Cash Flow Guys Podcast

Today on Cash Flow Guys, we’re looking at a new source of funding deals; crowdfunding. It can be a scary place for investors who have no idea how it works or how to utilize it to grow their own portfolios. That’s where Amy Kirsh of RealtyShares comes in. Amy is the Director of Investor Relations for RealtyShares and is walking Tyler and his audience through the process of investing in a crowdfunded real estate deal. RealtyShares has a team of over 100 support experts, sales members, and asset protection. RealtyShares does do its own due diligence but wholeheartedly encourages its investors to do their own due diligence before investing any capital. Amy’s favorite quote is “There’s no substitute for experience”, and it plays a role in how RealtyShares works. The program is currently only open to accredited investors, but creates investing opportunities without having to go out into the field and find a deal yourself. It’s a great opportunity to invest without having to fund the entire on your own. For investors looking for deals, RealtyShares can work with you as well. You don’t necessarily need experience, but you do need to balance your lack of experience with good credit and other exemplary factors. Once you give them a call, you’ll go through the vetting process Find out more about Amy and RealtyShares at https://www.realtyshares.com. Don’t forget to get access to the Cashflow Blueprint today! Visit cashflowguys.com/myfirstdeal.

To start with, we’d like to talk to you about a course written by our good friend and mentor Larry Harbolt. This is one of his courses he kept in the archives and brought out just for us to present to our listeners. The course is completely online and is filled with audio lessons, cheat sheets, and negotiating scripts, just for you. Take a look at the Cashflow Blueprint course here: http://www.cashflowguys.com/myfirstdeal The course begins with Property and Deal Analysis, with emphasis on the 4 Pillars of Real Estate. These pillars are your exit strategies, and each one should be utilized not as your primary business identity, but as a technique and tool when approaching every deal. In today’s world drooling for instant-gratification, slick gurus have convinced the population that fix ‘n flips and wholesaling are a primary business model. They’re not; they’re meant to be used so almost every deal you come across can be a money-maker. If you try to flip a deal that’s really meant to be buy-and-hold, you’re going to lose money and earn plenty of frustration. The primary point today’s episode is that you need a plan. You have to understand exactly what your plan is with every single deal. Most importantly, you need to build the community and find the financial friends so no matter what deal comes your way, you know exactly how and who to move forward to put money in your pocket. If you need help rehabilitating your credit, don’t forget to visit http://www.cashflowguys.com/creditrepair. My credit repair team will help you take the steps you need to get your credit back on track.

Before I begin, I want to invite you to my case study where I discuss my first no money down deal.  That video case study can be found http://CashFlowGuys.com/MyFirstDeal Nobody ever talks about title or deeds, people just assume that things magically happen in some dark room somewhere.  Well, I beg to differ. The most common way investors lose money is due to issues with title discrepancies that are often ignored or overlooked.  Many investors feel they are “too cool for school” and that things will just fall into place, worse, they actually believe these issues don’t apply to them. Always READ and Understand the contract for sale and purchase fully.  Everything that “could happen” should be addressed in there, otherwise it leaves you wide open for a dispute that could cost you money. Contracts cover who pays for what, searches, exams, what happens when issues with title arise, etc.  I feel the easiest and safest contract to use in most instances is your local state BAR / Realtor contract.  This version is usually the one most understood my attorneys and Realtors, thus not fear as compared to custom contracts that can often be found confusing.  When people are confused, they are scared, and when scared, often irrational. Foreclosures:  The often have mistakes in legal process and procedure (not crossing t’s and dotting i’s is only part of it).  Failure to properly serve or notify involved parties is common, almost rampant in foreclosure proceedings.  If you are buying a property that has ever been foreclosed upon, you MUST be sure your title company is thurough in the search process. Exceptions to title insurance policies, look at Schedule A, verify info there is correct about the property, match it to the survey… Schedule B, the issues are usually outlined in bold font...must be cleared prior to closing Schedule B Section 2 lists the “exceptions” to coverage, items not corrected, insist on marked up title commitment. Boundary Disputes: ALWAYS get a survey so you know exactly what you are buying (unless a condo since no dirt involved)  Solve boundary disputes before you close...not after.  Fences can steal property! Control Closing as the buyer which means controlling the costs associated with closing, don’t be a sucker or you will get gouged.  You also control the quality of the search and insurance on title.  

