Land Flipping to Financial Freedom with Scott Bossman – CREPN #238

Land Flipping to Financial Freedom is exactly what Scott Bossman has done.

In this episode, you will learn how Scott Bossman realized that his W2 job as a Physical Therapist was not going to provide for his future as he had hoped. Once he realized this, he searched for something that could help him out of his predicament. That’s when he found Mark Poldoski and TheLandGeek.com.

“I purchased my first property about six weeks after I got Mark’s, basic training program. And this may sound funny to a lot of real estate investors out there, but for me, this is a big deal. I purchased a two and a half acre property for $700, and two weeks later I sold it for $2,800 cash. So that for me, right there was just huge proof of concept. I just tripled my money on a land deal. And I’m a physical therapist. Like I don’t have an ounce of business or, or real estate or you know, anything in my body, sales or marketing, I’m not an economist, nothing. And I took this, I took $700 and I turned it into $2,800. That’s what I knew. I was onto something. And, shortly after that, uh, I went into one on one coaching with the Land Geek program, which is a year long intensive process to, to get you to the point where you have a machine up and running. And in that first year we bought and sold 30 properties. In the second year we about doubled that and our business has continued to grow since.”

Now Scott has financial freedom, control of his time and a secure future.

Credit is Key to Financial Freedom with Debbie Bloyd – CREPN #229

Credit is key to your financial freedom.

Debbie Bloyd is the principal at DLBmortgageservices.com where she provides mortgage and insurance service for her clients. In order to qualify for the best lender rate or insurance product, good credit is key.

Your Credit

Your credit score is the measuring stick for all potential creditors to determine your ability to pay back your obligations. Sadly, Debbie finds there are two types of borrowers. Those who are well educated about credit, with excellent credit, and those who are uneducated and have horrible credit.

Too many people do not understand the basics when it comes to personal finances. While it is true, you have to use credit to establish credit, you have to use it wisely. Maxing out all of your available credit cards negatively affects your credit rating. The algorithm used to determine your score will negatively reduce your score if you have no available credit. So, to maintain a good credit score, don’t max out your credit.

Additionally, many people suffer a trauma or event that they are unable to pay for. If this happens to you, ignoring it and hoping it will go away is not a solution. When you don’t pay your debt, your creditor will report to the credit agencies that you have not paid your account as agreed, and your credit score will suffer badly. If something happens to you, engage your creditors for a payment plan and make the payments as agreed. Or get help to rebuild your credit.

Building Your Credit

You have to use your credit in order to build it. Where can you get credit? Student loans, car loans, credit cards, and professionally managed apartments will all report to the credit bureaus. If you have too many open accounts, it will negatively affect your credit.

Remember, buying stuff to impress people you do not know is not the way to build your credit.

Decisions

Making good decisions is key to building your credit and creating financial freedom. Debbie finds that many millennials make good income, but they are unwilling to make tough decisions that will provide long term financial freedom.

Instead of renting a less expensive property and saving money for a down payment, they would rather rent the expensive new apartment and live the good life now. Renting will not help them build equity.

If you can’t afford a down payment, you have to make a decision. You can either increase your income and lower your expenses. It is likely that it will be easier for you to lower your expenses right away. Over time your savings will add up and provide you the nest egg needed to start building your financial freedom.

Financial Freedom

If you want financial freedom, you have to make the tough decisions that will provide you the path to ownership. Leasing the newest most expensive car will not help you build your financial freedom. To build your financial freedom, you have to have ownership.

Home loan interest rates are the lowest they have been. There is not a better time to get in the ownership market. Current rates are for owner occupied properties are in the low 3% and non owner occupied are in the low 4’s.

A great way to get started is to buy a fixer upper. Buy low, improve the property and your sweat equity gives you the opportunity to grow wealth. Now you have options. If you want to move into a larger property, you can use your equity for the down payment on a larger home and end up with an affordable mortgage. Or if you want to add a rental property, you can borrow the equity from your primary home to buy a rental home.

