We teach you how to make money in real estate. We cover news, trends, styles, markets, demographics, and technology that affect real estate investing. We also talk to market leaders and trend setters. Lastly, there's a bit of how-to information on nearly every show, with topics, Q&A from listeners,…
We continue today with the fantastic conversation from last Thursday night with Rod Khleif and Kathy Fettke. The topic is “Don't Just Survive, Thrive.” We will conclude that conversation on this episode of Flipping America. Plus I have some news updates for you and a couple of great questions from you.
Over the past few weeks we have all become familiar with terms like “flattening the curve” and “self-quarantine.” These sudden additions to our lexicon are necessary in order to ensure survival. Our hearts and our sympathy go out to all who are suffering during this difficult time. The vast majority of us however can't help but wonder when will life get back to normal, what will “normal” look like, and how can our small businesses survive much more of this? On this call we will tap into the wisdom of two of America's most prolific real estate investors. They have seen good times come and go and come back again. Kathy and Rod would each tell you that most of their success came from a mindset they adopted when they started. Successful people are not always consciously aware of their unique mindset but thoughtful people who have endured the slings and arrows of entrepreneurship usually have some time to reflect on the collection of thoughts (mindset) that propels us forward. Tonight we are going to look beyond survival and focus on creating and managing thriving business in the days ahead. What you will DO both during and immediately after this crisis will be determined in large part by what you THINK right now. So how about a dose of some good things to THINK about? Let's get our brains to a good place so our businesses can follow.
I hear it everywhere I go, like the constant drumbeat of the real estate Chicken Littles: “The Sky is Falling! The Real Estate market is going to crash again. And it's going to happen soon! The logic seems to be that real estate must be cyclical and we must have a major market shake up every ten years or so. That means it's time. We are going to talk about this today and for an informed an credible opinion, I reached out to Logan Mohtashami. He is the Senior Loan Manager at AMC Lending Group, a mortgage company in the Los Angeles area. But more than a lender, Logan's career-long passion is studying the financial and housing markets. He has been tracking these markets for two decades, has seen good times and bad times, analyzed the data, run the numbers, and he is staying up to the minute on the developments. If there is anyone out there who is completely credible and qualified to speak on this subject, it is Logan Mohtashami. And in a few minutes, he is going to lower the boom with his answer.
What's going on in housing? Are we in a bubble? Which way are prices trending? We have a little bit of everything today. We have some great questions from our listening audience and some news you can use. The year-end housing reports are hitting and I have the latest from Case-Schiller, HousingWire, and Attom Data. And I am going to talk a bit today about whether we are in a bubble. All this and more coming up on today's episode of Flipping America.
Today's show is for those who want to invest passively in real estate. My new friend, Victor Bell, is coming along in a few minutes and he's going to talk about some possibilities and answer my questions about returns. Victor has been buying multifamily assets for the past two decades in Hawaii and California. He specializes in low cap rate acquisitions and he will explain why during our conversation. He can help you get involved in some pretty healthy returns.
We are continuing today with our technology series, focusing on consumer-facing websites that help us research neighborhoods and communities. Last time we considered eleven of them and today we are looking at ten more. Some of them are very interesting and some are a waste of time. I'm doing this research so you don't have to. So stay tuned for that. Coming up, WeWork is back in the news and it's more bad news for them. And we are going to give you a quick update on commercial real estate in a few minutes.
He's created one of the most comprehensive house flipping software packages on the market today. And he's going to join us in just a moment. Kuba Fietkiewicz is one of the founders of REIkit.com and I have to tell you, if I were getting into this business today, this is one platform I would seriously consider. In fact, it's only because of what I call my “resistance to shiny object” discipline that I don't go ahead and sign up now. Check it out later, but first, let's take a question from one of our listeners. If you have questions about real estate or real estate investing, send them to questions@FlippingAmerica.net.
Want to make money passively in real estate? Keep your job or stay retired but put your money to work for you. If so, consider investing in a real estate syndication. Today on Flipping America. When I was a kid the Syndicate was a euphemism for organized crime or the bad guys. I couldn't remember specifically why I thought that so I turned to ChatGPT for some help. I simply asked, “Why do I associate the phrase ‘the Syndicate' with criminals?” Here's the response: The phrase "The Syndicate" is often associated with criminal organizations because it is commonly used to refer to a group of individuals or entities that engage in illegal activities, such as organized crime, drug trafficking, or money laundering. In popular culture, the term has been used to describe fictional criminal organizations in movies, TV shows, and novels, which has further reinforced its association with criminality. However, it's important to note that the term "syndicate" can also have legitimate and legal connotations, particularly in business and finance. For example, a syndicate can refer to a group of investors who pool their resources to finance a large project or investment opportunity. The context and usage of the term determine its meaning and associations. In a moment I'm going to chat with Charles Carillo of Harborside Partners and we are going to discuss legal syndication. He's one of the good guys.
