Real Estate Investing Live

Burton Alicando joins Brian on the show today to talk all things data. PropStream is a data aggregator that allows investors to easily see the information and details on a property. Burton is on the show today to share a demonstration of how the service works, and talk about what sets them apart from their competitors.   Key Takeaways:   [1:00] PropStream is a nation-wide data aggregator that allows you to see the records right then and there. It helps investors analyze a property they may already have on contract, or find a lead. Burton talks about the difference between PropStream and some of their competitors. The functionality of their system allows research to help build lists and get details on current properties. [6:15] Part of their aggregated data includes MLS data from about 700 MLS boards nationwide. They partner with brokers to get this data, which is important for running comps, seeing if there have been price adjustments, days on the market, photos, and some additional information that public records don’t always provide. [8:37] Brian and Burton talk about the lawsuit between Zillow and the National Association of REALTORS®, and the background behind it. PropStream is more of a portal for investors, as opposed to the atmosphere of other public domains. [13:30] Burton walks through a demonstration of PropStream (follow link for YouTube version) — you can search anywhere in the States, and when you search a market, you can look through all the data they’ve collected for a property. As an investor, this data can help you make buying decisions. [17:45] After you find properties you can research, you can run comparables from public records or MLS comps. They include filters so you can then compare apples to apples, see photos, and essentially the information that agents have access to. [21:55] Burton demonstrates how to use the filters to create your own list based on what criteria you decide. As you build your list, your properties show up so you can then click on the property and research it. [25:42] We live in an age today where a lead is no longer a list, a lead is really a predicament that a homeowner is facing. Investors get paid to find problems and provide owners with a solution. [28:35] PropStream is an incredible resource for investors. For the first time ever, they are about to launch a list automator, so if any property no meets criteria it will automatically drop off. You can also import any list from any other provider and they will update with the data they have. [32:50] If you’ve been investing for a while, give this free trial a chance! It could change the way you find leads.   Mentioned in This Episode:   Meetings Daily REIA Show REI Facebook Page Brian’s Book PropStream Free Trial

Today’s guest is an expert in direct mail. Ryan Dixon from REI Print Mail is on the show today to share the secrets of direct mail as a marketing technique. Ryan talks about direct mail compared to some of the other marketing strategies, some of the unique products they offer at REI Print Mail that set them apart, and some best practices for using direct mail to get the most return for your money.   Key Takeaways:   [1:05] Brian and Ryan discuss whether direct mail is dead, in light of things like mass texts, RVM, and cold calling. Ryan talks about the idea of silos of marketing techniques, and how once one fills up, people move to another marketing technique. [3:10] Brian and Ryan talk about the pricing of direct mail, versus the pricing of other marketing techniques. When you consider response rate and the fact that people can hold onto a mailer and follow up later, the cost per lead is generally pretty good. [4:55] REI Print Mail has been around for 27 years, and their unique products and experienced coaches have allowed them to lead the industry for the last 15 years. The best practices of uniqueness, quantity, and consistency get them great results. [6:50] Ryan talks about some of the unique products they’ve invented and have available for their clients, including the street-view mailer and AccuText, which will eventually be tracked in the REI Print Mail software. [10:55] Another recent invention is the sky-view image that will provide an aerial view of the neighborhood or area surrounding the house that can be included in the mailings. [11:50] Ryan talks through the process of what direct mail coaching looks like for people who come to them for help. They consider how many deals you want to get in a given time frame, your budget, who will be following up, etc. [13:30] Brian talks about his own experience with direct mail and some of the obstacles and challenges he encountered without the help of a coach. Ryan shares some tips on the most successful lists and where to get them. [17:20] Ryan and Brian talk about the most effective types of direct mail. This really depends on the area you’re in; you want to send something that will stand out. In a highly saturated area, you might want a larger postcard. Occasional letters are also beneficial. [20:00] They also talk about what type of verbiage is most effective. “Fair offer” is a successful phrase right now, but the most important thing to remember is to get your point across in very few words. Keep the design simple as well. [21:27] Once you’re ready to get started, you can log into the website and create your login or you can reach out to Ryan directly. The initial session is important to set the trajectory of your direct mail. Set a meeting with one of the coaches and start there, that’s the best way. [22:56] Ryan talks about how the pricing breakdowns — they also have a pricing tool on the website you can use. You can use the coupon code “reilive” for 10% off of everything, including printing and any of the services.   Mentioned in This Episode:   Meetings Daily REIA Show REI Facebook Page Brian’s Book REI Print Mail Gc Power Mail Ryan’s cell: 314-458-6041

In today’s episode, long-time real estate expert Larry Goins joins Brian to talk about his real estate experience. They talk about the current market climate and the possibility of a market turn, his decision to step back from the guru life, and some actionable items for people just getting started in real estate.   Key Takeaways:   [1:25] Larry has been doing deals since 1986. Throughout his 30 years in real estate, he’s done almost 1,000 deals in 12 different states, using a variety of strategies. Right now, his focus is on wholesaling properties. [3:00] Larry and Brian talk about what makes things different in today’s market than a few years ago when people started talking about the market crash. Larry predicts that if it turns, it will be after this year’s election. He also shares his personal strategy for preparing for a market turn. [5:55] Larry talks about what markets would be good for implementing his strategy. Currently based out of South Carolina, he generally buys three or so counties out from the big MSA’s because they don’t get the same marketing out there, and there is less competition. He’s had success doing this because he’s doing something other people aren’t. [10:25] Larry talks about his decision to step back from the speaking, teaching, and ‘guru’ aspect of his career. When focusing on his vision, he decided to shift his focus to deals, negotiating, and interacting with sellers on a daily basis. [13:55] He still enjoys getting validation from being up in front of people. Instead of sharing the stage with some of the big names, this has shifted to staying local and doing some deals. He also talks about the idea of being successful at one thing when you’ve got a finger in so many pots. [17:40] One of his biggest goals he’s focusing on this year is to keep it simple. When you decide you’re going to change something like that, you have to accelerate the ‘splat,’ because it’s the fall that will hurt you the most. [21:15] Larry shares some actionable items someone new can use to be successful in real estate. These include picking a market, learning to analyze, and getting your marketing in order. [26:45] Once you have those things in order, it’s time to start making deals. If you are not getting a deal, you simply have done not enough to make the phone ring.   Mentioned in This Episode:   Meetings Daily REIA Show REI Facebook Page Brian’s Book Larry’s Website Larry’s Book 877-LARRYGO YouTube Channel

Chris Arnold is currently based out of Tulum, Mexico. He joins Brian on the show today to talk about an uncommon marketing strategy: the radio. In today’s episode, Chris talks about the best ways to advertise on the radio, the lessons he’s learned over the past nine years, and how radio advertising can help boost the quality of your lead generation.   Key Takeaways:   [1:00] Chris lives full time in Tulum, Mexico. When his business closed their brick and mortar business, he and his wife moved to Mexico and work completely virtually. Chris is the visionary of his wholesaling business that’s based out of DFW. [3:25] Radio advertising has helped them expand to all of North Texas, and they scaled from a boutique brokerage into the wholesale side, so they could maintain lifestyle. Chris started radio advertising nine years ago. It’s a dependable marketing channel because it’s not list-dependent. [6:15] Chris shares the key points to being great on the radio. The first is pricing — you make all of the money on the purchase. They are able to negotiate 60-second spots on the radio down to $10–$15/slot. The second key is determining the ideal frequency and play time. [8:40] To negotiate, they have a formula that you can follow that will show you what you should be paying for a station based on its size. Being armed with this knowledge can help you guide the negotiation. [10:25] Chris breaks down their radio budget and shares their dollar-for-dollar return. An ideal return would be about 1:3 or 1:4 return. For someone just getting started radio, a budget of about $1,000–$2,000 per month is enough to get you started. Radio can be inexpensive but also very scalable. [12:30] For people looking to get started, their ads run 100 times per month across their stations, so people hear their ads 700 times per month. Primetime is the best time to place the ads. [14:45] The primary demographic of most wholesaling deals is people over 50. While we are living in a digital world, the demographic you want to cater to is likely still listening to the radio and watching TV. [15:45] Chris shares some of his ups and downs with radio, particularly working with endorsements. You want to get the right people to read your ads; they’ve seen the best success when they record the ads themselves. [16:50] Chris shares some of the lessons he’s learned over the past nine years in radio. Radio is low call volume with high quality, so it’s important to catch the calls live. This is one of the highest quality leads they’ve been able to generate. [19:43] The REI Radio course is part of Wholesaling, Inc. now. He was able to network with Tom Kroll and his crew through his Mastermind and is now a coach with the Wholesaling, Inc. family. This opportunity has allowed Chris to share something new with the national market — not just in Dallas – and help other people become successful. [23:00] Chris is one of the founders of the Multipliers mastermind. This was intended to be a comprehensive approach to impact the lives of the top real estate guys in the country. People change people the most, and this mastermind has created a community of some of the best guys around the country. It’s more like a brotherhood. [25:05] Real estate is a vehicle that people can use to create freedom of time, freedom of resources, and freedom of location that ultimately leads to a higher impact. Chris talks about the transition from success to significance, and how that drives fulfillment throughout the course of our lives. [28:09] For more information on REI radio, visit wholesalinginc.com/reiradio. From here you can book a call to ask questions to see if radio is a fit for you. If you’re hungry for something new, check it out!   Mentioned in This Episode:   Meetings Daily REIA Show REI Facebook Page Brian’s Book Interview with Scott Orbon REI Radio Halftime: Moving from Success to Significance, by Bob Buford

Two guests join the show today to introduce themselves to the REI Live Community. Josh and Marlena Dates are launching monthly meetings in Orlando, FL. They join Brian on the show today to talk about their background, how they found success in real estate, and what their future plans are.   Key Takeaways:   [:55] Both Josh and Marlena come from teaching backgrounds, and real estate investing allowed them the flexibility they wanted for their family. In 2015, they started focusing on wholesaling and now they are teaching others how to do what they do. [2:55] Before they transitioned into wholesaling, they were doing primarily creative deals. At the end of the day, wholesaling is consistent enough that they can really depend on that income. The shift in focus allowed them to generate more cash. [5:10] In 2020, they have a three-person team, including themselves. They are able to generate so much business between the two of them from home while they homeschool their kids. [6:10] Josh talks about some of the opportunities real estate has provided them, including being able to scale their business and start doing deals virtually. They are still building passive income through the other creative opportunities. [7:05] Josh and Marlena are joining the REI live community in Orlando, FL, and will be hosting and teaching regular meetups to connect more people, as well as individual coaching opportunities. [8:00] Their first event is January 16th at the community center in Winterpark. If you’re in the market — come on out! [8:40] Brian talks about the advantages of having a local coach in your market that you can rely on for coaching and mentoring. [10:04] Do not miss this opportunity for free networking! There will be special guests with huge wholesale volume and a wealth of free content on the horizon.   Mentioned in This Episode:   Meetings Daily REIA Show REI Facebook Page Brian’s Book Register for Event

In today’s episode, Jesse joins Brian to talk about skip tracing company Batch Skip Tracing and what sets them apart from other services. They discuss how people can use the data Batch Skip Tracing provides, and possible marketing strategies for this data. They discuss what types of things you should look for in a skip tracing service, as well as some of the trends for different kinds of marketing.   Key Takeaways:   [1:20] Jesse explains what skip tracing is, and how it works to produce phone numbers based on a list. From there, you can do a cold call, send a text, or leave a voicemail. [3:08] Jesse talks about the evolution of skip tracing, from skip tracing for addresses to skip tracing for numbers. He talks about the functionality of some apps out there, and how this affects the efficiency of real estate. [3:55] In addition to the skip tracing, Jesse is also an active wholesaler. He talks about how he made the switch over to the data side. [6:30] Jesse talks about what separates BST from other skip tracing services. They pull from four different data sources and aggregate it. [8:08] Jesse and Brian discuss the most efficient ways to use the data they produce with skip tracing. You can use their data for digital marketing, but it’s primarily used for calls, voicemails, and texts. [8:52] To apply the data to the business, they then use a marketing calendar to distribute calls, texts, and voicemails over several weeks. They determine the follow-up strategy depending on the motivation they think a seller has. The campaign will then depend on the marketing strategy. [10:05] They are working on creating an all-in-one service so that after you get your list from skip tracing, you can use their service for texting, automated voicemail, and a dialer. [11:05] It seems to be the trend for people to be moving towards this type of marketing. Texting is good because even if people don’t respond, they generally will look at the message. Cold calling is getting harder because more numbers are being spammed and less likely to be answered. When one type of marketing falls out of popularity, it’s a good time to pick it up because the competition decreases. [12:30] Jesse talks about what’s next for some of these channels in finding motivated sellers. Texting will likely be around for a while, and building your digital marketing presence is important. [13:55] To get started with Batch Skip Tracing, you can just visit their website to upload your list, and the turnaround time should be the same day. [14:30] Jesse talks about some good places to get your lists. One of the best places to get your lists is your local county’s office and finding lists specific to your county. If you can get a list that other people aren’t willing to get, you’ll have less competition with that list. [16:05] You pay for what you get — if you’re using a skip tracing service, make sure you know where they are sourcing their data. You want to make sure you have the right data before you get started on calling. [17:23] Jesse talks about a few things that are on the horizon for BST, as well as what’s on the horizon for his wholesaling business as well.   Mentioned in This Episode:   Meetings Daily REIA Show REI Facebook Page Brian’s Book Batch Skip Tracing CallTools Mojo Zen Desk

Deanna joins Brian on the show today to share all things ‘seminars.’ Deanna talks about her own experience in the seminar space and some of the trends she’s noticed over the past few years. They talk about the negative connotation of seminars, and what people can look for to ensure they are going to get a good experience and gain knowledge in a seminar setting.   Key Takeaways:   [1:15] Deanna shares her involvement in the seminar industries. She’s been in the industry since about 2006 and quickly funneled herself into the entrepreneur space. In this industry, she’s worked with quite a few different people. [4:20] The word “seminar” carries a bit of a negative connotation because of some of the legal aspects involved in what’s being said versus what’s being delivered. There have been a few names in the industry that have given seminars a bad reputation, despite the personal growth and community that can come out of this space. [6:27] There can be elements that come off as a scam in this industry, depending on the company or individual. It’s important to make sure the people that you coach or sell into your product really understand what they are getting themselves into. [10:15] Another common complaint is the amount of money seminars can charge you. Deanna shares her thoughts on pricing. Depending on the seminar, the price points are justified because of the knowledge shared and time spent making you an expert. [12:26] People in the seminar world are subject matter experts, and the money spent is generally worth the knowledge you will gain working with an expert. [13:45] With all the free content out there these days, the seminar market has shifted from a “big box” mentality to a more regional, localized culture mentor, where coaches are doing things where they work and live. When you have a coach/mentor who lives in your market, there tends to be a more successful application. [16:40] The format of a typical seminar usually starts with a free pitch to get you to purchase the full coaching package. It’s important to find ones that are honest and transparent; watch out for ones that advertise quick and easy, turn a fast buck, expert in three days — so you know what you’re buying into. [20:00] Deanna recommends more of a regional, localized versus the big box seminars. Take into consideration whether what they are advertising seems realistic. [21:45] There is a lot to be said for accountability. When someone is standing in front of you in their own market, accountability greatly increases. Look for people who are already doing what they do well where they live.   Mentioned in This Episode:   Meetings Daily REIA Show REI Facebook Page Brian’s Book

