From Corporate Life to Real Estate Investing

00:58:55
https://www.youtube.com/watch?v=fRd2Aap6aIY

Summary

TLDRIn this episode of "20 Seconds of Courage," the hosts engage with real estate investors Jeffrey Cifo and Kevin Legrand to discuss their journeys and strategies in real estate investing. Kevin Legrand highlights the importance of setting clear investment goals suited to different real estate strategies, such as Fix and Flip or the BRRR method (Buy, Rehab, Rent, Refinance, Repeat). He shares his initial reluctance due to market fluctuations and how he overcame these challenges by educating himself and eventually taking the leap into the world of real estate. Kevin stresses the value of networking, mentorship, and building a reliable team, especially for out-of-state investments, where understanding local markets is crucial. He talks about the significance of having a financial buffer and Capital management to ensure smooth operations. He also mentions how turning real estate investment into a blend of knowledge and action can mitigate risks and enhance decisions. Moreover, he introduces his new venture "Renovation Cells," aimed at quick cosmetic renovations to increase property marketability, catering to realtors, buyers, and sellers wanting to maximize their property's value without extensive remodeling.

Takeaways

  • 🏠 Kevin began his real estate journey in 2006-2007, facing market crashes.
  • 💡 Setting clear investment goals is crucial for choosing the right strategy.
  • 🏘️ Kevin recommends the Fix and Flip strategy for beginners due to flexible exit options.
  • 👥 Building a trustworthy team is vital, especially for out-of-state investments.
  • 💪 Overcoming fear with knowledge and action is key to real estate success.
  • 📈 Keeping a financial buffer helps manage unforeseen expenses.
  • 🛠️ Kevin's new venture focuses on quick cosmetic updates to increase home value.
  • 💰 Networking with investors provides capital opportunities.
  • 🏡 Out-of-state investments often offer better returns with local expertise involvement.
  • 📚 Continuous learning and adaptation in real estate are essential for growth.

Timeline

  • 00:00:00 - 00:05:00

    Summary of Episode Introduction: The host introduces the theme of the show, focusing on real estate investment with two business partners, Jeffrey Cifo and Kevin Legrand. The essence is to explore the courage needed to leap into real estate investing.

  • 00:05:00 - 00:10:00

    Insights into Starting Real Estate Investing: Kevin Legrand discusses his journey into real estate beginning around 2006-2007 through Rich Dad Poor Dad seminars. He highlights the impact of the 2008 market crash and later strategies focusing on rental properties as the market stabilized around 2012-2015.

  • 00:10:00 - 00:15:00

    Identifying Real Estate Goals: Kevin suggests that understanding one's real estate goals is crucial before deciding on a method like wholesaling, fixing, or flipping. He emphasizes starting with a clear objective helps align with the right strategy in the complex world of real estate.

  • 00:15:00 - 00:20:00

    Examining Different Real Estate Methods: Kevin discusses the importance of being adaptable with strategies such as Fix and Flip or BRRR. Fix and Flip offers various exits if the market changes, like converting to a rental, benefiting from flexible execution.

  • 00:20:00 - 00:25:00

    Capital Considerations for Methods: The conversation transitions to differentiating capital requirements for Fix and Flip versus BRRR. Kevin advises on the presence of multiple financing options and emphasizes leveraging investors' money, showcasing the importance of networks.

  • 00:25:00 - 00:30:00

    The Role of Networks and Mentors: Kevin underscores the importance of connections and finding the right mentors who share experiences, as they can help open opportunities and support financing options, transforming investment aspirations into reality.

  • 00:30:00 - 00:35:00

    First Real Estate Deal Experiences: Kevin shares his first deal experience using private money, emphasizing partnership with those interested in real estate but without hands-on involvement. He highlights lessons learned in managing costs and efforts in a property flip.

  • 00:35:00 - 00:40:00

    Out-of-State Real Estate Investment: Kevin discusses strategies for investing out of state, emphasizing team-building and market research. He stresses how visiting properties and understanding local markets can yield profitable opportunities and mitigate risk.

  • 00:40:00 - 00:45:00

    Mindset in Real Estate Ventures: Kevin emphasizes having the right mindset, recognizing the potential in bread and butter investments elsewhere if local options are limited. He discusses his process for safely creating cash flow and managing risks.

  • 00:45:00 - 00:50:00

    Avoiding Common Pitfalls in Investing: Kevin advises new investors to consider cash buffers and risk levels, promoting thoughtful financial planning. He stresses the importance of being financially prepared for unexpected costs and strategically utilizing investment returns.

  • 00:50:00 - 00:58:55

    Developing Long-Term Real Estate Strategies: Kevin concludes with insights on scaling investments, emphasizing continuous learning and adapting strategies over time. He reflects on the patience required in building wealth and the role of smart financial decisions in growing a real estate portfolio.

Show more

Mind Map

Video Q&A

  • Who are the guests on today's podcast?

    The guests are business partners Jeffrey Cifo and Kevin Legrand.

  • What is the main topic of the podcast?

    The main topic is real estate investing.

  • What is the "BRRR method" in real estate?

    BRRR stands for Buy, Rehab, Rent, Refinance, and Repeat.

  • What did Kevin Legrand share about his first real estate investment?

    Kevin shared that his first investment was a property in South Jersey, which he successfully flipped with private funding and personal labor.

  • What is one key piece of advice Kevin gives to new investors?

    Kevin advises new investors to start with clear goals for their real estate investments.

  • How did Kevin Legrand start in real estate?

    Kevin started by educating himself through seminars, books, and eventually took action despite initial fear and market challenges.

  • What strategy does Kevin recommend for beginners in real estate?

    Kevin recommends focusing on strategies like Fix and Flip due to their multiple exit options.

  • What are Kevin's thoughts on out-of-state investing?

    Kevin believes out-of-state investing is viable and often necessary for better returns, advising to build a trustworthy local team.

  • What is the new venture Kevin is working on?

    Kevin is working on "Renovation Cells," a business focused on quick cosmetic home updates to maximize property value.

  • Why does Kevin emphasize having a team in real estate investing?

    Kevin emphasizes having a team for support, expertise, and managing tasks, especially when investing in distant locations.

