Cash Flow Guys Podcast

Attorney and CPA Mark J. Kohler is a best-selling author; national speaker; radio show host of the “Refresh Your Wealth Show”; writer and video personality for Entrepreneur.com.   Mark is also a real estate investor; senior partner in both the law firm, Kyler, Kohler, Ostermiller & Sorensen, and the accounting firm of Kohler & Eyre, CPAs.   Mark is a personal and small business tax and legal expert, who helps clients build and protect wealth through the development of wealth management strategies,as well as business and tax remedies often overlooked (ask me how I know)   Mark’s seminars have helped tens of thousands of individuals and small business owners navigate the maze of legal, regulatory and financial laws to greater success and wealth.   You can learn more about Mark’s courses by visiting the “Affiliates” tab on the CashFlowGuys website or typing in CashFlowGuys.com/tax   Some of the topics covered in this episode are:   Tax consequences of flipping or wholesaling (capital gains, ordinary income, etc) and how to mitigate them   IRA “Hard Money” Lenders Tax consequences as they relate to UBIT, etc   Rental income is the least taxed income according to the IRS, how is this possible?   Additionally, we cover a common myth about “My CPA said I make too much money to receive any benefit from owning rental property”   The “Real Estate Professional’ designation….some teach you must have a real estate license which is WRONG, in this episode we learn why this is wrong and what the right answer is.   Mark discusses the importance of building a business and creating a tax shelter to failure proof your investing business.   Later in the show we discuss how W2 income earners can use real estate to offset their tax obligations   To learn more about the incredible training materials that Mark and his team have to offer go to CashFlowGuys.com/Tax

ARV stands for After Repaired Value and these days is one of the most common acronyms used in real estate investing.  This term is generally used by wholesalers and rehabbers to describe the intended value of a home after renovations are complete.   Too often in today’s market, unknowing buyers accept this number as factual information.  Inexperienced investors can get themselves in hot water by believing the ARV figure without doing their own research.   The true value of a property is that which the end user is willing to pay for it.   Consider the source (organized in descending order as it relates to accuracy of valuation):   Appraisers are usually licensed (in most states) and to be licensed they must undergo training to learn about the USPAP.  The Uniform Standards of Professional Appraisal Practice (USPAP) is the generally recognized ethical and performance standards for the appraisal profession in the United States.  A licensed appraiser is required to conform to the USPAP standards and has no financial interest or incentive to manipulate the valuation they provide.  An appraisal by a licensed appraiser is usually the only valuation model an institutional lender will accept.   Realtors are taught a more condensed version of the USPAP standards and should have access to the tools necessary to determine fair market value based purely on sold data of other homes.  Just because they have access to these tools, does not mean they are fully clear on how to use them.  Realtors are required to conform to the NAR (National Association of Realtors) standards of ethical conduct when providing an opinion of value.  Savvy agents know that they need to be conservative when providing valuation data to ensure the home purchase will pass the appraisal “litmus test” when the buyer is obtaining a mortgage.   Wholesalers are often an unlicensed individual who is not required to undergo any formal training in determining value.  A wholesaler has no ethical requirement in regard to advertising a home valuation to the public.  They are in the business of hustling houses, like Realtors, yet without any public accountability measures in place.  Most wholesalers seek cash buyers that will not elect to hire an appraiser.   A Seller can also have an opinion of value but after all….they have the most to gain from the sale of the home.  Does it make sense to believe what they say in regard to the value of their home?   Automated Valuation Models are everywhere.  (Zillow, Core Logic, Trulia, Redfin just to name a few) There are countless systems available to use computerized algorithms as a means to spit out home valuations.  The data is often flawed and inaccurate.  AVM valuations should never be relied upon as a sole means of determining value.   How to determine a home’s value   Know the neighborhood,  The buyer must have a clear understanding on the trends in the immediate area and the what the driving economic forces are in the area.  When determining value, the buyer must first consider homes that are “like kind” in nature.  