Podcast appearances and mentions of josh koth

The biggest challenge for real estate investors is producing consistent income. Thus, we called our guests, Maura McGraw, Tony Jardieu, Jack Hoss, Josh Koth, and Ryan Bagley, and asked them to share their secrets to consistent success. Tune in and replicate their strategies and achieve your goals as swiftly as they did!

On today's episode, we are joined by Josh Koth, to talk about his journey towards financial freedom using real estate investing. Living in an area with a market not typically considered as a strong investment option, Josh faced several detractors. Yet he proceeded and found that even after hundreds of rejections, a deal would eventually always fall into place. He shares the message that if you do the work, no matter how tedious it may seem, you will most certainly reap the rewards.

Learn a new way to quit your day job from two guys who have already done it - Jack Hoss and Josh Koth. Within one month of working with Matt, they quadrupled their deals and earned the freedom to quit their day jobs in style. Learn how they sped up the process to becoming real estate investing experts, what the Daily Success Report is and how it could change your life, and the 3 daily tasks that will allow you to quit your day job.

The biggest challenge for real estate investors is producing consistent income. Thus, we called our guests, Maura McGraw, Tony Jardieu, Jack Hoss, Josh Koth, and Ryan Bagley, and asked them to share their secrets to consistent success. Replicate their strategies and achieve your goals as swiftly as they did! Besides advising you on how to be successful in real estate investing, our guests will reveal their best sources for off-market deals, the strategies to finding buyers and funding, and what they wish they knew before they got started.

When we started out some of the best lessons we learned when others talked about actual properties, experiences, and numbers. This week we chat about two deals. One good and one not so good. Looking for downloads or have you found some value in the show? Click here to support us through Patreon! Please subscribe through iTunes or your favorite podcast app! If you like what you hear please give us a rating, like, and share. It really helps the show grow. iTunes: http://bit.ly/REIrookiesOniTunes Google Play: http://bit.ly/REIRookiesOnGooglePlay YouTube: http://bit.ly/REIRookiesOnYouTube Stitcher: http://bit.ly/REIRookiesOnStitcher SoundCloud: http://bit.ly/REIRookiesOnSoundcloud Facebook: http://bit.ly/REIRookiesOnFacebook Patreon: https://www.patreon.com/reirookies Follow Josh Koth and Jack Hoss on their journey towards financial freedom using the power of Real Estate through the REI Rookies Podcast (Real Estate Investing Rookies Podcast). We share our experiences as we acquire rental properties, build net worth, and work towards financial freedom. We are focused on creating wealth through conventional and creative real estate investing while improving our financial education. If you are a fan of Rich Dad Poor Dad by Robert Kiyosaki and Millionaire Real Estate Investor by Gary Keller or are looking for an alternative to the Dave Ramsey, Jim Cramer, Motley Fool or Suze Orman shows we invite you to subscribe today! Transcript 0:00:00.000,0:00:04.380 we're rollin welcome to the REI rookies 0:00:02.370,0:00:07.379 podcast the real estate investing 0:00:04.380,0:00:08.730 rookies podcast episode number 86 where 0:00:07.379,0:00:10.889 we invite you to follow us on our 0:00:08.730,0:00:12.420 journey towards financial freedom using 0:00:10.889,0:00:15.240 the power of real estate 0:00:12.420,0:00:17.070 i'm Josh Koth and i'm Jack Hoss and here 0:00:15.240,0:00:19.289 at REI Rookies we believe in a couple 0:00:17.070,0:00:21.330 key principles number one the best way 0:00:19.289,0:00:23.760 to retain information is by teaching it 0:00:21.330,0:00:25.650 to others and number two a rising tide 0:00:23.760,0:00:28.650 lifts all boats we're out competitors 0:00:25.650,0:00:31.529 we're a community so let's get into some 0:00:28.650,0:00:34.320 real estate investing so we decided to 0:00:31.529,0:00:36.719 do something that is a bit overdue I 0:00:34.320,0:00:39.000 think I'd do a comparison and case study 0:00:36.719,0:00:41.129 on a couple properties yeah I remember 0:00:39.000,0:00:43.649 when I was first starting out one of the 0:00:41.129,0:00:46.020 best ways I learned was by hearing 0:00:43.649,0:00:48.360 somebody talk about actual deals a case 0:00:46.020,0:00:51.300 study because I it's tough to get from 0:00:48.360,0:00:53.789 the theoretical to the real world and to 0:00:51.300,0:00:55.469 apply some of these concepts so I think 0:00:53.789,0:00:57.270 