Real estate investing is perhaps one of the most profitable forms of investing, but it has its challenges as well. How well do you know the legislation in the area you want to buy a property? What’s the most important step towards shifting away from the business and getting more time with family and friends? What role does technology play in investing? On this episode, Sharad Mehta shares his story of how he built a business with over 600 deals in 6 years while starting from scratch.
I could have the best systems in the world-- but if I don’t have the right people, nothing will get done. -Sharad Mehta
Before you start investing in real estate, make sure the laws favor you, and that you won’t have any issues evacuating a troublesome tenant.
When buying a property, don’t think about the value it will have if you sell it. Consider the value it will have if you have a steady stream of income from a tenant.
The most important element of the business is the people you’re working with. When you have people who you trust on your side, you don’t have to be constantly involved in the process if you have the right systems in place.
Don’t shy away from using technology to communicate with your contractors. You don’t need to be face-to-face all the time to build a good business relationship.
In the beginning of the the episode, we talk about how advantageous it is to invest in real estate because you get a bigger cut. We also discussed the importance of researching the laws of the state you will buy property in.
Investors have several options to raise money for bigger investments. What is syndication, and why does it work so well? How do you determine which out of state market is right to invest in when you don’t live there? How can you find out if a market has the resilience to remain stable during a recession? On this episode, investor Andrew Cushman shares how he raises money through syndication and explains the details of the process.
Don’t wait to buy real estate. Buy real estate, and wait. -Andrew Cushman
Syndication is basically pooling together people’s money so that you can share in a benefit that you otherwise wouldn’t be able to generate or receive separately.
It’s tough to raise money if you’re unsure about how long you’re going to hold a property. You must have a specific plan.
Look for economic drivers in the market that are recession-insulated. This could be universities, military, or medical centers.
At the start of the show, we talked about why it’s so important to consider the laws of an out-of-state market as much as you consider the yield. Next, we talked about syndication and how it can be used to raise money for large scale property investments. We also covered how to determine if a market will make it through the recession.
We also discussed:
How to determine where your first out-of-state property will be
Why you have to give your investors a timeline
Why vacation markets become risky during a downturn
If you can, buy a property that cashflows well and hold onto it for a while. This is especially true in multi-family properties. As long as you can cashflow, you can pretty much ride out anything. If you hold that real estate long enough, it will pay itself off. Invest with a plan, and you will come out well.
Being the star of the team is easy when market demand is booming. But what about when the market slows down? What can you do differently when the competition is getting fiercer and the demand is at its lowest? On this episode, Don Costa shares his experience on how he lost his first business, and what he did differently to thrive with his second-- even in a low-demand market.
Everything is based on analyzed ROI, which means everything is based on time. -Don Costa
Systems help you continue selling, even when the market is not in your favor.
Don’t hire solely on experience, as most of the real estate knowledge is 100% teachable. Seek what can’t be taught-- loyalty and drive.
Follow-up systems are a vital part of the marketing machine, but make sure you test a new tool before you invest all of your money in it.
When you’re in doubt about the real value of a property at the moment, test it by putting it out there with different prices.
At the start of the show, we talked about how selling is easy when the market is favorable. We also talked about what makes a business pass the test of time: preparation and systems to get you through the big lows. We also discussed the CRMs to use, how to manage cold calling and what to do when you’re working in several markets.
Don also shared:
What type of people should be on your team
What influences the highs and the lows in the real estate market
How to reinvent your business after failing
Create a marketing machine where each lead is nurtured, and new tactics are always tested before you invest money in them. Make sure you have a system in place where there is always something to do and your team doesn’t have to spend time trying to find out what they should do next.
Don Costa started his real estate journey in 2003. But due to the crash, he lost everything. In 2012, he reinvented himself, this time starting a company that now sells over 100 houses per year. Today, he is also the host of the Flip Talk podcast where he shares his real estate experience and knowledge with his audience.
