Real Estate Investing for Cash Flow with Kevin Bupp

In this week's Cash Flow Friday tip I'd like to share with you the primary benefits of owner financing for both the buyer and seller of an income property. The benefits I'm about to discuss should be used in your negotiations when trying to pitch the idea to the seller or to the broker representing the seller. Here is what I feel are the top 6 benefits of owner financing for you the buyer: Non-recourse debt and does not appear on your credit No credit checks required (most of the time) Ease and quickness of financing No need to prove existing track record Flexibility to structure creative terms including interest rates, amortization term, down payment amount, etc. The ability to purchase un-financeable deals. For instance, an apartment building or mobile home park that has significant vacancy will be terribly difficult or nearly impossible to finance through conventional terms, but with owner financing anything is possible. There's many more benefits than that, but I think those 6 are the primary ones. Now I will say this, most of the time an owner won't just come out and say that they'll do seller financing and I don't suggest you even bring it up during your first meeting with them. In fact, most of the time you'll need to establish a rapport with the sellers before they'll ever consider it, so be sure to be delicate with how you approach the subject and be sure to presentl it as a win-win proposition. Now let's discuss the big benefits from the owners standpoint, and just remember, most owners don't realize that owner financing is even a viable option nor do they know how beneficial it is for them. Use the benefits as part of your negotiations and rapport building strategy to increase your chances of a seller saying yes. Ongoing Monthly Income: For an owner who is selling an income property it might be beneficial for them to continue to receive monthly payments from the sale rather than take the lump sum of money, especially if they don't have another investment lined up which will get them either the same or a better return than that of the asset they're selling. Keep the money in a performing investment: When asked what they plan on doing with the proceeds from the sale, most sellers have no clue what they'll do with the money and most of the time it ends up in their bank account or in a money market where it will make practically nothing. Seller financing is an opportunity for them to keep their equity at work, but eliminate the day to day headaches of operating the asset. Plus, their money is secured by a property which they are very intimately familiar with. Sounds like a win-win to me, right? Maintain Control of their investments: Seller financing always allows the sellers to maintain control of their investment dollars whereas if they take their sale proceeds and hand it off to a wealth advisor they're basically placing their destiny in his/her hands which I'm sure we can all agree isn't the best option. Limit Tax Exposure from Sale: With owner financing (installment sale) the seller is the ability to spread out their capital gains exposure as the IRS has special tax rules for installment sales in which the seller is only required to pay a small portion of that tax bill each year while the loan is being paid off. Assuming they aren't planning on a 1031 exchange, if the sellers take a cash sale they will be required to pay all capital gains plus a recapture of depreciation which will add even more to the tax bill. Some of the reasons of why a seller wouldn't want to hold financing or why it might not make sense for them to do so: 1. They're planning a 1031 exchange of the proceeds into another income property 2. They have an immediate need for the cash and can't wait. This could be a emergency medical condition, maybe legal fees for a court battle they're involved in, or one of many other things why people need cash 3. They don't trust or feel comfortable with you or just can't wrap their mind around the idea 4. Their friends, family, realtor, CPA, Attorney, or someone else who is influential in their life told them it was a bad idea. Now that you have the benefits, it's up to you to sell them to the seller. Good luck!

Our guest for this week’s show is Rich Dad Advisor, Tax strategist, and best-selling author, Tom Wheelwright. In today's show we're going to speak with Tom about his bestselling book, Tax Free Wealth and how we as Real Estate Investors can apply these principals to mitigate our tax exposure and keep more profits where it’s supposed to be - IN YOUR BANK ACCOUNT! Whether you're a brand new investor or someone who has been investing for years, you're goal should be to maximize your income and returns from your real estate investments and legally keep as much in your bank account as possible without giving it all to Uncle Sam, which is exactly what you’ll learn in my discussion with Tom today. In this show you’re going to learn: Why having a qualified tax strategist on your team is critical to your successes as a Real Estate investor. How legally to run your business tax free Why depreciation is a real estate investors best friend The power of the 1031 exchange The qualities to look for when seeking out a tax professional to bring onto your Real estate team The reason why leverage needs to be part of your investment strategy How to properly protect you assets from the 3 P’s which Tom explains as the Pirates, Predators, and Politicians Why the team you surround yourself with is the single most important thing for your real estate business Why you need to learn to delegate now and focus only on tasks which you are the strongest at And much more... Recommended Resources Download my free success guide, “7 habits of highly successful multi-family investors” by going to www.KevinBupp.com/guide Schedule a free "no obligation" call directly with Kevin by clicking this link https://www.timetrade.com/book/KV2D2 Looking to invest in Mobile Home Parks? Want to JV with me on deals? If so, schedule a call with me and let’s talk. Click here https://www.timetrade.com/book/FGF7S Learn more about Tom by going to www.ProVisionWealth.com and also grab a copy of his book at www.TaxFreeWealthBook.com