occasionally just talking through 0:00:55.469,0:01:00.210 specific deals and comparing and 0:00:57.270,0:01:03.270 contrasting good results and bad results 0:01:00.210,0:01:07.110 really helps people learning out there 0:01:03.270,0:01:09.630 how to apply these these theories so why 0:01:07.110,0:01:12.540 don't we just jump right in to a couple 0:01:09.630,0:01:15.060 of these the first one is a property we 0:01:12.540,0:01:18.150 picked up off the MLS about a year ago 0:01:15.060,0:01:20.610 and it was listed for about 65 thousand 0:01:18.150,0:01:23.130 yeah and just to kind of back backpedal 0:01:20.610,0:01:25.170 one one step here what we're gonna do is 0:01:23.130,0:01:27.030 talk about one tiel that went really 0:01:25.170,0:01:28.799 well where everything was kind of firing 0:01:27.030,0:01:31.100 on all cylinders and we got the results 0:01:28.799,0:01:34.770 who wanted and then one where we did not 0:01:31.100,0:01:36.900 so you can kind of see what lessons we 0:01:34.770,0:01:38.280 learned and and where we made some wrong 0:01:36.900,0:01:40.500 turns and what we could have done 0:01:38.280,0:01:42.240 differently and we're comparing kind of 0:01:40.500,0:01:44.430 compare and contrast a good deal and a 0:01:42.240,0:01:47.909 bad deal so yeah so this first one is a 0:01:44.430,0:01:50.130 was a really good deal it was an 0:01:47.909,0:01:52.560 infinite return deal that had profit at 0:01:50.130,0:01:55.439 all points and so we'll talk about how 0:01:52.560,0:01:57.360 we acquired it and exited the property 0:01:55.439,0:01:59.509 so yeah as you mentioned we found this 0:01:57.360,0:02:03.000 one on the MLS I believe was listed for 0:01:59.509,0:02:06.990 65,000 we ran the numbers on it offered 0:02:03.000,0:02:11.430 I think 45 and ended up negotiating up 0:02:06.990,0:02:13.500 to flick 50 to 5 and then we threw in 0:02:11.430,0:02:16.320 about a $10,000 0:02:13.500,0:02:18.660 in rehab we put a new roof on and fixed 0:02:16.320,0:02:22.800 a couple things to get it renter ready 0:02:18.660,0:02:24.840 the nice thing was this turned out to be 0:02:22.800,0:02:27.780 an infinite return of property because 0:02:24.840,0:02:29.850 we were able to extract everything that 0:02:27.780,0:02:31.890 we had into the property as far as 0:02:29.850,0:02:33.750 acquisition and rehab and we put a 0:02:31.890,0:02:36.660 mortgage on the property of sixty-five 0:02:33.750,0:02:38.970 thousand so that fifty two thousand 0:02:36.660,0:02:41.070 fifty two five of acquisition plus about 0:02:38.970,0:02:42.870 ten grand in rehab was sixty two five 0:02:41.070,0:02:44.760 and we put a mortgage on for sixty-five 0:02:42.870,0:02:47.459 so actually put about twenty five 0:02:44.760,0:02:49.560 hundred bucks in her pockets at the time 0:02:47.459,0:02:52.530 of the placing the mortgage on the 0:02:49.560,0:02:54.180 property and then we got Indian in the 0:02:52.530,0:02:56.280 hands of our property manager and they 0:02:54.180,0:03:00.120 got it printed out for eight hundred 0:02:56.280,0:03:02.190 dollars a month and those people lived 0:03:00.120,0:03:04.410 in it for about a year and are actually 0:03:02.190,0:03:05.760 still living in it they rescind another 0:03:04.410,0:03:08.250 year lease 0:03:05.760,0:03:10.680 so it was what we call an infinite 0:03:08.250,0:03:12.360 return property because the amount of 0:03:10.680,0:03:16.280 money and you remember how to calculate 0:03:12.360,0:03:19.230 ROI quickly as you take the annual net 0:03:16.280,0:03:20.370 cash flow profits and divide that by the 0:03:19.230,0:03:22.380 amount of money you have into the 0:03:20.370,0:03:24.600 property well since we had zero dollars 0:03:22.380,0:03:27.890 into this property that's what's called 0:03:24.600,0:03:30.269 an infinite return so that was great and 0:03:27.890,0:03:31.650 eventually we found that we were 0:03:30.269,0:03:34.019 approached by another investor who was 0:03:31.650,0:03:36.989 looking to pick up some properties and 0:03:34.019,0:03:38.780 we mentioned this one would be kind of a 0:03:36.989,0:03:40.980 turnkey opportunity it already had a 0:03:38.780,0:03:43.410 tenant in it who had resigned after 0:03:40.980,0:03:45.840 being in it for a year pretty solid 0:03:43.410,0:03:48.660 tenants and had really no major issues 0:03:45.840,0:03:51.420 so it was a great deal for him as well 0:03:48.660,0:03:53.549 so we negotiated a price of eighty 0:03:51.420,0:03:57.120 thousand dollars and sold that property 0:03:53.549,0:03:59.610 so the cash flowed for a year infinite 0:03:57.120,0:04:01.380 returns a little over a year actually 0:03:59.610,0:04:03.799 and then we sold for eighty so made 0:04:01.380,0:04:08.430 another fifteen thousand on the exit 0:04:03.799,0:04:10.590 