I would bet you've seen a billboard or something advertising HomeVestors. You might not know that name, but you know the phrase, “Ug buys ugly houses.” That's HomeVestors and today we have a HomeVestors investor joining us to talk about what it's like. You might want to do this! Dean Bendall has been a friend of mine for at least 15 years. A few years ago he called me and asked about HomeVestors. I referred him to another friend of mine, they spoke and Dean signed up. In short, this is going very well for him. This is not an opportunity for the timid or someone who is broke. But if you're willing to work their system, you're going to have some fun and make some money. Dean will be with us in just a few minutes.
He's been diagnosed with cancer - two different types over the past 15 years. He's endured more than his fair share of the trials and tribulations life can bring. Yet over the past 30 years he has had zero bad days. In fact, he's so skilled at having “No Bad Days” he just wrote the book on it. His name is Jeff Holst, and he's coming your way today on Flipping America. Jeff is a former lawyer turned real estate investor and YouTube show host. Although I've known him for years, I didn't know his motto was “no bad days” until about a week ago. Already, this philosophy has taken root in my life and is affecting the way I choose to interpret the events of each day. It's not woo-woo or magical thinking. It's a choice that over time can become a habit and if you hear him out, I think it could be life-changing for you. Jeff is coming up in just a few minutes.
You're not in business until you've made a sale. Until then, you're just spending money on an expensive hobby. Marketing is the heart and soul of every business. It is directly connected to your business success and can overcome many other problems, including in some cases, products that were not the “best in category.” In fact many of the best products worldwide do not win the day because others spend more on marketing. And it's not just spending more, it's spending more efficiently. Richard Roop is joining us today. He's a long-time marketing expert and has been called the number one lead generation marketer in the real estate industry. He's been at this for years, knows the business inside and out, and stays on top of what's happening in the world of marketing. You'll enjoy this conversation and it's coming in just a couple of minutes.
They are not just for vacation any longer. Short Term rentals serve a variety of purposes for both business and personal travel. But regardless of the purposes, short-term rentals have one thing in common - they can cash-flow like a river after a dam burst. Elizabeth Maora Sickels had no idea she'd hire a team and build an entire business that focuses on short term rentals. Elizabeth started like many new investors, by renting out her personal property on Airbnb. She resigned her engineering position with Ford Motor Corporation and decided to travel for six months. Moving to Indianapolis in 2017, she set about making real estate her new career. She started out furnishing and managing one short term rental for a group of investors. Within a few months she had 10 properties under management. She was growing because she was doing things differently. With an MBA and engineering background, she was focused on the metrics and what is needed to have a profitable short term rental property. She continued to separate herself and that growth became the Elizabeth Maora Brand. ElizabethMaora.com
Today we are talking about passive investing and our guest is Ken Gee of kripartners.com. What do you think of when you hear the phrase passive investing? I think of sitting in a comfortable chair under a palm tree looking out at the ocean, sipping on something tropical, while my money is working hard to earn enough to pay for this. Let's get you there. Ken Gee has been pursuing the thoughtful path to wealth from an early age. He discovered multi-family and invested while keeping his day job and in time realized that the investing side was much more promising. His attention to detail, high character, and flawless performance have made him a formidable force as an investor and someone to trust with my money.
What's it like to invest in real estate in Canada? Are you tired of government overreach, wary of the “fixes” the government is putting into the economy? Do you avoid investing in rules and restriction-heavy environments like California, New York, and New Jersey? If so, you'll be interested in hearing just how much WORSE it is in Canada. Today's show will make you proud to be an American, although that was surely not the point when we recorded it. Matthew Ablakhan is a young motivated investor, the son of displaced Iraqi Christian parents. He and his brother started investing, then set up a mortgage company, and then a real estate brokerage. Together they lead a growing company in suburban Toronto. Canadian law rules out all but the wealthiest developers. Mortgage rules essentially require homeowners to make plans based on future interest rates (and who knows what they will be?). These and other issues make it challenging to make money in Canadian real estate. In fact, many Canadian investors choose to put their real estate investing money elsewhere. But Matthew and his team are sticking it out for now and doing well. We are going to hear all about that in a few minutes.