A third of the people in the country are in markets where they can’t cashflow right now. Why is it smart to consider investing out-of-state? What are the mindsets and limiting beliefs people that make it hard for people to do this? What criteria should you look for in your those properties? On this episode, investor and author, David Green shares on finding opportunities in markets where you have the advantage, and why out-of-state investing is not as risky as you might think.
When you’re investing out of state, it forces you to run your business like a business. -Tom Cafarella
If you’re collecting 1% of the property’s value every single month, you are very likely to cashflow.
There are 3 types of distress - market distress, personal distress and property distress.
The are four people you need if you ever want to invest: a deal finder/wholesaler, property manager, contractor and lender.
You don’t have to fly in and see the homes each time. There are people you can hire to do it cheaper and better than you would.
At the start of the show, we talked about the opportunities that are available in other markets, and how David found his first opportunity. Next, we talked about the mistakes people make when they try to do all the work themselves, and why you need to think like a CEO. We also discussed the four core roles you need to have to invest. We also discussed how to adjust your strategy to your strengths.
David also shared on:
The problem with multi-family properties
The markets he looks for deals in
3 types of distressed properties
A lot of people put off investing because they think it’s too late or that their local markets won’t allow them to cashflow. Actually, there’s a lot more opportunity out there than you might think. It’s the very initial get-your-foot-in-the-door phase that stops most people from investing out-of-state. Hire people who have the knowledge and skills you need. You’re not saving money by trying to do it all yourself. You’re actually wasting it when you have to step into a role you know nothing about. If you can think like a CEO, rather than a worker bee, and find people whose interests align with yours, you will succeed.
David is a real estate investor/agent/author/entrepreneur/police officer in the CA SF Bay Area. David's goal is to achieve total financial independence through real estate and to help as many others do so as possible. Go tohttp://greeneincome.com/ for more information.
A lot of real estate investors struggle when they try to scale their sales process. What causes this? How should they go about finding the right people for their team? What is the difference between sales in the listing process and sales in the investment process? On this episode, we are joined by investor and coach, John Martinez who shares how to get more out of your sales.
Investment sales are more complex. You need to be consultative, and build a tremendous amount of value other than money. - Tom Cafarella
Most investors start off as a one-man-show, and their sales systems fall apart when they have to scale and hire more people.
Only about 3-5% of salespeople on the market actually have what it takes to be good at the job.
Listing a property is more transactional, while investing requires you to provide a tremendous amount of value.
At the start of the show, we talked about the one piece most investors struggle to put in place in their business, and how a lot of sales processes fall apart when a business starts to scale. We also talked about why it’s so important to relieve pressure during a sales call, and described “sales DNA”. Towards the end, we discussed the importance of a constant recruiting process.
We also discussed:
Listing vs. Investing
Using assessments to determine who should work in sales
Why a lot of people keep poor salespeople for too long
High impact sales pieces
When you start as a one-man-show or one-woman-show in investing, your sales process is in your head. When you have to scale it and teach it to other people, the process can fall apart. A lot of agents struggle to transition from selling on the listing side to selling on the investment side because they don’t realize they have to be more consultative and build value apart from money. To overcome this, you really have to hold their hand through the process and show them it isn’t just about the check.
John Martinez is a real estate investor, sales training expert and the founder of Midwest Revenue Group. Go to midwestrev.com for more information.
Real estate agents don’t have a retirement plan, and that’s why they need passive income. How do you go about saving money for your investment bucket? What is the common mistake a lot of agents make? How do you buy your first investment property? On this episode, broker, investor, coach, best selling author and real estate entrepreneur, Krisstina Wise shares how to get off the “commission hamster wheel” through smart investments.
The goal is to replace your real estate active income with real estate passive income. - Krisstina Wise
Buy your first house as an investment property.
When you franchise, you can only help a fraction of people.
There’s a big difference between income and assets.
In order to build wealth, you have to spend less money than you make.
At the start of the show, Krisstina shared how she got into real estate and stressed the importance of building relationships. Next we talked about how Krisstina started using technology and why she didn’t take the franchise path. We then talked about the process for buying your first investment property, and how Krisstina turned her life around after a major health scare.