Fear of loss is one of the most crippling roadblocks for any beginning investor. In today’s episode, Tyler is going to walk you through not only how to eliminate these fears, but also your excuses. It all starts out with taking stock of where you are financially RIGHT NOW. Every month, sit down and take inventory of your current financial situation. You need to know where the starting line is for your own path to financial freedom. If you contact us at info@cashflowguys.com and request the Financial Analysis worksheet, we’ll send it to you as a template for figuring out your own current financial standing. Once you see what you’re already lacking (passive income), then the fear of losing will slowly start to ebb away. It’s not so scary to lose something you haven’t acquired yet, right? Here’s another critical exercise for improving your mindset and getting over that fear of loss: take a sheet of paper and write down a list of EVERYTHING you could possibly lose by taking that step into real estate investing. Better yet, EMAIL that list to info@cashflowguys.com and break down every reason why you think you will lose. If your true fear is looking stupid or making mistakes, you’ll get over that pretty quick once you start becoming active and putting yourself out there. Even experienced investors like Tyler still have mentors; they don’t have all the answers and they don’t always look and sound suave, even with a fancy podcast. It’s all about surrounding yourself with people who are smarter than you and just becoming a walking sponge. Absorb that knowledge and then squeeze it out into the marketplace. Are you ready to CRUSH IT this year? Get going TODAY with our brand new course created in conjunction with Larry Harbolt, “The Cashflow Blueprint”. Visit us at http://www.cashflowguys.com/myfirstdeal to find out more.

CashFlowGuys.com/Donate On this episode of the Cash Flow Guys Podcast Tyler discusses many of the common misconceptions that new (and some experienced) investors get caught up in..   Easy Loan Program Scam: Predatory lenders and terms (not “hard money”) Application fees or upfront fees are trash Takeaway: Lenders should be competing for your business, they are not doing you a favor..they are making an investment.   Getting Qualified: Go see a lender (Mortgage Broker) and get qualified, if they say no get into a credit repair arrangement. Understand the programs available, Fannie Mae, USDA, VA if applicable...talk to small local banks that make local underwriting decisions. Educate everyone you know about what you are doing, many will want to come along for the ride..too scared to go at it alone…   Buy, Fix, Occupy, Repeat: FHA allows a 3.5% down payment, seller can pay up to 6% of the purchase price towards closing costs at current. Save every nickel, buy a place for as little as $3500 out of pocket and live there for one year.  When you move out it cashflows $200 per door or $400 for the property.  Save every penny of that for one year = $4800, now go buy another. In 10 years you will have 20 doors (10 properties) and $48,000 or more passive income taxed at the LOWEST rate allowed by law (if at all).

Ross Jeffries, a Speed Seduction Expert featured on popular TV shows, shares insights on persuasion, decision-making, and reframing sales terms in real estate. He discusses the power of pattern interrupts, voice inflection, and negotiation techniques, emphasizing the importance of effective communication for successful outcomes.

Today Tyler is joined by one of his audience’s favorite guests, the power-investing couple of Elia Luti & Eva Kovacs, who came to America with the dream of investing. Elia and Eva built their investing business without throwing down all-cash offers, because they couldn’t. Along the way, Elia and Eva have built their brand along with their business to portray their investing identity and values, which has attracted countless investors to their door. Their philosophy of focusing on both personal and professional development has grown their investing business exponentially, as well as encouraging feedback from their investors and sellers