Don’t use a 4 bedroom house when the property you are buying is a 2 bedroom.  The only exception here is if your house is the only two bedroom property in the area.   Know your customer, As an investor, you are certainly serving someone’s needs.  If you are the wholesaler, the rehabber or landlord is your customer (you need to leave some “meat on the bone”.  If rehabbing the house to flip, the end user buyer is your customer.  If you are a landlord, the tenant is your customer.  By taking the time to learn who your ideal customer is, you can determine the after repair value of the home more accurately.   Know your appraiser, if you hire an appraiser be sure to hire one that is local to the area your home is located in.  The appraiser should have experience in the immediate area and not be from a place far, far away.   Think about the factors that influence the home’s value.  Use comparable sales that closely match the subject property.  Pick comparables that have the same (or similar) architectural style whenever possible.  Lot size, building square footage, number of beds, baths and garages should all be a close match.  Another factor to consider is the distance of the comparable properties to your subject property.  Try to keep the distance apart to a minimum, the closer the better.   How to sell for more   Simply put, you get what you pay for.  Are you really equipped with the skills to sell it yourself?  Should you hire an agent to sell it for you?  To obtain the highest price possible, you need to attract as many potential buyers as possible.  If you hire a Realtor, don’t beat them up on their fee and then expect to get the best work out of them.  Instead, offer them compensation that inspires them to bring you top dollar offers.  Agents are (or should be) your partner in the transaction...by that I mean they should have incentives to bring you the best offers available.  Take the steps necessary to position the home in its best light, use a good looking professional sign if you sell yourself, or hire an agent that will market your property in the most effective ways possible.   Have you joined our facebook group yet?  If not head on over to CashFlowGuys.com/Group to join our community and continue to learn to earn.   Do you need help? Are you stuck on deciding what to do next?  Head on over to CashFlowGuys.com/AskTyler to book a 30 minute phone consultation with Tyler Sheff to get unstuck.

Mistakes are common, and something that is necessary in the learning process.  In this episode Tyler Sheff and Larry Harbolt discuss many of the common mistakes that investors make (including us)   #1 Being in a rush to make money fast / get rich quick:   Making money in real estate is a time tested way to build wealth, however it is far from a “get rich quick” scenario.  Larry discusses when you build a house, you don’t begin with the roof, you begin with the foundation.  Niche methods are fine, however the investor must have many tools in their toolbox to acquire properties.   #2 Over Analyzing / Analysis Paralysis: A successful investor takes the time to decide what their profit margins needs to be.  If the “deal” does not fit the numbers then you have two choices….negotiate to structure the deal so the numbers work or pass on the deal.  By first figuring out what your needs are from the investment, you can then build a template to use in order to quickly analyze deals.   #3 Inheriting someone else’s nightmare: Just because the seller says “yes” or makes it “easy” to buy their property that does not necessarily make it a worthwhile investment.  Don’t be in a rush to just “do a deal”   #4 Getting caught up in bidding wars: Cash buyers often get caught up in bidding wars...99% of the time this results in the buyer overpaying for the property.  Avoid bidding wars at all costs.  Instead, focus on finding problems, not properties.  To us that means looking for properties that are not necessarily “for sale”, this alone helps eliminate the competition.   #5 Getting a real estate license to gain MLS access: The MLS can be a great tool...for those that sell houses for others.  As an investor, it helps to instead focus on opportunities that are not “for sale” whenever possible.  The Multiple Listing Services are simply a tool, however similar services are available that provide the same information for about 75% less cost than having a real estate license.   #6 Being sucked into the “Guru Hype”: Real estate is not easy, and its NOT a get rich quick scenario.  There is no secret sales script, no secret formula.  There is no single course or software program that will “do it for you”.  Instead it takes hard work, self discipline and determination.   Are you stuck in your progress and need help?  Go to www.cashflowguys.com/asktyler to book a 30 minute consultation with Tyler and begin to Learn To Earn.