In this week's Cash Flow Friday tip I'd like to talk about how to effectively dissect and read through a credit report when evaluating prospective tenants. Some of you may think this is as easy as looking at a credit score or seeing if there are any collections or delinquent debts, but if you want to do yourself and your rental justice you really need to learn how to build a story from the data provided and only then make a determination based on both the facts obtained from the credit report and info provided from the tenant to decide if they will make the cut. This show will walk you through my process of reading a credit report and screening an applicant. Recommended Resources Download my free success guide, “7 habits of highly successful multi-family investors” by going to www.KevinBupp.com/guide Schedule a free "no obligation" call directly with Kevin by clicking this link https://www.timetrade.com/book/KV2D2 Looking to invest in Mobile Home Parks? Want to partner with the industry experts? Check out http://www.SunriseCapitalInvestors.com

Our guest for this week’s show is corporate housing expert and CEO of Avenue West Corporate Housing, Kimberley Smith. In today's show we're going to speak with Kimberly about the booming business of corporate rentals and why as an investor you should seriously consider diversifying your portfolio using this investment strategy. In this show you’re going to learn: What exactly is corporate housing and who are your typical tenants What attracted her to this niche and why you should take note Why diversifying into corporate housing is a smart play for RE investors The benefits of working with a company like Avenue West What types of markets work best for corporate housing The typical type of housing a corporate client looks for The average rental premiums an investor can expect from going this path versus a traditional rental unit And much more... Recommended Resources Download my free success guide, “7 habits of highly successful multi-family investors” by going to www.KevinBupp.com/guide Schedule a free "no obligation" call directly with Kevin by clicking this link https://www.timetrade.com/book/KV2D2 Looking to invest in Mobile Home Parks? Want to partner with the industry experts? Check out http://www.SunriseCapitalInvestors.com Learn more about Kimberly by going to www.AvenueWest.com

Our guest for this week’s show is Rich Dad Advisor, Asset protection specialist, and best-selling author, Garrett Sutton. In today's show we're going to speak with Garrett about his bestselling book, Loopholes of Real Estate. Whether you're a brand new investor or someone who has been investing for years, you're goal should be to maximize your income and returns from your investment properties as well as protecting them from and in this book Garrett covers these two topics in detail as well as multiple others that are critical to your success as a real estate investor and I highly recommend you go and grab a copy for yourself. In this show you’re going to learn: Why you need to think about asset protection NOW and get a strategy in place The importance of building a team and who should be a part of it Why leverage is your friend if used properly The benefits of depreciation in investment real estate How to completely defer capital gains taxes by using a 1031 exchange Why LLC's are the best entity structure for holding real estate Why cash flow should always be your main objective What you need to know about section 469(c)(7) of the tax code And much more... Recommended Resources Download my free success guide, “7 habits of highly successful multi-family investors” by going to www.KevinBupp.com/guide Schedule a free "no obligation" call directly with Kevin by clicking this link https://www.timetrade.com/book/KV2D2 Looking to invest in Mobile Home Parks? Want to partner with the industry experts? Check out http://www.SunriseCapitalInvestors.com Learn more about Garrett by going to www.SutLaw.com or www.CorporateDirect.com