I want to begin by announcing the creation of our new Patreon donor’s page to provide our listeners and easy way to make donations to our show which helps us cover the costs associated with the production of the Cash Flow Guys Podcast, videos, Facebook Group, etc.  That page can be found at http://CashFlowGuys.com/Donate We built in “rewards” into the site to give donors additional value for their generous donations. Over the last 71 episodes I have cover just about every topic I can think of that would help you get started in the real estate investing space.  I realize that there are many things I did not discuss, however I did not discuss those things because I did not want to over complicate the journey. As I sit here recording this episode, I wonder, how many of you have actually used the information I provided you to take action that results in achieving financial freedom? I realize that getting started in real estate can be overwhelming to say the least.  To help you move past those feelings let’s get back to basics shall we?   Why: Why are we doing this to begin with?  What is it about where we are that inspired us to look to real estate as a change strategy?  What paths led you here, to where you sit or stand right here and now.  Do you feel you will get rich as a real estate investor?  If so, define “rich”, what does rich mean to you? Most people fail because the “why” is simply not strong enough or remains undefined.  The “why” goes beyond “because I hate my job” or “because I want a Lamborghini” dig deeper. Many of us spend a great deal of time refusing to dig deep, instead we dig shallow and then wonder why we cannot find the gold. Some of us simply cannot move forward unless we clearly see the destination.  The reason so many bookshelves are filled with unopened Real Estate Investment Courses is because many people feel they need full clarity and understanding before taking any action.   Do you want to build a business or simply a bit of income on the side?  I know plenty of people that love their job and want to keep working.  Perhaps buying a few rental properties for some extra vacation money is what you are looking for.  Some like the “thrill” of flipping or the hunt of buying.  Regardless what attracts you to real estate investing you should set some expectations going in.  It is important to spell out what your end game is, your vision if you will. Don’t let the investing world push you into a place where you don’t want to be.  The REI business has a way of sucking people in and sometimes pushing them to get over their heads. To keep it simple, let’s visit the two main paths of real estate which are holding rental properties for cashflow and speculation in a wholesale or flip scenario. Investing for cashflow isn’t very exciting, but over time it can be very lucrative.  The key is to buy good properties in good areas using as little of your own cash as possible. As a buy and hold investor you make money every single month for as long as you own the asset.  While you are holding the property the value generally increases.  If single family the value is usually tied to market conditions.  If multi-family the value is generally tied to the income it generates, if commercial the same can be true, however the use value can also be considered.  During the initial learning phase you should seek out others who are already investing in the type of properties you are considering and talk to them about the pros and cons.  Of the two types of strategies we are discussing today, this one is taxed at the lowest rates. A Fix and Flipper generally makes their money by buying houses that need renovations, or can be changed by adding bedrooms or changing floor plans and later selling them for a profit.  This type of investing is what we call a “speculation play”.  The hold times on these types of investments are usually only a few months at the longest.  Generally speaking the rehabber buys the house in rough condition at a discount from full retail value, fixes it up and then hopes to sell it for a significant profit.  This strategy is much more risky than the buy and hold model thus should yield a larger reward. Those interested in flipping are the main target of real estate investment gurus.  There is an entire industry that has been created to prey on those with the “get rich quick” mentality.  The safest way to proceed down this path is to take on a mentor to guide you through these shark infested waters.    

This week Tyler speaks with Attorney Clifford Hunt of the Hunt Law Group.  Clifford and his team represent the CashFlowGuys in all matters involving the raising of private capital. When you venture into the unknown, it is much less terrifying if you have a solid team of professionals at your side to help you navigate the trenches.  In this episode we discuss the common misconceptions in regard to raising money from private parties.  We also discuss the laws and regulations regarding securities and how they apply to us as real estate investors. As a real estate investor, you must become familiar with the definition of a “security” in regard to any offering you may make to a financial friend involving them investing in your deal. Hunt Law Group’s website features a section that will better help you understand the many definitions you need to know to stay compliant.  That info can be found at the following link: http://www.huntlawgrp.com/sec-law/private-placements-of-securities Private placements are used to help people get their money moving so that it can generate more money.  As compared to the stock market, Real Estate provides many more advantages over traditional Wall Street type investments.  That said, there are very strict and complex rules regarding this type of investment which must be carefully followed. By hiring an experienced lawyer who maintains a focus in this area of law, the investor can raise the capital they need to put together great deals while at the same time helping people build wealth. Structured properly, this can create a win / win relationship for everyone involved. Beginning in May 2017 Coffee with the Cash Flow Guys will be a television show.  You will be able to watch directly on the Cash Flow Guys website or via a direct link at CashFlowGuys.tv  We will also have a call in number to allow people to call in to have their questions answered live. Our Cash Flow Guys Store is open!! Grab your Tshirts, Hoodies and such at http://CashFlowGuys.com/gear

Today we are going to talk about a topic near and dear to my heart. It's the topic that allows me to buy cash flowing real estate with my friends, raising private capital. Now, this is a series. This is going to be a multi part series that I'm going to do over a couple different episodes. Enjoy!