This is the path to your financial freedom.

BIGGEST RISK

Each week I ask my guest, “What is the Biggest Risk Real Estate Investors face?”

BIGGEST RISK:

I think the BIGGEST RISK is that we’re going to be running out of money and we’re growing too old. So what I see happening to families, either with money or without money, is they’re outliving their money. People say, how much do you need to have to retire? And I said, more than you think. And they’re like, well, how much is enough? I don’t know. It depends on how you want to live.

And so I have most of my seniors either out living their money. And that’s a huge concern for them. And they don’t start worrying about that until it’s too late to do anything about it. You and I both know long term care policies. You can buy those at a young age. You can buy the middle aged. You can buy them when you’re 60. But after about 65, they become unaffordable.

People are thinking too late because we don’t know how old you are. Fifty five. I feel like I’m 35. I probably look like more like I’m 45. But I still mentally, I don’t feel old at all. And so I think a lot of people that are baby boomers much older than us are in their 70s and they don’t feel old at all.

But what happens is things are going to start going wrong with them and they’re not protected. They never thought they’d, number one, get to be this old or no to have anything happen to them. And they’re not prepared and wipes out entire families.

For more go to:

Website:http://www.moneystrategieswithdebbie.com

Facebook: Debbie Bloyd

Financial Freedom with Damion Lupo – CREPN #211

Financial Freedom is the goal for every working person. Unfortunately, most never achieve their goal.

Damion Lupo is an Insurance agent, turned real estate investor who lost it all in the 2008 crash. Instead of making the same mistakes all over again, he sought answers to change his course.

His journey has led him to become a best selling author, podcast host and entrepreneur responsible for over 50 company start ups and created. Additionally, he has started a Martial Arts Yokido. Today his mission is to free 1,000,000 people from financial bondage.

The answers he found continued to provide more clarity as he started asking more specific questions. What is wealth?

Fear of Risk

Luckily for Damion, he grew up poor. He wanted to play video games, but his parents did not have the money to buy him games. This did not stop Damion. Instead, he figured out a way to make money trading games between his friends.

His entrepreneurial spirit continued into adulthood. He wanted financial freedom. To get there, he needed to make a lot of money, and realized that insurance was not the path, but real estate was. So, he sold his insurance book and chased his dream in real estate. On paper he was worth millions. However, when the crash happened, he lost it all.

Unfortunately, kids today are insulated from risk and making mistakes. Their helicopter parents have prevented kids from making mistakes and learning the lessons available only from making mistakes. Additionally, technology has made it easy to not connect. If things get awkward and you don’t like the person, swipe right, and find someone new. The outcome is a generation of scared adults.

Success is a Terrible Teacher

Success is a terrible teacher. When you are successful, you can fall victim to the thought process that you can do no wrong. Failure is a terrific teacher. Whether it cost you money, time, or embarrassment, there are terrific lessons in failure.

There is a formula for wealth. You have to think, ask questions and seek answers. If you focus on the formula instead of the feel good in the moment, you can fine tune your direction and priorities.

What is True?

What is true? After Damion’s crash, he worked to not repeat the mistakes. He asked himself with the help of another, over and over, “What is True?” When he came to an answer, he asked the question again to dive into the next layer. He did this for multiple years His process lead him to one truth, he is a teacher.

What’s the difference between a mentor and a coach? The mentor has experience and has made mistakes. The coach has studied the topic, without having risked loss. Damion recognized all of his mistakes had value. He could teach others seeking answers.

Financial Freedom

True Financial Freedom comes from having focus, and expertise that others are willing to pay for. If you lack focus, and are all over the place, you will have no expertise and no value. Instead, focus. Get laser focused. Develop knowledge and expertise. This expertise, will allow you to see the opportunities before others.

Mastery is subtle. It requires long term commitment to achieve true mastery. Most will fail to see the value in the journey to mastery.