Real estate and businessman Patrick Precourt joins Brian on the show today to talk about the powerful mindset behind creating habits in our businesses and daily lives. While Patrick is a real estate investor, he also runs a business that focuses on helping people make change. In today’s episode, he talks about how we can start making decisions that will form into habits, and truly start the business of success.   Key Takeaways:   [1:05] Patrick is a husband and father and got involved in real estate back in the ’90s. He started off with an accidental lease option and their business has moved into short sales. Today they specialize in high-risk, high-reward properties and also assisted living. [3:20] In addition to real estate, he also owns a martial arts/lifestyle fitness center, that focuses on helping people create change. [4:55] Change is one of our flaws as humans. Personal development isn’t always about the quality of education; it’s about what gets people to do what they need to do with that education as a catalyst for change. [6:45] Consistent, predictable results come from the psychological aspect of education and real estate investing (or learning any new task). Context is what we do with the information, and the information itself is the content. [10:05] We are creatures of habit, and tend to make a majority of our decisions out of habit. When we set a new goal, the process needs to start with who you have to become in order to get what you want. [13:10] Patrick and Brian discuss the idea of our feelings affecting our actions, and how a triggered emotion can lead to decision-action-result. [15:55] How do we go from awareness to action? Patrick breaks down two of four steps: 1. Figure out who you have to become. 2. Attach meaning to what you’re trying to achieve. [24:15] We have to change our habits in order to change our results. When something becomes a habit, it goes into our subconscious; oftentimes, once we learn something we lose focus before it becomes a habit. Once something becomes a habit, that’s when we start the process of success. [29:35] Patrick breaks down the remaining two steps to bridging awareness and action: 3. Stop letting how we feel determine what we do. 4. Re-establish belief in yourself and your abilities to execute. [33:25] Multiple times a day, we set small goals for ourselves to accomplish tasks throughout the day. Don’t set goals (large or small), that you aren’t 100% committed to. [36:25] Brian and Patrick talk about the different contexts of these “micro-goals.” They all strive to re-establish trust in ourselves. [39:05] Accountability is huge in this process. Accountability kicks in when our inner drive runs low; it’s a necessity until our behavior becomes a habit. [41:00] Though this episode has focused primarily on health and wellness, these same ideas apply for people in real estate investing. Patrick has some final advice: Get clear on what it is you’re actually doing — the outcome of that will help you hone in on your purpose. If you start making good decisions today, it will be easier to make them tomorrow.   Mentioned in This Episode:   Meetings Daily REIA Show REI Facebook Page Brian’s Book   Find Patrick:   Patrick’s Website

Brian Trippe Your host Brian Trippe counts down the TOP FIVE books he read in 2019. Out of 33 read books this year, a personal record, Brian picks out the books that had the biggest impact on his life.

David Lecko Today’s guest is David Lecko, founder of the DealMachine. At just a few years old, DealMachine has already reached 9,000 subscribers and 80,000 downloads. This app provides a simple way to maximize your efforts driving for dollars to get a high ROI list. In today’s episode, David and Brian talk about how the app works, how it is beneficial for investors, and what they’re doing at DealMachine to continue to innovate.   Key Takeaways:   [1:15] The Deal Machine app is a simple way to scale driving for dollars and get a high ROI lead list. From your car, you can take a photo of the house, and then it will fill in the information, and automatically send a mailer to the owner. [3:05] David developed the app out of necessity while he was getting into real estate. He was driving for dollars himself when he was first looking for a rental, but never made the time to follow up and get mail pieces sent out. [5:10] David breaks down the app itself. It is like a CRM in that it will re-send the mail on a schedule you set. It’s just for houses that you input while you’re driving for dollars, however. It is compatible with many other CRM’s investors may be using. [7:20] David shares some stories from users of how DealMachine is best used. He suggests that the best way to use the app is to have several people drive for you. There are several features in the app to help monitor and track these drivers. [9:35] From listening to users, they’ve been able to implement some other different features. One of the most recent developments is bulk-adding houses you’re already mailing so your drivers don’t add them. They are also going to upload vacant lists. [13:15] David talks about the things they are doing to innovate and continue to improve their product. They are focusing on going deep into the driving aspect of lead generation, as opposed to other companies that may be adding it as a module to whatever they already do. [14:05] Listening to user feedback is the greatest way they release features for the app. Customer service is a huge part of their business model, and they continue to improve the app based on what the users want. [14:45] Having big names support them and partner with them has allowed for their growth. These relationships were based on a genuine human connection first, rather than anything business. [17:00] If you want to try DealMachine, there is a 14-day trial that includes some free postcards. You can use the promo code REILIVE to get $40 of free mail. Visit the website linked below to sign up and apply the promo code. [18:45] David shares the one thing you need to know about DealMachine: You have to add at least 200 properties and contact them (postcards or calls) at least three times each. To get the best bang for your buck, you need to use it enough to know if it works! These numbers are pretty low compared to other stats that have been discussed on the show. [21:15] The driving for dollars list is the best list you can have because you are the only one who will have it. It takes a little bit of extra work but gives you an incredible advantage that most other people won’t do.   Mentioned in This Episode:   Meetings Daily REIA Show REI Facebook Page Brian’s Book DealMachine

Today’s guest is the lease option king, John Jackson. With previous experience in stock options, when he got into real estate he chose to pursue the creative avenue of lease options. In this episode, he talks about three different types of lease options and the benefits for investors in all three. Brian and John also talks about some of the legal implications of these types of lease options, and the best way to navigate this type of investing.   Key Takeaways:   [2:15] John does lease options mainly in Texas, but all over the U.S., as well. He started a company, Leasing to Buy, in 2003. One of the most important things for him entering the real estate market was finding his niche, and recognizing that all markets are cyclical. [4:45] His company takes the essence of lease option and puts the pieces into place so that it’s a win-win for everyone. [5:23] John talks about the best time to do a lease option. The absolute best time for lease options is when the market is pulling back. As the market softens up, properties that are slightly above the median price range feel the pain first. [8:30] John shares some specific examples of the price range of houses versus days on the market. The higher price range houses tend to stay on the market longer. [10:05] John and Brian talk about the different types of lease options — straight-lease option, sandwich lease option, and wholesale lease option. The straight-lease option is when you own a property and instead of renting it out, you do a lease option and you tend to get an option fee (4-5% of the price of the house), slightly higher than market rent, and the tenants tend to take much better care of the property. [11:40] The sandwich lease option is when you as the investor stay in the middle. The investor negotiates the option price and monthly payment with the seller, and then you market it as a lease option to another buyer. In this scenario, you get an option fee from the buyer, cash flow each month, and then the equity when the property is bought out. [13:25] At Leasing to Buy they specialize in the wholesale lease option or lease option assignments. In a lease option assignment, you work with a property owner to give them full price, and then you market the contract to a new buyer. As an investor, you could get an assignment fee in this scenario. These are good for new investors because you aren’t making any payments on the house yourself. [18:20] Most people are familiar with the sandwich lease option, but the straight lease option is more for someone who might want to hang on to a property long-term. John breaks down a lease-option scenario on a $200K house, and what kind of return would be in it for the investor. This option is good for newer investors as well. [20:45] Brian and John talked about different ways you can use a lease option as an investor. You can do things like Airbnb, student housing, or assisted living without buying the property, but controlling it through lease option. [23:45] John talks about the difference between a lease option and a subject to or a seller finance deal. It depends on the seller who currently owns the property and how badly they need to sell. As a buyer, it’s typically more advantageous for the lease option because you can secure the property for a lot less money. [29:05] There’s been a lot in the news about the sandwich lease option, about the legality of people moving through tenants quickly in a lease option. John talks about different ways investors can safeguard against getting into trouble by running a reputable and ethical business. [31:25] No matter what state you’re practicing in, one of the best things you can do for real estate is to read and understand the law yourself. In Texas, you actually can’t do a sandwich lease option. [35:30] Instead of the sandwich lease options, there are a couple of other options. You can acquire the property subject to, and then lease option it, or you can do one of the other lease option types and rent it out. Make sure you find a competent real estate attorney in your state to make sure you know what your legal options are. [38:15] John talks about different qualifications for a real estate attorney. It’s important to make sure they really do specialize in real estate, and it is favorable if they do litigation. You may also ask which type of real estate investing they specialize in (residential versus commercial). Ask for references! [42:50] One of the best things you can do to protect everyone in a sandwich lease option is to cloud the title so someone can’t steal the property out from underneath you or the end buyer. You can also use a servicing company for the payments. Approach these properties as if you are the end buyer, and do everything you can do to protect the end buyer. [44:15] To get in touch with John, visit leaseoptionclasses.com or his Facebook page.   Mentioned in This Episode:   Meetings Daily REIA Show REI Facebook Page Brian’s Book Lease Option Classes Lease Option Classes on Facebook Leasing to Buy Wholesaling Lease Options with Joe McCall 

Jeff Stephens, creator of the Thoughtful Real Estate Entrepreneur and Sleaze-Free Real Estate Investing Podcast, returns to the show today to talk about a deal he closed earlier this year. In this episode, he talks about how he acquired a building that was two separate properties, negotiated two different deals with two different creative financing strategies, and what he’s done with the property now that he is the sole owner.   Key Takeaways:   [2:00] This deal was about an 18-month deal once all was said and done. It was originally a bank, and due to a lot line, it had been split 60-40 since a few years after it was built. He sent mailings out to a niche list of owners of buildings that weren’t structurally sound for earthquakes (unreinforced masonry), including this one. [5:20] The first contract for the smaller side of the building fell through, but when the chance arose a second time he put down $15,000 non-refundable, and also pursued the bigger side. After about 12 months of follow-up, he had both sides under contract in two separate negotiations. [8:25] He used two separate financing strategies for the different sides of the building, and closed on them in November 2018 and February 2019, becoming the first person to own the whole building in 101 years. [9:30] The list Jeff used to send mailers was a pretty niche list. In Jeff’s situation, he was able to get to sellers around the same time as the city was, which made the conversations a little easier. This letter was very similar to his regular mailer — he didn’t necessarily say anything about the unreinforced masonry situation for those properties. The list became relevant to the negotiation as well. [13:10] Some things to think about with niche lists: competition — are you going against many others who have access to the same list? You also want to keep in mind how you can use the list to your advantage when talking with the seller. [13:40] Persistent follow-up was key in this deal, with parties on both ends of the building. Taking a chance on the follow-up for the smaller side a second time ended up being a win. When the stars aligned with two yeses, his follow-up had succeeded. [16:25] Jeff breaks down the financing for the two separate transactions. He negotiated the first side down to $840,000 down; he set himself up for financial success a year before. He had previously bought a five-unit apartment on a note, and he put that up for sale to change the collateral of the note. He used the buyer’s money from the five-plex to provide the money. [20:15] The financing he negotiated for a past deal ended up providing the financing for this new deal. Jeff set himself up for success a full year before he knew about this commercial property. At the end of the day, the success of real estate is really about financial structuring. [22:10] Negotiating the second side of the building was a little less glamorous. Traditional financing was difficult, and ultimately he ended up going to a commercial hard money lender to get the money for closing. Now he’s working on refinancing the building as one. [24:15] The financing idea of moving the collateral under notes is a big strategy for Jeff. It’s complicated but is an intellectual challenge that really makes real estate fun. [25:40] Since buying the property, they’ve filled some vacancies and turned the biggest unit into a co-working space. They were able to make some cosmetic changes for about $20,000, and rent out the space as a shared working environment. [28:49] Real estate doesn’t have to be all go buy, fix, sell, rinse repeat. There is a lot of creativity to be found in real estate!   Mentioned in This Episode:   Meetings Daily REIA Show REI Facebook Page Brian’s Book The Thoughtful Real Estate Entrepreneur Sleaze-Free Real Estate Investing podcast

Savvy investor Maria Giordano joins Brian on the show today to talk about her real estate ventures. In this episode, they talk about negotiating, creative deals, and the meetings Maria organizes for female investors in AZ, the Phoenix Women’s Real Estate Investor Network. Listen in today to hear how Maria negotiated an amazing creative deal to get her current property.   Key Takeaways:   [2:05] Maria talks about getting started in the real estate and some of the prejudice she faced getting started as a woman in real estate. Shortly after getting into real estate, the market crashed and she started investing with other people’s money essentially at the start of her venture. [3:50] They started by doing fix-and-flips and vacation rentals, and switched their focus to buy-and-hold to reduce the amount of work they had to put in. This also allowed for more flexibility to be away from home and will provide legacy wealth for her children. [5:30] When she first got into real estate, Maria was a divorced mother of four. Though the real estate business is a male-dominated industry, it doesn’t mean that women can’t succeed the same way male investors do. For other women who want to get into the industry, two tips she has are to educate yourself as much as possible and then get to where you feel comfortable asking questions. [9:25] Maria started a real estate group for other women in real estate. They discuss issues in real estate from a woman’s perspective. The structure also provides a comfortable place for females in real estate to network and ask questions. [13:40] The bulk of Maria’s business revolves around buy-and-holds structured with more creative deals like ‘subject to,’ lease options, etc. Creative deal options allow her to make more deals happen and also yield a higher ROI. [15:10] The market conditions are right for people to be using more creative deal structures. There are several opportunities in this market, especially for people who don’t have much equity in their home or people who want to sell properties with dated value. Her main focus is on cash flow. [17:10] Maria talks about how she works with buyers to steer them in a more creative direction. The most important thing to find out is the motivating factor behind why they want to sell. Asking questions to figure out what a seller really needs can help you negotiate the deal how you want. [19:20] Maria breaks down a huge deal that she closed in Pennsylvania using creative deal structures. She originally got the lead from a Zillow search and reached out via letter and door-knocking until the seller responded. [23:10] The house had two mortgages, and Maria was able to do a short-sell of the second mortgage (down from $315K to $73K). She bought the first mortgage from a loan company subject to the existing financing. [27:30] She negotiated the second mortgage first to save the property from foreclosure. She was able to get the first mortgage ‘subject to,’ despite the risk. It can be risky because the note could be called due. [32:25] When she closed on the property, she paid about $137,000 cash (from private money) and started making payments on the first mortgage. She had the property appraised, and ended up getting an $825,000 property for that price. She refinanced and was able to get the money for her rehab, which made the value of the house $1.2 million. [35:30] This is something any listener can do! Maria was successful because she followed up properly with the seller and negotiated with the right people. By doing this, she gained a property with a lot of equity and was able to help the seller out of her own situation. [37:15] Let Maria’s story serve as an inspiration! To get in touch with Maria, check out any of the links below.   Mentioned in This Episode:   Meetings Daily REIA Show REI Facebook Page Brian’s Book “How to do ‘Subject To’” Maria’s Website Email: maria@realestateproftisystem.com AZREIA Phoenix Women’s Real Estate Investing