This episode was born when Tyler was out in the field recently at an open house.  The home was priced at $105,000 and was a two bedroom / two bath home that would rent for $950 per month.  Real estate agents were parading untrained “investors” around showing them a retail property that clearly will not perform well as a rental at the $105k price point.  The property is priced for an owner occupant.  It became clear to Tyler that these unsuspecting “investors” were unknowingly being lead into a losing situation by inexperienced real estate agents.   First off, knowing what “fair market” rent will be is a critical part of the process.  This takes work….picking up the phone, calling landlords and property managers that rent properties very similar to the one you are thinking about buying.  When doing this, call older ads that by now should already be rented.  This is important to obtain factual information on how much it rented for, versus “asking” rent price.   As in investor, you should have a solid handle on the rental market in the neighborhood your properties are located in.  Comparable properties can only be considered if they are in similar locations, with similar amenities and are in similar condition.  This is the first reason why an experienced property manager is a critical member of your team.   Go / No Go Quick Test Method:   Take the monthly market rent and divide that by 1.5%   $950 Rent Divided by 1.5% = $63,300 which is the maximum acquisition cost we can be at to cashflow appropriately.   In the above example, at $105,000 purchase price let’s figure out how much the property would need to rent for in order to “make sense” as an investment property for the CashFlowGuys.  Here is the math….   $105,000 Purchase Price X 1.5% $1,575 per month is what it should rent for to qualify as a “go” in our quick test method.   Will the property “cashflow” at less than $1,575 per month rent?  The short answer is “it depends”   An investor must consider their “cost of funds” EVEN IF PAYING CASH.     The cash you invest should have a cost of funds figure attached to it because it can and should be out earning you more money...otherwise why have it?   Below is a breakdown of how cost of funds and terms affect your net return using the $105,000 house that rents for $950 per month:   Purchase Type Monthly Cashflow Cash on Cash Return Cash $466.00 5.2% 15 yr Loan 6% & 30% Down $154.00 -5.5% 30 yr Loan 6% & 30% Down $26.00 .9%   As you can see….for us this is a No Go opportunity.   For an investor to be profitable, they MUST factor all their costs….that means everything.   Here is the “short list” Lawn Care Utilities Cleaning and Maintenence Capital Expenditures Insurance Legal and Professional Fees Management Costs Taxes (Property and Income) Flood Insurance Advertising Travel Vacancy Loss   As Robert and Russ aka “The Real Estate Guys” always say “Do the math and the math will tell you what to do”   Want to connect with us on Facebook? Go to CashFlowGuys.com/group  

“Guru’s” will tell you that anyone can use their system and get rich in 30-90 days by “flipping” real estate.  They continue to bleed you dry with secret sauce software systems that promise to “do all the work for you”.  RUBBISH!!!   Making money in real estate takes work….LOTS of work.  There is no software program that does it all, there is no secret script that will lure people into giving you their home.   Finding your way to success in real estate takes practice.  It takes patience, and it takes being comfortable with being uncomfortable.  The best (and fastest way) to learn and succeed is to practice, fail, practice, fail and practice some more.   In this episode, Tyler uncovers many of the methods he has used to raise quick capital that was later used to invest in order to make MORE money.   Retail Arbitrage is “whole-tailing” in its purest form.  Buying something at a significant discount, shining it up a little and reselling it for a profit is what the game is all about.  Next, Tyler unveils his methods of “flipping” everyday items on eBay and Craigslist for big profits.   Learning how to discover opportunity takes time and research.  Look on craigslist for items that you know about….for example you are a boater….focus on boating items.  Find things that people do not want, and negotiate the price down as low as possible.  By now; you have done your research to know what the item will sell for once fixed up.  Once you have the item, clean it up, take great photos and write a great description.  You can then resell these items on Craigslist, eBay, Amazon or the like for significant returns. Sounds like lots of work right?  Real Estate is even more work, however the rewards are much greater.   As a real estate investor, you have to learn how to source opportunity.  A savvy investor is also a great negotiator and an even better salesman! Building relationships with sellers and buyers is a critical part of the process.  The methods in this episode allow you to build these skills to prepare you for a career in real estate investing.   As always, to interact with Tyler and his team on Facebook, go to www.CashFlowGuys.com/group.  If you would like to book a 30 minute consultation with Tyler to discuss how to get started today go to www.CashFlowGuys.com/asktyler  