If you are an entrepreneur, you have additional options such as EQRP. If you have kids, you can hire them and pay them up to $12,000 each year. The payroll expense is a deduction for your company, and the $12,000 is tax free to your kids.

BIGGEST RISK

Each week I ask my guest, “What is the Biggest Risk Real Estate Investors face?”

BIGGEST RISK: Avoiding risk is the BIGGEST RISK. I mean when you’re when you’re three you avoid, minimizing and transferring. And when I see avoiding risk people, in general, are taught, and we talked about helicopter parenting. People are taught to avoid risk. I have a painter who’s a brilliant artist and he was avoiding risk of going out on its own and so he kept working at Costco to get health benefits at 22 years old. And I look at him and said What is wrong with you. You realize you can go buy insurance for your health. Like are you sick. I mean do you have some crazy disease. He said, No I just you know it’s it’s expensive. The problem is we make up these things in our brain. And so here’s here’s how you shift. You get educated. By with people that actually have an understanding and you learn by doing stuff. So there’s there’s ways you can you can learn. You can go out and just run into the street and say OK what’s going to happen you’re going to get run over. Or you can say OK I’m going to go look for a mentor that has a reputation maybe he’s bald or Gray has been out there, and and get that person to help guide you and you take action.

For more go to: https://damionlupo.com/

CREPN #182 What Wealthy CRE Professionals Do That Most of Us Do Not with Doug Marshall

What are wealthy CRE Professionals doing that most of do not?

Doug Marshall is the principal at Marshall Commercial Funding. Additionally, he is a CCIM, author and a returning guest to CREPN Radio. In this episode, he shares five points he learned from his commercial real estate clients that have changed his financial fortunes significantly for the better. And more importantly, how you too can leverage your relations with your commercial real estate clients.

For the first 24 years as a commercial real estate professional, I was on the never-ending hamster wheel of low paying jobs. I was living paycheck to paycheck. I was just barely getting by financially.

My financial situation went from bad to worse when I decided to make the transition from banker to mortgage broker at the age of forty-six. I was hired by a mortgage brokerage firm as an independent contractor which meant I received no salary and no health insurance. I didn’t even receive a draw. I was totally without a safety net and that first year I made a whopping $7,000. I quickly went through the little savings I had and started borrowing against the equity in my house. To say that time in my life was emotionally painful is a huge understatement.

The next four years I saw steady gains in my commission income but not enough to live comfortably, let alone put money aside for retirement. During my fifth year as a mortgage broker, I came across the Albert Einstein definition of insanity. “Insanity is doing the same thing over again, expecting different results.” I kept asking myself over and over again, “I’ve been working at this company now for five years and I’ve barely scraped by financially. What makes me think my sixth year will be any better than my first five years?” And the honest answer was, I couldn’t expect my 6th year to be any better than the previous five years.

Something had to change

I realized something had to change. After much consideration I decided I needed to take the great leap into the unknown and start my own business. So at the age of 51, I started Marshall Commercial Funding which turned out to be the best business decision I ever made. For the first time in my career I was making good money. Boy that felt really good. But even so I knew there was no way that I was going to retire well.

You see I could do the math and I understood I was too close to retirement to make up for the hard, lean years. I realized it was very likely I may never be able to retire at all.

But I also realized that my clients were doing quite well financially. Their liquidity and net worth were growing rapidly. That is no exaggeration. I have a number of repeat clients and I saw how their financial strength increased dramatically from one year to the next. It was an amazing thing to watch! And I knew at that point that the only way I was going to retire well was if I started investing in commercial real estate. That was the only way of getting off the hamster wheel.

My financial situation improved dramatically

So, twelve years ago I started investing in commercial real estate. And my financial situation has gone from very bleak to very good. Because of my real estate investments, my net worth and liquidity have grown dramatically.