We also discussed:
Why you need to buy your first house as an investment property
The trial and error process of being an entrepreneur
Why your body is your #1 asset
In order to build wealth, you have to spend less money than you make so you can actually put money aside to invest. The key to having a better life is building wealth and future passive income. After taxes, the next thing you need to do is save money for your investment portfolio. Remember also to take care of your physical wellbeing, as all the money in the world means nothing without your health. You have to invest in yourself as much as you’re willing to invest in real estate.
Guest Bio Krisstina Wise is a real estate mogul, Millionaire Coach, and creator of several multi-million dollar businesses including Goodlife Luxury, The Paperless Agent and most recently, WealthyWellthy. She is also an international speaker and the award-winning author of the Amazon Best-Seller Falling for Money, a romance novel for your bank account. Named one of the 100 Most Influential Real Estate Leaders in the country, she has been featured in USA TODAY, as well as by Apple, Contactually and Evernote for her creative leadership with emerging technologies. Go tohttps://wealthywellthy.life/ for more information.
A lot of people are afraid of not being able to find investors, and that puts them off from trying deals. How do you find investors and make sure the deals go through? How should you treat commercial wholesaling in your portfolio? How do you build trust with potential investors so you can generate more deals? On this episode, we talk with investor Luis Carrera about how to get started in commercial wholesaling.
Your family and freedom are more important than staying stuck at a job. - Luis Carrera
Many investors are afraid of multi-families. In order for them to start trusting you, you have to do their flips first.
“Value-add” properties allow you to increase rents and reach a new threshold to refinance your loan.
The more you educate yourself, the more confident you become.
At the start of the show, Luis shared the kinds of properties he goes after and he explained why he opts for 20-80 units and nothing over 100. Next, we talked about how to prevent deals from falling through, how to build trust with investors, and the importance of educating yourself.
We also discussed:
Connecting with potential investors at events and high-end hotels
The advantage of value-add properties
Low cost marketing for residential
There’s a lot of people out there interested in real estate. When you connect with them and build trust, it will create even more deals for you. It can be intimidating to try and find the first deal, so the more you can educate yourself, the more confident you’ll be. In this industry, you should continually push yourself towards personal growth.
Luis is a Real Estate Investor at Innovative Property Group and Central Sierra Investments. To get in touch phone or text 973.902.7203 or email firstname.lastname@example.org
Markets with cashflow are harder to come by nowadays. How do you deal with cashflow and appreciation markets as an investor? If you’re new to the investing game what should you do to start generating leads? Which people will survive the next market correction? On this episode, Brian Trippe shares some of his high-value coaching for investors.
Don’t be leveraged as high as you can possibly be. Stay a little liquid in case the worst happens. - Brian Trippe
If you don’t like volatility, you would prefer a cashflow market.
If everyone is buying right now, why are you buying? Do what other people aren’t.
Be consistent in whatever you choose. Don’t dabble.
At the start of the show, we talked about cashflow markets and appreciation markets, along with the intricacies of working with B-class markets. Next, we talked about how to spend on marketing and lead generation, as well as why it’s so important to be consistent. Towards the end, we talked about who will survive the market correction.
We also discussed:
Why direct mail is a great lead generation tool
The use of banding signs
Why it’s necessary to stay liquid
There’s cashflow and there’s appreciation. You have to choose which approach works best for you and creates long-term wealth. The cashflow approach is more conservative and stable, while the appreciation approach is more volatile. Whichever route you take, you have to be hungry, talk to people, and knock on doors. When the market correction inevitably happens, you want to be liquid so you can thrive.
Guest Bio Brian is a serial real estate entrepreneur. He began investing in rental property in 2012 and currently holds over 70 rentals. He started a wholesaling company in 2014 that has done over a half-million dollars in wholesale revenue in less than three years. He also founded 205 Realty and is currently active in his role as the president of the Alabama Real Estate Investor Association. He is a real estate investing coach and educator who speaks regularly on real estate investing. You can contact Brian at email@example.com or visit him atfacebook.com/AlaREIA.