yeah that was a great example of what 0:04:08.430,0:04:12.750 that can what that can possibly do for 0:04:10.590,0:04:14.940 you and that infinite return thing is a 0:04:12.750,0:04:18.919 bit of unicorn and it's great when we 0:04:14.940,0:04:21.180 achieve it the the great exit there was 0:04:18.919,0:04:23.210 and I don't think we even really were 0:04:21.180,0:04:26.700 planning on selling this one it just 0:04:23.210,0:04:30.060 happened to be a situation where we 0:04:26.700,0:04:32.370 we priced it at our walkaway price and 0:04:30.060,0:04:35.640 met that person's needs at the time and 0:04:32.370,0:04:37.590 and it was a win-win for everyone yeah 0:04:35.640,0:04:40.620 because it was still a good deal for him 0:04:37.590,0:04:42.060 he hit the one percent rule you know 0:04:40.620,0:04:45.180 bought it for 80 thousand it was rented 0:04:42.060,0:04:46.680 for $800 a month already had a 10-minute 0:04:45.180,0:04:49.380 we had already done all the work and got 0:04:46.680,0:04:51.930 it rent ready so there's really not a 0:04:49.380,0:04:54.540 lot of deferred maintenance needed for 0:04:51.930,0:04:56.550 the foreseeable future you know we did 0:04:54.540,0:04:58.830 kind of the hard work of finding the 0:04:56.550,0:05:00.930 property at a discount and fixing it up 0:04:58.830,0:05:03.270 getting a tenant in it and so for him 0:05:00.930,0:05:05.310 how we closed I believe like on the 0:05:03.270,0:05:08.850 first of a month and he started getting 0:05:05.310,0:05:12.180 cash flow immediately you know in his 0:05:08.850,0:05:14.160 return won't be infinite but that's like 0:05:12.180,0:05:15.360 I said it's kind of a unicorn and you 0:05:14.160,0:05:17.160 know we're the ones out there finding 0:05:15.360,0:05:19.920 the deal so you know we can we can get 0:05:17.160,0:05:22.080 those once in a while and while his 0:05:19.920,0:05:24.090 return wasn't infinite it's still a good 0:05:22.080,0:05:25.380 return and he didn't have to do much for 0:05:24.090,0:05:28.050 it all he had to do was kind of go 0:05:25.380,0:05:29.940 shopping right and pick from a list we 0:05:28.050,0:05:30.360 had for sale and say well this one looks 0:05:29.940,0:05:33.210 good 0:05:30.360,0:05:35.700 it's in a price point I like it gives me 0:05:33.210,0:05:37.650 a good return and I don't have to do 0:05:35.700,0:05:40.230 anything and immediately is cash flowing 0:05:37.650,0:05:42.330 from day one yeah you know when we 0:05:40.230,0:05:43.890 talked to potential sellers like 0:05:42.330,0:05:45.570 directly you know that we got this one 0:05:43.890,0:05:48.180 off the MLS but when we were talking to 0:05:45.570,0:05:50.010 potential sellers it's not necessarily 0:05:48.180,0:05:52.830 the price that we're focused on it's 0:05:50.010,0:05:54.930 more the solution we're providing that's 0:05:52.830,0:05:57.780 the same situation when it comes to 0:05:54.930,0:06:00.690 selling properties to other investors 0:05:57.780,0:06:04.340 we're really looking for a solution and 0:06:00.690,0:06:07.320 he he needed a certain thing to happen 0:06:04.340,0:06:09.990 he had some money he had to place in a 0:06:07.320,0:06:13.410 specific amount of time so we were able 0:06:09.990,0:06:15.960 to meet those needs yep exactly it just 0:06:13.410,0:06:18.870 you know being there being top of mind 0:06:15.960,0:06:21.230 and being ready to perform when when 0:06:18.870,0:06:23.550 those opportunities present themselves 0:06:21.230,0:06:26.610 so that worked out it was a win all the 0:06:23.550,0:06:28.290 way around and you know we did the work 0:06:26.610,0:06:29.760 of getting the property ready and the 0:06:28.290,0:06:32.190 rehab and that's really where we added 0:06:29.760,0:06:33.930 value was by preparing this this 0:06:32.190,0:06:36.990 property for a more a more passive 0:06:33.930,0:06:40.370 investor to come along purchase it 0:06:36.990,0:06:42.870 and off to the races he went he went 0:06:40.370,0:06:46.190 well that was one of the that was the 0:06:42.870,0:06:48.870 good scenario let's go to the dark side 0:06:46.190,0:06:50.160 yeah the you know real estate isn't all 0:06:48.870,0:06:52.500 sunshine and rainbows right sometimes 0:06:50.160,0:06:54.320 you strike out we've all seen the show 0:06:52.500,0:06:56.700 flip or flop right sometimes they make 0:06:54.320,0:06:58.710 $100,000 on a flip sometimes they lose 0:06:56.700,0:07:01.140 money right although they rarely show 0:06:58.710,0:07:04.740 that and we try to be as transparent as 0:07:01.140,0:07:08.130 we can here so when we have deals that 0:07:04.740,0:07:10.230 don't go our way we feel we learn a lot 0:07:08.130,0:07:12.450 from those or sometimes a lot more 0:07:10.230,0:07:14.730 actually because you have