Not only could I retire if I chose to, but I could do so comfortably. The passive income from my rental properties when added to my future Social Security checks significantly exceeds my personal expenses. Today I am one of a small group of investors that owns several rental properties valued at over $50 million. So that’s my story.

Most Americans aren’t going to retire well

Why am I telling you this? I believe that many of you listening to me right now, are either living paycheck to paycheck or you realize that you aren’t going to retire well.

Here are a few recent statistics:

40% of adults can’t cover a $400 emergency expense with cash
45% of adults have nothing saved for retirement
63% of Americans at age 65 are dependent on Social Security, relatives, friends, or charity
80% of Americans believe they will not have enough saved for retirement

I understand why most Americans would have a difficult time saving for retirement. But those of us who are commercial real estate professionals we have a distinct advantage over most people. Every one of us, reading this, in our own way, contributes to the success of our clients. But there is no reason why we can’t go along for the ride.

And that is what some of us have done. Do you want to know what wealthy CRE professionals do that most of us do not? They invest in commercial real estate. Now throughout this reading, I’m going to ask you to raise your hands or sometimes to nod your heads. I’m doing so because I need your feedback. As practice, by a show of hands, how many of you currently own a rental property?

Which brings me to my first point:

Point #1 – There is real wealth to be created in owning commercial real estate

Those who just raised their hands will tell you owning CRE creates wealth. It’s not a myth. It’s not a get rich quick scheme. It actually works. My book, Mastering the Art of Commercial Real Estate Investing, shows you how to do it. I’m going to give you a couple of tidbits from the book today to get you started on learning how to build wealth and grow passive income.

For those of you who didn’t raise your hand, this is my goal for you today: When you done reading, you’ll know what’s holding you back and you’ll know the steps you need to take in order to achieve financial freedom.

Today I am going to share with you 5 critically important points that have the potential of being life changing. Actually, I’ve already shared the first point: There is real wealth to be created in owning commercial real estate.

The second step to achieving financial freedom is this:

Point #2 – The savings generated from active income, i.e., your day job, will be invested in assets that generate passive income.

So we are all on the same page, let me define what I mean by financial freedom. Financial freedom is achieved when your monthly sources of passive income consistently and substantially exceed your monthly personal expenses. When that day happens you no longer need to work for a living. Congratulations! You’ve stepped off the hamster wheel.

Passive vs Active Income

But notice I said passive income. What is passive income? Passive income is cash flow received that requires little to no effort by the recipient to maintain it. Another name for passive income is mailbox money because it comes in the mail without lifting a finger. Here are some examples of mailbox money.

Annuities
Book royalties
Dividends from stocks
Owner distributions from rental properties
Pension
Social Security checks

The source of passive income I believe hands down has the best opportunity for creating wealth and growing passive income is commercial real estate investing.

Active income, on the other hand, comes from performing a service. Your day job is a perfect example of active income. In order to receive a paycheck, you must perform a service. So what you do for a living is a form of active, not passive income.

Two obstacles to investing in passive sources of income

But there’s a problem. We may agree intellectually that we should invest in assets that generate passive sources of income, but most of us will fail miserably to put our plan into action. Why? Because other purchases like a new car, an exotic vacation or a nicer home will tempt us to spend our money elsewhere. If that doesn’t cause you to stumble the next obstacle does: You’ve been brainwashed and incentivized to put your savings into an IRA or 401(k) plan. And what types of assets do you normally purchase for these types of accounts? Stocks and bonds that generate little or no passive income.

The benefit of investing in assets that generate passive income

Some of you are thinking, “Why is it important to generate passive income. I’m very happy with the return I’m getting on my 401(k) or IRA?” Right? Fast forward to the day you retire. If your assets are in stocks, bonds, precious metals, land, art, collectibles (anything that doesn’t generate passive income) how are you going to live off them? You will live off them by slowly liquidating them over time. Right? What happens if you live longer than your assets do? You’re toast. You end up being like the vast majority of Americans who will eventually end up dependent on Social Security, friends, family or charity.