Most people who don’t want to do the hard work of investing deals are happy to partner with someone who has the experience. How do you find these people and get them to work with you? How do you go about finding and acquiring deals that will yield good returns? How do you get more capital to deploy out to other deals? On this episode, Tyler Sheff shares his strategies and tactics for getting the right deals and building a solid investing business.
There are more people out there with money to invest without the skills to do it, than deals to be had. - Tyler Sheff
Assess the needs of the person in front of you rather than applying a general rule to everyone.
If you want really good cash flow, you can’t buy in the posh areas.
Find a state that has favorable landlord laws so you don’t end up having a hard time with difficult tenants.
At the start of the show, Tyler shared how he is able to raise capital privately and find the people that have the money to invest. Next, we talked about how Tyler is able to generate deals from his podcast and from helping people solve their problems. Towards the end of the show, we talked about why you can leverage real estate so much better than the stock market.
We also discussed
How Tyler goes about acquiring deals
How much time you should dedicate to finding capital
When the market correction will happen and preparing for it
You will often find yourself in one of two markets: one where it’s tough to get really good cash flow but you get appreciation, or a flat, steady market where you can get good cash flow but no appreciation. You can make money in each market, but it will vary. Tyler has managed to get business in both, which helps to cover his bases. If you’re able to raise capital privately to fund the deals and remodel without using your own money, you can get a good return and make enough to continue deploying the cash flow into more deals. Building wealth in real estate can be simple if you go about it the right way.
Guest Bio Tyler Sheff currently serves as the Chief Executive Officer (CEO) at cashflowguys.com, a company which aims to educate their clientele in investing in real estate and building long-term wealth. The Cash Flow Guys treat each client as a student, giving them the necessary tools needed to succeed as a real estate investor from the ground up. The Cash Flow Guys have one goal – to simplify the process of buying and selling real estate. Coupling his active involvement in real estate investments with his proven negotiation skills makes Sheff a valuable asset to any client. As an educator, the greatest reward Sheff gets from all this hard work is watching Cash Flow Guys students learn and ultimately become successful. Go to cashflowguys.com for more information.
Today, we see a lot of advertising telling people they can start flipping hundreds of houses without much money or work. What does it actually take to succeed in this business? How do get attention in a crowded market? On this episode, we are joined by one of the most well-branded investors in the industry, Engelo Rumora, who shares his success secrets.
Once you start getting business, make sure you do right by those investors. -Engelo Rumora
There’s a lot of risk for capital depreciation in markets where prices are high.
Work hard to put out content into the world to build your credibility.
Even if you don’t have things clearly mapped out, you can greatly increase increase your odds of success if you’re focused and consistent in your work.
At the start of the show, Engelo shared how he got started and why it’s so important to focus on the people first. Next we talked about capital appreciation, and why you can still make money in any market-- whether the property is cheap or expensive. Engelo also shared some of his unique marketing tactics, including his home giveaway initiative. Towards the end, he stressed the importance of working hard and avoiding falling into the trap of get rich quick schemes.
We also spoke about:
How to save money to start investing
Engelo’s biggest bottleneck
The power of unique marketing strategies
Real estate is a long-term play. It is delayed gratification, and you’re not going to start making money right away. Nothing will come to you without hard work and sacrifice, so you have to be willing to put in the time, be frugal and save as much money as you can. Use marketing to make sure people know you exist and what you specialize in. You have to focus on the people first; be good to them and your reputation will grow. Remember that success comes from doing things differently.
Engelo Rumora is a real estate executive, investor and former football player. He is the CEO and founder of a real estate investment company called Ohio Cashflow located in Toledo, Ohio. Go tohttps://ohiocashflow.com/ for more information.
Want to add real estate investing strategies to your toolbox?
Featuring in-depth masterminds with real estate investors, top real estate agents and experts on wealth building and lead generation. With each episode you’ll build a toolbox of strategies to generate deals on demand by finding motivated seller leads and giving them out-of-the-box options to reach their goals while putting more money in your pocket.