Cash Flow Guys Podcast

Have you heard the old saying “numbers never lie”?  Well, what happens when they do? Did you ever wonder how people can buy a particular property for an amount far over what you feel market value should be?  That’s the topic of this week’s episode of the Cash Flow Guys Podcast. Hot Market:  What does this really mean?  I honestly feel this is a fallacy.  After all, a market is an intangible, so how can we apply a temperature to it?  When I hear “it’s a seller’s market” or “the market is hot” I cringe because I feel these are limiting beliefs. I really believe that opportunity is everywhere, and I don’t believe there is such as thing as a hot or seller’s market as it pertains to me and my business.  I believe in focusing on finding problems (and solving them) instead of looking at what’s for sale. The media, Realtors, sellers and buyers that lack problem solving skills or desire share such beliefs in there being such a thing as a seller’s market. The lie better known as a hot market often leads inexperienced investors to overpay for properties. What happens when you overpay or over improve: When we overpay for a property many things happen as a result of bad decisions.  For starters, overpaying for a property often leads to a self esteem problem.  When the investor realizes they overpaid, they feel silly, embarrassed and desperation sometimes sets in.  They often made the worst decisions of all during this time. The overpaying investor often tries to make up for this mistake on the “back end” which can mean cutting corners on maintenance and other important items.  Vendors can often be impacted by overpaying because the owner is looking for ways to recover from the loss of overpayment. Property Management:  Instead of paying your management team a fair wage, we often try to renegotiate this critical service.  Worse, we sometimes use the amount someone charges as a means to decide to hire them or not.  Recently, a management firm offered my company a discount due to the volume of properties we needed them to manage, we refused the discount in exchange for excellent service. Other Service Providers:  When we overpay, we often start thinking twice about things such as hiring licensed and insured professionals to perform services on our properties.  We begin second guessing the use of a unlicensed electrician versus a licensed one.  We start to think about using a handyman to handle our plumbing and A/C.  When these thoughts enter our head we are heading for financial trouble. Omission of Costs: When we ignore the simple math involved in a real estate investment we are essentially saying that we are ok with losing money.  Many investors are so focused on “getting  deal that they operate as if they have blinders on.  The careless investors begins leaving off the cost of property management, repairs, utilities, and often they guess at the cost of insurance and other items.  These investors are often quick to focus on the number of units they have instead of the quality of the units they have. Let’s not forget that just one deal can launch someone out of the rat race if structured properly.  It does not take 100 units to escape the rat race for most people.          

Most of my listeners and my mentor students are absolutely terrified of getting on the phone with sellers. I had this same issue myself when I started investing; cold calling just sucks, no matter how long you’ve been doing it. But when you change your mindset that getting on the phone is part of creating that brighter, shinier, and freedom-filled life, then it gets easier.

Due diligence is one of the most important parts of deal crafting. In my humble opinion, there is no deal until there is a closing and a realized profit. We have all heard the phrase "you make your money when you buy" and nothing could be truer. The first steps to buying smart and safe are to be a P.I.G (Professional Information Gatherer). We must first get good at gathering information. For that to happen, we have to learn how to be better listeners by using our ears more than our mouth.

Today I’m joined by Michael Blank, the host of the "Apartment Building Investing Podcast". Michael’s show is a high-quality resource for those investors who are ready to jump into the world of apartment buildings. He covers the processes of raising capital and finding an ideal investment out there in the market.  

Today I want to lay some truth on you: Everybody lies. Buyers lie, brokers lie, and even sellers lie. Now I have my reputation because I play by the rules and don’t misrepresent. It’s important to note, however, that there’s a difference between "lying" and "marketing"; they’re not one and the same.