Today’s guest is the CEO of Spartan Invest, and the third guest from the company to join the Podcast! Lindsay Davis is on the show today to talk about their full-service turn-key company. Spartan does so much for REI Live, Birmingham, and even the nation. They cover everything from their business model, property management, the real estate market in Birmingham, tenant placement, and how they work with wholesalers.   Key Takeaways: [1:15] At Spartan Invest, they are a full-service turn-key provider that will purchase the property, renovate, rent, and sell to investor clients, in addition to managing the properties after the fact. [2:25] Lindsay and Brian discuss the market conditions in Birmingham. There is a great deal of job growth, and resale values are high right now. There’s been increased competition in the turn-key space. Spartan primarily focuses on the outskirts of Birmingham, in single-family homes in places like Hueytown, Bessemer, Pleasant Grove — basically a circle around Birmingham. [5:03] They’ve ventured further out in order to be able to offer their investors diversity. By being able to expand, it allows a single investor to be in several markets with a single point of contact. Getting into some of those other markets (Huntsville for example) has allowed them to get prime turn-key properties. [7:35] Lindsay and Brian talk about the difference in the rate of return and appreciation between Huntsville and other markets they’re in. [9:00] The biggest thing that sets Spartan apart from other turn-key companies is the service aspect. Since they handle all aspects of the process, that enables more people to be able to invest. Their long-term goals also add an accountability piece that makes these transactions more like a life-long service relationship. [13:05] The market inventory is down nation-wide. Inventory is getting purchased quicker, and for Spartan, it’s been a struggle in the past when the demand gets higher than they can fill. Quality of service is always a top priority, so their inventory stays at a number they can comfortably manage. [14:45] In property management, there can come a point where the service drops off. Lindsay talks about some of the challenges they’ve faced, and what corrections they’ve put in place to help that. They added a second Client Services manager, and the managers contact all of the investors once a month to keep them updated on their accounts. [17:00] Lindsay talks about some of the qualities of a good property management company. You want to check on things like their occupancy, maintenance ratios, and renewal rates. [19:15] Many investors are impressed and satisfied with the property management through Spartan and Alabama Rental Property. One of the big advantages is that Spartan has done all the renovations, and has fixed these houses up for the long-term. If they began to manage other properties, they couldn’t speak to the quality of those properties. [20:40] The average stay for their tenants is about 40 months. They offer two-year leases and have criteria for their tenants before they will rent to them: 550 or better credit score, 3X rent in income, no evictions or bankruptcy in the last two years, no felonies in the last seven years. Their criteria are constantly evolving. [23:10] In addition to turn-key, Spartan also works with wholesalers to buy properties. What drives their purchase power is what it will rent for. They’re usually around the 1% rule. [25:40] To send potential deals, email webuyhouses@spartaninvest.com. Their admin will send them to the appropriate agents to be evaluated within 24 hours. [26:35] Some of their long-term goals are getting on the ground on Huntsville (which they’ve already started) and are also looking for their next market outside of the state of Alabama.   Mentioned in This Episode: Meetings Daily REIA Show REI Facebook Page Brian’s Book   Spartan Invest

Today’s guest joins us from the Central Valley market in California. Don Costa runs a high-volume rehab and wholesaling business. In today’s episode, he talks about the struggles of when he first started in real estate and the mindset shift that changed the game for him. He breaks down some of the logistics of his business, how they manage both rehabs and wholesales, as well as the motivation behind some of the extracurricular projects he’s taken on.   Key Takeaways:   [1:05] In addition to his podcast, Don is still doing quite a bit of volume, primarily rehabbing but also some wholesaling. He started in real estate back in 2003; it seemed to be the best outlet for his desire to be an entrepreneur. When the market changed, he didn’t react quickly enough, and he lost it all in the crash. [4:50] In 2012, things came back around for him to step back into real estate. He talks about the soul-crushing moment when he realized he had to change something in order to preserve his family’s finances. [8:09] In both of his startups, Don can recall a specific moment when his mindset shifted, and it changed the game. The mindset shift gave him the power to know his value in a given situation. You don’t have to wait for someone to tell you you have value behind you. [10:55] It’s easy to stay stagnant when you’re in survival mode because you’re thinking about the small things rather than the domino that could change the course of everything. [11:40] To get to the amount of volume Don is currently doing it takes a great team that can operate when you get out of the way — also having proper cash flow and the right mindset to get financing from lenders. [13:35] There are many times when we’re not ready to hire, but it’s important to hire someone before you need to hire so that you have time to effectively train someone before you’re in the weeds. Hire for where you want to be. [15:45] Some of the pitfalls people encounter when it comes to hiring is that people tend to plug and play. Be intentional about where you are placing hires and take the time to develop them before you put too much of the weight of the role on them. Owners or managers also can be a bottleneck holding their team back. It’s also important to keep an eye on your hires until you know they’ve effectively mastered the role. [17:20] Right now they’re about 50-50 between rehab and wholesales. They started wholesaling because they had a lot leads coming in that didn’t fit the criteria for a rehab. Instead of throwing those deals away, they adapted to be able to start wholesaling. [20:40] Don talks about some of the aspects of his business he’s had to change in going from rehabbing to wholesaling. The main advantage is that they’ve been able to monetize leads they normally would’ve thrown away. One of the disadvantages is that it created a gap in their cash flow for rehabs. It’s important to anticipate these so you can compensate. [23:15] Don describes a typical rehab project for his business. They are usually three-to-four-week projects, and the price is roughly $30K–$35K on average for cosmetic rehabs. It really comes down to systems and processes to make these happen. [25:00] Don breaks down the systems of the rehab business. They have six to eight crews that work on their inventory at any time. They spend about $150K all in for a deal. Don breaks down the system for their crews, which typically include a manager, then general contractors that report to the manager, and hourly employees that report to the general contractors. Don and Brian discuss the pros and cons of paying these employees in-house versus a more contracted system. [29:45] In addition to his business, Don also has a podcast, an education platform, and a mastermind. He picked up the podcast when he didn’t need to be involved in the day-to-day aspects of his business. The podcast gives him an opportunity to speak to experts and also keeps him grounded in real estate. [32:25] Don has started all of these projects because he wants to impact businesses and change lives. If you’re interested in getting ahold of Don, you can email don@fliptalk.com. You can also connect with Don on Facebook or YouTube.   Mentioned in This Episode:   Meetings Daily REIA Show REI Facebook Page Brian’s Book The Flip Talk with Don Costa Podcast YouTube Facebook — Don Costa Facebook — Flip Talk Podcast Facebook — Flip Talk Group

In today’s episode, CEO Lee Arnold joins Brian to talk about various aspects of funding and lending. With his company Secured Investment Corp, Lee shares the different ways they are helping investors get the money they need to acquire real estate assets. He discusses the importance of finding a good deal, as well as some of the qualifications they consider when lending to investors.   Key Takeaways:   [1:20] Lee is the CEO of Secured Investment Corp, a full-service real estate educator, funder, financer, and money manager. Their main business is helping investors get the funding they need to acquire real estate assets. [3:30] Lee shares some tips for real estate investors to get funding. Don’t go out and get pre-qualified; in the investment world, lenders are concerned with security, risk, and how they are going to get their money back (entrance and exit strategy). [5:45] Lee shares a specific example to illustrate two different approaches to asking for money. If investors spend their time finding quality deals, funding will be readily available when they find them. [7:30] Lee shares his argument against the idea that private lending is a relationship business. Initially, it is 100% an opportunity business. Once you have an opportunity, then you can form the relationship. [9:15] Brian and Lee discuss the qualifications that lenders look for when an investor approaches them, including experience and how that affects loan to value, and risk. [11:50] If you have no money and no experience, cross-collateralization and partner equity are two creative options to get in the game. Partner equity is more about partner experience than money and could end up getting you more funding. [16:20] In addition to experience, another qualification is credit. It’s less about actual credit and more about what past performance would indicate about future performance in a deal. [18:30] There’s more money flooding the marketplace right now than ever before. Investors are having more trouble finding deals than finding the money. Lee talks about some of the implications of the current market conditions and lending. [21:55] If you’re an investor with a great deal, lenders will compete to give you money. This gives you as an investor/borrower the leverage to negotiate on terms, interest fees, points, etc. The borrower should feel empowered! [24:00] At their tuition-paid training events, attendees are taken into that market to demonstrate what would be good deals. Lee suggests single-family homes as the best place to start and focus on. [28:15] Amass as much cash as you can and be ready for the market correction when it hits full force, so you can still acquire assets at a premium price.   Mentioned in This Episode:   Secured Investment Corp Nationwide Funding Tour Submit a Deal Meetings Daily REIA Show REI Facebook Page Brian’s Book  

Marc Pelletz joins the show from Sarasota, FL, where he is currently practicing real estate. With over 40 years under his belt, Marc is on the show to share his ideas on the importance of a positive mindset and power of practicing consistent, effective habits to grow your real estate business.   Key Takeaways:   [1:05] Marc has been in the real estate business for about 40 years now, and for the past 20 years has been in Sarasota, FL buying, holding, and flipping real estate. His company also has a full-service real estate brokerage, property management, and a training center. [2:35] He has gained financial and time freedom by setting goals early on, and following the path one day at a time to achieve his vision. It didn’t happen in a day, but over time with persistent and consistent action. It starts with a thought that transfers to a goal and you have to shape your mindset around that. [5:20] One of the first things you can do to get on the path is to find a mentor — someone who has been in the business and is still in the market today. [6:15] Marc actually left real estate for a brief period because his initial success allowed him to make some decisions that weren’t sustainable. He lost all his money, but when he decided to get back into real estate the first thing he did was write down his goal: 50 rentals by 50 years old. [8:45] He talks about how he pitched a deal to his first seller so he could purchase with no money down and create some cash flow. You have to find a motivated or willing seller and create some belief, first within yourself. [10:45] He was able to rebuild by partnering with sellers through creative deal structures, so both parties were benefitting from the deal. [12:25] It’s always the right time to buy real estate if you know how to buy it. The market crash in 2007 actually ended up being the most opportune time for Marc. By buying property that takes care of itself, he was able to continue making money whether the market was good or bad. For people anticipating the market correction, that is where the opportunity lies. [16:05] Marc’s book, Think Like a Real Estate Investor, focuses more on mindset than real estate. If you don’t have the right mindset to who you want to become and what you want to do with who you become, there’s little chance of success in real estate. Mindset is key — it doesn’t matter how much you know. [18:20] Take action on what you know now; there’s always going to be a new way to do something so it’s important to take action and start doing things. [19:30] Marc talks about the power of thoughts, and how they help us manifest the goals we set for ourselves. Thoughts lead to action, actions repeated daily become the habits that make us who we are. Success comes from the interaction of the words we tell ourselves, how we feel, and the action we take. [22:35] Some takeaways from Marc: Get a mentor who can teach you not just the tactics, but also the daily habits. Also, bring a positive mental attitude to the game of life, and any other ventures you pursue. [24:30] Take some time to evaluate your habits. Are you trending up or trending down?   Mentioned in This Episode:   Meetings Daily REIA Show REI Facebook Page Brian’s Book REI Live Sarasota Marc’s Website Think Like A Real Estate Investor, by Marc Pelletz The Compound Effect, by Darren Hardy Atomic Habits: An Easy & Proven Way to Build Good Habits & Break Bad Ones, by James Clear The Slight Edge: Turning Simple Disciplines into Massive Success and Happiness, by Jeff Olson

Brian and Rob are back for another episode of the Birmingham area market update. For cash-flowing properties or advice on the Birmingham market, contact Rob Drum at rob@robdrum.us

Contractor-turned-teacher Ryan Garcilazo joins Brian on the show to talk about fostering good relationships with contractors. Many investors dislike working with contractors, and Ryan’s business has set out to change the relationship between investors and contractors. In today’s episode, he shares four things to do before you ever start demo or groundbreaking on a property. These steps help the investor take control of the project and create favor for both parties.   Key Takeaways:   [1:05] Investors don’t generally like working with contractors, and it is often because they don’t understand what contractors do. Sometimes contractors take advantage of investors, and Ryan has set out to change the game for investors and help show them the game. [2:34] Ryan has been in real estate for 15 years. He was a contractor who primarily flipped houses for investors in the first ten years. After several hundred flips, he made the switch to start teaching people how to change the way they rehab. His credibility from both worlds has allowed him to bridge the gap between investors and contractors. [6:20] The main part of Ryan’s business today is the education piece — they have online classes, live Zoom calls, and some in-person consulting, with different boot camps throughout the year. The goal is to teach investors how to go from an investment model to a construction model. [8:30] One of the biggest things they teach is the production phase, which prepares you for demo/groundbreaking day one. The four steps to production are 1. Pre-walk the property with three different GC’s. Ryan breaks down the three verbal commitments to get on this pre-walk: start date, time frame, and budget. [13:50] If you can reverse-engineer the GC fee, that’ll change the way you rehab. There’s a 10% contingency in a budget, and half of most budgets are labor. The whole idea of the model is that you as the investor are controlling every single penny to come out under budget. More often than not, investors lose the deal on the GC fee. [17:10] Finding a good contractor can be hard, especially depending on where you live. For rehab projects, you’re probably hiring B or C contractors. You generally get what you pay for, but taking control of a project with a C level is a little easier because they need you just as much as you need them. [21:35] The next step in the production phase is 2. Putting the information from the pre-walk into a contract. Your contract should have scope of work, a blank sub-list for the contractor to fill out, a blank page for negotiations or changes, a blank schedule for the contractor to fill out, and material selection. [25:40] The third step is 3. Pre-construction meeting. Have an all-hands-on-deck meeting at the site and create the job site binder with all signed documents, blank lien waivers, and any layout photos. This binder stays on the job site to make communication more convenient and easier for the investor and the contractor. [27:55] The last step is the money step: 4. Go over your money and funding and address any discrepancies with your GC. After you complete all four of the steps (approximately four weeks), you are ready for demo day one. These are the steps that set professional rehabbers apart from people who do one-off jobs to make some extra money, but it’s doable to any novice. [30:00] Ryan suggests that investors be involved in their flips, while many investors prefer the opposite. This is part of the reason why investors can get ripped off by some contractors. Ryan has been teaching this to help make rehabbing attractive again for investors. [32:05] Brian asks some general questions about hiring a contractor, including whether investors should run background checks or give money up-front. [34:20] The next boot camp is November 7–9 in Chicago. It’s $1,500 for two-and-a-half days. In the boot camp, they go over all three phases of construction: time management, general contracting, and project management. You also get materials and access to the online classes.   Mentioned in This Episode:   Meetings REI Facebook Page Brian’s Book The Rehab Depot Instagram: @legendaryflipper Facebook YouTube

