathan Brooks
BiggerPockets Podcast 159: How to Build a Real Estate Business That Buys 60 Deals a Year with Nathan Brooks
ifttt.com
BiggerPockets Events
Josh’s Instagram Profile
Brandon’s Instagram Profile
Appfolio
Podio
Jocko’s Instagram Profile
Saturday Night Live video with Josh
Books Mentioned in this Show
Rich Dad Poor Dad by Robert T. Kiyosaki
The ONE Thing by Jay Papasan and Gary Keller
Traction by Gino Wickman
E-Myth by Michael Gerber
Extreme Ownership by Jocko Willink
The Millionaire Real Estate Investor by Gary Keller, Dave Jenks, and Jay Papasan
The Book on Rental Properties by Brandon Turner
Set for Life by Scott Trench
Tweetable Topics:
“It’s all about relationships.” (Tweet This!)
“If you can’t afford the management, you probably can’t afford the house.” (Tweet This!)
“You have to take responsibility for the leadership of your team.” (Tweet This!)
Connect with Nathan
Nathan’s BiggerPockets Profile
Nathan’s Company Website
Nathan’s Company Facebook Page
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A lot of newbies get stuck when trying to get their first few deals. After all, figuring out how to find properties, how to get the money needed to buy them, and how to not mismanage the property are all big tasks.
That’s why we’re excited to bring you this powerful interview with Meghan McCallum, a real estate investor who’s passionate about helping new investors discover their best plan for real estate success.
Today, Meghan shares her story of a terrible first deal that led to an unbelievable second deal (you won’t believe the appreciation she’s seen!) and more. Meghan also shares on the first steps newbies need to do before jumping in, as well as the power of using partnerships to gain experience and financing for your deals!
In This Episode We Cover:
Meghan’s journey to her first deal from being a firefighter in Kuwait
How she bought a $280k property that now is worth $875k
Her thoughts about house hacking
Tips on handling an inherited tenant
How to build the systems and team you need to scale
Why you should figure out who you are as an investor first
Why you should seek out a partner and not a mentor
Thoughts on “speed dating” for real estate investors
Their next deal (the story of knee-high poop)
What exactly an “escalation clause” is
And SO much more!
Links from the Show
BiggerPockets Forums
BiggerPockets Events
BiggerPockets Podcast 132: How Brie Schmidt Grew Her Real Estate Portfolio by 50 Units in 1 Year
BiggerPockets Podcast 078: Quitting Your Job, Buy & Hold Investing, and Succeeding With High-End Rentals with Brie Schmidt
BiggerPockets Podcast 126: From 0 to 400+ Units Through Value-Add Investing with Brian Murray
BiggerPockets Podcast 212: Buying a 115-Unit Apartment Complex for No Cash Out of Pocket with Brian Murray
Brie Schmidt’s BiggerPockets Profile
Anson Young’s BiggerPockets Profile
Books Mentioned in this Show
Set for Life by Scott Trench
Brandon Turner’s The Book on Rental Property Investing
Crushing It in Apartments and Commercial Real Estate by Brian Murray
The Gifts of Imperfection by Brene Brown
Tweetable Topics:
“We forget in real estate investing that people are people. So like in all relationships, you set ground rules.” (Tweet This!)
“We all gravitate to what we’re great at, and what we’re great at makes us happy.” (Tweet This!)
“You need to know who you are first as an investor before you even consider what type of investment to get into.” (Tweet This!)
“I build my business around good people.” (Tweet This!)
Connect with Meghan
Meghan’s BiggerPockets Profile
Meghan’s Company Website
Email Meghan
Learn more about your ad choices. Visit megaphone.fm/adchoices -
Success leaves clues! Rather than trying to figure it all out on your own, why not listen to someone who has been involved with nearly every aspect of real estate for decades?
On today’s episode of The BiggerPockets Podcast, we sit down with Jay Hinrichs, an investor and hard money lender from Oregon, to learn how he has navigated the real estate market for more than 40 years—and how you can grow your own business from his wisdom!
In This Episode We Cover:
How Jay Hinrichs started when he was 18
A discussion on whether you should get a license or not
His first houses in the Bay area
Why agents are not investing
What a hard money lender is
How to be approved by hard money lender
How Jay became the largest hard money lender in his area
Why you should consider the BRRRR strategy (and how he’s been doing it for years)
How to do something nice for somebody (through BiggerPockets)
Why you should go ask in the Forums
Tips for finding the right partners
How to get the “lion’s share“
The most common question in the Forums
And SO much more!
Links from the Show
BiggerPockets Forums
BiggerPockets New Members Introduction
Joel Owens’ BP Profile
Josh’s Twitter Profile
BiggerPockets Keyword Alerts
BiggerPockets Hard Money Lenders (listing)
Books Mentioned in this Show
Think and Grow Rich by Napoleon Hill
Rocket Fuel by Gino Wickman
Tweetable Topics:
“When you’re starting out and you don’t have the money, you need to honor the money.” (Tweet This!)
“Any investor that I bring in a deal always makes more money than I do.” (Tweet This!)
“I will never retire. I’ll be doing this until I’m not functional. I love what I do.” (Tweet This!)
“Every market is different. You have to play to the market.” (Tweet This!)
Connect with Jay
Jay’s BiggerPockets Profile
Learn more about your ad choices. Visit megaphone.fm/adchoices
