Cash Flow Guys Podcast

Myth #1: I cannot afford to fail, so I will not start How much will a failure cost you?  If you cannot measure the cost of failure then why are you allowing it to control your actions?  The average college student who graduates with a 4-year degree in the United States spends about $75,000 in tuition for that degree.  The math tells us that $19,000 per year on average is invested in the hope they will be able to get a good paying job at the end.  I believe you could buy just about every book ever written on real estate investing in the last five years for less than $19,000.  My point is that if you take the time to educate yourself before you jump in you will experience much better odds than the average college student in America. Mistakes are a right of passage; you will make them, and you will learn from them.  Compare it to pulling off a band-aid; we know it will hurt, but we pull it off regardless.  Some of us pull it slow, others pull it fast, but the band-aid is coming off either way.  The more band-aids you remove, the less traumatizing it becomes.  As a child, perhaps you cried when they removed, do you still cry about it as an adult? Experts say we learn much less from our successes than we do from our failures.  To reduce the size of your mistakes, educate yourself by reading books, listening to podcasts, attending seminars and taking courses You cannot learn and look good at the same time!  When a child learns to ride a bike, they are wobbling all over the place and sometimes even crash.  When the child falls and skins her elbow does she just give up? Do her parents allow her to give up forever?  We both know the answer there.  Training wheels help a child gain confidence when learning to ride a bike.   Training, for an adult, is our version of training wheels, therefore, helping us become more confident.  Ask yourself this question; if I practice, will I feel more comfortable? Myth #2: The limiting beliefs I have are accurate and have credibility. My first question would be as compared to what? By that I mean what or who specifically convinced you that fiction was fact? Ignore naysayers in your community, those who criticize you also envy you.  Many people fail to take action, and then criticize those who do.  Often, they even mask their jealousy under the guise of concern for the person taking action. Be willing to do what other’s won’t or can’t do.  Taking action, and getting comfortable with being uncomfortable are two things most people fail to do.  To garner different results, take a different direction than the rest of the herd. Jim Rohn said “You are the average of the five people you spend the most time with” This means you must spend more time with people that are equally or more successful than you.  Join a mastermind, or start your own to surround yourself with people who will help you succeed instead of who will foster your failure. Myth #3: I need cash or credit to get involved in real estate investing. You must build and expand your network, tell people what you do!  There are four things needed to pull a deal together: knowledge, money,  time and deal.  No rule requires one party alone to have all four.  Most successful investors have one or more of the above but not all four. Sometimes I have plenty of money to invest but no deals to invest in; other months I have plenty of deals but not enough money to invest in them.  It is this situation that reminds me of wealth being a team sport. Therefore, I leverage the resources of others to create win/win situations. For those of you with not enough money know this: There is more money looking for deals than there are "deals" looking for money. Do you have money but not sure where to invest?  If this defines you, perhaps consider building a larger network.  Opportunity will not find you; instead, we must inform your sphere of influence of what your needs are. Don’t be in a rush to build a relationship, take the time to nurture it.  Too often I am approached by people that are looking for investment capital who fail to learn my investor identity.  As a real estate syndicator, it is my job to represent best the needs of those who have entrusted me to invest their capital in an asset that best fits their individual investor identity.  Take time to learn about your investor and focus on their needs when structuring an opportunity for them. To take part in my live video Q and A sessions join our Facebook community at cashflowguys.com/group  Be sure to sign up at cashflowguys.com/register to be notified of our upcoming video coaching events and to receive mini courses via email  

Yep, I was a flipper….rehabber, wholesaler...whatever you want to call it…...I most likely did it and paid taxes for it.  Here are some of my tips for making money on a flip, instead of making it a flop. Avoid auction properties Focus on finding problems, not properties Control the closing procedures and the title process when you buy ALWAYS obtain a municipal lien search Always check for code violations unpermitted work and open permits Be sure you get a reissue credit when you sell from the policy you bought at the time of purchase Buy in a great neighborhood, be sure to buy the ugliest house in the area, not the prettiest one. Share your buying criteria with both Realtors and Wholesalers….be specific and deals will be brought to you. Make sure that everyone on your team can eat…..everyone deserves to get paid if they do a great job. If you pay them well you then can demand a great job! Buy vacant home insurance. A traditional homeowners policy affords NO COVERAGE if the home is not occupied Insist on quality finishes and excellent craftsmanship, your buyer deserves it (and therefore you sell for top dollar) Be sure to rehab to FHA Guidelines, things like GFCI receptacles matter. Water leaks  need to be fixed and the surrounding areas thoroughly dried out. Avoid red mulch, make the front yard POP!!! Hire a Realtor...unless you are a marketing expert and negotiations expert. You can’t do    it all, and when selling a house are you writing checks or cashing them? Offer Seller Financing, this alone will bombard you with potential buyers. When there are lots of people interested in the home and auction-like environment is created. Educate the appraiser about your home, they cannot see behind walls Are you in need of help getting started or trying to figure out what to invest in?  Reach out to Tyler via cashflowguys.com/asktyler for a 30-minute consultation to help you get moving on building your financial future.