to really kind 0:07:12.450,0:07:16.800 of sit back and figure things out and 0:07:14.730,0:07:18.000 and figure out where did we take some 0:07:16.800,0:07:20.970 wrong turns what could we have done 0:07:18.000,0:07:23.370 differently and try to not repeat those 0:07:20.970,0:07:26.490 same mistakes so this this is one of 0:07:23.370,0:07:28.500 those cases so this property was brought 0:07:26.490,0:07:30.120 to us by another investor and it was 0:07:28.500,0:07:32.490 kind of quickly put together and that's 0:07:30.120,0:07:34.230 kind of where some of the you know the 0:07:32.490,0:07:37.830 problems happened is we like to move 0:07:34.230,0:07:39.390 really fast and this is kind of an I 0:07:37.830,0:07:41.460 think where we tripped up well and 0:07:39.390,0:07:45.180 specifically me tripped up was this is a 0:07:41.460,0:07:46.260 much newer property so it had a thing 0:07:45.180,0:07:49.130 and I don't know if this is something 0:07:46.260,0:07:51.150 around the country that other 0:07:49.130,0:07:54.150 jurisdictions have but it had to think 0:07:51.150,0:07:56.100 of special assessments so sometimes 0:07:54.150,0:07:57.660 properties that are well actually any 0:07:56.100,0:07:59.370 property can have a special assessment 0:07:57.660,0:08:01.560 it's basically to cover the 0:07:59.370,0:08:03.960 infrastructure under the ground or in 0:08:01.560,0:08:06.450 the surrounding your property so if the 0:08:03.960,0:08:09.390 city is putting in new sewer or streets 0:08:06.450,0:08:11.310 or things like that they this is how 0:08:09.390,0:08:12.930 they pay for it they attach a special 0:08:11.310,0:08:14.910 assessment to your property and 0:08:12.930,0:08:16.980 sometimes and you were like if you're 0:08:14.910,0:08:20.280 building a house and you buy a lot those 0:08:16.980,0:08:21.990 can be you know 50 grand in this area 0:08:20.280,0:08:24.480 sometimes and since this property was 0:08:21.990,0:08:27.720 only about 7 or 8 years old 0:08:24.480,0:08:29.940 it had a pretty high specialist balance 0:08:27.720,0:08:32.060 which I neglected to look up before 0:08:29.940,0:08:34.290 working out a deal with with the seller 0:08:32.060,0:08:39.150 and when we looked it up it was a little 0:08:34.290,0:08:41.820 bit of a shock yeah and in the end what 0:08:39.150,0:08:44.120 ended up happening was we were finding 0:08:41.820,0:08:47.930 it difficult to cash flow there was a 0:08:44.120,0:08:49.889 renter in that property already at 0:08:47.930,0:08:51.749 $1,500 a month 0:08:49.889,0:08:54.749 the purchase price on this property was 0:08:51.749,0:08:57.119 150 thousand which sounds good that it 0:08:54.749,0:08:59.819 should cashflow but because of those 0:08:57.119,0:09:02.459 taxes and specials assessments it it 0:08:59.819,0:09:04.649 caused some problems there so we took it 0:09:02.459,0:09:06.809 upon ourselves the best exit was to try 0:09:04.649,0:09:09.059 to get this one off the books yeah and 0:09:06.809,0:09:10.589 and just to let people know if they 0:09:09.059,0:09:13.769 don't have the same thing in their 0:09:10.589,0:09:15.329 jurisdiction how the special assessments 0:09:13.769,0:09:16.709 work is you have an overall principal 0:09:15.329,0:09:18.589 balance and then you have a minimum 0:09:16.709,0:09:22.079 amount you're required to pay annually 0:09:18.589,0:09:25.199 so this was about 200 bucks a month so 0:09:22.079,0:09:27.959 any renter or person buying it was gonna 0:09:25.199,0:09:30.149 have either the landlord is going to 0:09:27.959,0:09:32.489 have to make $200 extra cash flow 0:09:30.149,0:09:34.859 somewhere to make up for that or anyone 0:09:32.489,0:09:37.079 buying it from you as an owner-occupant 0:09:34.859,0:09:38.879 would have another $200 added to their 0:09:37.079,0:09:41.339 mortgage payment to cover this special 0:09:38.879,0:09:43.319 assessment payment so that really was 0:09:41.339,0:09:46.619 the wrench that was thrown into this 0:09:43.319,0:09:48.299 property and another unique situation 0:09:46.619,0:09:50.730 was the lot it was really big because it 0:09:48.299,0:09:52.889 was up against a bike path which was 0:09:50.730,0:09:54.809 really nice as far as a selling point 0:09:52.889,0:09:58.470 and you know showing the property a work 0:09:54.809,0:10:01.019 in our favor but these special 0:09:58.470,0:10:04.169 assessments are assessed based on the 0:10:01.019,0:10:06.049 lot size so even though this is kind of 0:10:04.169,0:10:09.329 a twin what we call a twin home so it's 0:10:06.049,0:10:12.720 you know two side-by-side houses in one 0:10:09.329,0:10:14.759 building but they're sold as separate 0:10:12.720,0:10:18.029 parcels you know the problem there is 0:10:14.759,0:10:19.829 there's a lot of similar properties