In this week's Cash Flow Friday tip I'd like to talk about using VA's or virtual assistants to help grow your real estate business by allowing you to delegate the busy work so you can focus on the money making activities. Throughout the past 5 years I've employed VA's both in a full-time capacity as well as freelance work and my experience overall has been fantastic. In addition to my real estate business I own a ecommerce company where I've employed the same 3 VA's full-time for over 4 years now and it's been a wonderful relationship. These 3 VA's consist of a graphic designer, web developer, and SEO specialist and all are college educated and very good at what they do. I believe the highest paid person on that team is my web developer and she makes $550 per month (40 hours per week) which breaks down to approx $3.44 per hour and she is super happy. I n my real estate business we have used numerous VA's throughout the years to handle mundane tasks such as data collection, cold calling, list building, appointment setting, email follow up, etc and as of today we have one girl who's been working with us for the past few months on numerous projects and she works approx 25-30 hours per week. She is working on more specific tasks like researching banks and who currently hold distressed Multi-Family notes and tracking down the inside contacts or asset managers so we can build relationships with them. She's assisting me with a few of my podcast projects that I am working on and I'll probably add a few duties to her list shortly. She's very organized and is extremely efficient and guess what, she only charges $2.93 an hour. For her same qualities here in the US I'd have to pay $12-15 per hour if not more Here are some of the other things I've used VA's for in the past. Oh, and just so you know, all of my VA's are based in the Philippines · Building a brokers email list by calling all listings on Loopnet for MHP's and requesting the marketing package and asking for the brokers email which we then added to a database · Researching phone numbers for property owners although now we use TLO.com which eliminates the need to hire a VA for this research website design admin assistant pull mailing lists Creating excel databases logo design SEO content writing social media management One thing that I can't stress enough is your VA or employee is only as good as your training is. What I mean by that is you can't expect to hire an assistant and have her become an expert in your business overnight and so it is your duty as his/her boss to create very detailed training programs for each task you want completed. For instance, I have my VA help with booking guests for my podcast and I rely on her to find, contact, schedule, and follow up with prospective guests for our show, but she had no clue about my business or what my perfect guest looked like and so I had to create a thorough training program with examples, videos, resources, email templates, follow procedures, etc to help her become competent in this particular task. So just keep in mind when you hire a VA that if the worker isn't meeting your expectations then you need to first take a deep look at yourself and determine whether or not you provided all of the necessary tools and training to ensure this VA's success with the task at hand. Most of the problems are a result of the boss providing little or no direction and then blaming the VA when he/she didn't perform. The best resource to date where I find my VA's is odesk.com but there are also many others including elance.com, freelancer.com, guru.com and I'm sure many others. I've used elance for hiring technical writers and programmers but haven't found it that useful for lower cost admin type jobs. Recommended Resources · Download my free success guide, “7 habits of highly successful multi-family investors” by going to www.KevinBupp.com/guide · Schedule a free "no obligation" call directly with Kevin by clicking this link https://www.timetrade.com/book/KV2D2 · Looking to invest in Mobile Home Parks? Want to partner with the industry experts? Check out http://www.SunriseCapitalInvestors.com

Our guest for this week’s show is Brian Burke who is the co-founder and managing director of Praxis Capital and CEO of Praxis Residential, which is a privately held RE investment firm based in Northern California who is active in both the single family and multi-family space and has completed well over $200 million in acquisitions. Brian and his team have been absolutely kicking butt and during this interview Brian shares with us some of his secret sauce that has attributed to his success as an investor, but I'll warn you ahead of time that the primary ingredients of this secret sauce are loads of hard work and thorough education. One of the most impressive parts of Brian's story is how he started his professional career as a police officer and invested in real estate in his spare time. In fact, he worked a full-time job for a # of years before taking the leap of faith into becoming a full-time real estate investor. In this show you’re going to learn: How he was able to build a rental portfolio while working a full-time job The steps he took to self educate himself into becoming a real estate investor Why he feels it's critical to prove your investment concept with your own money before taking investors capital Learn the different fund structures that Brian uses for his different projects What markets he's excited about today and why What his crystal ball is telling him about the next few years His goal to underwrite 1 multi-family deal per day with the goal of buying 2-3 deals in 2015 And much more.. Recommended Resources Download my free success guide, “7 habits of highly successful multi-family investors” by going to www.KevinBupp.com/guide Schedule a free "no obligation" call directly with Kevin by clicking this link https://www.timetrade.com/book/KV2D2 Looking to invest in Mobile Home Parks? Want to partner with the industry experts? Check out http://www.SunriseCapitalInvestors.com Check out Brian's company @ www.PraxisCap.com

In this week's Cash Flow Friday tip I'd like to talk about the topic of allowing emotions to get involved when purchasing an investment property and why this can have disastrous consequences. Over the years I have seen many investors make bad decisions on real estate purchases because they let their heart do the talking and didn't focus enough on the numbers. What I mean by this is never fall in love with a building because it's got great architecture or because it's in the neighborhood you grew up in or how about a piece of raw dirt that you feel (no know) has a promising redevelopment future without knowing the facts. Try to resist this so-called "falling in love" with any given investment property because I can promise you one thing - It will never love you back. To make things easy you need to take a rational approach to decision making when it comes to investing in a property. And to do this you need to only figure two things 1. What you would like to pay for this property 2. What the maximum amount you should pay based on its actual performance Now I know this is easier said than done and there are always going to be exceptions to the rules. For instance, I own an mixed use property that sits on a commercial lot and has an office building and a 6 unit apartment building on it. Immediately next door to my property is a rundown 4 unit property that based on its current income is worth about 80k but the owner is asking 130k. The beauty of this is that the assemblage of his lot and my own would significantly increase the value of the total package to an end user, primarily because of the redevelopment opportunities that would now exist due to the almost doubled lot size and I'm getting ready to put this property on the market so the timing is right. So the moral of the story is that if you're planning on paying top dollar for a property make sure it's a good business decision and not some sort of emotional rationalization. I will tell you from experience that there will always be another deal down the road so don't get hung up on one if it doesn't make sense. Invest to make money, not to fulfill your emotional obligations - that's what girlfriends or wives are for. Alright guys, that's all we have for today. Thanks again for listening in to the Cash Flow Friday Tip and until we meet again next week, Get out there and make some cash flow happen. Recommended Resources Download my free success guide, “7 habits of highly successful multi-family investors” by going to www.KevinBupp.com/guide Schedule a free "no obligation" call directly with Kevin by clicking this link https://www.timetrade.com/book/KV2D2 Looking to invest in Mobile Home Parks? Want to partner with the industry experts? Check out http://www.SunriseCapitalInvestors.com