This week we change gears at the CashFlowGuys Podcast.  We bring on a returning guest who has provided tons of value to our listeners in the two previous episodes she recorded with Tyler.   Today, the “value bar” is raised to a whole new level.  As we have discussed on the podcast before, fear is something that can often cripple an investor.   Fear evolves from our learned behavior of how we react to mistakes or negative experiences that occur in life.  Paige Panzarello aka “The CashFlow Chick” returns to the show to discuss the trials and tribulations that have helped mold who she is today.   Paige began her career in real estate by inheriting (yes, inheriting) 38 townhomes due to a death in the family.  At the time she inherited these properties, she had no landlording experience whatsoever...but she dove in, head first and learned the ropes.  That little adventure lead to Paige accomplishing many great feats, and also resulted in some unfortunate situations that provided a mold for the Paige we now know.   Paige digs deep in the episode and helps us learn about the sequence of events and experiences that have molded her eventual success.  We also learn that whatever problems may arise, we can and will overcome them and then grow from the experience.   As investors, many people blindly follow the masses by investing in “household name” investments such as stocks, bonds and mutual funds.  Part of the problem with that is that many of these investments are not fully understood by the investor...and that is a problem.   We also cover Paige’s upcoming training seminar on Buying Non Performing Notes that will be held on November 5th and 6th in California.  For more info on attending this training opportunity reach out to page via CashFlowChick.com   Have you thought about note investing as a viable strategy and are ready to learn more and take it to the next level? Contact Paige via her website to schedule a free consultation with her and Tyler to learn more.

This week we Tyler Sheff meets Joe Fairless who is essentially the John Lee Dumas #JLD #EOF of the real estate business.  Joe is the host of “Best Ever Real Estate Investing Advice Ever” a DAILY podcast for the the estate industry for the last two years.   Joe’s expertise is in multifamily syndication which essentially means he is an expert in building and managing teams of people to facilitate acquisition, stabilization, and repositioning of multifamily assets for his investors.   Joe is also the author of “The Best Real Estate Investing Advice Book Ever” which is available on Amazon.   Joe says that to be successful in syndication it is helpful to have a background in Real Estate Investing or at least a background in business.   Tyler asked Joe about tips on how to increase your credibility as an investor to which Joe recommends partnering with a management company or more experienced party on your first few deals to build confidence as an operator or syndicator.  By teaming with those more experienced than you others will be more willing to trust your ability to follow through on the deal.   Joe mentions later in the episode that four main documents are included in a typical syndication.   First, a PPM or Private Placement Memorandum is a 100 page (or so) document that informs investors on the risks associated with the particular investment.   Second, an operating agreement is used to document what each party's’ roles and responsibilities are, how the investment will be managed and other important details regarding management of the asset.   Third, an investor qualification document is necessary to comply with State and Federal laws regarding the pre qualification of investors in a syndication.   Lastly, a share agreement or subscription agreement specifically addresses the number of shares sold, and outlines other rules and agreements regarding the ownership and valuation of the shares in a partnership.   Interested in getting more of the Best Ever Real Estate Advice?  Listen to the Best Ever show by visit his website at: http://joefairless.com/show/