Bloomberg just published an article with the headline, “Wall Street Is Losing Out to Amateur Buyers in the Housing Slump” I have a question: Who are you calling an amateur? They assume the analysts in cubicles in New York are the pros and we are the amateurs simply because of bias. It's more than just semantics, but I submit that pros do whatever they do for money. Amateurs have other reasons. And it's the small investors like you and me who are making money at this game. The big institutional businesses, hedge funds and iBuyers, are not really making any money. I would submit that while the premise of the article is factually correct, the labels should be reversed. WE are they pros. THEY are the amateurs. There's a lot going on in real estate right now and we need some time to unpack it. Which I'm going to do today. Ok ok, I do know a lot about single family residential investing. But once you get into other asset classes, it's not all that hard to stump me. Fortunately, I know a lot of smart and experienced people from many different real estate asset classes and strategies. So ask whatever you want. We will know the answer or go get you one. firstname.lastname@example.org. We have some good questions coming up today.
As you are out traveling the world, you'll quickly realize that not only does money make the world go round, the American dollar is not the money a lot of people want. You'll need to convert to the local currencies. Today I'm going to talk about the best way I've seen to do that. Kelly Cutchin is a Country Money Manager for Moneycorp, moneycorp.com. She and her company can help you get money moved around and converted in the most efficient and inexpensive way possible. We will hear from her in a few minutes, but first the news!
This show is called Flipping America, but it's a big wide world out there and there are investment opportunities all over it. We are going to explore that a bit today. Ronan McMahon is the editor of Real Estate Trend Alert, Your Overseas Dream Home, and a contributing editor to International Living. Ronan's newsletter, “Your Overseas Dream Home” is delivered to readers' inboxes daily. No matter what level of real estate investor you are, there's plenty of great info for you. In it, you'll read about every promising international real estate investing idea Ronan and his team comes across. He also brings you up to speed on his favorite markets for making “double your money” gains through either capital gains, rental income, or both. He also shares his key strategies for identifying profit opportunities in some of the most beautiful locations worldwide—by Caribbean, Pacific, and Atlantic beaches, in glamorous European cities, in quaint little mountain towns, or anywhere else that might interest you. I'm happy to tell you that Ronan is going to join us shortly. We will talk about his investment model and how you can get involved in investing all around the world. Dianna and I read his newsletter regularly.
You need a coach. How do I know? Because no one sees themself truly objectively. Tiger Woods was the best golfer in the world by a long shot and he never competed without a swing coach. You want to play a sport? Get a coach. You want to run a business? Get a coach. Want to invest in real estate? Get a coach. And I've got a great one coming today. You'll meet Chris Prefontaine in just a few moments. As you're about to hear, Chris has been in the real estate business a long time and he's been helping others get into the business for a long time. He's written at least four books - because that's how many he sent me. He's a master of creative deal structure. He knows how to live and invest in competitive areas with high prices. We all can learn from Chris - I know I already have and I'm excited to share this interview with you today. The last time I had a real estate coach on the show, I was surprised at how many of you asked me something to this effect: Hey Roger, you're a coach. Why are you helping promote your competitors on your show? I haven't addressed this before and I'm not going to take a lot of time with it now. The answer is, I don't have competitors in this business. I have potential partners and I have friends. There is plenty of room for us all. A good living, financial freedom, and time freedom can be enjoyed by everyone who does well in this business - there is no one single winner. I believe in abundance, I believe in collaborative capitalism, and I believe in the law of sowing and reaping. As I sow a spirit of helpfulness and collaboration into the world, I find that help comes to me when I need it. It's not always from the same people, but it comes all the same. If we all help each other we will all get what we need. That's been my philosophy and my answer to that challenge for years. I don't see it changing.
Sometimes you just need a little extra help. Today we are going to talk about an affordable solution. Kristy Yoder is a Filipina based in Ohio. She is the Founder and CEO of Smart VAs and the host of The Master Delegator Podcast where she teaches entrepreneurs and leaders to grow their business by delegating. As a multi-skilled leader, she humbly worked her way from being a freelance virtual assistant and digital marketer to becoming an entrepreneur. She is passionate about helping stressed and overwhelmed business owners get their time, freedom, and life back while running a successful business. She built and trained a team based in the Philippines to help business owners scale their businesses while living a freedom-filled lifestyle. Kristy leads more than 70+ team members and has served more than 200 businesses in the US together with her team since 2020. Kristy grew her business from $0 to now close to 7-figure revenue and desires to help business owners achieve their business goals.