Not so with commercial real estate. You do not live off liquidating your rental properties. You live off the passive income generated from your rental properties. And this passive income slowly builds over time. So when your passive income from your rental properties coupled with your future Social Security checks consistently and significantly exceeds your monthly personal expenses, you have attained financial freedom. In other words, you could live to be 120 and you’ll never run out of money.

So the second step to financial freedom is to invest your savings generated from your day job into rental properties that generate passive income.

The third step to financial freedom is this:

Point #3 – Everything we really want in life is on the other side of fear.

Think about that statement for a moment. Is it true? I believe it is. Remember that first kiss? How about the first time you did anything well? A solo, a speech, an athletic endeavor? Do you remember that fear you felt that gave way to relief? And then to joy? Those are examples of doing something that you really wanted to do well, and you overcame your fear and did it.

I believe the number one reason we don’t invest in CRE is fear. Fear of failure is all about looking foolish in the eyes of your family and friends if things go wrong. I get it. I really do. But it doesn’t have to be this way. Those of us who are reluctant to invest in CRE need to adopt a different mindset of, “You either win or you learn.” In everything we do, we either win (we make the right decision) or we learn an important lesson so next time we have a better outcome. Sometimes your investment is a home run, and sometimes you learn what not to do so next time has a higher probability of being a success.

An example of overcoming the fear of failure

In 2009, a group of like-minded investors banded together to purchase a 56 unit apartment that had been taken over by the bank. Do you remember what was going on in 2009? We were in the depths of the Great Recession. The real estate market was in a freefall. Everybody and their brother was running away from real estate in 2009 and here we were thinking about buying an apartment. What were we thinking!! Had we lost our minds?? Was I fearful? You bet I was! But I kept looking at the numbers and it made sense to me. Eventually I decided to proceed and looking back on it now, it was the best investment I’ve ever made. For every dollar invested we received $6 dollars back in owner distributions or in increased equity. But before I could invest, I had to get over the fear of failure.

Winston Churchill quote

Some of you are being held back from investing because you too are fearful. Winston Churchill said it best when he said, “Success is not final, failure is not fatal; it is the courage to continue that counts.” To succeed in life, we must realize that everything we really want in life is on the other side of fear. Does that make sense?

So the fourth point we are going to discuss is this:

Point #4 – The best way for most of us to invest in CRE is as a passive not an active investor.

How many of you are thinking some like this: “Fear is not holding me back from investing in commercial real estate. My problem is I don’t have the time, the experience or the financial resources to be investing in rental properties. I’ve got a day job that keeps me plenty busy without adding this additional stress to my life.” So who is thinking something like this?

But this is where you’re wrong. Dead wrong. That thinking assumes that the only way to own rental properties is as an active investor. An active investor is the person who makes all the important decisions, what to buy, how much to pay for it, how to finance it and manage it. To name just a few. True, this is one way to own CRE. But many times, the active investor, also known as the managing member of an LLC, or the promoter, or the syndicator or the sponsor, can’t do it without passive investors, also called equity partners, who provide the capital needed for the down payment.

Not everyone can or should be an active investor as it requires someone who has the time, experience and resources that many of us don’t have. But if we want to retire well all of us should strive to be passive investors of commercial real estate.

In the past 12 years I’ve invested in 10 rental properties as a passive investor. My only responsibility has been that I provide some of the equity to purchase the property. I leave all the decision making to my real estate sponsor. I’m more than happy to have someone else make all the decisions while I get my monthly owner distributions. It’s kind of like the best of both worlds, don’t you think?

So the best way for most of us to invest in CRE is as a passive, not an active investor. Does that make sense?

The fifth and final point I want to make is this:

Point #5 – To succeed as a passive investor requires finding the right active investor to invest with.