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  • 00:00:02
    welcome everyone back to another episode
  • 00:00:04
    of 20 seconds of Courage uh today got my
  • 00:00:07
    business partner Jeffrey cifo and
  • 00:00:09
    another business partner Kevin Legrand
  • 00:00:11
    and we are going to talk about real
  • 00:00:13
    estate investing um with 20 seconds of
  • 00:00:16
    Courage we interview entrepreneurs that
  • 00:00:18
    take the leap of faith that build the
  • 00:00:20
    knowledge base and take the courage to
  • 00:00:22
    take the leap of faith to start
  • 00:00:24
    something new and new uh new Ventures
  • 00:00:27
    Kevin thank you for joining us today
  • 00:00:29
    course any time nice to see you both
  • 00:00:32
    good to see you too buddy um Kev real
  • 00:00:36
    estate
  • 00:00:37
    investing you let's let's get right into
  • 00:00:40
    it how how long did you do research or
  • 00:00:45
    have the idea that you wanted to jump
  • 00:00:47
    into real estate investing prior to
  • 00:00:50
    taking that leap of faith well I'll tell
  • 00:00:52
    you um gosh it was probably about 2006
  • 00:00:56
    2007 I had done some Rich Dad Poor Dad
  • 00:00:59
    seminars right right um where you learn
  • 00:01:02
    all these different methods of how to
  • 00:01:04
    invest right so whether you're going to
  • 00:01:06
    do um a bur method at the time was
  • 00:01:09
    really popular um fix and flipping was
  • 00:01:11
    really popular and of course everybody
  • 00:01:13
    told you start out with wholesaling
  • 00:01:15
    right so took a course to kind of learn
  • 00:01:17
    all that but um at the same I mean at
  • 00:01:21
    the same time right we were rolling into
  • 00:01:22
    this Market where everything was high
  • 00:01:24
    things were super expensive if you
  • 00:01:25
    remember back then and then all of a
  • 00:01:27
    sudden that market crashed so over that
  • 00:01:30
    course of like maybe two to three years
  • 00:01:32
    I was trying to learn never getting
  • 00:01:34
    started and all of a sudden there's a
  • 00:01:36
    market crash so if that ever scared
  • 00:01:38
    anybody out of it right it was that for
  • 00:01:41
    sure right yeah so the the dream kind of
  • 00:01:45
    went back that far um and then of course
  • 00:01:49
    saw around 2012 to 15 prices become
  • 00:01:54
    reasonable and um different types of
  • 00:01:57
    real estate depending on your strategy
  • 00:01:59
    became more and more attractive so as we
  • 00:02:01
    rolled into like 17 18 I really got into
  • 00:02:06
    uh rental properties because I was able
  • 00:02:08
    to see the value in the rents were
  • 00:02:11
    exceeding the cost and the coverage of
  • 00:02:15
    holding on to a property so that's how I
  • 00:02:17
    broke in okay and uh so so it was a long
  • 00:02:21
    time waiting a long time learning um but
  • 00:02:24
    I think I suffered as many people do
  • 00:02:26
    right having a corporate job and saying
  • 00:02:28
    like you know I'm going to take my money
  • 00:02:29
    and put it where lots of other people
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    around you saying are you crazy right
  • 00:02:34
    look what just happened in the real
  • 00:02:35
    estate market but um most investors will
  • 00:02:38
    tell you when most are running out is
  • 00:02:39
    when you should run in and uh in
  • 00:02:41
    hindsight that was certainly a really
  • 00:02:43
    good strategy for me I had waited a
  • 00:02:45
    little bit longer even than I should but
  • 00:02:47
    you know looking back it was a great
  • 00:02:49
    first move right so you know I want to
  • 00:02:53
    speak to people who maybe are are you
  • 00:02:57
    know two or five years behind where
  • 00:02:59
    where you are now right so do you feel
  • 00:03:03
    that learning all the different
  • 00:03:06
    strategies in the real estate investing
  • 00:03:08
    like you said um you know flipping
  • 00:03:11
    holding um the bur method was when
  • 00:03:14
    you're doing your education learning all
  • 00:03:16
    those different methods and then
  • 00:03:18
    understanding when to apply those
  • 00:03:20
    methods to the different real estate
  • 00:03:21
    market did that did that make it more
  • 00:03:25
    comfortable be like okay I'm going to
  • 00:03:26
    apply this method because of this Market
  • 00:03:29
    or is it still a caseby case basis on
  • 00:03:31
    different areas and different properties
  • 00:03:34
    yeah well looking back you know to where
  • 00:03:37
    the beginning was right I you know
  • 00:03:39
    taking a lot of advice that wholesaling
  • 00:03:42
    is the way you should start and most
  • 00:03:44
    people tell you that because a lot of
  • 00:03:45
    people start from not having any money
  • 00:03:47
    to invest right I personally don't
  • 00:03:50
    necessarily if someone was starting I'd
  • 00:03:52
    say you'd have to start with two other
  • 00:03:55
    factors first one what is your real
  • 00:03:57
    estate goal because every method is
  • 00:03:59
    going to meet a specific real estate
  • 00:04:01
    goal that you might have really think
  • 00:04:03
    you need to sit down and be thoughtful
  • 00:04:04
    about what do I want to do with real
  • 00:04:06
    estate right getting involved in real
  • 00:04:08
    estate investing is very sexy it's very
  • 00:04:11
    glamorous right but there's just such a
  • 00:04:13
    broad category it really should serve
  • 00:04:14
    its purpose right so in an example if
  • 00:04:17
    you're looking for legacy wealth or
  • 00:04:19
    something that you're going to be able
  • 00:04:20
    to you know use in your retirement and
  • 00:04:22
    collect those rents you're looking for
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    rental properties um and if you're
  • 00:04:27
    looking for quick cash right yes
  • 00:04:28
    wholesale not a lot of money out of
  • 00:04:30
    pocket but it's not a great start
  • 00:04:32
    because you need a database of Sellers
  • 00:04:34
    and you need a database of buyers and it
  • 00:04:36
    takes time and capital to build that up
  • 00:04:38
    right so um something as simple as using
  • 00:04:42
    a realtor to get into a flip right that
  • 00:04:46
    you know you could work on for three to
  • 00:04:48
    six months and then turn over in a
  • 00:04:50
    market like ours and you know have a
  • 00:04:52
    margin of safety to get some chunk money
  • 00:04:54
    into that but so the very first thing I
  • 00:04:56
    would say going back to the beginning is
  • 00:04:58
    start with a go in mind think about what
  • 00:05:01
    you want to accomplish with real estate
  • 00:05:02
    investing and then let the method match
  • 00:05:05
    and then the other thing I would say is
  • 00:05:07
    you know don't suffer from what I suffer
  • 00:05:09
    from learning all these methods right
  • 00:05:11
    because if you started with what your
  • 00:05:12
    goal is then you would know the right
  • 00:05:14
    method for you right um now that said um
  • 00:05:19
    having been where I've been and been
  • 00:05:20
    through a number of different things I
  • 00:05:22
    really do think if that fixing and
  • 00:05:25