Curtis May is the creator and owner of Practical Wealth Advisors (PWA) and host of The Practical Wealth Show Podcast. The primary focus of his financial planning firm is to help individuals and families become financially free by following the principles of wealth creation that have endured for centuries around the world
Imagine this: You make $20,000 on a real estate deal, but you are neither the buyer nor the seller. And you're also not the real estate agent. How does this happen? We will tell all today on Flipping America. Our guest today, Brent Daniels was living large as a real estate entrepreneur, well on my way to fulfilling my “Rich Dad, Poor Dad” dreams: Designer clothes. Flashy cars. Big house. A year later, the housing market crashed… HIs business went under. His cars get repossessed. He lost his home and five rental properties to foreclosure. And he get slapped with a $742,000 judgment for breaking a commercial office lease. And then things got really bad. He got divorced, got a DUI and sat in jail for a month. Then something happened that turned his life around. While working as a realtor he sat at a closing and watched a wholesaler make $40,000 without ever taking ownership of the property. He learned how to wholesale properties and never looked back. Brent has an incredible story and a great track record as a real estate mentor. He's joining us today to talk about wholesaling and what he can do to help you get started.
Jack Gibson has written Indestructible Wealth, what I think is the best business book I read in 2022. And I read more than 120 books last year. Our conversation included real estate, crypto currency, including bitcoin mining, investing in the stock market, wealth management, and multiple streams of income. Jack has the right ideas and has expressed them beautifully in this well-written book. He should charge $100 for it, but he doesn't.
After you have figured out how to make money in real estate, the next most important thing you need to learn is how to hang on to it. Today we are talking about some stuff I wish I had known… David Richter is an active real estate investor who has been essential in closing over 850 deals over the last 10 years. He has experience with wholesale, turnkey, BRRRR, owner finance, rentals, lease options, and any other exit strategy you can think of. While growing and building a real estate business from 5 to over 25 deals a month, he realized that as much money was coming in, it was all going right out the door. With the unique opportunity of being in every seat as a real estate investor, he found a calling in the company's finance seat to help businesses see where their money really went. David has helped real estate companies completely turn around from going out of business to building cash reserves by using the Profit First cash flow system. He has been featured on Biggerpockets, Real Estate Disruptors with Steve Trang, and many other podcasts, shows, and Stages. To help even more people, he wrote Profit First for Real Estate Investing - a companion to the original Profit First by Mike Michalowicz that is tailored specifically to Real Estate Investors. His goal is to make a difference by helping real estateinvestors make and KEEP more money in their businesses. As the founder and owner of SimpleCFO Solutions, he wants to bring investors true financial clarity and freedom and help every investor stop living deal-to-deal.
Who owns your local car wash? It might be a friend of mine and if you want, you can own a piece of it too. Coming up today on Flipping America Although the show is called Flipping America we don't encourage everyone to drop what they are doing and start flipping houses like you see on TV. We DO encourage everyone to consider real estate as a part of a balanced investment portfolio. To that end we bring you the best news, analysis, strategies and tactics, demographics, tools, and methods we can find mixed in with incredible people doing fantastic things in real estate. It's all here for your inspiration, information, and edutainment. We've got one of those incredible people joining us today. Chris Larsen is one of the smartest dudes I know. He's the host of the Next Level Income Show and author of the book by the same name, Next Level Income. He's been a multi-family buyer for years but he recently branched out into car washes. Coming in a few minutes, you'll hear his vision for the business and how you could get involved.
What if I told you that you can use one software tool and buy 12 profitable deals next year that are listed on the MLS? It's true because one guy did it this PAST year and next year is only going to get better. Learn more in just a moment on today's episode. Benson Juarez is the Marketing Director and one of the owners of Privy Software. I like him and check in with him from time to time just to see what he's doing. I was in for a surprise. When I called him the other day he told me that he had temporarily relocated from his home in Denver to St. Louis to, using his own words, “practice what he was preaching.” He decided to demonstrate live and in person how to build a real estate business using Privy software as the only deal sourcing tool. He used Privy to select St. Louis, went over and set up shop, and did 12 deals in one year. I told him we needed to record that conversation so we did - and it's coming up.
I don't encourage everyone to drop what they are doing and start flipping houses. But someone listening to my voice right now is going to start flipping houses and change your life. Thank you to everyone who made my book, “Flipping Houses in Ten Days” an international number 1 bestseller. And if you don't have it yet, just put bit.ly/10dayflipper into your browser and it will take you to the Amazon page where you can order it. You can still get the Kindle version for free if you act quickly. House Flipping is going to make a comeback in 2023. Opportunities will be more plentiful and I predict that you will even be buying REOs from the MLS like in the good ole' days. No wait - that might be going too far. But maybe… Last time we started a conversation with Bruce Glenn about Flipping Houses. This time we will finish it. He is a master house flipper and licensed appraiser from Birmingham, AL. We will conclude that conversation in a few minutes.