Welcome to the Cash Flow Guys podcast. Today I've got a very special guest, and you know I don't take guests on the show very often because I'm very picky about who comes on the show and what information is brought to you. Today is going to blow your mind because I've got Pat Hiban with me. He is the host of "The Real Estate Rockstars" podcast, which is a podcast to help underachieving real estate agents become bigger, badder agents and wealth builders. Pat is also a billion-dollar real estate agent who has over six thousand home sales under his belt. He's ranked as the number one agent worldwide for both ReMax and Keller Williams. He's also the author of "Six Steps to Seven Figures" and "A Real Estate Professional's Guide to Building Wealth and Creating Your Destiny".

Today I’m joined by Dr. Buck Joffrey, a real estate-investing brain surgeon (isn’t THAT a mouthful!). Buck finished his medical residency in 2008 as a neurosurgeon, right at the time of the economic downturn here in the US. After the Great Recession hit, Buck started noticing colleagues around him having financial difficulties and it impacted him tremendously, paving the way for his own entrance into the real estate investing world. One of the first big steps for Buck happened right after he graduated from his residency. He and his fiancée tied the knot the day after his graduation and took their honeymoon in Puerto Vallarta. At the airport Buck noticed Robert Kiyosaki’s “Cashflow Quadrant” on display and decided to pick it up as reading material for his flight. This book by an author he had never heard of eventually became the catalyst for his own investing success and the inspiration for his own book. Buck has recently written a book on investing, “7 Secrets of Eternal Wealth”, which has been featured in major news outlets such as NBC, CBS, and ABC. Buck wanted to create more concrete steps for beginning investors to take right now, from education to definition of what is an asset. New investors, especially those who have money, don’t understand the value of leveraging and spreading that capital to create even more wealth. Expand your means first, THEN enjoy your wealth; don’t jump the gun. Buck also runs an investing club to help accredited investors who want to get involved in investing but simply don’t have the time. The club is free but limited to accredited investors and a great choice for busy professionals looking for help. To find out more about Dr. Buck Joffrey and to download his book “7 Secrets of Eternal Wealth” for FREE visit his website at: http://www.WealthFormula.com or text WEALTHFORMULA to 44-222 for a free copy. You can also find out more about Dr. Buck’s investing club on his website. Also make sure to check out Dr. Buck’s podcast, “The Wealth Formula Podcast”, on iTunes or your favorite podcast player. If you want to learn more about the Real Estate Guys’ “Summit at Sea”, visit them at: https://realestateguysradio.com/summit. Don’t forget to join our Facebook community at http://www.CashFlowGuys.com/Group!

Today I’m going to walk you through the steps you need to take when a seller gives you a call. You can find all of these tips and more in our online course, the Cashflow Blueprint. You can learn more at: http://www.cashflowguys.com/cashflowblueprint. Take down the date and time of the call. Make sure to record the date and the time of day the seller calls. This will not only remind you of how much time has passed since they reached out to you, but will also clue you in to when the seller is available. Most people don’t call when it’s inconvenient for them. What is their relationship to the property? You need to clarify who they are in relation to that property. Are they the owner? The owner’s child, niece, nephew, grandchild, etc? You need to know if you’re talking with the decision maker or someone calling on their behalf. The caller’s name, address, phone number, and cell phone number. This is critical! You need this information for both the obvious and not-so-obvious reasons: to know who you’re speaking with, where they are if the conversation is positive and you need to mail documents, and a way to call them back. The phone number is incredibly crucial in case the reception is spotty and you get disconnected. Why would sell a beautiful house like this? Most of the time, they will dance and two-step around this question. This is where you need to spend the most time in your initial calls. If they don’t seem that comfortable with you yet, then back off in the beginning; you just need to build that relationship. Make sure to use “embedded commands” like “Well Mr./Mrs. Seller, when I buy your house…” to get the framework built for the deal. The answer to this question will also let you know if the seller is motivated or a tire kicker. Don’t waste your time with tire kickers. What is the monthly payment? This is going to effect your bottom line so make sure you get this information. If the property is free and clear, it’s as easy as putting down a 0. What are you asking for your house? This is a big one and a question I might not get to right away, depending on the tone of the conversation. Does the house need repairs? This is a yes or no question. If they say no, clarify that everything is brand new, renovated recently, etc. They’ll usually backtrack and say that yeah, it’s out of date. Let them devalue the property for you by listening and not saying a word. Remember the 70/30 rule: you listen 70 percent of the time and only talk 30 percent. How many bedrooms/bathrooms? How many square feet? How big is the garage? Is there anything unique about the house? What is most important thing to you right now? Is it getting all your money now? Is it not having to make a mortgage payment anymore? Is it creating a stream of cashflow? Ask and let them tell you. Is this the best price you can do? When would you like to close? If I agree to pay you what you are asking for the property, would you be willing to accept monthly payments for your equity? For the free Negotiating with Sellers cheat sheet, visit: http://www.cashflowguys.com/SellerCall Join us at cashflowguys.tv for our videos and cashflowguys.com/group for our Facebook group. Every Friday at 11 AM EST we have Cash Flow Guys TV, a live Q&A.