    flipping houses is a really good start
  • 00:05:29
    and here's the
  • 00:05:30
    why there's so many exits on a Fix and
  • 00:05:33
    Flip right that if the market turns on
  • 00:05:35
    you if you've bought right you could do
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    a number of different things you can
  • 00:05:38
    have a plan b a b and c right so you can
  • 00:05:41
    exit the market with a nice profit right
  • 00:05:44
    if um market trends start to turn down
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    and you might want to hold it off a
  • 00:05:48
    little bit right you could turn it into
  • 00:05:50
    a rental right refy that short-term loan
  • 00:05:53
    out into a longer term Ro loan and God
  • 00:05:57
    knows the products are getting longer
  • 00:05:58
    and longer potentially that you could
  • 00:06:00
    stretch out that payment so that you can
  • 00:06:01
    cash flow and then likewise there's all
  • 00:06:03
    these other methods you could put on top
  • 00:06:05
    of there people hear of Burr which is
  • 00:06:07
    buy rehab refy and rent right and then
  • 00:06:12
    repeat right so you could also just find
  • 00:06:15
    a property and then say to yourself you
  • 00:06:17
    know I'm just going to fix this up only
  • 00:06:18
    to a level that's good enough to rent it
  • 00:06:20
    doesn't have to have all the top end
  • 00:06:21
    things so Midway through if you're
  • 00:06:23
    seeing the market turn on you you don't
  • 00:06:24
    have to put the high-end fixtures you
  • 00:06:26
    can really be nimble in that and with
  • 00:06:28
    that you can dovetail everything else
  • 00:06:30
    onto flipping so my humble opinion to
  • 00:06:33
    get started is to you know potentially
  • 00:06:35
    work with a realtor to find something
  • 00:06:37
    that's on market but needs work and
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    start with potentially some simple
  • 00:06:42
    cosmetic updates right and then get it
  • 00:06:45
    back on the market understand that real
  • 00:06:48
    estate investing is a lot more High
  • 00:06:50
    transactions than the one time you
  • 00:06:51
    bought your house 10 years ago maybe the
  • 00:06:53
    one time you'll sell your house 10 years
  • 00:06:54
    from now so get yourself involved in
  • 00:06:57
    what it feels like to be in the emotions
  • 00:06:59
    of oh my gosh the prices are high today
  • 00:07:01
    but my offer is only here and all that
  • 00:07:02
    stuff this way you can take the emotions
  • 00:07:04
    out of it and really do have a factual
  • 00:07:08
    um profitable business nice let's
  • 00:07:11
    actually I want to touch on on on the
  • 00:07:13
    method you just mentioned um you know
  • 00:07:15
    Fix and Flip and then the bur method and
  • 00:07:17
    stuff like that I really want to touch
  • 00:07:19
    on on Capital because uh you know Fix
  • 00:07:23
    and Flip can is a little bit different
  • 00:07:26
    than the bur method in regards to the
  • 00:07:28
    burd method is having basically correct
  • 00:07:32
    me if I'm wrong but buying the house out
  • 00:07:33
    outright because you really can't unless
  • 00:07:37
    there's enough skin in the game or you
  • 00:07:38
    force that appreciation on that house to
  • 00:07:41
    refinance it to draw the money out it
  • 00:07:43
    would be a little tougher so with the
  • 00:07:45
    bur method like if you're following the
  • 00:07:47
    method to its T um correct me if I'm
  • 00:07:50
    wrong but they basically buy the C buy
  • 00:07:52
    the house cash all at once or you know
  • 00:07:55
    buy it outright whereas you know with
  • 00:07:58
    the Fix and Flip
  • 00:08:00
    you can put only you know maybe a
  • 00:08:01
    certain amount of money down and then
  • 00:08:04
    you know Finance the flipping and
  • 00:08:06
    finance you know whether it's hard money
  • 00:08:08
    or something like that repair it and
  • 00:08:10
    then you know and sell it can so what
  • 00:08:14
    I'm trying to say is how much Capital
  • 00:08:16
    did you feel comfortable with in the
  • 00:08:19
    beginning to either you know how much
  • 00:08:21
    did you need for a down payment or and
  • 00:08:23
    what did that look like okay so there's
  • 00:08:26
    a lot of things to unpack in there like
  • 00:08:28
    one the first thing I would tell anybody
  • 00:08:29
    who wants to get involved is change your
  • 00:08:31
    mindset there's money all over the place
  • 00:08:34
    that wants to get involved in real
  • 00:08:35
    estate and then yes to your pure sense
  • 00:08:38
    of the difference between bar and fix
  • 00:08:39
    and flipping buying outright now I have
  • 00:08:42
    a different opinion of that right so in
  • 00:08:45
    the money partners and the hard money
  • 00:08:47
    lenders that I use they've got a number
  • 00:08:48
    of different products right that'll
  • 00:08:50
    allow you to get involved into a rehab
  • 00:08:52
    rental rehab right and then on the other
  • 00:08:55
    side of it as long as you're giving them
  • 00:08:57
    that what's called a dscr loan which is
  • 00:08:59
    based off you know you're refinancing
  • 00:09:01
    based off the value that you put in it
  • 00:09:03
    on top of a calculation versus the
  • 00:09:05
    incoming rent for their margin of safety
  • 00:09:08
    so there's plenty of lenders out there
  • 00:09:10
    that you can start to talk to work with
  • 00:09:12
    and talk about what their programs are
  • 00:09:15
    and then likewise there are a lot of
  • 00:09:17
    folks who have corporate jobs but have
  • 00:09:20
    maybe 30 to $50,000 sitting on the side
  • 00:09:23
    and they could Gap fund you in and put
  • 00:09:25
    that down payment money in for you right
  • 00:09:28
    you're giving
  • 00:09:30
    you know an interest rate over that
  • 00:09:32
    period of time usually a little bit more
  • 00:09:34
    aggressive but again if you're going to
  • 00:09:36
    pay them let's say 12 anywhere between
  • 00:09:37
    12 and 18% for gapping you $50,000 but
  • 00:09:40
    you're going to make 80 on the other
  • 00:09:42
    side either way why would you not do
  • 00:09:44
    that right right so I would say the
  • 00:09:45
    first thing around that is you know
  • 00:09:47
    what's your mindset who are the folks
  • 00:09:48
    that you're in circles with that are
  • 00:09:50
    interested investing in real estate or
  • 00:09:52
    have experience investing in real estate
  • 00:09:54
    and um also really understanding The
  • 00:09:56
    Lending products that are out there for
  • 00:09:58
    you but no I don't my opinion I don't
  • 00:10:02
    believe that you need to have cash only
  • 00:10:03
    to bur okay there's different ways to
  • 00:10:06
    finance things you're right I it's it's
  • 00:10:09
    you know you have friends you have
  • 00:10:10
    family you have you have you know
  • 00:10:12
    business partners that they don't want
  • 00:10:14
    to take the time to get into the actual
  • 00:10:16
    Fix and Flip themselves they have the
  • 00:10:18
    money they want to invest in real estate
  • 00:10:20
    they just don't have the time to do the
  • 00:10:21
    rest so use their
  • 00:10:24
    Capital to basically reach your goals