I don't encourage everyone to drop what they are doing and start flipping houses. But I DO encourage some of you to do it. And if you are going to do it, why not start with a little knowledge? Thank you to everyone who made my book, “Flipping Houses in Ten Days” an international number 1 bestseller. And if you don't have it yet, just put bit.ly/10dayflipper into your browser and it will take you to the Amazon page where you can order it. You can still get the Kindle version for free if you act quickly. The market is slowing. Despite all of the gloom and doom predictions from the clickbait wannabes on social media, this does not spell a disaster. It DOES portend an opportunity. 2023 will be a rebounding year for house flipping, and I think also for BOR houses, but that's not the topic for today. Bruce Glenn joined us recently for an interview. He is a master house flipper and licensed appraiser from Birmingham, AL. We will talk about some of the issues and I think you'll see that you can do this if it's what you really want.
I'm on a mission to help 1000 people become real estate millionaires. This year the Flipping America REIA is focusing on 11 different ways to get there in our main meetings on the third Thursday evening of each month except December. January was Multi-Family month. February is House Flipping month. Today, we talk to Bruce Glenn, who has made his millions Flipping Houses. We don't encourage everyone to drop what you are doing and start flipping houses like you see on TV, but we do encourage everyone to have real estate as a part of their investment portfolio. Today we are looking at an interesting possibility in another country and I will weigh in with some of my criteria I use when evaluating international investing.
I've been paying attention to real estate and real estate investing for a long time. I watched the rise of the so-called iBuyers, and I'm fairly confident I will be here to see their demise. If you listen to the show much, you know that I'm a positive upbeat kind of guy. I never set up my interview guests for embarrassment, I do not thrive on controversy, and although I don't shy away from healthy disagreement, I'm not here to argue with anyone. That said, part of my purpose is to expose the bad guys - those who build large businesses with a fundamentally dishonest business model. I've spent a fair amount of airtime criticizing in particular the Hotel Room Real Estate Gurus and the iBuyers. Sometimes the premise is noble enough and the vision is grand enough, but at some point someone behind the scenes realizes this thing isn't going to work unless we make some adjustments. This usually comes in the form of high pressure manipulative sales tactics from the Gurus and deceptive practices, including hidden or junk fees and unexpected repair bills.
Here are my almost famous Seven Rules for Real Estate Investing. If you want the Cliffnotes or Sparknotes or whatever the abridged version is called these days, you've come to the right place. For some of you - this may be the only real estate instruction you need - ever. This is a replay of a previously recorded show, but good enough I needed to share it with you again. Here we go.
Today we are talking about Note Investing. And I've got Martin Saenz on the line. If I were going to invest in notes, I would hope to do it with the skill, empathy, and compassion Martin has. His amazing business is up today on Flipping America! Martin Saenz brings social good into smart investing. He is a Managing Partner of Bequest Funds. Renowned as a thought leader in the mortgage note investment industry, Martin is generous with his first hand expertise, to the benefit of his many clients and followers. Genuine, loyal, and passionate about creating a better world through profitable business, he works hard to share and spread success. Together with business partner Shawn Muneio, Martin co-founded Bequest Funds with the dual purpose of helping investors grow their wealth and helping mortgage borrowers stay in their homes. Martin owned and operated multiple successful companies prior to launching Bequest. A successful entrepreneur and real estate investor for over 15 years, he brings a high level of strategy and experience to the Bequest model. He has directly helped over a thousand families stay in their homes, and countless more through the influence of his mentorship. Martin holds a BA degree in Philosophy from U.T. — San Antonio, an MBA from Drexel University, and a M.S. in Project Management from George Washington University. Martin, his wife Ruth, and their four children live in the D.C. area. Together, they enjoy exploring the history and natural beauty of state and federal parks and being a part of their church community.