Be wary of real estate syndicators

Where do you find the “right” active investor? You have two choices. You can go to one of many online crowdfunding sites and choose one. But you must qualify as an accredited investor. But the real problem with using a syndicator from a crowdfunding site is that you have no idea the character of the person you’re trusting with your hard-earned money.

One time I was considering an investment opportunity with a syndicator. On the surface everything looked legit. But I was having problems determining how much money the real estate sponsor was going to invest in the property. They kept sending me pages of details about their proposed offering, but nothing explicitly stated how much they were personally investing in the property. So I point blank asked. The answer: none! Not a penny. So if the property went belly up, it would have no financial impact on them personally. Not only that, they were making handsome fees up front coupled with a very generous fee split with the equity partners when the property was sold. It was a win, win, win for them! This was an excellent deal for the syndicator but they were treating their prospective investors like chumps. They were structuring the deal so they made out like bandits while incurring no personal investment risk if things went badly.

I’m sure there are many fine real estate syndicators that you can do business with. But I have no sure-fire way of determining who is honest and who is a wolf in sheep’s clothing. Who is offering a fair fee split for their services and who is gouging their investors? It’s sometimes hard to tell. The point I’m trying to make is this: I’m wary of syndicators that I do not know personally and you should be too.

The best and easiest way to choose an active investor

But here’s the best and easiest way of choosing an active investor to partner with. And they are right under our noses. They are our clients. For me it was an easy choice to determine who I would trust with my investment money. I do all my investing with one real estate sponsor that I’ve known for about 25 years. He’s not only my client, he has become a friend and a 7 year member of my book club. I know his excellent commercial real estate investing track record. I know that he is a man of integrity and because of that I trust him. So in 2007 I asked if I could invest with him and he gladly said yes. He said yes because I had financed several of his properties over the years and he had come to know that I was good at my craft and someone he trusted and liked. And now when he invests in a new property I am one of the first people he asks to invest with him. Better yet, I’m given first shot at doing his financing.

As a passive investor you let someone else make all the investing decisions except for one: Who do I want to trust with my money? This decision is very important, maybe the most critical of all the decisions you have to make about investing in commercial real estate.

Ask your clients these questions

So how do you go about finding the right client to invest with? It’s really a no-brainer if you’ve been a CRE professional for a number of years. Ask yourself these questions. Of all my clients:

Who consistently brings me their business?
Do they think of me as a valuable team member?
Do they trust and like me?
Of these clients, which ones invest with equity partners?
Final question: Do I trust and like them?

Raise your hand if you have someone in mind? So the next time they contact you to use your services, ask them if you could invest with them. You won’t know if you don’t ask and if you ask I bet they’ll say yes. Why wouldn’t they say yes? They use your services because they consider you the best in the business or they would go somewhere else. Right? And investors who team up with equity partners are always looking for new sources of investment capital. The worst case scenario is they say no. If that happens, don’t take it personally. They have their reasons which probably has nothing to do with you. Instead, go back and review your list of clients and go through the process again. Rinse and repeat until one of your clients enthusiastically says yes.

So the fifth and final point I want to make today is: To succeed as a passive investor requires finding the right active investor to invest with. Does that make sense?

Summary of 5 points

We talked about:

There is real wealth in owning CRE. It’s not a myth. It’s not a get rich quick scheme. It actually works.
The importance of invest your savings in assets that generate passive income.
Don’t let fear stop you. Understand that everything we really want in life is on the other side of fear.
Most of us should invest in CRE as a passive, not as an active investor.
To find the “right” active investor, invest with a trusted client who values your service and would be eager to have you as an equity partner.

Final thought

I want to leave you with this final thought: If I can do it, so can you. I wasn’t able to start investing in CRE until I was 55 years old! That’s a very late start and yet I am now able to retire well. So if I can do it, so can you.

Imagine for a moment that you start investing a modest amount this year with one of your favorite clients. As the years progress that small equity investment will grow, slowly at first but before you know it, it will be a tidy sum. Now imagine if you invested a small amount every year between now and retirement so that when you retire you have 20 or more these investments. Where do you think you’ll be financially when it’s time to retire? Yep. You’ll be able to retire in style.