  • 00:10:26
    that you have to make yeah and and my
  • 00:10:28
    what I encourage anybody body getting
  • 00:10:29
    involved is to really start to find
  • 00:10:31
    mentors start to run in circles of
  • 00:10:33
    people who are in this because gosh I
  • 00:10:37
    can't even use all of my own money on my
  • 00:10:39
    own flips if I have a self-directed IRA
  • 00:10:42
    funds that um in a checkbook driven
  • 00:10:45
    account and I can't use those I can't
  • 00:10:48
    partner with myself on those it has to
  • 00:10:49
    be arm transactions so I'm lending that
  • 00:10:52
    money out to other rehab flippers all
  • 00:10:54
    the time right and vice versa right so
  • 00:10:57
    it's really traveling in new circles
  • 00:10:58
    it's really
  • 00:10:59
    opening your mind to a completely
  • 00:11:02
    different world a lot of us have you
  • 00:11:03
    know grown up in a corporate world you
  • 00:11:05
    go to school you get a job you have your
  • 00:11:07
    401k and it can only be invested in
  • 00:11:09
    certain things right there's a lot of
  • 00:11:11
    different products it's a whole
  • 00:11:12
    different world of kind of money and the
  • 00:11:14
    flow of money out there and lending
  • 00:11:16
    products that are all solely focused on
  • 00:11:19
    helping people get involved in real
  • 00:11:21
    estate and simply why either one they
  • 00:11:23
    don't want to do it themselves they just
  • 00:11:24
    want their money working for them right
  • 00:11:26
    there's lenders out there that I work
  • 00:11:28
    with that have been rehabbers their
  • 00:11:30
    whole careers they've made a ton of
  • 00:11:32
    money they don't want to do it anymore
  • 00:11:34
    they just want their money and they know
  • 00:11:36
    how lucrative the real estate
  • 00:11:39
    transactions can be they just want to be
  • 00:11:40
    involved without doing the work so
  • 00:11:42
    they're lending the money and they won't
  • 00:11:43
    lend it to anybody else unless they're
  • 00:11:45
    doing a flip or they won't lend it to
  • 00:11:46
    anybody else unless they're doing a bur
  • 00:11:48
    because they know their money's getting
  • 00:11:49
    in they're getting a high interest rate
  • 00:11:50
    and then it's coming right back
  • 00:11:52
    out hey hey Kev I want to touch on one
  • 00:11:54
    thing too because you know the beginning
  • 00:11:57
    investor which is probably going to be
  • 00:11:58
    who's going to be really paying
  • 00:11:59
    attention to this like do you can you go
  • 00:12:02
    into details a little bit about what was
  • 00:12:04
    your first investment in real estate how
  • 00:12:06
    did it go what were the the highs and
  • 00:12:08
    the lows of that transaction any any
  • 00:12:10
    Lessons Learned sure okay so um let's
  • 00:12:15
    see the one of the very first
  • 00:12:17
    transactions really fun uh you know I'm
  • 00:12:19
    we're up in northern New Jersey the
  • 00:12:21
    prices are a little bit High here um but
  • 00:12:24
    I was uh at the time I was a real I had
  • 00:12:27
    my real estate license since 2008 and uh
  • 00:12:30
    I was in a brokerage that
  • 00:12:31
    had access to HUD properties so we would
  • 00:12:34
    just bid on the HUD home store all day
  • 00:12:36
    long and just trying to you know get on
  • 00:12:37
    there and find in New Jersey properties
  • 00:12:40
    because this person was a New Jersey
  • 00:12:41
    broker so we had we're limited by that
  • 00:12:43
    but I found a South Jersey property that
  • 00:12:45
    was in again you post 2008 crash you
  • 00:12:50
    know so it was available at the time we
  • 00:12:52
    got it for a really nice discount but
  • 00:12:54
    guess what I didn't have the money right
  • 00:12:56
    so I was like oh freak out right they
  • 00:12:59
    accepted our thing right but this was
  • 00:13:01
    where my mind opened up to like there's
  • 00:13:03
    money out there all over the place so a
  • 00:13:06
    colleague of mine who I work with at a
  • 00:13:08
    pharmaceutical company was like hey he
  • 00:13:10
    also had a real estate license on the
  • 00:13:12
    side in South Jersey so he's like I know
  • 00:13:14
    the area really well right but I also
  • 00:13:16
    know a guy who's in Tech makes a lot of
  • 00:13:19
    money and just wants his money involved
  • 00:13:21
    in real estate but he doesn't know what
  • 00:13:22
    he's doing I'm a pretty handy guy so we
  • 00:13:25
    got our hands on that with private money
  • 00:13:27
    so this we didn't even talk about it
  • 00:13:29
    bank or a hard money lender was
  • 00:13:30
    somebody's private money got into that
  • 00:13:33
    and then we did it all ourselves right
  • 00:13:35
    oh wow so I'm skim coating walls I'm
  • 00:13:39
    changing changing out countertops um
  • 00:13:42
    painting cabinets all that stuff but it
  • 00:13:43
    turns out that we like flip that thing
  • 00:13:45
    for a really nice profit now my buddy
  • 00:13:49
    and I who um the real are from the um
  • 00:13:52
    southern part of New Jersey we split our
  • 00:13:54
    side of the profit right and then what
  • 00:13:56
    we gave to the private money wasn't
  • 00:13:59
    interest rate we gave him 50% of the
  • 00:14:00
    profits yeah now look there's a lot of
  • 00:14:03
    different ways to get involved in real
  • 00:14:04
    estate looking back I would never give
  • 00:14:05
    that much money away I did so much work
  • 00:14:07
    but at the same time would you not give
  • 00:14:09
    that much money away to be involved in a
  • 00:14:11
    deal if you couldn't anyway right so
  • 00:14:13
    again just keeping your mind open about
  • 00:14:14
    that so that was my very first deal and
  • 00:14:16
    I drove down to exit four on the
  • 00:14:18
    turnpike every weekend sanded floors did
  • 00:14:22
    everything myself but that was like boom
  • 00:14:25
    once it turned sold we made a profit and
  • 00:14:29
    was like whe got to find another one to
  • 00:14:30
    get started again I was like Wow right
  • 00:14:33
    so learned a lot of lessons there
  • 00:14:36
    learned a lot about material cost and
  • 00:14:37
    how to Value work and labor right which
  • 00:14:40
    I'm more than happy to pay for these
  • 00:14:42
    days because of it but it also made me a
  • 00:14:44
    better flipper today because I really
  • 00:14:47
    enjoy better running subcontractors and
  • 00:14:50
    and just kind of GC at myself hang
  • 00:14:52
    having a vision and subcontracting it
  • 00:14:54
    out but again I learned all that that's
  • 00:14:56
    a long journey in between of course yeah
  • 00:14:59
    that was the very first one and then
  • 00:15:01
    I'll tell you about my very first
  • 00:15:02
    long-term rental because this is another
  • 00:15:04
    interesting story again about keeping
  • 00:15:06
    people the open minds here we are again
  • 00:15:08
    we're up in North Jersey I'm making a
  • 00:15:10
    little bit of a sales bonus on the side
  • 00:15:12
    that's my little bit of extra money
  • 00:15:13
    that's not a down payment on a rental in
  • 00:15:15
    northern New Jersey right in my world
  • 00:15:17
    right so right I started investigating