A wise man once said, “until you make a sale, you are not in business.” In our business we can't sell until we buy and in order to get buyers we have to do some selling. One of the best ways to generate leads for your real estate business is about to rise up and tap you on the shoulder. Dan Barrett is joining us in a moment. He is Head Nerd at AdWords Nerds, the world's largest Google Partner agency working only with real estate investors. He's managed over 5 million dollars a year in client ad spend, found hundreds of real estate deals online for his clients, and been behind extensive industry experimentation and original research. He's worked with investors and companies like Joe McCall, Alex Joungblood, Tom Krol, 1-800-Fair-Offer, Investor Carrot, and more. Dan also runs the Search. Click. Convert Bootcamp and the exclusive REI Marketing Mastery program, intensive online workshops where he personally helps a small group of investors automate their lead acquisition and dominate their local markets online. He's the voice behind the REI Marketing Nerds podcast - over 150 episodes strong with a 5-star rating on Apple Podcasts - and the AdWords Nerds YouTube Channel. You can find out more about him at AdWordsNerds.com
I need help! And that's been said about me on more than one occasion. But no, I need a Virtual Assistant! Perhaps you've heard of this, but if not, today is going to be eye-opening for you. You can hire assistants that live halfway around the world, do a great job and save you money at the same time. Today we are going to explore the world of Virtual Assistants. Bob Lachance is a nationally recognized speaker, mentor, and trainer who specializes in helping customers build their businesses through automation and outsourcing. Bob currently owns four businesses and helped start one of the nation's largest real estate coaching programs. A Bristol, CT native, Bob played ice hockey and went on to play at Boston University, playing a vital role in their 1995 National Championship. With only two classes left to graduate in his senior spring, Bob left school to pursue a professional hockey career where he played 4 years in the US and 4 years in Europe. At 30 with his pro hockey career over, he educated himself in real estate and began his career in the trenches as a real estate investor. He acquired his first flip in 2004 and has done over 800 transactions since then. He has also started 2 very successful real estate coaching programs, 3 virtual assistant staffing companies, and much more. Bob is the owner of REVA Global LLC which focuses on offering trained real estate virtual assistants to real estate professionals. Over the years he has experienced various setbacks where others would have simply thrown in the towel. Through the ups and downs both in business and life, his humble commitment to the daily process is something listeners can gravitate towards. By utilizing the power of virtual assistants real estate professionals are able to leverage and scale their businesses. Investing in virtual assistants is a lifestyle change that increases business productivity. Not only do you gain back lost time but you have the opportunity to focus on the income-producing tasks that grow your business.
We've all heard the saying, “don't count your chickens before they hatch.” Wise words, but in our real estate businesses, some of those chickens hatch and we need to count them. In a moment I'm going to tell you how the TV shows get this seriously and dangerously wrong. Today we are going to talk about how to figure out what you made on your property. We will include all of your known expenses and talk about some of the hidden costs as well. And Roger points out that when you consider all these expenses, we all need to rethink what we are paying for our projects.
How much is enough? Is there one answer that will fit all people? Is it possible that the experts are wrong? Will you be able to retire and live comfortably without financial distress? Is that even a good idea? What? I'll explain.
Commercial real estate is similar in many ways to residential real estate, but one thing is vastly different: commercial capital. We need an expert, and I have one for you today. Paul Winterowd is joining us on this episode of Flipping America. Commercial capital differs not just in the amount of money but also in the complexity and the number of players. In short, the different components of capital deployed in a commercial deal are called the funding stack, or capital stack. Paul will explain further in just a few moments. Paul is both an expert debt provider and an active multi-family practitioner with real world experience investing in multifamily assets both as a general and limited partner. Because of his experience on the investment side of the business, he has deep insight and empathy for his clients' needs as he helps them navigate through the financing process. Paul has successfully sourced financing across the country for market rate and affordable apartment buildings, student housing, and seniors housing projects.
You can sell a property with massive capital gains and defer your taxes by using a Deferred Sales Trust. For some this is a good alternative to a 1031 exchange. You will need an expert to help you set this up and I have one lined up for you today. Brett Swarts is considered one of the most well-rounded Capital Gains Tax Deferral Experts and informative speakers in the U.S. He is the Founder of Capital Gains Tax Solutions, is an exclusive Deferred Sales Trust Trustee, host of the Capital Gains Tax Solutions podcast and an eXp Commercial Multifamily Broker in Sacramento, CA. He will be with us in just a few moment
A lot of people start by flipping houses and then evolve into something else. That's our story today with Derek Dombeck, but you won't believe what he's into now. And it's something we've never had on this show. Derek Dombeck is a hard money lender in Green Bay Wisconsin. Before that he was a house flipper. Before that he worked in construction. But what he's doing now, in addition to the hard money lending company is something we've not covered on this show before, but I'm going to let you hear it from him.
People have been teaching the “no money down” method of real estate investing for many years now. Long before I had heard the name of any real estate teachers I was doing my own version of “no money down” deals. I had bought and sold more than 500 houses - full fix and flip projects before I used a dime of my own money in a deal. Today I'll tell you how.
