Cash Flow Guys Podcast

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!

If you have been even remotely paying attention, the current real estate market is white hot just about everywhere.  This is the time when many people fold and lay their cards on the table.  Deals were plentiful just a few months ago right?  Now? Crickets… Are you trying like heck to buy something? Anything? Just to get a deal?  Are your offers getting outbid, or worse, refused all together?  Have the realtors and wholesalers become impossible to deal with?  Crazy demands, asking you to waive inspections and contract contingencies and then asking you to sign contracts that only favor the seller and not you? STOP! Breathe. You lived a long time without that investment property you are about to overpay for.  It is times like these I must remind you of why you are investing in the first place..and that is to build wealth.  You simply cannot compete against the undereducated or emotional investors and ever plan to get ahead.  The old timers have always said, and this is very true even still today..you make your money when you buy.  That means if you buy wrong, the situation only tends to get worse. I just spoke with a young kid a few days ago who was all excited to buy his first property.  Good kid, mid twenties, wide eyed and tickled pink about the thought of being a real estate investor. He dove in head first, spent time networking, learning, investigating and found a property in which he decided to buy.  This young man is one of those kids that tends to restore your faith in humanity, just a great guy all around. I was happy to take a look at his deal about a week before closing.  He did his homework, negotiated a good price and got it under contract.  We covered the specific closing procedures he should follow, to include working with the title company to clear a bunch of issues with the title.  He listened intensely, took copious notes and I was excited for him embarking on this journey. During the discussions a week before closing I had suggested he delay closing until the title company could assure him that the title issues could be cleared.  Closing day came and went, and I did not hear anything from him..until a few days after closing he messaged me saying that he closed on the property. The problem was that he was embarrassed that he folded under pressure from the seller, who claimed to be a mentor of his.  He also succumbed to pressure from the title company and closing attorney to just get the deal wrapped up. Stories like this are common in today’s society, we want / need / expect instant gratification and are not willing to wait for errors to be corrected.  I can’t begin to tell you how dangerous this is. Let’s hit a few bullet points shall we? You WILL survive without that property if the deal does not go through. Cutting corners in due diligence will almost always leads to financial loss You make your money when you buy, that means title issues need to be corrected before you buy. Only buy with good financing: Don’t use instant LLC loans, credit cards, hard money, ect to buy rental property.  Jimmy Napier said “a good deal can quickly become a bad deal with bad paper on it” which means don’t agree to lousy financing. Have you joined my Free Facebook Group?  Head on over to http://cashflowguys.com/group to join and Learn To Earn!

Kevin Bupp is the host of The Mobile Home Park Investing Podcast AND Real Estate Investing for Cashflow Podcast and lives in my market right here in Clearwater Florida. In the last few years this niche of the investing world has gotten wildly popular, Kevin discusses in great detail why investors are scrambling to jump on board this lucrative strategy. Risk is something that many investors consider when choosing an investment strategy, Kevin explains how the park owner has an extra layer of control over the tenancy situation.  Using leverage does not just apply to financing, it also applies to situational awareness. In a normal eviction at an apartment, it is “easy” for the tenant to move.  In the mobile home park space, extra layers of complexity are present since you just can’t pack up the entire home and move in the middle of the night, more often than not the tenant of the space, owns the mobile home on the space.  Imagine the challenges this presents to the tenant, and also imagine how this can help motivate the tenant to play by the rules. Kevin discusses a few of the deal breakers that he and his team use to decide go / no go scenarios when looking at a park.  By knowing what his exit strategy needs to be, Kevin and his team can take an objective look at the park and determine if key indicators allow for the strategy to be effective. In my coaching program, I teach my students how to use a website by the name of “Sperling’s Best Places” to analyze a specific market to determine if the market is suitable to invest in.  Kevin discusses how he uses the same tool in researching his markets before turning on his marketing machine. Kevin and his partner just launched the Mobile Home Park Investing Academy to help others who are interested in this niche of investing learn the skills necessary to obtain their first park.  For more information on this 90 program go to http://mobilehomeparkacademy.com/ and register to take the next steps.