024 Flipping Short Sales and Foreclosures with Attorney Shawn Yesner   Introducing Shawn Yesner of the Yesner Law Group, he is part of the Cash Flow Guys legal team as our local Real Estate Attorney.  Before opening his own Law Firm; he was a staff attorney with a firm that represented the banks in foreclosure cases.  Shawn later “switched sides” and begun representing defendants in foreclosure cases.  Those experiences quickly positioned him as an expert in real estate related law.   Tyler and Shawn discuss some of the benefits of Land Trusts that relate to anonymity.  As taught in Larry Harbolt’s Land Trust course, Land Trusts provide a certain layer of asset protection because those who may sue you will have difficulty finding your assets if placed in a trust.   The next topic discussed is building a legal team and taking the steps necessary to effectively protect yourself from liabilities.  As a real estate investor, it is critical to have an attorney in the state where your investment properties are located.  There are websites that slap together LLC’s and other legal entities that are all about volume and not about quality.  The entity you create is only as solid as the person who creates it.  If you are not a lawyer specializing in this type of law, don’t pretend to be one.  Entity creation needs to be done correctly in order for the entity to provide the levels of protection that the owner intended.   Next we discuss short sales, and the bank’s outlook on this type of selling procedure.  Shawn discusses the Mortgage Debt Relief Act and how this act is commonly misunderstood by homeowners and investors.  As an investor dealing with short sales, avoid giving tax or legal advice to homeowners in regard to how a short sale or foreclosure will impact them.  At a minimum, refer them to a CPA that can look at the taxpayer’s individual tax situation and provide good solid advice that applies to that taxpayer specifically.   When discussing contract law, Shawn discusses some of the most common mistakes that Realtors and investors make when completing real estate contracts.  Leaving blanks on the contract or failing to list the “included items” on a contract often can lead to big surprises on closing day.   Sometimes buyers and sellers choose to ignore the contracts they sign and simply chose not to do what they say.  Buyers have the remedy of “Specific Performance” available to them to help motivate a seller to do what they agreed to initially.  The problem is, this method of enforcement usually involves bringing a lawsuit therefore the buyer should weigh the cost of this into the decision process.  A more prudent method would be to have a calm and rational discussion with the uncooperative party to seek a fair resolution.  This is one benefit of hiring a Realtor to assist with this task.   If you are buying property in the Tampa Bay Area or anywhere in Florida, give Shawn a call at (813) 774-3013 or visit YesnerLaw.com For more free legal advice you can listen to Shawn’s Podcast on iTunes @ http://apple.co/1W63zDH

Patrick is the President and CEO of Paradigm Life and the host of The Wealth Standard Podcast since 2007. With a background in economics and marketing, Patrick immediately realized the opportunity to teach investors, business owners, professionals and families on a large scale using modern digital media and communication technology.  To help accomplish his mission he formed Paradigm Life to accomplish just that.   Patrick has shared the stage with financial experts such as Robert Kiyosaki, Peter Schiff, G Edward Griffin, Tom Hopkins, Blair Singer, Donald Trump Jr and more. Patrick co-created the Cash Flow Wealth Summit (www.cashflowwealthsummit.com) with his friends Tom Wheelwright, CPA of Provision Wealth and Andy Tanner, the author of 401Kaos and Stock Market Cash Flow.     Patrick joins us in this episode to discuss a little known wealth building strategy know as Infinite Banking.  This strategy involves strategically established insurance policies that enable the investor to earn a return on their policy investments while maintaining a certain degree of liquidity.  The business cycle theory states that when excess cash is not working, investing becomes more risky as investors search for places to place their money to make it work for them.  Infinite banking helps offset some of that risk by allowing the investor to earn structured returns on their cash reserves.   During this episode we discuss how our emotions lead us to impulsive investing decisions.  