  • 00:15:20
    into other markets what are other
  • 00:15:22
    markets in this country where I might be
  • 00:15:24
    able to take a $25,000 down payment and
  • 00:15:27
    have a nice cash flowing rent property
  • 00:15:30
    so I found that out ofate investing was
  • 00:15:32
    really good to take New Jersey money New
  • 00:15:35
    Jersey wages and and then go put down
  • 00:15:37
    payments on cash rolling rentals not to
  • 00:15:39
    mention if you find the right Market
  • 00:15:41
    you'll find lowc costs high rent rates
  • 00:15:44
    which I encourage everybody to go and
  • 00:15:45
    look at and not be afraid of the fact
  • 00:15:47
    that like hey I'm not there well you
  • 00:15:49
    know what I have a rental here in New
  • 00:15:51
    Jersey and I'm actually there even less
  • 00:15:54
    than I am my rentals in Ohio and St
  • 00:15:57
    Louis right so um that should just let
  • 00:16:00
    you know that there's other
  • 00:16:02
    professionals out there right so you
  • 00:16:04
    could buy TurnKey in these markets and
  • 00:16:06
    then have a property manager manage
  • 00:16:08
    those for you they'll rent ready it up
  • 00:16:11
    they'll put tenants in all that stuff so
  • 00:16:13
    that's what I do now right so my very
  • 00:16:16
    first one was like how could I afford
  • 00:16:17
    this right I turned a
  • 00:16:20
    401k um from a job that I had left and
  • 00:16:25
    turned it into a self-directed and my
  • 00:16:27
    very first long-term rental property is
  • 00:16:29
    in a rough self-directed IRA so now I
  • 00:16:33
    bought that property at $50,000 turn key
  • 00:16:37
    in an Ohio market um it's now worth
  • 00:16:41
    $150,000 I own it outright and every
  • 00:16:43
    month I get a, rent right and it's
  • 00:16:47
    taxfree so um you know that was the
  • 00:16:50
    beginning I just wanted to find a way to
  • 00:16:52
    get involved they didn't have the money
  • 00:16:54
    I wasn't sure about lending products so
  • 00:16:56
    I just said what are other ways to do it
  • 00:16:58
    started investing in self-directed IAS
  • 00:17:01
    what could I do with other money right
  • 00:17:03
    your money doesn't have to be in the
  • 00:17:05
    stock market all the time so that
  • 00:17:07
    thinking that alternative thinking got
  • 00:17:08
    me into my very first rental and then
  • 00:17:10
    from there boom I'm I'm 10 doors in Ohio
  • 00:17:12
    right so and that's one thing I want to
  • 00:17:14
    touch on too you're not just localized
  • 00:17:17
    right you're you're out of state pretty
  • 00:17:19
    far away in different
  • 00:17:21
    markets you know me being a jersey born
  • 00:17:24
    and bred uh you know guy here former cop
  • 00:17:27
    I don't trust people very easily so how
  • 00:17:30
    did you go about finding your team of
  • 00:17:32
    people out there and and getting a group
  • 00:17:34
    that really you you could trust them to
  • 00:17:37
    do the work for you the right way 100
  • 00:17:39
    perc right so um toe in the water right
  • 00:17:42
    you said the the most important word is
  • 00:17:44
    your team right so uh not everybody will
  • 00:17:48
    do this there's a lot of people in this
  • 00:17:50
    virtual world that'll just call people
  • 00:17:51
    and try to build rapport and Trust over
  • 00:17:53
    the phone but I will tell you my very
  • 00:17:55
    first one here's what I did I found uh
  • 00:17:58
    an
  • 00:17:59
    agent uh who I just thought I would
  • 00:18:02
    click with called a couple agents out in
  • 00:18:04
    that market in Ohio and I said hey I'm
  • 00:18:06
    gonna come out in um the next couple of
  • 00:18:11
    weeks here's a weekend that I'm gonna
  • 00:18:12
    plan on be there would you take me
  • 00:18:14
    around to show properties right I'm got
  • 00:18:17
    x amount of money want to do this we're
  • 00:18:19
    going to find cash flowing properties at
  • 00:18:20
    the time there was a lot of TurnKey in
  • 00:18:22
    this market so I actually went out and
  • 00:18:24
    showed up right now in this day and age
  • 00:18:27
    this was pre-co right but postco now
  • 00:18:29
    everybody will give you video obviously
  • 00:18:32
    if you get the right Brokers agreement
  • 00:18:34
    you can get video tours and things right
  • 00:18:36
    so you could actually tour these
  • 00:18:37
    properties which I do now right if I'm
  • 00:18:39
    buying something now I don't immediately
  • 00:18:41
    go out there until I'm maybe rehabbing
  • 00:18:42
    it until I see it rent ready but in the
  • 00:18:44
    beginning I flew out I looked at the the
  • 00:18:47
    market I found neighborhoods in the
  • 00:18:49
    market that I was more comfortable with
  • 00:18:51
    that maybe matched neighborhoods at home
  • 00:18:54
    just at a different price right what
  • 00:18:56
    you'll find in other neighborhoods in
  • 00:18:57
    other parts of the country is they
  • 00:18:59
    they're very similar right this side of
  • 00:19:00
    the tracks that side of the tracks
  • 00:19:02
    higher end lower end and if you just
  • 00:19:04
    kind of look at hey this is a market
  • 00:19:05
    that's a typical rental market in New
  • 00:19:07
    Jersey very similar here's the the costs
  • 00:19:11
    here's the average rents and again
  • 00:19:12
    you're going to use that team you're
  • 00:19:13
    gonna have this dialogue back and forth
  • 00:19:15
    you're not going to come in trying to
  • 00:19:16
    say look I was a real estate agent right
  • 00:19:19
    but I didn't come in and say like let me
  • 00:19:20
    see your MLS did I was just like hey
  • 00:19:22
    talk to me you've been here in this
  • 00:19:24
    market for a really long time teach me
  • 00:19:25
    about some of these neighborhoods Etc
  • 00:19:28
    and so
  • 00:19:29
    um took a lot of their advice had a lot
  • 00:19:31
    of back and forth and we landed on this
  • 00:19:33
    one property that I was able to put you
  • 00:19:34
    know um uh an offer on we got it
  • 00:19:38
    accepted and then while I was there what
  • 00:19:40
    I did I had also preset up a few
  • 00:19:43
    property managers that I wanted to
  • 00:19:44
    interview and I think it went a really
  • 00:19:46
    long way my going out there to meet them
  • 00:19:48
    rather than who's this guy from you know
  • 00:19:50
    New Jersey just calling up and
  • 00:19:51
    everything like that but um and now
  • 00:19:54
    every quarter I'll go out there just
  • 00:19:56
    about every quarter I'll go out there
  • 00:19:58
    meet my property managers talk to the
  • 00:20:00
    real estate agent right see what's going
  • 00:20:02
    on drive past my property see if the
  • 00:20:03
    neighborhoods are changing right so got
  • 00:20:05
    to remember it is an investment you
  • 00:20:07
    wouldn't put anything well people put in
  • 00:20:09
    their 401k and just leave it which is a
  • 00:20:11
    mistake but you should be looking at
  • 00:20:13
    your Investments and keeping them up to
  • 00:20:15
    date over time having good conversations
  • 00:20:17
    I mean on a
  • 00:20:18
    monthly um you'll have a conversation
  • 00:20:20
    with your property manager because
  • 00:20:22
    you'll see the rents that came in who's