Your favorite guest is back on the show this week, Paige Panzarello my esteemed partner in the note buying business is joining us again today to discuss some of the common questions that investors have regarding notes. We will be releasing a mini course on note investing to those who subscribe by texting “notes” to 314-665-1767 The note investing mini course will be delivered in multiple parts stretched over several weeks sent about once a week.  Be sure to register using the info above to take advantage of this opportunity. Although we receive many questions, we sorted through them to bring answers to the 6 most commonly asked questions we hear from our investors.  In the past we would list those answers right here also, however because we want you to hear the content we provide, we will refrain from typing it out here. The questions we are covering are as follows: What is the market crashes, will I lose my investment or any part of it? What if we buy a note and the property is trashed inside?  What steps do we take to reduce the likelihood of that? How do we know the valuation provided by the real estate agent is accurate? What steps are taken to be sure about the retail value of the property? How would a fire, or natural disaster impact my investment with notes? Does it make sense to borrow money to invest in notes? Is note investing a good fit for investing with a retirement plan? Get the answers inside the show, enjoy!

Today we meet CPA Craig Cody of Craig Cody and Company from Manhasset, NY.  Craig is a retired NYPD Police Officer turned tax professional.  Craig is a certified tax coach which means that he takes the time to educate himself to a higher level and surrounds himself with other taxation experts to discuss tax savings strategies. As we continue the discussion, Craig talks about tax planning and the importance of taking the time to build out a plan that will help you save money all year long and for many years down the road.  There is a big difference between tax preparation and tax planning.  For example, good tax planning offers a 400-500% return on investment for many taxpayers. In addition to being a tax planning expert, Craig is the author of “Secrets of a Tax Free Life” and also his book “10 Biggest Tax Mistakes That Cost Business Owners Thousands”  To obtain a FREE COPY of the 10 mistakes book, visit http://www.craigcodyandcompany.com/tyler/ to register and receive a copy in the mail.

This week we are going to step away from the facts and figures, away from the exit strategies, and away from even talking about cashflow.  Today we get the pleasure of spending time with Jonathan Henrich who is the author of the book The Secret For a Happy Life. Jonathan first hit the limelight as a drummer in heavy metal bands many years back.  Even though his talents led him to discover fame, he suffered from depression, social phobia, and self esteem issues.  Instead of letting these afflictions ruin his life, he instead chose to dig deep and learn where these feelings originated. Jonathan then continued to learn through mentors and counselors that there were triggers that set off his feelings.  Many of these triggers were born from belief systems lodged in his unconscious thought.  By learning what trigger certain belief systems within himself, he was able to pull himself out of depression and took action to better his life. I met Jonathan at Peter Fortunato’s famous “Paper Course” by sitting next to him.  I remember him being very friendly, and even though I was a stranger he quickly introduced himself to me.  From there he informed me of the local “exchanger’s meeting” and suggested I attend.  Jonathan appeared much different than the same Jonathan who suffered so greatly as discussed in the book.  I did in fact attend the meeting, and continued to do so many times over the years which turned out to be a game changer in how my mind thinks about real estate. I noticed quickly that he associated with people that are known around the investing world as legendary investors.  Jonathan had positioned himself with those who forged many or the formulas and practices that we as investors follow today.  I quickly discovered that I was surrounded by skilled investors at this game changer meeting.  It (in part) was these relationships that helped Jon realize that much of what was keeping him from success was simply lying within himself. Over the years, Jon learned that reconditioning would help him improve his self image by focusing on his own reality instead of his own opinion.  As you read this well written book, the reader is taken through many deep thoughts and well thought out concepts.  More importantly, the book offers incredible solutions that plague many investors these days. I honestly feel this book will prove to be a great tool for those having difficulty getting started in real estate as well as those who are trying to get to the next level.  To learn more about his incredible story, visit his website which can be found at http://cashflowguys.com/happylife  

This week we have The “Cash Flow Ninja” himself on the show. M.C. Laubscher is a wealth strategist, educator, and financial freedom fighter.  He is the founder and president of Valhalla Wealth Financial and host of the popular business and investing podcast, Cashflow Ninja. His mission is to help as many people as possible eliminate the control banks and financial institutions have over their lives by building their wealth in a variety of ways outside of Wall Street. MC talks about how he got started in real estate and how he realized that sales was an important skillset that he must learn in order to accomplish his goals.  Sales does not have to be sleazy, instead you must believe in the product you are offering and that product must fill a need in the marketplace. In this episode he covers how investors can squeeze additional profits out of each investment dollar earned which is certainly worth hearing.      