and 0:10:18.029,0:10:21.749 ours was a little unique as far as being 0:10:19.829,0:10:24.209 bigger so it had a much higher balance 0:10:21.749,0:10:28.199 so it's kind of a unicorn in the bad way 0:10:24.209,0:10:31.290 not a good unicorn well I think too it 0:10:28.199,0:10:34.230 wasn't this in the end didn't we 0:10:31.290,0:10:37.769 purchase this for almost what the last 0:10:34.230,0:10:40.679 owner paid for it or right and that was 0:10:37.769,0:10:42.360 kind of what got us excited it you know 0:10:40.679,0:10:44.399 we knew we were pretty well under the 0:10:42.360,0:10:47.039 the retail price so we had some equity 0:10:44.399,0:10:49.410 built into the deal and like you said we 0:10:47.039,0:10:50.369 we did cash for keys and got the renters 0:10:49.410,0:10:52.169 out of that because we knew it wasn't 0:10:50.369,0:10:55.049 going to cash flow once we realized what 0:10:52.169,0:10:57.329 the special assessment balance was and 0:10:55.049,0:10:59.519 that extra $200 a month was just killing 0:10:57.329,0:11:01.829 the cash flow so we knew and and it was 0:10:59.519,0:11:03.190 still 18 months left on a lease so we 0:11:01.829,0:11:05.230 knew we had to 0:11:03.190,0:11:07.330 get the tenants out of there so we could 0:11:05.230,0:11:10.900 retailer that was our best chance at a 0:11:07.330,0:11:12.760 profitable exit because if we had to 0:11:10.900,0:11:16.000 least stay in place for 18 months we 0:11:12.760,0:11:18.790 were gonna negatively cashflow yeah and 0:11:16.000,0:11:20.500 if you're not aware cash for keys 0:11:18.790,0:11:23.620 basically we went to the tenants and 0:11:20.500,0:11:25.120 offered them a bribe yeah we just said 0:11:23.620,0:11:27.820 we'll give you a month's rent if you can 0:11:25.120,0:11:29.830 be gone and we can have for two weeks or 0:11:27.820,0:11:31.300 whatever and they found a place 0:11:29.830,0:11:33.100 lickety-split and they were out of there 0:11:31.300,0:11:36.460 so that was that work that actually 0:11:33.100,0:11:38.350 worked pretty well so that's a good 0:11:36.460,0:11:40.890 tactic to try if you need to get some 0:11:38.350,0:11:43.690 tenants to leave earlier than a lease 0:11:40.890,0:11:45.010 dictates and one thing at least in our 0:11:43.690,0:11:47.500 jurisdiction I think this is pretty 0:11:45.010,0:11:49.240 nationwide is you can't really just have 0:11:47.500,0:11:51.940 a tenant leave earlier than their lease 0:11:49.240,0:11:54.190 if they're performing so it has to all 0:11:51.940,0:11:55.690 parties have to agree you can never 0:11:54.190,0:11:57.490 force anyone to leave you just have to 0:11:55.690,0:11:59.800 ask and if they're willing to and if you 0:11:57.490,0:12:02.860 can offer some of them some cash that's 0:11:59.800,0:12:05.950 a great alternative and we knew also we 0:12:02.860,0:12:07.780 had a little bit of a there's a you know 0:12:05.950,0:12:08.740 up here in the Upper Midwest the market 0:12:07.780,0:12:10.870 is very seasonal 0:12:08.740,0:12:13.240 and we we wanted to make sure that we 0:12:10.870,0:12:15.600 sold it before the cold weather hit 0:12:13.240,0:12:18.280 because things can really take a 0:12:15.600,0:12:20.080 downturn when the weather gets cold so 0:12:18.280,0:12:22.660 we wanted the tenants out of there so we 0:12:20.080,0:12:24.160 could do some rehab to it and get the 0:12:22.660,0:12:26.080 property sold at retail and hopefully 0:12:24.160,0:12:28.480 still exit with a property well that's 0:12:26.080,0:12:32.770 not quite exactly what happened no and 0:12:28.480,0:12:35.050 in fact I'd even say that issue number 0:12:32.770,0:12:36.660 two with this property is that I think 0:12:35.050,0:12:40.300 we got a little cocky on this one 0:12:36.660,0:12:42.700 because we we thought this was going to 0:12:40.300,0:12:46.270 be a slam dunk it's in a nice part of 0:12:42.700,0:12:48.040 town we took it upon ourselves to like 0:12:46.270,0:12:50.830 take a look at some of the twin homes 0:12:48.040,0:12:52.420 that were similar and for sale in the 0:12:50.830,0:12:54.850 area so we did everything we could to 0:12:52.420,0:12:57.190 make sure that our stood out and then 0:12:54.850,0:13:00.460 still priced it at the same ballpark 0:12:57.190,0:13:02.320 so that ours just would stand out why 0:13:00.460,0:13:04.930 wouldn't anybody buy this thing I'm yeah 0:13:02.320,0:13:06.700 we used we used reclaimed wood on the 0:13:04.930,0:13:08.380 island for crying out loud yeah we had 0:13:06.700,0:13:11.290 cool light fixtures and we did some cool 0:13:08.380,0:13:13.060 stuff because the problem with this type 0:13:11.290,0:13:15.610 of property is there's a million of them 0:13:13.060,0:13:18.250 so really supply and demand we're not 0:13:15.610,0:13:20.260 