By taking the time to establish benchmarks for your investment criteria, the investor can make far more logical choices.  When we take the time to discover “why” we want (or need) to make an investment we can take more calculated decisions that lead to greater benefit matched with reduced risk.   The Cash Flow Wealth Summit was created by Patrick and his friends to educate the public on financial matters and help people increase their financial intelligence.  The Summit is provided Free of Charge to those who are willing to invest the time to simply watch and listen.   Building wealth can be scary, challenging and confusing, to book a 30 minute consultation with Tyler to get help finding clarity go to CashFlowGuys.com/AskTyler   To join our closed FaceBook Group visit CashFlowGuys.com/Group  

Mark is a Business Coach and CEO of Smarter Mojo. He is also known as the “Chief Witch Doctor” at Smarter Mojo.  Mark Komula is a Certified Hypnotist, Certified Life Coach and is Certified as a Neuro Linguistic Programming Practitioner or (NLP).  He holds a Masters in Technology and a Masters in Business Administration.  He has also worked as a college professor and a network engineer before founding Smarter Mojo.   Mark explains that humans evolved by learning two things in two ways, familiar and unfamiliar.  Unfamiliar came to be classified as fear and then used as a self protection mechanism.  In today’s society, fear is the emotion attached to something a person may not have done before, such as fear of public speaking or writing offers.   Mark explains up to about age seven, we classify events with emotions.  Tyler asks that once a person identifies the fear can fear be unlearned?  Mark has two ways to conquer a fear;   1) Doing it, or 2) Imagine doing it.   Tyler asks Mark how to help folks through taking forward action.  Mark stated people should find someone that is willing to listen, or playing the game like the Cashflow game can help. Mark has written a book, to be released called “The Curse of Fear - Witchdoctor’s RX to Banishing Fear”.  Mark’s book is scheduled to be released in the beginning of May this year.  Mark is able to help anyone conquer fear, regardless of location via an online or telephone consultation.     Tyler explains in today’s society the general mindset is to “finance” what we cannot buy right now with credit cards and high interest loans.  Gone are the days when our culture was to save for what we wanted to buy or use “layaway”.   It is time for a mindset shift to the mindset of the rich which is to use debt to acquire cash flowing assets that in turn provide you the cash to buy whatever you want or need.  There is good debt and bad debt. Good debt is buying assets the can provide cash flow and be leveraged to build wealth. Bad debt is debt incurred buying things that do not provide cash flow or, as described by Robert Kiyosaki as doodads.     Mark provides a 30 minute free consultation. He can be reached by phone at 813-748-7747,  or http://www.smartermojo.com. His book can be found on http://www.witchdoctorrx.com. For a limited time, free copies of the book will be available.   Tyler announces The Cashflow Guys has a new Facebook Group. The CashflowGuys.com/Group. The group is a way for our listeners to be able to communicate with each other, share ideas, or ask questions to Tyler Sheff and his team. Notable Mentions: Who Moved My Cheese, written by Spencer Johnson If you have ever considered getting involved in real estate investing, book a free consultation with Tyler to learn more about how to escape the rat race. You may also contact us via email at: info@cashflowguys.com  

In this episode we welcome back a true real estate investing legend, Larry Harbolt is a nationally known educator and speaker on the topic of real estate investing.  With over 35 years of hands on experience, Larry has literally written the book on many topics related to real estate investing. Larry hosts a 4 day seminar titled “Never Step Into a Bank Again” workshop.  During this four day event, Larry covers many specific topics related to building relationships, structuring deals and the nuts and bolts involved in bringing a deal to the closing table. Larry teaches that before running right out and asking people to hold financing for you on their home, you must first take time to do your research.  Larry’s research involves finding homeowners that have no debt on their home (100% equity).  The second requirement for Larry is that the homes are not owner occupied. One of the reasons his criteria focuses on homes that are not owner occupied is because those sellers generally incur a higher capital gains tax obligation when they sell their home.  By agreeing to carry back a note and accept payments over time for their home, they can reduce the capital gains tax obligation and also spread it over many years.  