This week on the Cash Flow Guys Podcast, Tyler talks with Mark Walker, fellow apartment investor who specializes in the Colorado and Dallas, TX markets. Like Tyler, Mark transitioned from the single family side of things into small multi family and then apartment buildings.  Mark escaped the rat race a few years ago as an apartment investor and never looked back.  Today, Mark is the Founder of Luxmana Investments out of Colorado.  Mark discusses how he is able to quickly build equity in his properties by intentionally raising the NOI (or net operating income) of his properties by other creative ways in addition to simply raising the rent.  Mark tells us how he has used low flow toilets, and upgraded plumbing fixtures to save a ton of money on his water bills every year while providing many extra amenities that his tenants love. By understanding the needs of his tenants, he is able to offer improvements that yield him the biggest bang for his buck.  Mark also discusses other great tips on how to improve a property's NOI so be sure to listen in and #LearnToEarn To receive Mark’s free gift for CashFlowGuys Podcast listeners, head on over to http://www.luxmana.com/cashflowguys to sign up and receive his guide on “Ten Steps to Increase Your Property’s NOI” Mark can be reached via the following links:   Free Gift for Tyler’s Listeners: http://www.luxmana.com/cashflowguys   Luxmana Investments Company URLs: Website:  http://www.luxmana.com/ LinkedIn:  https://www.linkedin.com/company/luxmana-investments-llc BiggerPockets: https://www.biggerpockets.com/co/luxmana-investments   Mark Walker Personal URLs: LinkedIn: https://www.linkedin.com/in/mark-walker-a06957 BiggerPockets: https://www.biggerpockets.com/users/Mark_Luxmana Facebook: https://www.facebook.com/mark.walker.luxmana    

Join me this week as I interview Don Costa, a veteran rehabber out of California on this episode of the Cash Flow Guys Podcast.  Don is the host of the Flip Talk podcast which is quickly rising the ranks to be a home run show that is enjoyed by many.  Don discusses how he built his house flipping business and how systems play a huge roll in his business success. Systems can mean the difference between success or epic failure.  A great book for investors to read about building systems is the eMyth written by Michael Gerber.  Although the original writing is exceptional, he has released a version specifically tailored to real estate investors that EVERY investor should add to their library.  I recently listened to the audiobook version of the book. Listen in as Don shares with us many of the ninja tricks he has used to build his business over the years.  Don takes the time to share with us what separates him from the herd as an industry leader in the fix and flip arena. Don is also part of the mentoring group I belong to as a content contributor specializing in rehabs.  If you have ever considered getting involved in real estate investing, visit http://cashflowguys.com/mentor to learn more about how we help people get started in real estate.    

Negotiating, is simply one of the most important skills and investor can learn and master, however, most do not.  Instead, they spend hundreds of hours, and thousands of dollars looking for that magic pill, or that secret thing to say to make the other party give up and give them what they want. If you find these show notes helpful, perhaps you should register for my list to receive more detailed information on the topics I cover in my show.  You can register HERE Last week, we heard a seller share the details of his property while I listened to him intently.  I did not interrupt him, or attempt to talk over him, I simply listened.  Larry Harbolt says “God gave you two ears and one mouth for a reason” and he could not be more accurate.  We need to listen 70-80% of the time, and when talking only be asking questions and building rapport. Your job is to build a relationship, not fight a battle.  “Arm wrestling” not allowed.  Negotiations will take time to accomplish most of the time, but that’s ok….what’s the big rush anyway?  When we rush, we sometimes make spook the seller which can end the negotiations abruptly! It it critical to  seek agreement on both sides of the table. You are not there “to win” but rather to find agreement that works for both parties in the negotiation.  Read those last two lines again. Lately, I am running into people who simply won’t stop talking.  I find this to be more commonplace every single day.  To some degree, it's great, especially when you learn how to steer the conversation.  Those who talk too much often do not negotiate well resulting in you being able to get what you need from the deal.  CAUTION:  When you negotiate with a poor listener, they will often get remorse once the details of the deal sink in. Let people talk themselves out, like fighting a fish.  Eventually they will get tired of talking, and when they do you can set the hook and reel in a whopper! When dealing with people who constantly talk over you, simply stop talking.  They are not listening to a word you are saying anyway.  Use the time to take notes and prepare your next set of questions.  Be sure to listen to what they are saying and how they are saying it. Read and Master Dale Carnegie, How to Win Friends and Influence People.  I read this book annually, you should too. In the movie Jerry Maguire, the line “Help me Help You” was used, which works very well sometimes, depending on how it is said.  Educate the seller that your intent is to help them, not hurt them, that you want this sale to happen. Text Messaging:  Please refrain from using this to negotiate anything, ever.  Negotiating via text messaging (or email) is ineffective and in poor taste.