working in our favor and we had some 0:13:18.250,0:13:21.850 other market conditions like you said 0:13:20.260,0:13:23.050 there's this alright like I mentioned 0:13:21.850,0:13:25.990 earlier there was kind of a seasonal 0:13:23.050,0:13:28.240 downturn coming and actually kind of an 0:13:25.990,0:13:31.000 overall I don't want to say downturn but 0:13:28.240,0:13:34.870 overall market correction or kind of a 0:13:31.000,0:13:37.060 you know coming down from Peaks so not 0:13:34.870,0:13:39.910 really a downturn but things were just 0:13:37.060,0:13:43.209 not as flying off the shelves as hot as 0:13:39.910,0:13:46.089 they were six months prior so all those 0:13:43.209,0:13:49.240 all those conditions kind of created the 0:13:46.089,0:13:51.519 perfect storm of us not probably looking 0:13:49.240,0:13:52.720 at a profit and we did get we work 0:13:51.519,0:13:54.779 hockey we thought for sure was gonna 0:13:52.720,0:13:57.310 sell like the day of the open house 0:13:54.779,0:14:01.720 which was kind of a silly looking back 0:13:57.310,0:14:05.980 because we had very horrible turnout for 0:14:01.720,0:14:08.230 the open house and then almost no 0:14:05.980,0:14:10.089 showings and that's never a good sign 0:14:08.230,0:14:13.180 right you want at least some pretty good 0:14:10.089,0:14:14.709 activity on your listing if he's showing 0:14:13.180,0:14:16.300 retail if you're having consistent 0:14:14.709,0:14:17.740 showings then at least you have a shot 0:14:16.300,0:14:19.390 of selling right well if people aren't 0:14:17.740,0:14:22.390 even going to see the property you have 0:14:19.390,0:14:24.430 no shot so that was depressing to say 0:14:22.390,0:14:27.279 the least so I think one of the big 0:14:24.430,0:14:28.959 lessons here is that first of all make 0:14:27.279,0:14:31.720 sure you check all of your numbers 0:14:28.959,0:14:34.870 including the specials assessments your 0:14:31.720,0:14:37.420 tax bills there's a lot more to taking a 0:14:34.870,0:14:40.899 look at it versus just the initial 0:14:37.420,0:14:43.810 overall cash flow it sounded it looked 0:14:40.899,0:14:45.940 really good on paper right off the top 0:14:43.810,0:14:47.829 a little digging probably we could have 0:14:45.940,0:14:49.690 caught some of this ahead of time it's 0:14:47.829,0:14:53.529 funny because you always want a property 0:14:49.690,0:14:57.250 to have equity and cash flow hopefully 0:14:53.529,0:15:00.970 and that specials payment kills both of 0:14:57.250,0:15:03.459 those both a cash flow exit and the 0:15:00.970,0:15:06.940 retail exit so that you know that that 0:15:03.459,0:15:08.949 one balance really skewed the numbers so 0:15:06.940,0:15:11.199 that's something you want to you know 0:15:08.949,0:15:12.850 believe me we check that now right yeah 0:15:11.199,0:15:14.860 you know you definitely check that now 0:15:12.850,0:15:16.600 it's funny because you get you kind of 0:15:14.860,0:15:18.010 cop well me especially by surprise 0:15:16.600,0:15:20.740 because we don't typically deal in 0:15:18.010,0:15:22.839 properties that new so usually the 0:15:20.740,0:15:24.819 properties we're dealing with have you 0:15:22.839,0:15:26.649 know maybe four or five thousand dollars 0:15:24.819,0:15:28.690 of specials balance but this one had 0:15:26.649,0:15:29.440 almost twenty so that was pretty 0:15:28.690,0:15:31.900 significant 0:15:29.440,0:15:35.830 yeah and I think this is another example 0:15:31.900,0:15:38.190 of when people don't want to work with 0:15:35.830,0:15:41.980 others that that come off as desperate 0:15:38.190,0:15:44.560 you know and I hate - hate to admit this 0:15:41.980,0:15:47.170 but I think one of the things that we 0:15:44.560,0:15:51.040 were dealing with is we were starting to 0:15:47.170,0:15:53.680 figure out ways to do for sale by owner 0:15:51.040,0:15:54.910 to try to sell Commission try to save 0:15:53.680,0:15:56.830 the Commission trying to save the 0:15:54.910,0:15:59.560 Commission trying to save this deal in 0:15:56.830,0:16:03.220 some way we were trying evaluating 0:15:59.560,0:16:05.800 whether to pay down the specials we 0:16:03.220,0:16:08.020 reduced the price of the property but 0:16:05.800,0:16:09.580 for some reason people were really 0:16:08.020,0:16:11.410 having a hard time with the specials so 0:16:09.580,0:16:13.840 we were even considering paying down 0:16:11.410,0:16:16.690 some of the specials we're doing all of 0:16:13.840,0:16:18.600 these different tactics or considering 0:16:16.690,0:16:22.180 all these different things as 0:16:18.600,0:16:23.530 desperation moves and I don't think that 0:16:22.180,0:16:26.020 really puts you in a very good situation 0:16:23.530,0:16:29.050 yeah I mean your leverage is gone at 