Our guest for this week’s show is Vacation Rental Expert, Matt Landau. Matt currently owns and operates multiple vacation rentals in Panama City, Panama and is the founder of the popular niche vacation rental website, VacationRentalMarketingBlog.com Matt and I had an awesome conversation regarding the vacation rental industry which has seen explosive growth over the past few years with the emergence of sites such as VRBO.com, Homeaway.com, AirBNB.com and many others. Matt talks about how he got his start in the industry and how he was able to quickly able to become known as one of the leading providers of premium vacation rentals in the historical district of Panama city, Panama. He also discusses what unique qualities attracted him to Panama City's historic district which he describes as New Orleans 100 years ago in that it's rough around the edges but is full of opportunity and is abundant with culture. Matt believes that the Vacation Rental niche is still in its infancy and that there is a still a ton of opportunity available for those investors who are looking for an investment vehicle that offers strong returns and stable growth. Being someone that has personally used vacation rentals for multiple vacations I have to agree with him, especially if you're buying in highly desirable tourist markets. In this show you’re going to learn: How he got his start in the vacation rental business The important role that 3 mentors played in his life and how he found them What unique attributes excited him about investing in the emerging tourist destination of Panama City, Panama Why he feels that the vacation rental market is still in its infancy and will continue to grow at a fast rate How he was able to find and befriend strategic partnerships in this new county which enabled him to complete his first acquisition How he was able to position his properties as "best in class" in a very short period of time How he uses technology to create consistent bookings thus creating very high demand for his properties Why the big brand hotel operators aren't too happy about the vacation rental niche impeding on their market share And much more... Recommended Resources Download my free success guide, “7 habits of highly successful multi-family investors” by going to www.KevinBupp.com/guide Schedule a free "no obligation" call directly with Kevin by clicking this link https://www.timetrade.com/book/KV2D2 Looking to invest in Mobile Home Parks? Want to partner with the industry experts? Check out http://www.SunriseCapitalInvestors.com Check out Matt's website http://www.VacationRentalMarektingBlog.com

In this week's Cash Flow Friday tip I'm going to go into detail on how you can use Craigslist as a tool to test a local rental market and the overall demand for that particular investment property before ever acquiring it. I mean, who would want to know how much demand there will be for a rental unit and how much you'll be able to get for it before ever buying it. Forget proforma's that the turnkey operators try to sell you on and why would you ever rely solely on the realtors opinion on what you'll be able to rent the unit for. Let the facts speak for themselves. Now some of you might feel that this technique is a little misleading or unethical and you're completely entitles to your opinion. My goal when buying a mobile home park is to ensure we're buying in an area that has sufficient demand for the type of property I'm offering. Take the guess work out of the equation and let the market tell you whether or not the property you're considering buying is in high demand and will rent fast. #1: Write a description for the property and be specific as possible without mentioning the address or neighborhood it's located in, since after all you don't own it yet. Be sure to include all the relevant facts: schools, beds/baths, sq. ft., age, upgrades, monthly rent $, etc #2: Search google images and try and locate a similar looking exterior image (don't use an image of the exact property you're looking to buy) as well as a few interior images. Again, don't go and use the exact images of the property you're looking to buy. Using similar images which you grab from the web will do the job and won't get you in hot water. # 3: Create a free google voice phone number which is where you'll be forwarding the calls to. Setup a voicemail message with a basic greeting so that the callers think they're calling an individual. If you're running more than 1 test ad at a time (maybe you have more than 1 property or are testing different markets) then you can use an app called burner which will allow you to create multiple temporary numbers with VM's for each for up to 30 days. We use this when we are looking at multiple parks and need to run numerous test ads to determine demand #4: Post the CL ad and be sure to include the phone number to your google voice or burner app. #5: Sit back and see how many calls come in. I personally like to see at least 5-6 calls per day for a specific property, but you'll need to figure out what the right demand for you is. If you're in a small market then maybe that number is 2-3 calls per day. Recommended Resources Download my free success guide, “7 habits of highly successful multi-family investors” by going to www.KevinBupp.com/guide Schedule a free "no obligation" call directly with Kevin by clicking this link https://www.timetrade.com/book/KV2D2 Looking to invest in Mobile Home Parks? Want to partner with the industry experts? Check out http://www.SunriseCapitalInvestors.com