Call to action

This brings us to my original point: I began my talk by expressing my hope that when you walk out of here today that you would know what’s holding you back from achieving financial freedom. If what I’ve said today describes your financial situation, either you’re living paycheck to paycheck or you know that you’re not going to retire well, then I want you to do these 3 things:

Take a moment right now and identify what’s holding you back;
Right now, determine what one thing you need to do to move the ball forward; and
Consider buying my book. On your table is a book card which identifies the book’s name and author so you can go to Amazon to purchase the book. And if you’re skeptical that this book or any book for that matter can help your financial situation, then I encourage you to download for FREE the introduction and the first 2 chapters of the book. You can do that by going to the URL found on the back side of the book card. If after reading it, it resonates with you that this book might be helpful, then buy the book. It’s as simple as that.

This is my 3-step plan for you to become financially free.

Thank you so much for your time and attention.

Source: Fed survey shows 40 percent of adults still can’t cover a $400 emergency expense, Sarah O’Brien, https://www.cnbc.com/2018/05/22/fed-survey-40-percent-of-adults-cant-cover-400-emergency-expense.html, May 22, 2018; 20 Retirement Stats That Will Blow You Away, Matthew Frankel, CFP (TMFMathGuy), https://www.fool.com/retirement/general/2016/01/26/20-retirement-stats-that-will-blow-you-away.aspx, January 26, 2016.

For more go to: https://marshallcf.com/

CREPN #126 – Financial Freedom through Multifamily Investing with Michael Blank

Financial Freedom is a common goal of real estate investors. Most start with a single family property, thinking that over time, they will grow their portfolio to provide enough income to give them freedom from working for others.

Michael Blank is an engineer turned real estate investor. His experience from single flips and analysis on what it would take to reach his goal led him to the advantages of multifamily investing.

Most new investors feel they are unable to pursue multifamily as a real estate investment strategy due to their lack of experience and lack of money.

How to Overcome Your Lack of Experience

Get some education: Some simple education will prepare you to speak intelligently with brokers and lenders. You can do this for free, or take a course. Without this, you are likely to be identified quickly as a newbie that will not get the help you need from commercial real estate brokers.
Create a team: Find the most experienced property manager in the market, a respected real estate attorney, etc, and get them on your team. This will provide you instant credibility with local brokers and lenders when you are identified as working with locally known experts.

How to Find Money

You need money to acquire a large real estate investment. The good news is there are lots of people with money to invest who are looking for opportunities to invest. High networth individuals are not finding a consistent return on their money and they are paying too much taxes.

Real estate can help these investors looking for opportunities. For this reason, it is important that you are not shy about what you are doing. Let others know that you are doing multifamily investing. Depending on how well you know them, ask if they might be interested in learning more about your opportunity.

If you don’t have the network, but have a deal, there are those who are experienced at raising capital, ie mentors and other experienced investors and can help you. This is an excellent opportunity to be an active participant in a large deal and get experience that you will need to find your next deal.

Financial Freedom

Financial freedom is available is available to you through Multifamily investing. Michael’s experience shows that from the time an investor makes the decision to become an investor, the “law of the first deal” takes hold. The first deal leads to multiple other deals, literally making the investor financially free as little as 3 – 5 years.

For more go to:

http://www.themichaelblank.com/

CREPN #100 – Three steps to Financial Freedom with Tim Rhode

Three Steps to Financial Freedom. Can it be so easy?

Financial freedom is the goal for every working adult around the world. So why do so many people struggle to get there?

Tim Rhode has come full circle. He was a poor student, part time grocery clerk and found his passion and created financial freedom through real estate.

Before you can invest, you have to be aware of your ABC’s of your personal finances.

How much is coming in?

How much is going out? What am I spending my money on each month?

What’s left to invest?