Even after the sailing is done and my feet are back on US soil, I’m still counting the lessons from my time away. I completely “unplugged” and came back to the fold bombarded by emails, messages, voicemails, etc, all begging for my help or guidance. Just the act of cranking the computer back on left me with a profound sense of relief that I already had a team in place who could successfully take over the business, allowing me to kick back and relax. After I came back from tropical Belize, the growth of Cash Flow Guys continues onward and upward. A big part of our evolving business right now is departmentalizing the business into roles for each of our team members.  We all have certain strengths and talents; until four months ago I was handling every single aspect of my business alone, with the exception of a few virtual assistants.  I’ve come to realize with the extra help and the support of my partners that when I spread myself too thin, I can’t be effective for myself, let alone all of you. By assigning roles and finally asking for and receiving help, we’ll be able to grow our business to unbelievable levels. Make no mistake, we’re creating a MOVEMENT to educate investors and steer them away from incredibly expensive shiny objects that will never create the future you’re looking for.  We want to help the investing community create that new beginning, whether you’re 18 or 80, and build an extraordinary life for you and your family. For those of you looking to invest in cash-flowing assets with us or if you have any questions, reach out to use at cashflowguys.com/asktyler. You can book time on my calendar and get one-on-one time with me. If you’re a realtor and an investor, you definitely need to reach out to us at info@cashflowguys.com.

Fresh off the sailboat with my friends Chris and Katie Krimitsos, I’m talking to my listeners today about what my week away has taught me. Chris inspired me to create the Cash Flow Guys podcast when I wasn’t sure I could be the type of person to put myself out there. Katie is another fantastic podcaster who hosts the “Biz Women Rock” podcast and was the inspiration for my own Cash Flow Guys Facebook Community. I am not a fan of flying. After the September 11th  attacks in 2001, I get terrible anxiety whenever I have to fly (and I have to fly a LOT for business!). I deal with it but I’m not a fan. Having to take three planes to get to Belize was not my ideal start to my trip but it had to be done to get to the relaxation part. All this flying made me reflect on not only my own fear of flying but the concept of fear itself, in life and in business. I realized that my fear is in the unknown: I have no idea how a plane functions, no idea how it gets in and stays in the air, and most importantly, how to fly it. My lack of knowledge creates that fear and anxiety for flying for me, and for many investors, that same lack of knowledge creates enough fear and anxiety to keep them from taking a step. However, there’s one difference: I get on the plane. If I don’t get on the plane, it would be ridiculous. I would never make it to destinations that will create more personal and business opportunity. I would never go on vacation, experience incredible masterminds, or expand outside of my own bubble to bigger and better things. Is that fear of investing rooting you to the ground? What opportunities and adventures are you missing out on because your fear won’t let you pick up that foot and take a step? I highly recommend you check out Katie’s podcast and website at http://bizwomenrock.com. If you’re in the Tampa Bay area and are interested in podcasting, you need to be at Chris’s podcasting group, The Florida Podcasters Association, at https://facebook.com/floridapodcastersassociation