0:16:26.020,0:16:32.200 that point so ultimately we just had to 0:16:29.050,0:16:34.240 say well let's just basically we were 0:16:32.200,0:16:37.150 ready to do a pretty significant price 0:16:34.240,0:16:38.410 drop just to get the thing gone because 0:16:37.150,0:16:40.030 what you don't want it 0:16:38.410,0:16:42.580 worst-case scenario as a property 0:16:40.030,0:16:44.710 sitting there costing you money every 0:16:42.580,0:16:46.870 month and it's just okay now you're 0:16:44.710,0:16:48.310 gonna lose money and the longer it sits 0:16:46.870,0:16:50.470 the more you're gonna lose so at some 0:16:48.310,0:16:52.120 point you have to just reduce the price 0:16:50.470,0:16:54.340 until it sells and get it off the books 0:16:52.120,0:16:55.870 take the loss learn your lessons and 0:16:54.340,0:16:58.330 move on and really you have to think it 0:16:55.870,0:17:02.290 was - costing you stress wise and mental 0:16:58.330,0:17:04.660 mental you know just admit to gymnastics 0:17:02.290,0:17:06.970 trying to figure out ways to get the 0:17:04.660,0:17:08.650 deal to somehow break even or be 0:17:06.970,0:17:10.900 profitable and you don't want to be 0:17:08.650,0:17:11.980 spending all this time you know every 0:17:10.900,0:17:14.290 day we're like okay what should we do 0:17:11.980,0:17:15.579 with this thing you know and wasting 0:17:14.290,0:17:17.949 time worrying about it when we should 0:17:15.579,0:17:19.810 have enough finding the next deal and 0:17:17.949,0:17:21.819 right when we were about to do a pretty 0:17:19.810,0:17:24.730 significant price drop again we finally 0:17:21.819,0:17:27.430 got an offer that you know what allow us 0:17:24.730,0:17:29.530 to kind of get out I think we've 0:17:27.430,0:17:30.670 probably lost you know a little bit when 0:17:29.530,0:17:32.920 it's all said and done with carrying 0:17:30.670,0:17:35.290 costs and everything else but definitely 0:17:32.920,0:17:37.450 not as significant of a loss as we had 0:17:35.290,0:17:41.020 we would have taken hit done another 0:17:37.450,0:17:43.330 price drop so you know that thing god we 0:17:41.020,0:17:47.019 got that came in at the last second 0:17:43.330,0:17:49.269 and saved us and we'll finally get that 0:17:47.019,0:17:51.580 property off the books and it's just a 0:17:49.269,0:17:54.039 you know weight lifted and it feels good 0:17:51.580,0:17:55.899 even though we technically probably lost 0:17:54.039,0:17:58.570 money on it feels good just to have it 0:17:55.899,0:17:59.919 behind you and take stock of what 0:17:58.570,0:18:01.000 lessons we learned and how we can apply 0:17:59.919,0:18:03.370 those going forward 0:18:01.000,0:18:05.799 well like we've said before if we're not 0:18:03.370,0:18:09.460 earning we're learning yeah right so 0:18:05.799,0:18:11.140 make sure you get your money's worth if 0:18:09.460,0:18:13.000 you do take a loss on something get your 0:18:11.140,0:18:16.059 money's worth and analyze what went 0:18:13.000,0:18:18.490 wrong what can you do differently in the 0:18:16.059,0:18:20.769 future and how can you apply those 0:18:18.490,0:18:25.510 lessons and get some get some value out 0:18:20.769,0:18:29.620 of out of the loss so well revisiting 0:18:25.510,0:18:33.340 this last one kind of wore me out so 0:18:29.620,0:18:35.470 let's we don't typically like to talk 0:18:33.340,0:18:39.539 about the losses but I think it's really 0:18:35.470,0:18:42.580 important and we hope that some of this 0:18:39.539,0:18:45.029 transparency really helps you on your 0:18:42.580,0:18:46.840 journey towards your financial freedom 0:18:45.029,0:18:49.269 yes and if you like what you're hearing 0:18:46.840,0:18:51.340 head over to iTunes subscribe rate and 0:18:49.269,0:18:53.620 review the podcast it really helps other 0:18:51.340,0:18:55.510 rookie investors out there find a show 0:18:53.620,0:18:59.769 hit us up on Facebook Instagram and 0:18:55.510,0:19:01.720 Twitter at rei rookies and remember get 0:18:59.769,0:19:04.210 off the bench and get into the game 0:19:01.720,0:19:08.350 we'll see you next time remember they're 0:19:04.210,0:19:09.880 not all homeruns I don't like to tell a 0:19:08.350,0:19:11.320 man what to do it is money but if you 0:19:09.880,0:19:15.039 ain't investing in Barberie then you're 0:19:11.320,0:19:17.900 dumber than a dummy oh smart well by 0:19:15.039,0:19:31.160 property my advice 0:19:17.900,0:19:33.220 [Music] 0:19:31.160,0:19:33.220 you 0:19:33.760,0:19:37.029 [Music]  

While working at a large tech company, Jack Hoss and his partner Josh Koth would spend their lunch hours talking real estate and plotting their escape. Two years later, they have over 50 transactions, hold 31 doors, and are averaging a transaction a week in 2018.