Today’s guest is Andrew Lucas, host of REI Live Columbia and cash flow expert. He joins Brian on the show today to talk about his real estate journey, and how he and his wife were able to quit their jobs and do real estate full-time. He talks about how the importance of cash flow and how they use other projects to create cash flow.   Key Takeaways:   [1:00] Andrew is based out of Columbia, SC, and does wholesaling, rentals, rehabbing, creative deals, and also runs the most successful meetup group in the city. The core business is to hold cash flow rentals to make money passively. The other aspects of their real estate venture are to make more money for more rentals, financing, or lending. [3:20] Andrew talks about knowing when too much is too much, and how he was able to transition to real estate full-time. Once he was able to quit his day job and really got into the business, it got easier to tackle everything without all the time and thought being sucked into it. [5:05] Andrew got started in real estate back in 2007. His own experience renting a place in college inspired his mindset to find his own place. He bought a place, and after he moved out, it’s been rented ever since. Each opportunity led to another until his business really took off. [9:15] Many people new to real estate focus on wholesaling. It’s easy to get going, but there’s no real wealth in wholesaling — it's transactional business. Andrew starting acquiring rentals from the beginning, and understood that cash flow is the name of the game. [10:50] If you’re just getting started in real estate, evaluate what you can handle and what kind of risk you can deal with. You also need to check in with your bank account. Wholesaling can be difficult to get a business going; if you’ve got the money, go for cash flow. [12:30] Andrew talks about building cash flow. When you make money from a fix-and-flip project or a wholesale deal, use that money to put into other investments that will bring you cash flow. Don’t spend it on expanding your lifestyle. [13:30] The Burr Strategy helped Andrew and his wife get to a place where they could both retire from their day jobs. It is essentially buying a house, rehabbing it, renting it out, and then refinancing. Using this strategy, you use your money and then you get it back. This is a good strategy to accelerate you forward quickly. [15:25] Andrew knew he would be able to retire from his day job when the cash flow was there. He and his wife set tangible goals for each of them to quit their jobs, and they were able to do it sooner than expected. [19:00] It’s not very prudent to jump into any real estate venture without a plan. The goals they set propelled him forward and allowed them to make sure they had a safety net in case something happened. [20:50] REI Live in Columbia is one of the largest REIAs. They meet once a month, and the meetings are networking, education, and deal-making events. There is a local or national expert that speaks. [24:30] If you’re in the Columbia area and interested in the events, visit the link below. You can also email Andrew for more information.   Mentioned in This Episode:   Meetings Daily REIA Show REI Facebook Page Brian’s Book Facebook Group REI Live Columbia andrew@lucasproperties.biz

Jeff Stephens, creator of the Thoughtful Real Estate Entrepreneur and Sleaze-Free Real Estate Investing Podcast, joins Brian on the show today to talk about his holistic approach to real estate investing. This episode focuses on some tactics for sophisticated investors, and how keeping an open mind when looking for deals can yield the highest benefit for you and the seller.   Key Takeaways:   [1:08] Jeff is the host of the Sleaze-Free Real Estate podcast. Sleaze-Free Real Estate hopes to send a message about how people can get into real estate without feeling sleazy. In addition to the podcast, Jeff has been full-time in real estate since about 2013. As he found his voice as an entrepreneur, he created the Thoughtful Real Estate Entrepreneur to share his experience with others. [4:10] Jeff specializes in off-market acquisitions and meeting face-to-face with sellers. Jeff focuses on working directly with sellers for new properties. He has had the most success when he has fewer intermediaries to work through. Face-to-face allows the opportunity for more questions to come up with the best solution for the seller. [7:40] Listening is three-fold: listening to what the seller has to say, maybe reading between the lines in some situations, and being able to create a proposal that goes back to the seller. The market has shifted away from generic experiences to a more personal approach. [10:20] Jeff prefers to buy from motivated sellers who aren’t really facing any problems. If a seller calls you, there is some reason why they feel like their situation could be better. You can’t go into every situation with the same pre-programmed solution. [11:30] Pull marketing is when you are trying to pull people towards you who are searching for something (bandit signs, etc) — you want to make yourself easily found. Push marketing is where you take your message and push it out to them (direct mail letters). The market for people searching for solutions is saturated right now. Jeff talks about his specific method of push marketing. [15:05] When Jeff gets a call, it’s about establishing rapport and arranging an in-person meeting. Once arranged, the first meeting is to start learning about the seller. [18:45] The first meeting is about getting to know what the seller is trying to accomplish and how they got here. In the case of pushback, just remember this is about making the seller feel comfortable. You’ll have to gauge each situation. [22:20] It’s important to be intentional when you’re building rapport — just focus on being nice and being yourself. If you can spend time developing rapport before you even start talking about the property, it will be that much easier to transition to talking about the property. [26:00] Jeff has a triple-threat acquisitions strategy. When he looks at a property, he considers how he could buy a property and hold on to it, do some sort of fix-and-flip, or a wholesale assignment. He comes in with an open mind to see what would be best to build his portfolio at the time, but always has the goal to get terms with the seller. [28:20] If you’re going to be acquiring a property, you’re going to be acquiring the building, but also the financing. If you can get them both from the same person at the same time, that’s a really good thing. The property and the financing are two separate assets that are equally valuable in different ways. [31:36] Jeff talks about buying an okay property with great financing and getting rid of the property but keeping the financing. If your loan is from an individual, the collateral doesn’t necessarily have to stay the same the whole time. Jeff provides a specific example of how this works. [34:45] If you want to get in contact with Jeff, visit sleezefreerealestate.com. This will link you to the podcast and additional resources for Jeff’s real estate investing strategy.   Mentioned in This Episode:   Meetings Daily REIA Show REI Facebook Page Brian’s Book The Thoughtful Real Estate Entrepreneur Sleaze-Free Real Estate Investing podcast Influence: The Psychology of Persuasion, by Robert Cialdini

Today’s guest joins the show with over 40 years of real estate experience. Eddie Speed, founder of the NoteSchool, is the authority on creative financing. As one of the first guys in this space, he has done approximately 40,000 transactions in his 40 years. He joins Brian on the show today to talk about why this creative financing can be a game-changer for investors’ conversion rates. He walks through a few specific examples of how it works and how it can benefit investors.   Key Takeaways:   *SPECIAL OFFER! Rate and leave a review of the show on whichever platform you listen, and email your review to Brian (brian.trippe@gmail.com) to get a free T-shirt!   [2:50] Eddie has been in the business since 1980 when he started buying seller finance notes. He founded the NoteSchool about 20 years ago and tries to find a void in the market that creative financing could fill. [4:25] Having note sales as a strategy is valuable in this real estate landscape where it’s getting harder to find good deals. Eddie outlines three reasons that a wholesale deal won’t work: 1. The seller will not accept your discounted price. 2. The seller can’t accept your discounted price (because they owe more than you can pay). 3. The property has a weird factor about it. [7:00] In a market where you pay $0.70 – $0.78 for the dollar, the customer sees your discount, not necessarily what you’re giving them. These deals often don’t convert. Creative financing can help you take your deals to the next level! [10:25] With notes, you are able to pay a retail price but get wholesale financing. Since you are in charge of structuring the financing, you can get into the psychology of the seller. [14:55] Eddie talks about a specific scenario where the financing was restructured. With two notes, you’re able to make it so that you’re paying a percent, and making a little more than that by the terms of the second note (a little middle-man fee). [17:05] On the wrap-around note, they’ll put a balloon on the whole deal and the difference in between the amortization of those two notes at a much lower price. There are a lot of ways to disguise wholesale financing, including creating terms that seem favorable to the seller but are more favorable to you as an investor. [22:10] Many of the top real estate investors have gone (or will come) to NoteSchool as a chance to reinvent themselves. Usually, these investors are taking a hit to their marketing costs, and are looking for something else that can help to boost their situation. [26:30] Making a switch to notes is about taking advantage of the current market we’re in — it can really set you apart from your competition. Eddie helps others with notes so they don’t have to be solely dependent on transactional income, which can change overnight. Buying notes can help create long-term income from deals investors have already closed. [30:15] In his 40 years of experience, he has become very focused on the principles that he believes will run true. Eddie is constantly searching for market voids, and how to fix those problems. Today the void is real estate investors’ conversion rates. [32:15] Eddie will be in the southeast in a few weeks: REI Live Atlanta — October 15th, REI Live Birmingham — October 17th, one-day class for members of REI Live October 18th and 19th (Atlanta, Birmingham); the full-day class will have several examples of how this creative financing works. [35:00] The book is called It’s A Whole New Ball Game with Creative Financing. It shows people how you can do something so crazy just to pay retail and be crushing your competition.   Mentioned in This Episode: Meetings Daily REIA Show REI Facebook Page Brian’s Book NoteSchool Special Link to Eddie’s Book

For more info, please contact Rob at rob@robdrum.us  

Today’s episode features not one but two guests. Jake Stenziano and Gino Barbaro, from Jake & Gino, join Brian on the show today to talk about how they got started in the multi-family business in Knoxville, TN. They share about their first deal, and how they found success by remaining persistent. They discuss some of the main pillars of their business, as well as an event they have coming up that teaches investors about all facets of multi-family real estate investing.   Key Takeaways:   *Rate and review the show on whatever platform you listen to it, and email your review to Brian (brian.trippe@gmail.com) to get a free t-shirt.   [2:45] Jake and Gino are investors in the multi-family space, an area of real estate that has become crowded over the past few years for some key reasons. The first is money coming in from international investors so there’s a high cap rate. The second is that people don’t really have confidence in the stock market anymore. The third reason is that shelter is a basic human need. Finally, there are millions of people spanning several generations that are renting instead of buying. [4:11] Multi-family is also attractive because of the tax benefits. There’s a huge swell that has made multi-family attractive. It is competitive, and in order to compete, it’s important to have a structure and strategy in place. Jake describes a little bit of their team’s process and how they’ve had to adapt as the competition grows. [6:20] Gino got into real estate investing after the market shifted in 2008. He wanted a way to create passive income, and when he partnered with Jake they began looking for their first deal. For Gino, it was about getting the additional cash flow. [8:15] The best thing that Jake and Gino have done in their business is staying consistent. Multi-family is something that you have to stick with in order to see success; education times action equals results. Some of the most important things both Gino and Jake did when starting Jake & Gino were to get educated and to get coaching. You need to build a network around you with like-minded people. Today, their students have done over 4,000 deals because of the structure they put into place when they first got started. [10:20] Their company works because each partner is able to focus on a different facet of the business. By leveraging other people’s time, assets, and skill sets, it can scale into a beautiful thing. They have vertically integrated many of their processes so they can reduce costs. [12:10] One thing that Gino mentioned is that you have to seek to serve or pay to play. It’s so important to find a coach or a mentor, or something that will give you a greater education in whatever you decide to pursue. You may have to put some money up front or be willing to give up your time to learn from someone who is already doing what you want to do. [13:40] Jake describes how they got their first deal. During the 18-month process, there was constant rejection. They created a “credibility book,” and that became their business blueprint. They had to come up with about $83,000 up front. [17:05] Once they made the deal, it took them about 18 months to stabilize. It was a slow and steady rise while they learned the process, transitioned tenants from weekly to monthly payments, and putting some systems in place to finding tenants, running background checks, etc. [19:30] What most people would do if it took 18 months to find the first deal would be to give up. If you’re just getting started, it’s so important to identify and remember your “why.” It needs to be strong enough to keep you going. If you don’t know your why, you won’t be able to understand the how. [21:35] To find your why, you have to focus on what you do want, rather than what you don’t want. Once you know what you want, you can figure out how to make it happen. Jake and Gino each share their own whys in this business. One of the biggest whys that have come out of their whole business is being able to create a nice community for their tenants and employees. [25:00] Jake breaks down the 42 different ways he gets paid each month because of the multi-faceted nature of their business. It started small: think big, but start small. There’s nothing wrong with starting out with a smaller unit and scaling up from there. [27:25] There are three pillars of real estate: the market cycle, debt, and exit strategy. Every deal is unique, but knowing the market cycle can help inform your decision. Additionally, knowing your exit strategy options is important to get the most profit. You can make excuses that it’s never a good time, but understanding these pillars will help you navigate the business, no matter when you get started. [31:05] They are currently operating primarily out of the Southeast — in Knoxville, TN and Lexington, KY. The Southeast is a pretty good market to be in right now. Pay attention to what happens with tax rates — this is a good indication of what markets might be good for investing. [33:10] Jake and Gino have a multi-family event coming up; it’s an event that’s all about action-oriented content. They’ll be teaching on their three pillars: buy right, manage right, and finance right. There will also be several networking opportunities, which is one of the most important things in the multi-family real estate space. [35:30] One of the major things that separate this event from other events is the environment. Their students have had major success, and since they are vertically integrated, they are qualified and experienced to teach on several aspects of the real estate business. They are also still in the business, so they are still buying assets while selling education. [38:10] If you’re interested in the event or getting more information, follow the link below. Or you can email Gino at gino@jakeandgino.com. You can use the REILIVE coupon code to get 15% off the event.   Mentioned in This Episode: Meetings Daily REIA Show REI Facebook Page Brian’s Book Jake and Gino’s Website Wheelbarrow Profits: How To Create Passive Income, Build Wealth, And Take Control Of Your Destiny Through Multifamily Real Estate Investing, by Jake Stenziano and Gino Barbaro