  • 00:20:23
    overdue all that stuff so on a monthly
  • 00:20:26
    you can check in with them I like to
  • 00:20:27
    make them phone calls and then here's my
  • 00:20:29
    tip guys if you go out to the market
  • 00:20:32
    we've got some really great pastry and
  • 00:20:33
    all kinds of things that come from New
  • 00:20:35
    Jersey that people would love to try I
  • 00:20:37
    showed up with my box of pastry and all
  • 00:20:39
    these things from all these special
  • 00:20:40
    places um in New York and Arthur Avenue
  • 00:20:43
    and I just kind of gave was like Hey you
  • 00:20:45
    know um I say give a little and you get
  • 00:20:48
    a lot right so just be thoughtful about
  • 00:20:51
    these are human beings who are working
  • 00:20:52
    probably for free taking a chance on you
  • 00:20:54
    coming into their Market but again you
  • 00:20:56
    could do a lot of pre-work calling them
  • 00:20:58
    setting up a rapport letting them know
  • 00:21:00
    you'll be in town at that time um but
  • 00:21:03
    you know is it required no but I could
  • 00:21:07
    tell you that now that I'm better at it
  • 00:21:09
    I just recently entered into the St
  • 00:21:10
    Louis Market completely blind but I know
  • 00:21:13
    what I'm asking for and everything like
  • 00:21:14
    I would never recommend anybody do that
  • 00:21:16
    in fact I'm mentoring a cousin of mine
  • 00:21:18
    and we've been kind of on this journey
  • 00:21:20
    together for three years I've been
  • 00:21:22
    teaching them how to like look at
  • 00:21:23
    properties in that market and everything
  • 00:21:25
    a market that I'm really comfortable
  • 00:21:26
    with had them visit with me still hasn't
  • 00:21:28
    pulled the tricker because again just
  • 00:21:29
    like the rest of us suffers from the
  • 00:21:31
    same kind of fear but at the same time
  • 00:21:34
    I'm helping them kind of take those down
  • 00:21:35
    take this step call this one have this
  • 00:21:37
    conversation let me know how it went the
  • 00:21:39
    first one was terrible call another guy
  • 00:21:41
    right and you get better and better at
  • 00:21:43
    it and then you feel you start to feel
  • 00:21:45
    comfortable at Team you start to feel I
  • 00:21:47
    trust this guy and then Jeff the last
  • 00:21:49
    that's a long-winded thing but the very
  • 00:21:51
    last piece of that is you got to test
  • 00:21:53
    the waters right um just like any of us
  • 00:21:56
    right we have to prove ourselves as
  • 00:21:58
    agents right to our clients and even
  • 00:22:01
    more so now because a lot is on the line
  • 00:22:03
    for our clients in these you know really
  • 00:22:05
    competitive markets and things you want
  • 00:22:07
    to have the right person on your team so
  • 00:22:09
    you know if your first transaction
  • 00:22:11
    doesn't go great you'll get through it
  • 00:22:14
    if the person didn't respond as quick as
  • 00:22:15
    you like or it just didn't they weren't
  • 00:22:17
    as aggressive as you liked or whatever
  • 00:22:19
    find another one try the next one out I
  • 00:22:21
    was on two different property managers
  • 00:22:23
    before I landed on on this one in this
  • 00:22:25
    market and now I expand in that market
  • 00:22:28
    I'm com with these guys I know their
  • 00:22:29
    onboarding process they know everything
  • 00:22:31
    about me so I'd be able to throw
  • 00:22:33
    anything into their care really quickly
  • 00:22:37
    which gave me the courage to go into the
  • 00:22:39
    net Market start again and let me tell
  • 00:22:41
    you when I got handymen and everything
  • 00:22:43
    out I'm not happy with the fir handyman
  • 00:22:45
    and I'm expert at it right so I'm not
  • 00:22:48
    happy with the first handy man it's all
  • 00:22:49
    right got through it never use him again
  • 00:22:51
    I'll use the next guy right so that's
  • 00:22:52
    how you get comfortable you you got to
  • 00:22:54
    be afraid to take a couple of things on
  • 00:22:56
    the chin right give yourself a little
  • 00:22:58
    bit of Mark have a little bit of safety
  • 00:22:59
    don't go Razor's Edge where everything's
  • 00:23:02
    at risk this way you could stay calm and
  • 00:23:04
    cool with your vendors and your team and
  • 00:23:07
    um realize that in the long run it's all
  • 00:23:10
    going to be profitable as long as you do
  • 00:23:12
    it right so to go on that like you
  • 00:23:15
    mentioned Razor's Edge like is there is
  • 00:23:18
    there a number a certain amount of money
  • 00:23:20
    that you like to have as like a cash
  • 00:23:22
    buffer just for those instances like
  • 00:23:25
    what what do you think a new investor
  • 00:23:26
    should have as like a little
  • 00:23:29
    cushion sure well that really depends on
  • 00:23:32
    what method you're using right and and I
  • 00:23:35
    also think the cost of the market and
  • 00:23:37
    your carrying costs and whatever method
  • 00:23:39
    you're using how much that is and how
  • 00:23:43
    it's also a risk based right so um do
  • 00:23:46
    you feel comfortable if things go R for
  • 00:23:48
    three months do you have that on the
  • 00:23:50
    side right um let's take an example of
  • 00:23:53
    an out ofate Market where the average
  • 00:23:55
    home price right now is selling for
  • 00:23:56
    $150,000
  • 00:23:58
    right so let's say you know 1% rule on
  • 00:24:02
    that which is something a lot of people
  • 00:24:04
    use right but I suggest you getting a
  • 00:24:06
    lot more detail a 1% rule on $150,000
  • 00:24:09
    the market rent has to be about 1,500
  • 00:24:11
    bucks right okay you figure your down
  • 00:24:15
    payment costs they don't use attorneys
  • 00:24:16
    out in this market so it's really just
  • 00:24:18
    all your closing costs whatever right
  • 00:24:20
    say it's 8 to 10 Perc whatever it might
  • 00:24:22
    be after you put that aside you have
  • 00:24:24
    your down payment are you now at Razor's
  • 00:24:26
    Edge where if the next month doesn't get
  • 00:24:29
    right rented like I'm coming 1,500 bucks
  • 00:24:32
    out of my pocket let's say or 800 900
  • 00:24:35
    bucks out of my pocket okay how does
  • 00:24:37
    that feel not good so then do you have
  • 00:24:40
    2400 to last three months and do three
  • 00:24:43
    months make you comfortable if not do
  • 00:24:44
    you have 5,000 to last you six months
  • 00:24:47
    right and then you got to say to
  • 00:24:48
    yourself well okay what's my other
  • 00:24:50
    tolerance or risk I'm buying these these
  • 00:24:52
    TurnKey but pipes break and things
  • 00:24:55
    happen and roofs leak and all that stuff
  • 00:24:57
    so there's you know you got to have a
  • 00:24:59
    little bit extra in there for just some
  • 00:25:01
    last minute repairs we call that your
  • 00:25:03
    Capital expenditures account or your
  • 00:25:05
    capex account right I don't suggest
  • 00:25:07
    anyone starts with zero and let it build
  • 00:25:09
    right A lot of people are like oh every
  • 00:25:10
    month you take out 5% and put it into
  • 00:25:13
    your cap X the first month something's
  • 00:25:15
    going to go wrong especially in a rental
  • 00:25:17