While working at a large tech company, Jack Hoss and his partner Josh Koth would spend their lunch hours talking real estate and plotting their escape. Two years later, they have over 50 transactions, hold 31 doors, and are averaging a transaction a week in 2018. What you'll learn about in this episode: How Jack went from the corporate world to real estate investing A habit Jack has that helps keep him focused and making money The magic number that most people strive to make to fully jump into real estate What holds many people back from fully taking the plunge What happens when you finally go all in with real estate How your beliefs can create your reality The REI Rookies podcast and what it's all about How to know when something you've learned is really sinking in Why it's so important and powerful to hold yourself accountable The types of deals Jack does Why it's important to understand different niches and avenues in real estate A smart way to make sure you don't pass up good opportunities Benefits of offering multiple options when offering to purchase a property How Jack learned how to better understand people through failure Qualities to look for in a good realtor Why you should never assume the motivation of the seller The importance of mindset and how Jack keeps his where he wants it to be Real estate books that helped Jack learn and implement what he knows today Jack's take on mentorships Why you need to focus on the ROI, not the cost Strategies people can use to make a move from the corporate world Resources: SmartRealEstateCoachPodcast.com/ReiRookies SmartRealEstateCoachPodcast.com/ValleyPropertyPartners SmartRealEstateCoachPodcast.com/webinar SmartRealEstateCoachPodcast.com/termsbook SmartRealEstateCoachPodcast.com/ebook SmartRealEstateCoachPodcast.com/QLS

This Financial Freedom Friday, learn a new way to quit your day job from two guys who have already done it - Jack Hoss and Josh Koth. Within one month of working with Matt, they quadrupled their deals and earned the freedom to quit their day jobs in style. Learn how they sped up the process to becoming real estate investing experts, what the Daily Success Report is and how it could change your life, and the 3 daily tasks that will allow you to quit your day job.

Jack and Josh worked together at their W2 job, sitting across the cubicle from each other every day and scheming of a way to break out. One day Josh’s whole team was laid off, he took advantage of that and started building a portfolio after emptying his IRA. If you enjoyed today’s episode remember to subscribe in iTunes and leave us a review!   Best Ever Tweet: “It’s great to have all of your numbers and relationships in line” - The REI Rookies   Jack Hoss & Josh Koth - The REI Rookies Real Estate Backgrounds: Hosts of the real estate podcast REI Rookies Focused on creating wealth through conventional and creative real estate investing Valley Property Partners - single family, buy and hold investors Share their experiences and lessons learned as they work towards financial freedom Based in Fargo, North Dakota Say hi to them at Best Ever Books: Cash Flow Quadrant   Join us and our online investor community:   Made Possible Because of Our Best Ever Sponsor: List and manage your property all from one platform with . Once listed you can: accept applications, screen tenants, accept payments and receive maintenance tickets all in one place - and all free for landlords. Go to to get started today!

This week there’s a whole lot of J’s as Joey and John are joined by Jack Hoss and Josh Koth, former corporate cubicle buddies from ‘the company that shall remain nameless’. After months of dreaming up their escape, the plan finally came to fruition and they broke free to create Valley Property Partners, a highly successful venture that’s flipped fourty-four properties in a little over two years.

One of our first-ever case study episodes highlighted the story of a new real estate investor who set a goal to replace his income from his photography business with passive income. Josh Koth’s story was already one of my favorites, but since that initial interview, he’s made incredible strides in his real estate career.   On this episode of Investing in Real Estate, Josh is back to share how he’s exponentially grown his real estate portfolio in just one year. He also brought along his business partner Jack Hoss! On today’s show, they’re sharing how their partnership works, their acquisition strategy, and so much more!   Book a call with our team: https://goo.gl/dezwHT   Show notes: http://morrisinvest.com/episode221