How do you overcome fear and have the courage to do your first deal? This is a question I get quite often and today I'm going to answer it. This episode is for everyone who has hesitated and missed deals - and for those who have hesitated and NEVER done a deal. I'm going to help you say yes to the right opportunity. I understand the concern. I've been there - looking at a deal that looks ok, but nervous about the things that can go wrong. They call it the paralysis of analysis, but like most clever little slogans, there is often more to the story.
The real estate market is starting to slow down. Are the alarm bells ringing in your head? If not, should they be? You won't know until you know the facts. And if you want the facts, I'm going to give them to you in this Market Report for the Third Quarter, 2022. I really am tired of hearing people claim a crash like 2008 is coming. I've been hearing it since 2018. I didn't believe it then because of the data. Turns out I was right. Same for 2019, 2020, 2021, and now also 2022. Anyone who tells you the real estate market is going to crash again like 2008 is just trying to scare you and definitely not looking at the data. I'm going to do my best not to bore you with it, but in the minutes ahead I'm going to share with you the data we watch and where that data is. We are definitely seeing the first signs of the slow down that I have been predicting. Remember when we are talking about averages across the nation, this is going to be an average of a lot of local real estate markets. Although the national data is true, it may not be reflective of your local experience. This doesn't mean the data is flawed, it just means that somewhere some other market is trending the other direction and the data is averaging them out. To give you a simple example let's imagine a classroom where the average score from the last test was an 80. Now imagine the class has just 3 people in it. As the teacher hands the tests back and announces the class average score of 80, Johnny looks at his paper and thinks, “well that's not MY experience. I got a 60. But Suzanne thinks, Hmmm, that's about right, because I got an 80. Franklin is thinking there must be something wrong with the data modeling because he got a 100. So your market might be contracting faster than the national average. And some other market might still be booming. And it's likely that within individual markets the trends are different at different price points. It's no easy task to gather this data, and disseminating it in a meaningful way is equally challenging. But I am up to the task because that's my appointed duty for today.
business, we often love the idea of the income but don't always bring risk analysis into our consciousness.
Last week the national average for a mortgage topped 6.7% for the first time in many years. What does this mean for real estate investors and what does it mean for YOU? Find out today on Flipping America. Rates are expected to inch further up over the next few months as the Feds seem to be the only parties in Washington genuinely interested in countering inflation. In case you hadn't noticed, the so-called “Inflation Reduction Act” does absolutely nothing to even address inflation, much less reduce it. So, interest rates. How does raising them slow down inflation? Of course like most answers involving monetary policy, the answer is a bit complicated. But I, your humble host, excel at making the complicated understandable, so bear with me and in a few moments I shall explain.
Congress just gave the IRS 80 Billion dollars. What does this mean for entrepreneurs and real estate investors? Some say we are facing enhance enforcement and in the minds of the IRS, real estate investors are easy pickings. I've got CPA Matt Lents on the line and we are going to talk about the implications. It's so important we are doing this NOW.
I've been doing this since 2002. I've done over 2000 single family homes, including more than 1700 fix and flip projects, hundreds of rentals and hundreds of wholesale deals. I don't want to sound like I'm bragging here, because that's not my intent. I just want you to know I have data and some personal experience to back up what I'm about to say. If I were starting all over again today, what would I do? I'm going to share it with you in just a couple of minutes. I won't keep you in suspense - if I were starting all over today, I'd dive into the BRRRR Method and acquire as many single family rental properties as I could. Today I'm going to be joined by one of the emerging champions of the BRRRR method, David Dodge. David is a St. Louis Real Estate Investor with over 18 years of experience. He first started investing in Real Estate when he was in college, at the age of 20 while attending the University of Missouri-Columbia. David specializes in Wholesaling Real Estate as well as using The BRRRR Method to acquire Rental Properties with NONE of his own money! David is the Author of 3 books: “The Ultimate Guide to Wholesale Real Estate”, “The BRRRR Method” & “The 3 Pillarsof Wholesaling Real Estate”. His podcast “Discount Property Investor” teaches people all about wholesaling real estate as well as tons of tips and tricks about marketing, land-lording, rehabbing, and utilizing The BRRRR Method.