    right great TurnKey rental somebody gets
  • 00:25:19
    in there and starts using everything and
  • 00:25:21
    all of a sudden a window doesn't work so
  • 00:25:23
    great you want to have good places for
  • 00:25:25
    your tenants to come into so you got to
  • 00:25:26
    fix that window 150 bucks like was that
  • 00:25:28
    in the cap X or are you at zero right so
  • 00:25:31
    right um I couldn't say for sure a
  • 00:25:33
    percentage or an amount but again just
  • 00:25:36
    depending on the size and scope of the
  • 00:25:38
    actual investment that you're making
  • 00:25:41
    make at least a
  • 00:25:43
    proportionate um capex on the side and
  • 00:25:47
    have some buffer gotcha so say
  • 00:25:52
    150,000 um 1,500 in rent what would what
  • 00:25:56
    do you like like maybe five grand 10
  • 00:25:58
    grand on the side yeah absolutely and
  • 00:26:01
    then you know um that's your first one
  • 00:26:04
    right then as you scale you have that
  • 00:26:05
    capex in that LLC for example if you're
  • 00:26:07
    doing it in LLC and that could be shared
  • 00:26:09
    amongst properties right so as you build
  • 00:26:12
    in scale you'll get those economies of
  • 00:26:13
    scale right so your very first one it
  • 00:26:15
    just seems like wow this isn't maybe so
  • 00:26:17
    profitable right so let's just say it's
  • 00:26:20
    $150,000 house um and the mortgage let's
  • 00:26:24
    say is 900 bucks right Pi TI all in 900
  • 00:26:29
    bucks you take your cost of property
  • 00:26:30
    management Etc only cash FL on about 300
  • 00:26:33
    bucks this year right does that seem
  • 00:26:36
    like a lot for all us no but you do that
  • 00:26:38
    in volume right and you put $5,000 on
  • 00:26:41
    the side extra and it's your safety
  • 00:26:43
    buffer this way if anything goes wrong
  • 00:26:44
    you could always repair it then in this
  • 00:26:47
    at this pace next month the rent you
  • 00:26:49
    know next year you renew the lease the
  • 00:26:51
    rent is higher somebody moves out you do
  • 00:26:53
    a turn all of a sudden the rents are
  • 00:26:55
    higher like now you're cash flowing 750
  • 00:26:57
    on a property for example like wow and
  • 00:27:00
    it just keeps going and you got
  • 00:27:01
    appreciation that you can pull out and
  • 00:27:02
    buy the next one right so now you've got
  • 00:27:05
    momentum and you've got that shared
  • 00:27:07
    capex account that can be going you know
  • 00:27:10
    for all of them maybe you grow it
  • 00:27:12
    because now your portfolio is getting
  • 00:27:13
    bigger but I guess the message there is
  • 00:27:16
    you're gonna have a lot up front it's
  • 00:27:18
    not going to seem as efficient but then
  • 00:27:21
    you keep going and you get those
  • 00:27:22
    economies a scale and man you can't stop
  • 00:27:25
    right what number of um income each
  • 00:27:30
    month like what is your threshold like
  • 00:27:32
    is it 300 a month hey I need to make at
  • 00:27:35
    least 300 a month or is it lower can it
  • 00:27:37
    be lower or is it a case by case basis
  • 00:27:40
    it's Case by case and you got to go back
  • 00:27:42
    to your goals I'll encourage everybody
  • 00:27:43
    to go back to your goals I'll give you
  • 00:27:44
    an example um I stood out of Columbus
  • 00:27:47
    Ohio market for a really long time it
  • 00:27:50
    just I just wasn't comfortable it just
  • 00:27:52
    it just hadn't come up yet to the level
  • 00:27:54
    it is today I just stayed away right and
  • 00:27:57
    I stayed in really High cash flowing
  • 00:27:59
    markets lowcost High cash flowing
  • 00:28:00
    markets I wouldn't touch anything that
  • 00:28:02
    wasn't um a 10% or more return on my
  • 00:28:05
    money which is actually a lower margin a
  • 00:28:07
    lot of people are looking for more me
  • 00:28:09
    I'm like hey like I came from nothing I
  • 00:28:11
    had nothing I just want to pass things
  • 00:28:13
    down on my kids that are cash flowing
  • 00:28:14
    and I don't want to come out of my
  • 00:28:15
    pocket every month right so um in those
  • 00:28:18
    lower cost markets you got to be
  • 00:28:20
    realistic too for me 500 bucks and about
  • 00:28:22
    10% is what I really want um but I also
  • 00:28:26
    encourage you again if you're a
  • 00:28:28
    long-term investor if you're looking at
  • 00:28:30
    this you should really be scoping the
  • 00:28:31
    market and knowing what's a good great
  • 00:28:34
    bad terrible deal if you're looking at
  • 00:28:37
    it every day something's GNA pop you
  • 00:28:39
    like holy smokes that'll cash flow 750
  • 00:28:41
    I'll take it right so you got to know it
  • 00:28:43
    that well this way you know what your
  • 00:28:45
    margins are and then you got to say to
  • 00:28:46
    yourself you
  • 00:28:48
    know hey I'm looking for 10 or 11% of my
  • 00:28:51
    money and then something comes in that's
  • 00:28:54
    um nine and a half percent are you just
  • 00:28:57
    g a you you haven't added anything to
  • 00:28:59
    your portfolio in a year are you going
  • 00:29:01
    to walk away from it it's half a percent
  • 00:29:03
    right so you just got to know your your
  • 00:29:05
    your goals there right and then like I
  • 00:29:07
    said I have uh other mentors of mine
  • 00:29:09
    that like I don't get into anything for
  • 00:29:11
    less than 15 it's okay I'm just not
  • 00:29:12
    there yet right um You can really start
  • 00:29:15
    to be choosy so now that's there then I
  • 00:29:18
    go to Columbus which is a much higher
  • 00:29:20
    appreciating Market and my tolerance for
  • 00:29:23
    cash flow is lower because I know that
  • 00:29:26
    when I invested there I'm Investing For
  • 00:29:28
    appreciation and it's not only just cash
  • 00:29:30
    flow I don't for me my money rules I
  • 00:29:34
    don't ever want a property that I'm
  • 00:29:35
    putting my own money into so it's got a
  • 00:29:37
    cash flow there got to be some margin of
  • 00:29:38
    safety but I'm not looking for huge High
  • 00:29:41
    cash flows in certain markets that are
  • 00:29:42
    on the path of progress in Columbus for
  • 00:29:44
    example because I know it's up and
  • 00:29:46
    coming another market like Northeast
  • 00:29:48
    Ohio the appreciation already came we
  • 00:29:50
    just look for cash flow and it's bigger
  • 00:29:52
    wider again know your goals and then
  • 00:29:54
    know why you're investing and then
  • 00:29:57
    you'll be able to know the answer to
  • 00:29:59
    that gotcha Now Kevin how fast did you
  • 00:30:02
    grow from like that first door to where
  • 00:30:04
    you are now like was it like a one or
  • 00:30:06
    two properties a year like how's that
  • 00:30:07
    been working for you yeah hockey stick
  • 00:30:10
    right so I was in uh Corporate America
  • 00:30:12
    right so I would take sales bonus my
  • 00:30:14
    wife and I would you know pull bonus
  • 00:30:15
    whatever we got so like okay how much
  • 00:30:17
    money do we have like conventional loan
  • 00:30:20
    20% down um x amount for repairs like
  • 00:30:24
    did it really super inefficient right
  • 00:30:27
    it's a good way to do it it's good way
  • 00:30:28