Traditionally, when buying at a foreclosure auction, the buyer is unable to obtain title insurance for the purchase.  By not having title insurance; the investor risks additional liens or encumbrances on the title which only serve to delay or eliminate the possibility of a successful “flip” of the property.     In this episode we discover a solution to this common problem that could literally revolutionize the foreclosure auction purchase experience.  Kevin Overstreet is the President of Insured Title Agency which is a nationwide title company located in Tampa, FL.  He and his team have been instrumental in the success of Cash Flow Guys and this most recent solution brings even more value to the table.   Kevin, through his long standing relationships with his title insurance underwriters, now has the ability to issue title insurance policies for auction properties.  Now, the investor has the ability to purchase title insurance after the purchase (which is usually not allowed).   As an rehabber or flipper, the ability to convey a marketable title is a critical component of the process.   If you buy properties at foreclosure auctions and need more information on how this program works, reach out to Matt at (813) 855-3585.   Ready to take your investing career to the next level?  Go to CashFlowGuys.com/Coach and schedule some time to talk with Tyler about taking your investing career to the next level.

In this second segment of the CashFlowGuys Podcast Tyler Sheff and Paige Panzarello dig deeper into their note investing business. The episodes begins with a brief recap on note investing and then begins to discuss some of our actual deals and how we made money with them.  The most common exit strategies are reviewed in greater detail to help listeners learn how to make the decision on the exit strategy. When making decisions on exit strategies, we must first consider our cost basis and a conservative estimate of the yield available to us for that strategy. Our four most common exit strategies involve: Deed In Lieu of Foreclosure, Short Sale, Foreclosure or our favorite strategy - a workout.  We only choose first position notes on properties that are owner occupied.  This gives us better odds on being able to provide win / win solutions. Are you interested in learning more about investing in notes?  You can schedule time with Paige directly at CashFlowChick.com Are you looking to learn more about real estate investing?  Join our facebook group at CashFlowGuys.com/group

This episode is dedicated to women who are interested in real estate investing. Tyler turns over this episode to partner and wife, Jill, but first, Tyler introduces Deborah Razo.   Deborah Razo is from California. She has a degree Entrepreneurial Management from UCLA’s Anderson School of Management. In 2011, she began her investing education with intensive workshops with Robert Kiyosaki, the Rich Dad Advisors, and the Real Estate Radio Guys.   Jill brought Deborah on this episode to talk about WREN, the Women’s Real Estate Network. As the founder of WREN, Deborah’s objective was to create a community of women who are involved in real estate investing that can empower each other, share resources, experiences, and tools used to help each grow personally and professionally. All while having fun as women.   Jill and Deborah touch of several aspects of challenges that women may face when investing in real estate and how WREN inspires and helps women to overcome those challenges. WREN will host networking and skill development events, and is looking for experienced women to mentor the less experienced and add value by helping and supporting one another both personally and professionally.   Deborah and Jill talk about that WREN began in Burbank, CA and is now expanding to add chapters in Seattle, WA, the Tampa Bay area of FL Florida, and Tennessee.   WREN will be hosting “Ignite your Fire Within” on October 23, 2016, in Burbank, CA at the Vanity Salon. The event will be from 1:00pm to 5:00pm. The location address is 2010 W.Burbank Blvd. Burbank, CA 91506. This event is open to all women. An absolutely rockstar panel of women will be speaking on subjects including; passive income, flipping, commercial real estate, self storage and investing using syndication and crowd funding. The panel includes: Gena Lofton, Iris Veneration, Jillian Sadoti, Elizabeth Braman, and Alia Scott.   To reach Deborah Razo you can email Deborah at drazo@wreninspires.com find her on WRENInspires.com, or look for WREN - Women's Real Estate Network on Facebook and Meetup.com. Deborah cell number is 818-843-7772.   To reach Jill Sheff of the Cash Flow Guys, email Jill at Jill@CashFlowGuys.com or by cell, 727-560-0223.

Introducing Whitney Nicely East, a true rockstar in the real estate industry who takes the action necessary to win the game.  Whitney is a Licensed Real Estate Broker, Auctioneer, Educator and Coach.  Whitney believes in keeping it simple, and while doing so also gets the job done each and every time.   As an advocate of women investors, Whitney provides coaching services to women exclusively through her website WhitneyNicely.com  During this episode we dive into getting past the fear of taking action and learning how to overcome objections to accomplish your goals. Whitney uses a practical approach to help people out of tough situation while at the same time solving problems.  Later in the episode we discuss her upcoming Biltmore event and the fact that she is easily found by searching "WhitneyBuysHouses" on social media channels. Having trouble getting started in real estate investing?  Not sure where to start or what to invest your money in?   Reach out to Tyler for a no obligation phone consultation by visiting CashFlowGuys.com/AskTyler

This episode discusses many of the common Foreclosure Failures and how to avoid them.  Tyler Sheff dives into the foreclosure offers and contracts and provides tips on how to avoid winding up in hot water or losing money when purchasing foreclosures.  

