Real Estate Mogul Podcast - Learn How To Leverage Investing Strategies in Your Real Estate Business

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How Mark Ainley Flipped Over 400 Houses and Manages Over 750 Rental Units

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Real estate investing is getting increasingly harder as the prices of property go up and fewer people are looking to buy in certain areas. As a beginner in investing, what type of neighborhoods should you avoid? What’s the best way to find deals even in highly competitive areas? Should you look for smaller or bigger properties? In this episode, Mark Ainley shares how he sold over 400 homes and manages over 750 rental units.

 

Go where other people don’t want to go. You can make money there.  -Mark Ainley

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Takeaways

  • Don’t go investing first in C and D class neighborhoods. There is money to be made in those areas as well, but there are also challenges that beginners aren’t ready to face, such as security issues when the property is vacant.
  • Markets shift, so always have an exit plan in place.
  • Smaller homes are easier to renovate, and you can easily estimate how much it costs to make the repairs. Plus, medium to small homes are easier to flip as well.

At the beginning of the episode we talked about what neighborhoods you should avoid when starting out as well as the importance of having an exit plan. Next, Mark Ainley shared his experience with trying to do all the marketing himself and what he does now to find deals.

We also covered:

  • The state of the MLS nationwide
  • The importance of networking with wholesalers
  • Why searching for homes yourself is not worth the financial investment

As a real estate investor, the biggest challenge at the moment is acquisition. Fortunately, you don’t have to spend money on marketing to attract deals. There are other people who already do this for a living and they are looking for buyers like you as well. The market is flooded with signs and ads. Let others do the heavy lifting for you, and when they do have a deal, give them the answer in 24 hours and keep your word. Give them reasons to always come back to you when they find something worth flipping or renting out.

Knowing Your Financial Freedom Number & Overcoming Your Fears About Money w/Clayton Morris

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It can be easy for a lot of people to develop a fear around money and investing when they don’t know much about it. Why is it so important to overcome this fear of money? Why is getting into real estate investing a lot easier than people think? What is a “financial freedom number”, and how is it the crux of success? On this episode, Clayton Morris shares his unique journey to becoming an investor, along with the practices and mindsets that made success inevitable.

 

Most people just want to blindly get into real estate, and they don’t have any focus on what their numbers are.
-Clayton Morris  

 

Takeaways

  • Buy where there’s American based jobs, where the infrastructure is not going to China, and where there’s hospital systems and distribution centers.
  • Borrowing from your IRA is a great strategy. You’re paying yourself back as the bank, and you can put more money back into it than the federal government allows.  
  • A lot of warehouses and commercial buildings are being turned into distribution centers. More people are investing in residential spaces in those areas.
  • You either have money, a deal or access to people.

 

Join our free Live Training: https://register.gotowebinar.com/register/181906883837141506

Partner with us: http://www.tomcafarella.com/p/partner-with-us.html

 

At the start of the show, Clayton shared how he got started in investment properties, and how he overcame not feeling worthy of money. Next, we talked about the best criteria for buying investment properties and the power of having a financial freedom number. We also talked about the importance of aligning all your financial processes with your wealth building in mind.

We also discussed:

  • How to find off-market deals
  • Turnkey investments
  • The shift towards a market of warehouses and distribution centers


There’s so much money out there, but people are limited by their thoughts around money. The truth is, there are so many different tools in the tool chest and you even have access to them as a beginner in the industry. If you have a really good deal, it would be crazy for you not to find someone to finance it. The key thing is having a big why because that will determine your actions. Remember, you have to feel worthy of wealth and that will make it manifest. Figure out your compass first and then take action on it.

 

Guest Bio

Clayton is a real estate investor, and founder of Morris Invest. He’s helped hundreds of people buy their first rental property and we've renovated thousands of homes and filled them with happy tenants. Go to morrisinvest.com for more info or listen to the podcast https://morrisinvest.com/podcast/.

How Sharad Mehta Built a Real Estate Investing Business that Runs on Autopilot

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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

 

Takeaways

  • 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.

 

Join our free Live Training: https://register.gotowebinar.com/register/181906883837141506

Partner with us: http://www.tomcafarella.com/p/partner-with-us.html

 

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.

Sharad also shared insights on:

  • The importance of finding the right people
  • How to be prepared for the next opportunity

 

Syndication & Finding The Right Out of State Market w/Andrew Cushman

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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

 

Takeaways

  • 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.  

 

Resources

Join our free Live Training: https://register.gotowebinar.com/register/181906883837141506

Partner with us: http://www.tomcafarella.com/p/partner-with-us.html 

 

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.  

How to Build a Business that Withstands the Lows of the Market w/Don Costa

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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

 

Takeaways

  • 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.

Resources

Join our free Live Training: https://register.gotowebinar.com/register/181906883837141506

Partner with us: http://www.tomcafarella.com/p/partner-with-us.html

 

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.

 

Guest Bio

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.

Out-of-State Investment w/David Greene

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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

Takeaways

  • 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.

Guest Bio

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 to http://greeneincome.com/ for more information.

 

Resources

Join our free Live Training: https://register.gotowebinar.com/register/181906883837141506

Partner with us: http://www.tomcafarella.com/p/partner-with-us.html

The Difference Between Investment Sales & Listing Sales w/John Martinez

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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

Takeaways

  • 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.

Guest Bio

John Martinez is a real estate investor, sales training expert and the founder of Midwest Revenue Group. Go to midwestrev.com for more information.

How to Get Off the Commission-to-Commission Hamster Wheel w/Krisstina Wise

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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

Takeaways

  • 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 to https://wealthywellthy.life/ for more information.

Commercial Wholesaling w/Luis Carrera

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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

Takeaways

  • 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.

Guest Bio

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 innovativeholding@gmail.com

The Difference Between Cashflow Markets & Appreciation Markets w/Brian Trippe

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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

Takeaways

  • 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 info@alareia.com or visit him at facebook.com/AlaREIA.