I gotta be honest with you. I didn't think this topic would make it to the show. I was skeptical about the concept and the structure of what you are about to hear about didn't sit well with me. But Derrick Barker won me over, as I'm sure he will for you also. So today on Flipping America we are going to learn how you can sell your cash flow. Derrick Barker from Nectar is joining us in a few minutes to talk about an interesting way of raising money that doesn't involve debt. Nectar is an online financing and data platform built to provide fast, flexible capital to short term rental owners and operators. They provide experienced real estate entrepreneurs access to cash flow based financing and sell diversified, fully passive cash flow backed investments to accredited investors. Derrick is the co-founder and CEO of Nectar, the first-ever cash flow marketplace for real estate entrepreneurs. He has 12 years of experience in real estate development, operations, and finance. Prior to starting Nectar, Derrick began his career as a trader at Goldman Sachs. He eventually left that position to focus on real estate, growing his portfolio to more than 4,700 units and $400 million in asset value. Since then, Derrick has helped build multiple successful real estate businesses. He and his Nectar co-founder, Brittany Mosely, are members of ScaleUp ATL and graduates of the TechStars Atlanta accelerator.
There are a lot of big words and complicated ideas that make up the world of real estate investing. My job is not only to help you understand them, but to also entertain you in the process. How's this for entertainment? If you master today's topic, you could save or defer tens of thousands of dollars in tax liability. Today on Flipping America! Cost segregation sounds like a topic you might cover in finance or accounting courses and although not as complicated as “internal rate of return” or as obtuse as the “weighted average cost of capital”, it definitely needs a sexier name. How about “Save a pile of money on Taxes”? Well, there are several ways to do that, so we need something more descriptive. After thinking long and hard about all the possibilities, I've decided that “cost segregation” is as good as we are going to get. Our guest today, David Wiener, is known as “Mr. Cash Flow” has been involved in the business of business for over 30 years. His experience includes 10 years as a medical practice administrator, COO of a medical billing company, and years of business and tax consulting, speaking, and educating. The CEO of Cash Flow Strategies, Inc., David has worked to assist practices, businesses, and individual real estate investors across the US to maximize their cash flow and become more efficient. David is a recognized expert in A/R management and engineering-based cost segregation. David has spoken across the US and internationally for over 25 years to medical and dental groups and societies, CPA groups, business associations, Chambers of Commerce, and commercial real estate groups. He leads CPE training for CPA groups annually as well as workshops on tax strategies for owners of commercial and investment property. His engaging style and quick wit have made him a favorite of large and small audiences coast to coast, and has attracted many return engagements.
It's been a crazy few years in this business. I get hundreds of leads from dozens of wholesalers every day. Maybe 1 out of 20 is a deal worth giving a second look. And maybe 1 out of 100 is something I would do. But they apparently sell these properties because they keep coming around with more of the same. Today, I'm going to talk about what makes a deal a deal. And it's more than just the numbers. When sellers (or my TV) says “Let's Make a Deal” I say “What Makes a Deal?” We will find out today on this episode of Flipping America. You've heard the phrase, “There's a sucker born every minute.” PT Barnum of Barnum and Bailey circus fame supposedly said that, although there is no evidence he ever did. I want to add to that: A lot of those suckers bought $50,000 real estate training from a hotel room and now are justifying that expense by paying too much for investment properties.
Ignore the click-bait wannabes. They have routinely declared the housing crash is imminent every year since 2017. Perhaps eventually they will be correct. But not this year. Interest rates are worth watching and I predicted the current uptick in the rate of foreclosures (Covid-related). This will go back to pre-Covid levels in early 2023. Other indicators show a continuing strong demand for not-yet-enough supply.
Ok kids, it's time to open the mailbag and answer some of your questions. Today we are focusing on questions concerning rental properties.
Mortgage rates are up, therefore home payments are up. Does it make sense to buy or should you rent? The answer is never as clear cut as you might think. Today I will sort through the issues and help you understand the best answer for you and your situation. One of the questions we get quite often is a variation of “should I rent or should I buy?” The person asking will usually fill us in on some of the details of their situation which means our recommendations are not always the same. I spent more than half of my life so far thinking that it is never better to rent - always better to buy and build that equity. About 15 years ago I realized I had never challenged that assumption, but it took me a couple of years to get around to devising a way to evaluate the options. Even then, I did it only for my own situation, but I will tell you this: once I took a clear minded look at what it was actually costing me to live in my very nice house, I sold it in pretty short order. I've been a renter ever since. I know it may surprise you to hear that the Flipping America guy is a renter. This is the sensible choice for me right now, both in terms of the financial realities I'm about to share with you AND a few of the intangible factors I will discuss today as well. The important conclusion for you today is not a one-size-fits-all correct answer. My aim is to help you make an informed decision - one that could change as your life goes on.