Today’s episode features guest Joe Dillon, a master wholesaler and coach. He joins Brian on the show today to talk about his experience scaling his own business to seven figures. He shares his story, as well as some of the tactics he’s used to systematize his business. If you’re struggling to get to the next stage of your business, this is the episode for you!   CLICK HERE to go to Joe's advanced wholesale training class Nov. 15-17 in Dallas.    Key Takeaways:  [1:20] Joe spent the last five years building a real estate empire after many failed attempts. When he and his partners first started their real estate business, they went several months without revenue. [3:30] They switched their focus to cold calling, which yielded a huge percentage of ROI. The key to their scaling was systems; they structured the company, automated marketing, and made clear job descriptions and accountabilities. They are now a multi-million dollar business in multiple markets, including virtual wholesaling. [6:10] Now, Joe coaches experienced investors and wholesalers in systems to help them transition from a hustle to a true business that can scale to the same level his did. So many investors get into real estate for freedom and having a system can help you achieve that freedom. [8:50] Joe shares the pathway he uses to create an automated business. The first step is to create some cash flow so you are able to step away from the business for a bit to work out the system. Attack narrowly, and focus on efficient means of communication. [11:30] The second thing is to get your lead generation on as much of an auto-pilot as you can. This is the beginning of your cash funnel. Joe teaches his clients to have all their marketing delegated to a virtual assistant. The only thing you need to do is the high-level tasks of planning: who should you target and how will you do it? [14:50] Another thing Joe goes through with his clients is an accountability chart of a seven-figure business. This is often an eye-opener for clients to see everything they are doing themselves and helps them to realize what they can and need to delegate. Be aware of where you’re spending your time. [16:45] Many new wholesalers don’t know how to treat wholesaling as a business but they do know how to hustle. Hustling focuses more on mindset and what you have to do to make it happen. Joe seeks to help people bridge the gap between a hustler and a business owner. Creating an organizational chart is a simple place to start. [19:30] Resilience is a huge factor in this business. If you feel like you can’t break through, the first thing to think about is what you’re actually doing this for. One of the biggest things in determining success is attitude and mindset towards your own success. The only person who fails is the one who quits. [21:15] After you change your mindset, the next step is to spend time learning how to fix the things that aren’t working. People have a tendency to spend most of their time in the performance zone, rather than taking time to assess what is and isn’t working. You can evaluate your calls, your marketing; little tweaks can help you thrive. [24:45] To summarize, make sure your mentality is still in it. Write down your vision and identify your why. After that is set, make a commitment to your vision. Analyze what you’re doing, and pivot if needed. Finally, get an accountability partner! Even if they aren’t a business partner, find someone you can bounce ideas off of and collaborate with in some way. [27:15] For Joe’s business specifically, having a mentor was huge. They provided guidance on the structure of the business, book recommendations, and above all, accountability. There was also a comradery with other people in the program. Getting experience and accountability from people who have done what you are doing now is invaluable. It’s also important to spend time with people whom you can serve as a mentor for, as well as people who are on the same level as you. This helps you experience true growth. [31:15] Joe has an event coming up in November (15th–16th) where he teaches the information he’s been discussing in today’s episode. At the event, they’ll go through the pathway of the steps it takes to scale your business to the seven-figure level. You’ll learn several tactics to help boost and manage your business. They also talk about how to structure your business, and what it looks like on a high level. [36:05] If you want to learn from someone in multiple markets, there’s no one who is doing it better than Joe Dillon. Check the link below for a discount price on Joe’s event.    Mentioned in This Episode:   REI Website Meetings Daily REIA Show REI Facebook Page Brian’s Book Property List Manager Traction: Get a Grip on Your Business, by Gino Wickman Promo Code for Joe’s Event Joe Dillon on Instagram

Scott Orbon joins Brian on the show to talk about several facets of real estate. He is an investor doing a ton of deal volume in the Dallas Fort-Worth area. In this episode, he talks about operations in his real estate business, as well as the mastermind he started with his partner. The discuss scaling, systems, and the importance of fostering relationships to take you further in real estate.   Key Takeaways:   [1:45] Scott has been in real estate for nearly nine years. He started in fix-and-flips but has since moved exclusively to wholesaling. He also started a mastermind, Multipliers, with his business partner, Chris, three years ago. [3:00] Scott and his team do about 150 deals per year. The DFW market is one of the more competitive markets: more sellers, more competitive, higher marketing costs, etc. [4:45] Their team is made up of about 13 people and in order to scale, they adopted the traction philosophy. They have an integrator who makes decisions, acquisition managers, an inspector, a lead manager, a disposition manager, closing managers, and a few calling assistants. He and his partner handle the marketing but have removed themselves from most of the day-to-day. [6:30] In traction, you have a visionary and an integrator. Both Scott and Chris are visionaries, so they brought in an integrator. You are only as good as your systems. For an integrator to be successful, the right tools and departments need to be set up. For smaller teams, an integrator may not be realistic, but you should have someone who is head of operations. [9:50] The people who are most profitable right now are the two- to five-people-teams doing fix-and-flips and wholesale. When you treat your business truly like a business, you need to focus on three things: structure, roles, and responsibilities. It’s hard to scale when you’re doing everything yourself. [12:00] Change is inevitable in business. In his market, Scott has to constantly evaluate his business and make changes. You have to figure out what pivot is right for you and your business. It can be a little bit more difficult for larger groups to pivot. [15:05] Scott and Chris started their mastermind because they saw the value in being surrounded by great people who are ahead of you and can support you. Relationships get you further and faster, and masterminds help foster quality relationships. For Scott and Chris, Multipliers is a passion project. It’s about getting like-minded people together, exchanging ideas, going deep personally, and holding each other accountable. [18:00] It is the age of the mastermind in today’s real estate climate. There’s more information available for free today than there was even five years ago. People in real estate are generous in sharing the good, the bad, and the ugly. Every mastermind is great, and they all have something different to offer. One thing they all have in common is relationships. If you can cultivate a few deep relationships, those are the ones that really count. [22:15] Things like masterminds, coaching, and live events are an opportunity to connect with people and content that will take you further. The information is great, but people remember the relationships. Real estate is an absolute relationship game. [24:45] When seeking out these opportunities, it’s important to put yourself in a strategic environment to flourish. How can you put yourself in an environment to get challenged? [26:40] For people who are just starting in real estate, get around people, listen to podcasts, and really take it in. Once you’re more seasoned, get some coaching or get into a group, even if it means investing money in yourself. [28:35] Be intentional about the environment you put yourself in. To figure out what is the right thing for you, do your due diligence. Think about what you need at this time, and ask questions to see what’s out there. [30:25] The Multipliers Mastermind is about relationships that stay intact. One thing that makes their mastermind different from others is that they cultivate depth rather than width. The people in their mastermind truly have each other’s backs. [33:40] In some instances, your network translates into net worth. When you connect with someone who can understand your business challenges and finances, the information flow is spectacular. In today’s age of technology, relationships don’t have to be in the same location. You can create networks across the country. [36:15] For more information about the Multipliers Mastermind, follow the link below to reach out to Scott and find out what they have to offer and how you can get involved.   Mentioned in This Episode:   Meetings Daily REIA Show REI Facebook Page Brian’s Book The Multipliers Mastermind Scott’s Facebook Episode 137 with Jamil Damji Episode 139 with Steven Cavanaugh

In this month's episode of the Birmingham area market update, Rob Drum makes some amazing discoveries in some in-house research he has done when it comes to appreciation in Birmingham. You won't believe what he found! Contact Rob at rob@robdrum.us

Today’s guest is Steve Cavanaugh, a true lifestyle entrepreneur. He moved from Maryland to Florida and operates his business remotely from Florida. In today’s episode, he talks about how he set up his business to be able to do this. He talks about his involvement with masterminds and the creation of his own, Ascend.   Key Takeaways:   *Rate and review the show on whatever platform you listen, and email your review to Brian (brian.trippe@gmail.com) to get a free t-shirt.   [2:45] Steve has been full-time in real estate for 15 years. With hundreds of deals under his belt, he is a coach, has a rental portfolio, and started and runs the Southern Maryland Real Estate Investors group, as well as various other investment ventures. He’s also recently partnered with former guest Alex Pardo on the mastermind Ascend. [4:25] Steve operates his real estate business remotely, and this is because he was intentional about how he set things up from day one. Too often, people get into real estate with money as the goal, rather than living the lifestyle as their goal. [6:25] For people that are already in real estate, there are steps you can take to re-prioritize your lifestyle. The easy, short answer is to step back from your business and think about what you want your life to look like. Reverse engineer from there and think about what tweaks you need to make in your business to achieve that. [7:25] Sometimes making this change means subtracting something in your business rather than adding something. In some cases this could mean losing a revenue source; Steve talks about spreading things too thinly across multiple streams of income, and focus on the one thing that you’re really good at. If you clear stuff off your plate, that one stream will increase. [9:45] Entrepreneurs aren’t necessarily known for focusing on one thing or stream of revenue. Steve suggests finding the things that you really love doing in the business, and see if you find ways to do more of that. That’s likely where the income and the fulfillment come from. [10:50] Having coaches and a mastermind has been so beneficial in Steve’s life. Coaches or mentors not only share tactics but also help guide the steps. A mastermind is based on challenges, and helping individuals through shared experiences. You have to bring your biggest challenge and be vulnerable enough to bring it up with your mastermind group. [13:50] Steve and Alex Pardo are developing their own mastermind group, Ascend. One thing that’s different about them is that they are integrating a coaching component with the mastermind, where they have one-on-one calls with their students, as well as an in-person meeting to discuss life vision and wrap the business around their life, as opposed to the other way around. [16:05] In addition to Ascend, Steve has also started Master Mission. He knew that he wanted to make a difference, and knew that involved giving back and donating his time. The group gets together to do mastermind stuff in the mornings, and in the afternoons they get out into the community to help people. [19:20] Any time we’re doing this type of work, the thing that changes more often is ourselves. When we give of our time and resources, something happens inside of us and we seek higher levels of contribution. One of the requirements for the Ascend group is that you have to have a desire to make an impact. [22:15] No matter how many deals you make or how much money you’re making, it is important to get into sometime type of mastermind environment. Start by going to your local REIs or your local meetups. The faster way to build your network is to get out there and start meeting people, and it’ll start to happen from there. [23:25] At the core of networking, it’s to figure out how you can provide value to somebody else. If you stay focused on providing value, this will almost always be provided back to you. [24:40] Steve started his REI about 13 years ago. He started by collecting local business cards and emails to build his buyers list. They started meeting up and have been around to act a networking group since then. [26:25] Real estate is definitely a people business. If you’re already going to your local REI, some other things you could do would be to start your own group. You have to be willing to be vulnerable and open about your challenges. If you put them out there, you will overcome them more quickly and keep moving forward on to the next challenge.   Mentioned in This Episode:   Meetings Daily REIA Show REI Facebook Page Brian’s Book Ascend Lifeonaire Summit The Pumpkin Plan: A Simple Strategy To Grow A Remarkable Business In Any Field, by Mike Michalowicz The One Thing: The Surprisingly Simple Truth Behind Extraordinary Results, by Gary Keller and Jay Papasan

One of Brian’s very first coaches is our guest on the show today. A legend in the industry, Joe McCall is here to talk about strategy, selling lease options, and finding balance in your business. In this episode, Joe talks about what tech platforms he’s using and his new book on lease options, as well as the importance of centering your business around a strong marketing strategy and supporting it with different real estate venues.   Key Takeaways:   [2:05] Joe is known as the “tech guy” in the real estate guru community. He studies tools, software, and websites he can use to run his business. A few of the things he’s digging currently are Zoom, StreamYard, and Restream. These tools help him interact and engage with viewers, even allowing them to view deals in the session together. [5:15] Joe is also big on Zillow and RedFin. Data that was previously only available to Realtors® is now being made available to the public. You can find sold data and listing data for most cities on the platforms. This is a great resource for investors. A platform people may not have that about is Facebook Marketplace. [7:05] The best lists you can market to are vacant properties, and these are often available as rentals listed on Zillow. Joe and his students have had success in sending handwritten letters to the owners of these rentals. When you know how to do lease options, you may be able to offer them more than other buyers. Zillow also makes it easier to contact directly owners of for-sale-by-owner properties. [10:45] Joe describes how you can use Zillow to find more leads, including zooming out to include more area. He tells his students to pick three markets on Zillow and rotate through them; this can generate numerous leads. [11:45] Today, Joe is doing a couple of wholesale deals a month, lease option marketing in St. Louis, and vacant land sales. [14:20] Brian and Joe talk about finding a work-life balance between business and family. Joe has various partners for his different real estate ventures. The majority of his work time is spent teaching and coaching, live and on his podcast. [17:20] There is a lot of power in focus, and focusing on one strategy or one business. But being knowledgeable about multiple strategies can help make your successful. It’s important to be a transaction engineer. Instead of focusing on one real estate strategy, make your strategy finding motivated sellers and marketing. Everything in real estate comes back to marketing. [20:00] As an investor, you should be a student of marketing. You have to understand how cycles and markets change, so you can adjust accordingly. It is also important to be able to engage with a seller by finding out the problem and creating an offer that helps to solve their problem. [21:40] Being an expert in marketing is important, but you also have to know how to execute individual strategies. Finding this balance can be hard. For Joe, it was about creating a vision for his life, and crafting his business around that. He has one core product, and then a landing point where people can go if they want additional help. He channels his creative energies into different front-end funnels. [25:05] When it comes to real estate, many investors center their business around one thing, and approach it from several different angles. If you’re good at marketing and bringing in motivated seller leads, you will never have a problem with money. Once you have the leads, you can convert them using whichever strategy you want. [28:30] Joe started doing lease options in 2008. They were easier to negotiate over the phone and he didn’t have to go see the property beforehand. He would sell the contracts to tenant-buyers. This ended up being very profitable, and he created his course. Joe’s book is meant to be a concise presentation of lease options. [32:45] In lease options, you find a seller that wants to sell but can’t because they don’t have enough equity. If they agree to lease their property for a few years before purchase, Joe will send them a lease option contract. If there’s equity or cash flow, he’ll stay in the middle of the deal; otherwise, he will sell to a tenant-buyer. His book lays lease options out from A-Z. [36:10] Joe’s podcast was the first podcast that Brian listened to when he was getting started in real estate. Because of that podcast, Joe ended up being the first coach Brian hired. Take advantage of the free resources you have access to — you never know what it could lead to!   Mentioned in This Episode:   Meetings Daily REIA Show REI Facebook Page Brian’s Book Joe’s Book Joe’s Website “You Suddenly Lose Everything…” by Richard Brunson The Pumpkin Plan: A Simple Strategy To Grow A Remarkable Business In Any Field, by Mike Michalowicz ClickFunnels Zoom StreamYard Restream Zillow Redfin