Larry reminds us to ALWAYS seek guidance from a Certified Tax Professional when making decisions that involve taxation. Larry’s method involves understand the market, and by selecting houses that are ideal for long term hold as rental property.  His beliefs are that “wholesaling” and “flipping” are a job, yet investing for cashflow with rental properties is true investing at its finest.  To be successful, you must first locate the “right type” of house. Seller financing is a strategy that is built around relationships, the seller must know like and trust you in order for you to be successful using this strategy.  By taking time to build a relationship with a seller, an investor can negotiate a deal that creates a win/win scenario for both buyer and seller. Larry’s methods involve presenting more than one option to the seller and then allowing them to pick which one is the best fit for them.  When putting together these offers, Larry is focused on all options providing a true solution to the seller's problem.  By taking the time to educate the seller, they are better able to make informed decisions.  Many sellers don’t “need” the cash proceeds from the sale of their home, they really need the cash for something else. An example used in the show is a seller with medical bills.  The seller “thinks” they “need” cash for their home to pay those medical bills.  Larry teaches them that he can make arrangements to cover those medical bills AND show them a nice return on their biggest investment (their home).  Larry can then make payment arrangements with the hospital and often negotiate those medical bills down to a lower amount.  When he is successful with that strategy, he saves himself money because those bills are his responsibility. Larry also covers the importance of targeted marketing when prospecting for sellers.  This is a huge money saver as well as a time saver. Larry’s seller financing course brings in students from all over the country.  This four day course is one of the few courses endorsed by the CashFlowGuys. If you choose to take this course, you receive the following: 3 volumes with over 450 pages of Key Investor Techniques and strategies 14 Audio CD’s 4 Document CD’s 4 Bonus Money Making Audio CD’s 8 Advanced Quick Study Laminated Worksheets and Formulas Plus 3 Bonus Advanced Strategy “Investor’s Secret” books: The Psychology of Effective Negotiating 101; How to Deal with Contractors Like a Rehab Pro and Shortcuts to Success - The Four Questions You Must Know To Succeed in Today’s Market Larry’s Website can be found at www.LarryHarbolt.com His Email address is LarryHarbolt@gmail.com or via telephone at (727) 420-4810 Once you become a student of Larry Harbolt he is available to answer your questions at any time in the future, you may also attend the course over and over as often as you want.

For some investing across the street can be terrifying…..imagine how it feels to invest in properties located in other parts of the world!!! Meet Reed Goossens, Founder of RSN Property Group and the host of “Investing in the US Podcast” (An Aussie’s Guide to US Real Estate). Reed moved to the US in 2012 to pursue a career in structural engineering; however developed a passion for investing in real estate after reading Robert Kiyosaki’s Rich Dad Poor Dad (imagine that) Reed discovered early on that in order to succeed, he needed to get comfortable with being uncomfortable.  Reed needed to pull triggers and get used to the feeling….and Reed did just that in a Big Way! Many investors start out with houses and ever go beyond them.  Although Reed began with houses, he quickly took the leap into multi family and now takes down several hundred unit deals with his assistance of his cracking team.  Reed’s confidence came in part from taking the steps to network and build relationships. Building relationships is the #1 way to build wealth in today’s market.  Relationships are critical to build effective teams that are able to perform when it counts.  When entering into any business relationship, it is critical to first determine the needs of all parties involved in the opportunity.  Taking the time to listen to those who you are involved with in a transaction allows a relationship that is beneficial to all. Reed took on a mentor early in his investment career which he attributes to helping him to fast track his success in creating and sourcing the teams to develop “cracking” deals for his investors.  As Reed took massive action to meet people, analyze deals and increase his knowledge, his success increased rapidly.  By using seller financing strategies Reed is able to save the seller’s he deals with tons of money on income taxes they would have otherwise had to pay. Reed hosts networking events in the LA / Southern California area and is always looking to meet new people and help them as needed with their investments.  Reed can be reached as follows: Website: www.RSNPropertyGroup.com Twitter: www.Twitter.com/reedgoossens Facebook: www.facebook.com/RSNPropertyGroup/ Reed Goossens Cell Phone: 323-519-1111