Once you have money to invest, you can pursue Financial Freedom.

The three steps to Financial Freedom:

Step 1: Awareness

It all starts with awareness. This includes getting educated about your surroundings and the people in it and where the path of progress going.

With some basic awareness, you have to jump in because you can’t win the game if you aren’t in the game.

Now you have to be willing to grind and focus.

Step 2: Become a Master

The grinding starts to pay off after you have some experience. You will start to recognize the next level of the game and how you can play it.

Step 3:

Exchange into bigger opportunities. In real estate, the 1031 Exchange is a vehicle for deferring the taxes from a real estate sale. Because you still have the would be taxes to invest, you are able to leverage up into properties that are more easy to operate.

It takes time

Quit looking for the shortcut to getting rich. Everyone has heard a story about the overnight success. But the reality is that true success takes time. If you are willing to invest in yourself and your time, doing what works, over time, you will have success.

Remember, education is a lifelong pursuit. You have to commit to continuously educating yourself.

For more goto:

Email: tim@timrhode.com

Website: 1lifefullylived.org

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CREPN # 60 – Multifamily Investing versus Single Family with Michael Blank

Michael Blank makes the case for Multifamily Investing over Single Family Investing and provides the steps needed to get your first multifamily deal.

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Michael’s educational training put him in the high flying world of tech startups where he traded time for money. After reading Rich Dad Poor Dad, he realized he wanted to make a change. He first purchased a chain of restaurants, expecting to be able to hire the right people and enjoy passive income. He soon found that as the economy goes so goes the restaurant business.

Then he made the decision to get into real estate. Since all of his capital was tied up in his restaurants, how could he get into real estate? He found others with money willing to invest in his plan.

In 2009 he recognized that he could purchase a single family property at a significant discount and resell for a handsome profit. He introduced his plan to get into real estate to some acquaintances, and was blown away by how easy it was to get financial commitment. His first commitment was $25,000 from an acquaintance.

This was a mind shift.

After successfully handling more that 30 flipps, he recognized that the revenue stream only happens when a deal is completed. This helped him turn to move multifamily.

Why do multifamily investing instead of single family?

Michael teaches and coaches investors looking to get into multifamily investing. We discuss some of the challenges students regularly face

When comparing Multifamily versus Single Family, the following are six points for consideration for an investor looking to grow to 25 doors showing which is better for each:

Multifamily

Property Management +
Control over value +
Ability to sell (25 doors) +
Ability to scale +

Single family

Affordability +
Finding Deals +

The importance of Mindset

The following myths & reasons tend to be why people don’t get into multifamily.

I don’t have

– the money.
– any experience.
– the time.
Or know where to start.

How do you raise the money?

It’s an acquired skill. Michael’s personal experience showed him that there are a lot of people with money looking for a positive return, but not able to find someone or something they trust. By networking, he was able to describe what he was doing, and mention if the knew anyone who might be interested.

How do you overcome the lack of experience?

The sample deal package is an exercise Michael teaches his students. It provides all of the necessary steps to take when an actual deal comes along. The student gets the opportunity to put a deal packet together and something to talk with potential investors about.

Where to start?

Michael takes his students on a path of action. In the first 90 days, he helps them identify daily activities to provide them the foundation of education needed to intelligently network with potential investors and professionals.

The first 30 days students learn how to:

Find deals
Speak the lingo
Analyze the deal
Determine where they want to invest using statistics & reports to support their decision.
Going forward includes daily action including three primary actions:

Meet with potential investors
Analyze deals & submit informal offers asking how flexible is the seller.
Build your team starting with the Property Manager
Finding a multifamily deal takes patience. It can take you a long time to do your first deal.

It all starts with your why and your freedom from the rat race number. Once you determine this, Michael has found that most students can achieve their number in as little as 2 to 3 deals.

The most important thing is to get the FIRST DEAL.

For more information go to: http://www.themichaelblank.com/