Jamill Damji, of Phoenix, AZ, joins Brian on the show today to talk about the incredible amount of volume they do per month, and most importantly, how they got there. Jamil shares the story of his start in real estate, his background, and how he built his company to the powerhouse it is today. They talk about wholesaling, astro flipping, networking, and much more.   Key Takeaways:   [1:40] Jamil currently lives in AZ, but before getting in real estate, he was in the new media industry in Canada. His business partner’s father was a home builder, and Jamil connected with him to inspire and complete his first “skip deal.” He ended up making $50,000 on his first deal when his partner’s father bought the property from him. [6:07] Investing in Canada is different than the U.S. because there is no private money in Canada. If you want to get financing, you have to get a traditional mortgage through a bank. [7:35] Jamil sort of stumbled across entrepreneurship while he stumbled into real estate. He saw a need and he did everything he could do fill it. He used the money from his first deal as seed money for further investing. He found lots for builders and then moved on to apartment buildings. Something that sets Jamil apart is how he asked the questions to figure out what builders were really looking for, so he could be strategic in his search. [11:20] He moved from flipping apartments to condo conversions with his sister. He describes their lending process in Canada, where they had to convince the end buyer to use a certain lender, and then they would get the construction financing they needed. [14:10] When the market crashed, they lost their construction financing and all their loans became due. Even though it was a terrible time, there were a lot of lessons to be learned about leverage, risk, and smart money. [15:50] Jamil did a little bit of comedy writing and made enough money to move his family to LA. He actually became a stand up comic and turned his back on real estate for a while, until he and his sister learned about an opportunity in Phoenix. [20:20] He got back into real estate when he and his sister started buying condos in Phoenix. They weren’t having any luck getting tenants until Jamil drove out to Phoenix to find out their property manager had been pocketing the rent money. [23:55] Jamil’s whole family pulls their resources together. This comes from how his parents raised him and sister. When it comes to business, this mentality boosts him because he’s supported by his whole family. He represents not just himself, but five other people. [26:55] Jamil describes some memories that made him the entrepreneur he is today. His grandfather, Blaza, would find ways to bridge gaps between people. He started an auto parts company in Tanzania. After they were evacuated and relocated, his dad and his family ran a truck wash. His whole life Jamil watched his family work together. [30:40] Once he got the property management situation under control, Jamil and his sister bought two short sale houses, and they ended up selling them on Craigslist, and that’s how he got back into wholesaling. [35:30] The guy who bought their short sale houses ended up becoming sort of like a mentor to Jamil. He took him around Phoenix and Jamil watched him make these deals to realize it’s something he could do also. [37:20] After working with seasoned wholesalers for a bit, Jamil broke off on his own. Everything started to grow and he was able to move his family out to the Phoenix area as well. He was operating as a solopreneur up until he started his wholesale business, KeyGlee. [41:29] The business has about 40 staff right now, with admins, acquisitions, dispositions, and everyone else is in tech and intake. [44:25] There is a lot of grey area and negativity surrounding wholesaling because if it’s a great deal it’ll sell itself. For Jamil, they focusing on finding the deals and completing the deals. They focus on finding the deals and educating people on how to find a good deal. [47:10] Their intake group looks outside the box at disposable income and habits, rather than the usual places we find qualified buyers. They connect with these people they find to engage with them to get them interested in real estate so they have a place to keep their capital. [51:40] There are a lot of people acquiring deals, but not necessarily selling those deals. Jamil describes the cycle he sees how prices get inflated and cancellations increase because no one can sell their deals. [53:55] At the company, they act as a distributor for other wholesalers in the area. They monetize deals other wholesalers can’t monetize, and that’s what’s allowed them to grow their insane volume. They did a little over 1,000 deals in 2018, and are projected to do around 1,200 or 1,300 this year. They operate in multiple markets. [56:15] Jamil describes their process and how they decided to expand to other markets. Spreading into other markets has increased their assignment fees. [58:35] There has to be a mindset shift to focus more on the buyer's side. Many new investors fall in the crowd of what everyone else is doing. Jamil encourages new investors to “turn around and look at the other side of the street” because that’s where you’ll find your money. [1:00:25] Jamil’s business partner created an amazing six-week course that basically maps out their blueprint. They focus on making sure people are optimized to they can work their best, how to evaluate the deal for the exit strategy, how they generate deals, they share their deals and some of their strategies. A good portion of the course is their dispositions model. [1:04:20] Real estate all comes back to relationships and networking with your buyers. Networking is not necessarily about what others can do for you, but finding out what it is people are really looking for. Through this, you connect with people and expand. Networking is the most inexpensive and high-converting type of marketing you can do in wholesaling.   Mentioned in This Episode:   Meetings Daily REIA Show REI Facebook Page Brian’s Book KeyGlee Contact Jamil and his Team

Today’s guest is Billy Alvaro, an investor based out of Long Island, NY.  In his career, he’s experienced the highest of highs, the lowest of lows, and is now back at the height of real estate. He joins Brian on the show today to share his real story about success, failure, and how he grew and prospered from his trials.   Key Takeaways: [1:15] Billy is based out of Long Island, NY. He started investing about 30 years ago but has been doing real estate full-time for about 10 years. He currently has a 12-person operation and is planning to scale that up to 24. They do renovations, fix and flips, wholesale, some commercial, and some single-family. Billy talks about how he built up his current business to what it is today. [4:05] He has systematized 95% of his business, by recording what he did so he could teach others when they were brought on board. This has been one of the keys to the success of his new business. [7:45] Billy had a billion-dollar business that he was running, that started from scratch with $5,000 on a credit card. As a young entrepreneur, he believed he could build a $500 million bank. He and a partner decided to start their own company with big dreams, big vision, and no fear. Looking back, Billy wouldn’t go down that road again, but the lessons he learned have shaped him to be the investor he is today. [10:45] It started out with him and his business partner doing loans, and they quickly grew from a four-person team to a 450-person team, generating over $200K in revenue a month. They were able to do this through strong and consistent marketing, as well as a strong sales force. Where they fell short was operations. Everything else was growing so fast that the operations couldn’t handle it. [13:25] There were many aspects of the business that weren’t systematized, which led to no consistent flow in the operations center. Things eventually became very top-heavy, and at that point, Billy didn’t have a coach or mentor he could turn to for help. [18:45] Essentially overnight, they had to close the whole operation down. Billy faced the aftermath for about three years after it all went down. The challenges he had to face taught him a lot about what he can handle. [20:55] Our mind is a really powerful thing, especially in the face of adversity. 80% of everything that goes on in our lives starts with our minds first. Billy went through some really dark times, and he shares the story of how he chose to fight instead. [25:25] Billy went to court to fight his case, and he took his lawsuits down from $14 million to $2 million. When he started having these wins, the confidence he gained let him know that he could do this. [28:50] People that are tenacious are successful because of their mindset, their ability to see where they want to go, and their commitment to working hard every single day. For Billy, one thing that separates the people who are willing to go to the next level is not being afraid to take a risk. [32:25] Some people are just born with the “it factor” but most people aren’t. It is a skill you can learn though. The formula Billy laid out is 1. Mindset 2. A clear path and vision 3. Work hard to implement and 4. Take risk. [35:40] Success comes down to confidence. Once you accomplish something you set out to do, your confidence goes through the roof. How do we build confidence? You have to start with courage, and that will create momentum. Follow through with your capabilities, and you will be unstoppable. [39:35] Billy shares some tips for new people who are trying to build a business. Once you find a process that works, document it, whether that’s written down or in a video. Now you have a blueprint so you can share that with anyone you bring on. It’s also smart to make one of your first hires an assistant. Invest in yourself and you will start to reap the rewards. [45:10] Reading has been important to Billy’s success, but so as going to masterminds, reading blogs, and listening to podcasts. If you’re brand new and not reading much, start by reading about 10 pages a day. There’s so much to learn from the real content that’s out there.   Mentioned in This Episode:   Meetings Daily REIA Show REI Facebook Page Brian’s Book The E-Myth, by Michael E. Gerber As a Man Thinketh, by James Allen Millionaire Success Habits: The Gateway to Wealth & Prosperity, by Dean Graziosi

Ty "Flip Man" Taylor delivers a keynote at June's REI LIVE meeting in Birmingham. A Birmingham native, Ty shares his story on how he got started wholesaling and how he blew up into an international YouTube celebrity with his dynamic and personable how-to videos.

In today’s episode, Brian hosts guest George Hegamin, a Superbowl champion with the Dallas Cowboys in 1996. In addition to talking a lot of sports, they talk about leadership, connections, and relationships. George talks about his mindset growing up, and how this helped shape his success with the Dallas Cowboys. So many of the ideas and concepts they talk about can be applied to real estate and finding success when you’re first getting started or looking for a way to recharge your business.    Key Takeaways:   [3:25] Before George and Brian met, George had already gone through a transitional period. As he moved toward what he was called to do in this world, he realigned himself. He currently serves as an academic liaison and football coach at IMG Academy. He realized that once you figure out how you can make the most impact, that’s when you’re really making movements. [7:25] There are many brand new people trying to get started in real estate, and the number one mistake is that they try to make it all about real estate. It needs to be about mindset first. [10:10] George and Brian talk about dynasty teams, and what sets them apart from other teams. They get to be dynasty teams because they are consistently doing the right things to grow and develop. [13:30] When George was a kid, he always knew he was going to be the next Charles Barkley. This mindset was his one way out of the social strata in which he grew up. He didn’t grow up playing football, but once he started playing as a junior in high school, he really skyrocketed and knew he would go pro. [20:35] George was on the radar for several schools because of his athleticism. He ended up going to North Carolina State because being there made him feel like he was going to be more than just a football player. He wants to encourage kids to make decisions that are going to have a long-lasting effect, beyond maybe just a few years. [22:35] In real estate, as you’re going on appointments, it’s important to develop a rapport with interested buyers because they could choose you or your offer over someone else’s. Establishing rapport is the one thing all real estate investors have to do. [27:35] When working with students, George tries to make sure he remains transparent all the time. Now that we have social media, kids today can go open their phones and see a perfect picture of someone’s life, but it may not be authentic. [32:00] George encourages people to focus on the “and” — many people are not just one thing, not just a student or just an athlete. When you focus on the “and,” you can focus on building relationships, developing rapport, and building character. It has to be something that you care about more than just what it does for you. [36:40] The relationships you develop on your journey are incredibly important. It’s about what you take from those relationships, and how you add those things to the relationships you make going forward. [40:35] When talking about some of the great athletes, George notes that there is something different about how they approach their 24 hours. They plan the plan; they notice what works for other successful people and use that to create their plan. This is what George is hoping to teach the students at IMG Academy. [42:30] Another important element they try to stress at IMG is managing and taking control of your time. This is crucial for people getting started in real estate so you have a plan to make sure you cover all your bases. [46:15] Relationships, or networking if you’re in business, are maybe the second most important aspect of success. George stresses the importance of the reciprocity of relationships; when you have to ask questions, you have to be willing to work for that answer. It’s important that relationships go both ways. [49:00] You have to be willing to serve — that is where you learn everything. When you’re getting started in real estate or any business, you need to get down in the dirt and figure out how things work. Find someone who is successful in the field you are in, help them do what they do, and use what you learn from them in your own business. [54:15] Real estate is a relationship business, just like any other business. If you don’t get that right, it’s going to be very difficult for you to get anything else right.   Mentioned in This Episode:   Meetings Daily REIA Show REI Facebook Page Brian’s Book IMG Academy

Today’s guest is Aaron Chapman, owner of a large mortgage brokerage based out of Phoenix, AZ. In today’s episode, Aaron and Brian are talking about inflation and the true value of the dollar. Aaron shares where the true value of real estate is, and how investors are benefitting from the pace of inflation compared to their spending on fixed loans.   Key Takeaways:   [2:00] Today’s guest is the owner of a large mortgage brokerage in Phoenix, AZ. Aaron’s company does loans for several large turnkey companies and is the unconventional conventional mortgage guy. [5:40] Aaron is getting ready to launch a YouTube show where the outdoor channel meets the business channel. He hopes to launch it in the next couple of months. [8:20] The content will be the same type of content he’s giving his clients every day. Where is the property really valuable? It’s not all in the buy, the interest rate, or the cash flow — Aaron says that the real value is in the leverage. His show will allow him to distribute this information to a wider audience more efficiently. [9:45] Right now Aaron is promoting his business, which is financing loans, houses, and investors. The nugget he wants people to walk away with is to take the time to really think through and understand what you’re getting into. Look into what the real value is, not just what you see in the media. [10:55] When you step into the world of buying real estate, specifically as an investor, you’re the CEO of your business. If you’re not getting the outcome you want out of your business, you’re responsible. If you can take ownership, it’s amazing how things fall into place. [14:45] Aaron is an unconventional conventional loan guy. He does conventional loans, but he tries to get his clients out of the box. Conventional loans typically come from someone’s investment capital, and banks take the money out and lend it to investors. The people who contribute their money get a portion of the interest charge as their return on investment. There are rules that govern these loans. [17:10] Banks often put some of these rules in place to reduce their risk on the investment. What they don’t realize is that having the longest-term, fixed loan you can get has the greatest value of any deal. The investors pay their loans because it’s something other people are paying for. [20:20] The people who were hit hardest by the market crash in 2008 were the people who were over-leveraging. As an example, Aaron talks about the movie The Big Short. In the movie, over-leveraging happened when people were using cash to pay on empty houses with money they pulled from other properties. [23:50] These days, people are paying/charging significant rent for small spaces because there’s not enough housing. Building hasn’t expanded at the same rate as the population and the demand for housing is much higher than it was before the market crash. [25:45] Inflation is one of the most important things to consider as a real estate investor. The core inflation rate is 2%, but this doesn’t consider energy costs, food costs, or taxes. When those things are added back in, the actual rate of inflation is about 5.5%. This benefits the real estate investor because they can raise the rates for rent. [29:00] If the average rates for rent go up 3%, this will deliver a big increase in your cash flow, which will compound each year. While investors can raise rents to pace inflation, with a fixed loan, you’ll be paying the same dollar amount while you raise your income and keep the spread. [32:35] Aaron shares some statistics about the value of the dollar today compared to the value of the dollar in 1932. Considering the pace of the dollar and increased income to a renter, it doesn’t necessarily make sense to accelerate your loan payments. It makes the most sense to put the least amount down you can and stretch it as far as you can. [35:00] Many people are predicting that we are at the height of the market right now. Many real estate investors are making smarter investments now than they were pre-2008; if you have assets that will reasonably remain rented, you will likely be able to adapt during the next market shift. [37:00] Another way to be prepared for when and if the market crashes is to put the money you don’t need into a reserve each month. If you don’t need it, don’t use it. [38:45] Many investors get into real estate for retirement, but Aaron is using his real estate career to fuel his life day-to-day. He enjoys sharing his content and knowledge with others; he speaks on podcasts and has started writing books. [45:45] Aaron knew he was the unconventional loan guy back in 2014. Once his friends offered to help him boost his business, but he would’ve had to conform to their standards. Aaron realized that he was unwilling to compromise himself, and as he went through he was able to discover how he wanted to do things. [49:10] Authenticity works both ways. We have to be authentic in our business with our clients, but we also have to be authentic to ourselves. When Aaron decided to be authentic to himself, that’s when he noticed his business really started thriving. [52:15] To reach Aaron, visit the website linked below. If you’re interested in doing business, you can do it all through the website.   Mentioned in This Episode:   Meetings Daily REIA Show REI Facebook Page Brian’s Book Aaron’s Website Aaron Chapman Keynote Shadow Stats