Banks are not your friend, REO | Bank Owned Foreclosure Pitfalls   Asset managers are overzealous:   Often make unfair or illegal demands:  Asset managers know that we are in a sellers market and take full advantage of that by applying scarcity mentality tactics.  In many cases, if a buyer does not comply or agree to whatever the REO manager asks the bank will simply cancel the purchase contract.  When this happens the buyer is simply out the cost of an inspection and appraisal if applicable, not to mention their time.   Force you to sign contracts not in your favor:  Many of the bank’s contracts and addenda are written in total favor of them, offering the buyer little to no protection, recourse or rights.  As a buyer of REO properties, be sure to fully review all paperwork provided by the banks.   Use high pressure tactics to get you locked up under contract:  The banks know it is difficult for the average person to simply “walk away” from their earnest money deposits and/or monies paid for home inspections and appraisals.  Knowing this, the banks often wait until late into the buying process before they spring unreasonable demands on the buyers.   Short inspection periods mandatory:  Banks generally will not accept offers these days that have “extended” inspection periods.  In recent months the banks have been counter offering with short (1-3 day) inspection periods.  In some cases they simply refuse to allow any inspection period whatsoever.   The Bank is NOT your Friend:     Under no circumstances will the banks take any measures to protect the buyer.  Most buyers fail to read any of the paperwork provided by banks that is required to be signed.  These contracts and addenda are written 100% in the favor of the banks...Buyer Beware!  Gone are the days when your local bank was your business partner.  It is your responsibility to be sure you read and fully understand the REO purchase paperwork.   Foreclosure properties are often NOT a “good deal”:   REO properties generally sell above the asking price in many markets.  This is because the distressed nature of these properties leads buyers to believe a “deal” can be had.  The banks know that you think this way and thus often intentionally underprice REO properties to attract more buyers who are searching for the elusive “great deal”. REO properties that are on the MLS are the actual “leftovers” after being cherry picked by the government agencies and not for profit organizations.  These entities have priority to purchase these long before they hit the open market.   Former owners often do hidden damage, an example would be filling the sewer lines with concrete or drilling holes in the roof.  Homeowners sometimes blame the bank when they fall into financial trouble and feel vindicated by causing damage to the property before they abandon in during the foreclosure process.  The banks will do a quickie inspection in most cases however scoping sewer systems is often not part of the inspection process.  Be sure to take your time and complete a thorough inspection.   Hidden Fees in closing documents are commonplace these days.  The banks and the vendors that work for them will often pass undisclosed fees on to the buyers in these transactions masked as “admin” or “closing fees”.  If you question them, or refuse to pay, the banks will cancel the contract in many cases and refuse to sell to you.  There are cases where buyers have lost thousands of dollars when this happens with no recourse against the banks (see above on contract clauses).  As a buyer ALWAYS choose your own title company (one that you trust) to facilitate closings.   Closing and Title Issues:   Exceptions to the title policy happen every day.  The banks try to sneak this into the “exceptions” page of the title policy to prevent the buyer from having any recourse or protections in the event there is an issue. I deal with Insured Title Agency because they can close my transactions in any state AND they bring the exceptions to my attention each and every time.  Kevin Overstreet can be reached at (813) 855-3585 if you have any questions about title policies.   Read the entire contract and addenda and be sure you understand it.  If these is something you don’t understand, take the time to hire an attorney to explain it to you and inform you of any risks that exist.   Mistakes are guaranteed: There are almost always mistakes in documentation and foreclosure documents.  Title packages are often incorrect as is the math.  Buyers often fail to check the math and wind up overpaying or being charged for items that are not their responsibility.   Have questions?  Join our private Facebook group at CashFlowGuys.com/group to get your questions answer for the benefit of the entire group.  If you have private questions, you can email info@cashflowguys.com   Are you stuck on how to proceed with your real estate investing?  Go to CashFlowGuys.com/AskTyler to book a free 30 minute consultation with Tyler in order to seek guidance on how to proceed in your journey to financial freedom.