While everyone knows networking is important, few people actually know how to do it. How can you approach networking effectively? Why is it so important to know what your unique value is? On this episode, real estate entrepreneur and author, Brian Trippe, shares how he started networking effectively and the difference it’s made in his business. If you want more money, deals, and income, you need to learn how to network. -Chris Naugle Three Things We Learned Stick with old-school principles We’ve all heard sayings about giving something to get something. The reason these phrases have stood the test of time is because they’re still true to this day. When networking, lead with value. Go into interactions with the intention to give value of some kind. Your actions will be rewarded if you use this approach without expecting anything in return. Change your mindset Negativity is the main thing holding most of us back. Change your mindset and make yourself believe you have what it takes to be successful. Until you change your mindset, you won’t be able to progress. Get the “old guard” on board When you’re starting out in a new industry, it’s a good idea to approach those who have been successful in the business for a while. Study them, and find out what they’re about and what they need. They have the power to influence others in the industry, so leave a good impression.   Networking is vital. If done correctly, it has the power to help your business skyrocket. Lead with value, make connections, and enter with no expectation of reward. Know yourself and what you can bring to the table. Remember: you’re capable of delivering. Tell yourself you can, and start taking action.

Discover the latest trends in the Birmingham real estate market with our expert analyst Rob Drum of 205 Realty. Rob is not only a realtor but an active investor in the Birmingham market. If you would like to learn more about the data analysis behind some of his investing decisions, check out his blog at www.robdrum.us

The CEO of Lifeonaire joins Brian on the show today to talk about how Lifeonaire helps create a work-life balance that provides financial and lifestyle wealth. Jason Wojciechowski (“Wojo”) shares his story of going from someone who put work first, to someone who understands the value of creating a balance that prioritizes life first and business second. He shares about the Lifeonaire program, as well as some things listeners can do to help make the shift into a healthier life.

Book review of Dr. Robert Cialdini's Influence: The Psychology of Persuasion Get the book here.

Book Review on Wallace Wattles' classic, The Science of Getting Rich. Order it here: https://www.amazon.com/Science-Getting-Rich-Wallace-Wattles/dp/1585426016/ref=asc_df_1585426016/?tag=hyprod-20&linkCode=df0&hvadid=312118059795&hvpos=1o1&hvnetw=g&hvrand=7000343869444055295&hvpone=&hvptwo=&hvqmt=&hvdev=c&hvdvcmdl=&hvlocint=&hvlocphy=9012547&hvtargid=aud-643565131866:pla-568666777814&psc=1

Ray Gonzalez and Christy Risco are a couple based out of Miami, FL, who have taken on this real estate business together. They recently launched a podcast that talks about working with your partner in real estate. In today’s episode of REI Live, they talk about some of the important things to note about working with your partner. This is a great episode that addresses topics of business with a partner, but also apply to showing up in life with your partner.   Key Takeaways:   [1:30] Christy & Ray are based out of Miami, FL. Over the last fourteen years, they’ve been in real estate not only learning about the business but also learning how to work together. They recently launched a podcast called “Both on Board,” that talks about how couples can make it together in the business and use it to strengthen their relationship. [4:05] One of the biggest things that make their team work is that their values line up. What often happens is that one partner in the relationship is out doing the work, and the couple hasn’t identified what the aim of all of those hours is. [5:50] When working as a team, communication and personal development are key. You have to take ownership of how you are showing up in the relationship, and then make sure you are communicating with your partner. [8:30] Christy shares some things that you can do to work on that personal development. The first thing is when there is something bothering her, she doesn’t go to Ray right away. She identifies her own awareness first to see what’s really bothering her, rather than attacking the other person. [11:00] Defining and getting clarity about what the relationship is about is an important step in communication. If you find out that your values and your partner’s values don’t align, take a step back to evaluate how you are showing up to the relationship. It’s so much about how you show up to the conversation. This opens the lines of communication to how you may be able to compromise. [16:00] Though it’s easy to want to change the other person in the relationship, the only person we can really change is ourselves. If we work on changing ourselves, we may be able to influence our partner in the relationship. Your partner shouldn’t be someone to change, but rather someone you can learn and grow with. [19:30] Their podcast is incredibly important to be able to hear the women’s perspective in a career field that is generally dominated by males. Though there have been several mentions of self-reflection and awareness, at some point you have to make sure you are bringing it back to your partner. Then you can work together to get on the same page, as well as catering to each person’s strengths. [23:15] Relationships and finances are some of the most taboo subjects. There is magic in aligning your values so you can encourage growth in your partner. What you want to work toward are integration and balance. [25:25] Down the road, they would love to do retreats and seminars on the same topics they cover in their podcast. A big, big vision for them is to eradicate divorce, and while covering topics on real estate, they address some of the larger topics that address how couples can communicate and meet each other to grow together. [28:10] Ray and Christy talk about one of their favorite moments on the podcast, where Ray fought to buy some almond butter. The lesson in this story is to go after what you want. Then when you do come together, there’s so much more potential in both of you coming together. [31:40] This has been a work in progress for Ray and Christy, and the concepts they talk about may be a challenge at first. Don’t compare yourself to others, and focus on getting better in the areas you want to get better at.   Mentioned in This Episode:   Meetings Daily REIA Show REI Facebook Page Brian’s Book Both on Board Podcast Both on Board Website

Today’s guest hails from right here in Birmingham! Chris Donaldson is a long-time real estate investor and brings his years of experience to today’s episode. During his career from pre-2008 to now, he’s made a shift from residential investing to commercial investments. It today’s episode, he shares his success story of how his investment helped revitalize the area of Avondale, and what he’s working on now is to do something similar in Trussville. He shares some of the lessons he’s learned along the way as well as some advice for new investors.   Key Takeaways:   [1:10] Chris has been a lifelong entrepreneur; he started in residential real estate and has shifted to primarily commercial real estate and land. Before he got into real estate, he was working at a Fortune 500 company, and his boss actually encouraged him to take the real estate opportunity. [4:05] Chris has been investing since before 2008, and of course, continues to invest today. Pre-2008, the company he worked for was highly successful, with foreign investors interested in their properties in Birmingham. When the market crashed, their buyer pool was wiped out. [5:45] Chris was personally burned by the market crash, but not enough to leave real estate completely. Things turned around in 2010 when he met his business partner. He and Coby bought an old fire station in Avondale and focused on revitalizing the neighborhood, starting with a brewery in the old fire station. [8:40] The area they were trying to develop was not a great part of town so many of their initial investments were very affordable. The situation almost seems too good to be true, but with the team, they were really able to turn things around in the Avondale area. This may not be realistic for all investors, but dream big! [11:30] Part of the success of the brewery was the story behind it, as well as the marketing. The marketing and the brand are so important, they provide a reason for other people to like your project and play to what people want. [15:00] They got out of the Avondale brewery when a competitor made them an offer they couldn’t refuse. It remains one of Chris’s best investments to date. He has taken that money and turned to investing in Trussville, and revitalizing the downtown area like they were able to do in Avondale. [18:10] Some of the challenges they’ve run into trying this revitalization in Trussville is that it is a religious city, and the brewery has been a bit controversial. They’ve had to convince people that it will create new business and be a good thing for the whole downtown area. [21:20] Chris’s personal evolution from residential real estate through the recession to successful commercial investments is something any investor can be inspired by. He’s always had an internal drive to create a living that was personally and financially fulfilling. [24:50] After entering back into the real estate world, Chris sees himself mentoring new investors and continuing to help other people in the ways that he can. His advice for new investors would be to fill yourself with information, read books, and be persistent! You have to love what you’re doing, you have to see the big goal, and you have to think big. Believe in yourself and learn all you can learn.   Mentioned in This Episode:   Meetings Daily REIA Show REI Facebook Page Brian’s Bookvv

Brayand Ponciano (BP) joins Brian on the show today to offer some perspective on how he got started in the real estate business. BP shares his personal experience of how he was able to shape his future despite his circumstances growing up and starting out in real estate investing. He talks about his decision to transition from wholesaling to multi-family investing and notes and also shares information about the process of manifestation. This focuses on thoughts and feelings being the source of our actions, and how we can apply that to real estate investing.   Key Takeaways:   [2:10] Brian is a father, philanthropist, and businessman. He grew up in the ghetto of LA, and when his family moved to Phoenix, he got a fresh start on his future. It allowed him to see other experiences of what life could be like for him. He was always drawn to real estate, and started in wholesaling and continued moving up. His current projects include multi-family investing and notes. [6:05] Though BP grew up poor, he was fortunate to have both his parents in his household that wanted the best for him.  His dad was a positive male role model for him, and this allowed him to gain some perspective on his home situation. [12:15] The reality of what BP’s situation could have been is a big factor in how he lives his ‘now.’ As kids, we don’t have control over our circumstances. Though he did have a positive male role model, not all of his friends had that. Now that BP is a dad, he has made a choice to be a positive male figure in his kids’ lives. [19:00] BP and Brian were able to avoid letting their situation turn into a negative one, but not everyone knows that they can get out. If you grew up without a father figure, know that it has nothing to do with you. You get to make a choice about whether you will dwell on it, or whether you will find someone else you can look up to. If you see someone out there who is doing what you want to be doing, reach out to them. [22:25] If you were in a similar situation and got out of it, you can help others by being the best version of yourself that you can be, and be open it about it so other people can learn from your experience. [26:50] BP has become an expert in creating cash flow for himself and for his investors. BP made the shift from wholesaling (which is transactional) into options that would create cash flow and passive income, so he could have more time to spend with his family. [31:20] BP also has a focus on notes, and this could be a good strategy for today’s market cycle and where it’s headed. With notes, you can create cash flow without dealing with the headaches of single-family or multi-family investing. Notes allow you to create passive income without being too involved in the day-to-day. [35:15] BP uses the model that previous guest Dan Zitfosky uses: he makes the notes, then sells the notes and becomes the bank in the middle. Dan found that he could sell these properties to investors, which exempts the properties from the Dodd-Frank legislation. [37:55] In addition to his cash flow models, BP is also an expert in mindset. The process of manifestation states that your thoughts create your feelings, your feelings create your actions, and your actions will eventually create results. We are trained to think about our actions, but if we trace the process back to our thoughts, it can ultimately change our actions. Successful people have a different mindset. [42:40] If you think about something you want to achieve, you will make your actions be whatever it takes to achieve that. This can be to your benefit or to your detriment. As we trace the process back, the source of our thoughts comes from how we are programmed. [46:20] When you start thinking about why you want to be a real estate investor, why it’s important for you to create cash flow, and why you want to work the least amount — you’ll learn that it’s more about your time, energy, family, and happiness, way more than it is about the money. [49:30] We have to be very mindful of our thoughts, especially when things don’t go right. The further you move up in your career, the bigger your problems are going to be.   To get in touch with BP: Instagram: @cashflowcreator AZ Flip Guys   Mentioned in This Episode:   Meetings Daily REIA Show REI Facebook Page Brian’s Book Dan’s Episode Scott’s Episode Secrets of the Millionaire Mind: Mastering the Inner Game of Wealth, by T. Harv Eker

Matt Bell, of Charleston, South Carolina, joins Brian on the show today to talk about how hedge funds are becoming popular in real estate investing. He talks about how hedge funds work, how they’ve developed, and how they evolve, as well as how people working with hedge funds can work with real estate investors so both parties benefit.   Key Takeaways:   [1:20] There are different niches regarding hedge funds, with real estate becoming one of the more recent avenues. Prior to 2012, institutional money was not in real estate. Once they figured out that they could rate real estate, it became a popular channel for capital. [4:10] “Securities” have different ratings that have to do with how much they are valued at, as well as insurance. The highest rating is what they view as the safest investment. In real estate, an A asset might be new construction or something recently renovated. This goes all the way down to houses that need a lot of renovation; there is a spectrum of ratings. [6:00] Where risk and reward are a priority for smaller investors, for institutional money those two priorities switch. Their goal is to not lose the money, and then they focus on trying to make some money as well. It’s almost an inverse perspective from how most people approach investing. [7:55] We’ve seen more securitization of debt in single-family homes more and more recently. There is now a lot of money flowing in from nontraditional places. Previously, money would be invested into a REIT (real estate investing trade) and would be mitigated over a pool of assets. [9:45] A REIT and a hedge fund are both pools of capital with their own investors and assets, but a REIT is Federally-regulated. A hedge fund is more about making something attractive to an investor and doesn’t have the same regulations and mandates as a REIT. [11:45] A hedge fund comes from hedging risk and most start in private equity. In Matt’s experience, the initial capital was all private equity, and the money they get is debt capital which goes into other properties. The example Matt gives his a $70 million investment in private capital — after $50 million to purchase and $20 million to renovate, they are appraised at $100 million. With a 70% LTB, they use that $70 million to start the process again. Private equity buys the first property, and debt capital buys the others. [15:25] Hedge funds target specific markets — namely secondary and tertiary markets — because the cash on cash return is stronger where the median home prices are a little bit lower. [16:35] The evolution of these funds is very similar. They all start with cash on cash focus, usually on properties where they get a high rate of return. That’s the first series or proof of concept. Once they have proof of concept, they look for capital from the Wall Street money. You keep graduating up levels until you get the money, then you have to make sure you don’t lose it. When you get to that tier, it just changes. [19:05] Matt believes this kind of money could really change the course of real estate investing. Returns are much less important than the quality of the asset. There are more apps and virtual opportunities that could potentially eliminate the need for real estate agents. [21:45] People with hedge funds can work together with real estate investors to find off-market deals and be experts at sourcing deals, they can sell the assets to the investors. Depending on where the fund is in its life cycle, you might have to know who you’re working with. [23:45] Matt spent some time working for a large hedge fund. In many cases, some people working for the hedge fund may be working with some agents in your market. If you’re interested in working with a hedge fund, you can check the tax assessor site and figure out who the big buyers are, then use your MLS to figure out which agent is working with which buyer. If you list it, investors will buy it. [28:00] Matt has moved out of the hedge fund realm recently, and had an operating business. He now does some consulting for a large institutional fix-and-flip lender. He’s working to build a national sales division for them.   If you’d like more information, you can contact Matt and matt.bell@lendinghome.com or by phone (706) 267-3293.   Mentioned in This Episode:   Meetings Daily REIA Show REI Facebook Page Brian’s Book Lending Home

Today’s guest Dan Zitofsky, long-time real estate investor and owner of Zitofsky Capital Management. He joins Brian on the show today to talk about his real estate journey, and how he found real wealth by shifting his business model to become the bank. He shares a few case studies for his business models to show the numbers. He also talks about the importance of emerging markets and how you can start earning passive income today.

Christina Krause makes her second appearance on the show, this time to talk about direct mail, lead generation, and the importance of follow-up. Christina is incredibly passionate about the follow-up, and in today’s episode, she talks about some of the things you can do to maximize the follow-up to ensure more conversions.   Key Takeaways:   [1:30] Christina is one of the owners of Postal Impact, a company rooted in data and analytics. They handle the direct mail marketing for investors across the nation. This includes generating the lead list, analyzing which forms are most efficient, and tracking it all the way through the sales pipeline. They also offer virtual lead managers for their clients. [4:15] Direct mail is not dead! Right now there’s a boom to direct mail; it’s important to be consistent and methodical. There is an ebb and flow in this type of marketing just as there is in any type of marketing. It’s important to ask questions to evaluate how effective your methods are. [9:05] If you are in a smaller county, you’re ROI is almost always going to be higher than more urban counterparts. Since the competition is smaller, the response rate is usually better. Regardless of your market, it is crucial to track your response rate and your net lead rate. [12:25] Most people who do direct mail are not consistent and methodical when they use direct mail. As an investor, if this is something you don’t excel at, outsource it to a third party that will handle the consistency for you. [15:30] It is the third or fourth drip where things start to be effective when it comes to direct mail. Direct mail really needs to reach your list more than once over a period of time to be effective. Christina recommends hitting your target audience at least six times before pulling direct mail as an effective marketing strategy. Think of it as the credit card mailings you get. [20:05] It is important to track your data; you have to know your numbers in order to know what you need to spend on marketing. The KPIs they track for their clients at Postal Impact are response rate, net lead rate, and appointment booking rate. Knowing these metrics will let you know how much you need to mail. [24:10] For people who are brand new to the industry, Christina is reluctant to have people start with direct mail marketing. It can be quite expensive as a learning lead. [27:55] Probate leads are good for newer investors if you are doing the work yourself. Probate is the process that most counties require people to go through when someone passes away without a will. If that person’s assets exceed a certain amount, their family has to declare that they have assets and open probate. If you going to go for these leads, you want to look for estate probate leads. [33:05] You can sometimes get the leads online, but if they aren’t online, you’ll have to find out which courthouse has the probate leads. You may be able to ask the clerk for the estate probates specifically. What you want to find are the named representative on the case and their mailing address. [36:30] Once you’ve got your leads and your lists, the most important part of the business is follow-up. Christina is an advocate of having a lead manager, someone who watches the lead from the moment it hits your door until you decide to call it dead. Postal Impact just got done with a three-year study of their clients, and for those who had a follow-up system in place, 74% of their deals came in the follow-up. For clients who did not have follow up, only 8% of their deals happened in follow up. [40:45] There are two things that can separate you from 90% of people in this business. The first thing is to be consistent and methodical with your marketing. The second thing is to follow up; guard your leads as if your life depends on it. [42:00] This is why they developed the virtual lead managers at Postal Impact. They are pre-trained to manage your CRM and run follow up sequences on your leads. For many investors, outsourcing this may be the way to go so you can focus on other things and still get the value in the follow-up. They can also help hold you accountable. [47:10] If you’re interested in learning more about the virtual lead manager or their direct mail campaigns, you can visit their website at postalimpact.com. They do also sell probate leads individually.   Mentioned in This Episode:   Meetings Daily REIA Show REI Facebook Page Brian’s Book Postal Impact Virtual Lead Managers Episode 63: Christina’s first appearance

Marco Santarelli, founder of Norada Real Estate Investments and host of Passive Real Estate Investment podcast, is the guest on today’s show. He talks about how his company helps investors create passive income by breaking down some numbers and talking about different markets. He also breaks down some of the benefits of real estate investing and shares why it is such a great wealth-building vehicle.   Key Takeaways:   [1:20] Marco saw his family creating wealth from real estate, and began investing at a young age. At 18, he bought his first townhome rental, fixed it up, and managed it himself. He sold real estate for a while but continues to invest all over the country. [5:10] Marco went to university to train to be a police officer but he decided not to pursue it because he wanted to be an entrepreneur. This would allow him to create wealth and passive income, which lead to financial freedom and time freedom. His current projects help teach people how to create that financial freedom. [6:45] Marco started his company in 2004 and they are a nationwide provider of turnkey rental properties. Turnkey properties are a great way to create legacy wealth for you and your family. They have properties in 22 markets across the nation. [10:30] Their company invests in markets where the numbers make sense — when a rent-to-value ratio is around 1%, that is a quick metric to see if there’s going to be a good rate of return, good cash on cash return, and good cash flow. This generally will allow investors to have more than one property in these markets as well. [13:40] If you can control and acquire an asset that generates passive income for you, that becomes a powerful wealth-building strategy. One of the greatest benefits of real estate is that you can leverage it. Marco breaks down his recommended numbers (usually putting down 20%), as well as some strategies that he has found work for him. [17:35] Brian and Marco discuss overleveraging. The most important thing is being cash-flow-positive enough that you can weather the ups and downs of the real estate market. [20:20] While many people agree there will be a recession in the real estate market soon, Marco argues that all real estate is local. What’s happening in one market may not have the same impact in another market. [24:20] There are generally two types of markets: growth markets and income (or cash flow) markets. Jacksonville, FL is an example of a growth market, where prices are appreciating above 5-6% a year. To decide where you want to invest, you must decide what you are hoping to accomplish with your investing. [28:05] Whenever they get a new client, they determine their experience, look at their portfolio, as well as map out goals based on where they are now and where they want to be. [30:15] Marco has five benefits of real estate investing. In addition to leveraging, Marco discusses the remaining four. The cash flow or income that you generate from your investment goes to you and grows over time. The second benefit is depreciation that happens with investment properties, essentially when you invest. You can’t do that with most other asset classes. The third benefit that happens over time is that your tenants are essentially paying the mortgage on your property, while your equity is growing. Finally, the fourth benefit is appreciation; property values tend to increase over time. [34:45] If you had complete equilibrium in your market (nothing is changing prices), then the only thing that would change is the cost to build new product. If that is going up, the value of your property would still be going up in an inflationary environment. [36:00] If you’re interested in Marco’s podcast, you can visit their website for properties or the podcast. Both are linked below.   Mentioned in This Episode: Meetings Daily REIA Show REI Facebook Page Brian’s Book Norada Real Estate Passive Real Estate Investing

Listen to Brian's keynote from his time spent at the Phoenix REIA on 5/21/19. Brian instructs the audience on how to network and how to utilize their network so that they can get unlimited deal flow. Brian also talks about competition and how it is a lie we tell ourselves. Join Brian's real estate networking Facebook group where he gives all his tips on networking: www.facebook.com/groups/reinetworking  

Financial advisor and former HGTV personality Chris Naugle joins Brian on the show today to talk about wealth building. Chris shares his story of success, failure, and the lessons he learned from those failures to get to where he is today. He shares strategies he learned from his own experience as a financial advisor and real estate investor and provides actionable items on how you can start having your money work for you.   Key Takeaways:   [1:30] Chris’s story started before he actually got into real estate. His dream was to start a clothing line and open a store; to get the money he needed, his mom put her house up as collateral. In between that and where he is today, he became a pro snowboarder, opened a chain of retail stores, became a financial advisor, and finally ended up in real estate. [5:50] Chris has tried several different outlets in real estate, and while he has been very successful, he recognizes the importance of what we can learn from our failures. There have been some times during his career that he’s taken on an opportunity, but it didn’t turn out the way he planned. Each failure has brought him closer to success. [9:15] Chris started in real estate in 2006, but really hit his stride a few years later. He had been buying and flipping properties using the conventional way until a real estate seminar opened his eyes to what he could change in his process. He learned that what the wealthy were doing was the exact opposite of what he was doing. [11:45] Chris had been using conventional financing as well. One of those most important lessons he learned was the wealthy investors mimic what banks do: they keep their money in constant motion. Instead of asking for money, they create opportunities to use other people’s money to solve their problems. This is now what Chris speaks about across the country — how money actually works. [15:55] After they saw another TV couple speak at a summit, Chris and his wife had the idea for a TV show where their demo crew would use the debris from a flip to make skateboard ramps, and do a stunt/demo show. After a four year journey, it eventually got picked up by HGTV for a six-episode run. The show is currently tabled, and they’re still under contract but not currently airing anything. Even though that door is sort of closed, it paved the way for everything he’s doing now. [23:50] Because of the show, Chris now has credibility on a national level. His story got him on stages, and he is able to share not only the story of HGTV, but he is also able to talk about the things he learned during his career as a financial advisor. [26:20] Some of the topics he talks about now are IRAs, infinite banking, and other wealth strategies like hidden equity. These strategies help the money we work for work for us. If you have money you’re sitting on, maybe look into investing it into something that will make you more money. [32:30] The key thing is putting and keeping money in motion. Chris talks about financial knowledge being what brings people who have money and people who need money to make money together. One actionable step you can take to start putting your money in motion is to create an opportunity to pair up people who have money and want to make more with people who need money to make more. [34:55] If you have equity, you can take a home equity line and use it to pay off credit cards, and you can start paying off other liabilities. Once you have no liabilities, you can then invest in others who need money. Chris also talks about some ways you can utilize your 401(k). [39:05] You can look up Chris Naugle on all social media platforms, and follow the links below to receive a free copy of his book and learn more about his work.   Mentioned in This Episode:   Meetings Daily REIA Show REI Facebook Page Brian’s Book Watch the Show — Risky Builders Free Copy of Chris’s Book Chris’s Website

Edwin Kelly is the CEO & founder of Specialized IRA Services. He’s on the show today to talk about all things dealing with self-directed retirements savings accounts, including self-directed IRAs, Health Savings Accounts, and other Roth strategies. In addition to information on these types of accounts, Edwin breaks down some numbers to demonstrate the benefits of investing in these types of accounts. There is a lot of information in this episode, but all with the goal to help you maximize long-term wealth for you and your family.   Key Takeaways:   [1:30] Edwin’s career started when he was back in sixth grade; he started working odd jobs and investing the money he made into essentially a brokerage account. He realized that he made more money when he invested his money than he did working for it. He saw a need for a provider that offers a service and support for clients. [4:20] People are hesitant about self-directed retirement accounts. One of the biggest mistakes people make is that they don’t have a Roth strategy; a Roth account is one where you make a contribution today and it grows tax-protected, so you don’t pay taxes on the distributions when you pull it out. [8:10] To be successful, you want to have an income goal. Edwin shares some numeric examples of how a Roth account can help you make more money. There are three account categories: IRAs, small business retirement plans, and tax advantage specialty accounts. [14:00] For people in the real estate investing business that want to make money for today, there are a few different strategies. One approach is to look at the type of investments and where are you holding them; this could be a rental property within the retirement account. The other approach is to do any extra business each month into a retirement account. [17:20] There are three steps to establishing a self-directed account. These are the three D’s: Decide you want to build wealth for your future through self-directed accounts. Deposit money into that account, whether through contributions or a transfer of funds. Finally, Direct your money into an investment you want to make. It all begins with deciding this is something you want to commit to doing. [20:05] When it comes to a retirement account, you’ll always have access to the money. What will change depending on time and other limits is whether or not the contributions are taxed. For a real estate investor, you can also pursue other types of investments outside of your retirement accounts, but keep in mind the tax treatment. [23:10] Health Savings Accounts came back in 2004. The government combined the tax benefits of the Roth IRA with the tax benefits of the traditional IRA. An HSA is a critical part of your overall plan because healthcare is typically the single largest expense in a household. If you want to use that money, you’re using pre-tax dollars to pay for your healthcare. [26:15] In addition to the immediate benefits of the HSA account, if you have just one cash-flowing asset in that account, that will be all you need to last you in the future as well. [29:35] When should people start a retirement savings account? If you’re hesitant about starting one of these types of accounts, remember that you can create more wealth by taking the taxes off the table. You don’t have to choose between your wealth today and in the future. You can have accounts working concurrently. [34:15] Another major benefit of these types of accounts is asset protection. Any assets that are within a retirement account are safe. To maximize and protect your wealth, it is important to have cash flow today and understand the benefits of a self-directed account. [38:35] If you go to Edwin’s website (linked below), you can get a copy of his book for free, as well as a free consultation. In the consultation, you can map out a plan with one of their specialists.   Mentioned in This Episode:   Meetings Daily REIA Show REI Facebook Page Brian’s Book Edwin’s Website — Specialized IRA Services

Brian Trippe and Rob Drum discuss the Birmingham area market in their monthly update show. For cash-flowing Birmingham properties, reach out to Rob at 205-253-8756 or at rob@robdrum.us