    to get in we had really low interest
  • 00:30:29
    rates was great right um but that was
  • 00:30:32
    like one this year yay right and then
  • 00:30:34
    we'll do another one next year yay and I
  • 00:30:37
    just got to a point where I was just
  • 00:30:38
    like man this is I'm all for one rental
  • 00:30:41
    at a time I love it right it's a great
  • 00:30:42
    way to build well but then I was just
  • 00:30:45
    like man this is so slow right and so
  • 00:30:48
    that's when I started to add on like hey
  • 00:30:50
    I'm gonna start I need faster money to
  • 00:30:52
    come through yeah I've got my corporate
  • 00:30:54
    money but I'm going to go and start
  • 00:30:55
    getting involved in more flip
  • 00:30:58
    right and my strategy for the flips
  • 00:31:00
    weren't to go on vacation right um if
  • 00:31:02
    anybody watches my Facebook Channel
  • 00:31:04
    whatever it's like boom took that flip
  • 00:31:06
    put it down on a duplex right so so
  • 00:31:09
    that's when I really started accelerate
  • 00:31:11
    and now I'm really feeling like I'm
  • 00:31:12
    starting to hit momentum because my very
  • 00:31:14
    first ones um have appreciated so much
  • 00:31:18
    that I can cash out refi and start down
  • 00:31:19
    payments on the next one so it's going
  • 00:31:21
    to be hockey stick because you start to
  • 00:31:23
    build that momentum right and you really
  • 00:31:25
    get reminded why you started in the
  • 00:31:27
    first place and then this is how it
  • 00:31:28
    really starts to take off you get new
  • 00:31:30
    mentors you get exposed to more and more
  • 00:31:32
    people who are doing all these different
  • 00:31:33
    things and then um you know you've
  • 00:31:36
    create a strategic plan to say Hey you
  • 00:31:38
    know take these 10 doors 20 doors um and
  • 00:31:43
    in you if my strategic plan if things go
  • 00:31:45
    well and there's a lot of equity there
  • 00:31:47
    or I'm getting closer to my maxed out
  • 00:31:50
    depreciation 1031 exchange get into more
  • 00:31:53
    new I fall in love with my properties
  • 00:31:55
    but you have to unfall in love with them
  • 00:31:57
    when they're not giving you the tax
  • 00:31:59
    benefits after a while and then boom you
  • 00:32:01
    turn it just turn into another one the
  • 00:32:02
    rules are out there to help you win you
  • 00:32:04
    just got to know them right so so I
  • 00:32:06
    really do think Jee it's really slow at
  • 00:32:08
    first you get that one get your feet wet
  • 00:32:11
    get through all the butterflies yeah for
  • 00:32:13
    me it was like a lower cost Market I
  • 00:32:15
    felt comfortable like hey worst case
  • 00:32:17
    scenario I could always pay you know an
  • 00:32:18
    $800 mortgage myself from the side you
  • 00:32:21
    know whatever I have in savings and then
  • 00:32:23
    after that though you get really
  • 00:32:24
    comfortable and you could just start
  • 00:32:25
    boom you know like taking off and I
  • 00:32:27
    think I've just about hit that stride
  • 00:32:30
    awesome what about um helocs do you ever
  • 00:32:33
    take um home equity lines of credit out
  • 00:32:35
    or do any anything like that Kev so um I
  • 00:32:39
    have uh I have a rental that's got just
  • 00:32:42
    tons and tons of equity in it right but
  • 00:32:44
    uh everybody uses it for different
  • 00:32:46
    things some people say like never let
  • 00:32:47
    that sit but for me it's a different
  • 00:32:49
    again real estate could be such a
  • 00:32:51
    vehicle for everybody like I intend to
  • 00:32:53
    helck that out if my son wants to
  • 00:32:55
    finally fulfill his dream and go to
  • 00:32:57
    Orthodontics school right we've got his
  • 00:32:58
    first four years paid for but the rest
  • 00:33:00
    of it like so we're just letting that
  • 00:33:01
    Equity build and hold for him for that
  • 00:33:03
    this is what real estate could do for
  • 00:33:05
    you now can you helck that out and make
  • 00:33:07
    a huge Prof absolutely I can too right
  • 00:33:09
    but it's just a matter of I think we've
  • 00:33:11
    got you know enough in certain areas
  • 00:33:13
    that will do that but yes I would never
  • 00:33:16
    helck for a boat I that's me personally
  • 00:33:19
    I would never helck for a toy but I
  • 00:33:22
    would take real estate equity and put it
  • 00:33:24
    in real estate equity for sure right
  • 00:33:27
    absolutely especially because you know
  • 00:33:30
    if you're looking at not not getting
  • 00:33:33
    involved in something and being able to
  • 00:33:34
    get in something that's significantly
  • 00:33:36
    cash flowing is going to appreciate over
  • 00:33:38
    time why would you not take a seven and
  • 00:33:40
    a half percent whatever you know the
  • 00:33:41
    rate is today helck and then put that
  • 00:33:44
    down in somewhere else my advice for
  • 00:33:46
    anybody who's looking at helck is don't
  • 00:33:47
    don't leverage it all the way up as much
  • 00:33:49
    as you can right if you can get a solid
  • 00:33:51
    chunk and get your hands on something
  • 00:33:53
    you don't have to over lever the whole
  • 00:33:54
    entire thing right don't draw out all
  • 00:33:57
    that thing on the credit line draw it
  • 00:33:58
    out as you need it right uh and get
  • 00:34:02
    involved in one thing Let It cash flow
  • 00:34:04
    right and if you know because a lot of
  • 00:34:06
    people go in take the whole nut out
  • 00:34:08
    start paying all that interest on it and
  • 00:34:09
    then it's just kind of sitting there
  • 00:34:11
    like well that's defeating the purpose
  • 00:34:12
    right right so yes definitely I would
  • 00:34:15
    helck out to buy a business I would
  • 00:34:16
    helck out to buy more real estate for
  • 00:34:19
    sure yeah I think hel loocks right now
  • 00:34:21
    are like around
  • 00:34:23
    nine yeah and well my recommendation
  • 00:34:27
    just like anything else
  • 00:34:28
    it's good to have a team of solid people
  • 00:34:30
    that you know but it's also good to have
  • 00:34:31
    multiple people in the same category on
  • 00:34:33
    your team especially in the lending
  • 00:34:36
    space right you'll have lenders that are
  • 00:34:38
    like Hey we're not interested in second
  • 00:34:40
    mortgages right now we're not interested
  • 00:34:42
    in first mortgages right now so their
  • 00:34:44
    rates are going to be higher because
  • 00:34:45
    they're just kind of disincentivizing
  • 00:34:47
    you to come to them for that yet the ne
  • 00:34:50
    next Bank might be like I want to take
  • 00:34:52
    more of these on so I'm giving a
  • 00:34:53
    significant discount right the rates are
  • 00:34:54
    lower so you got to really always got to
  • 00:34:56
    shop around for your loans I love our
  • 00:34:58
    loan Partners but at the same time you
  • 00:34:59
    got to do what works for you yep
  • 00:35:02
    gotta um what
  • 00:35:05
    are what is like what is the most
  • 00:35:08
    nightmare scenario you've had so far in
  • 00:35:11
    real estate investing uh not most
  • 00:35:14
    nightmare I I think I've been lucky but
  • 00:35:16
    I've also been really cautious right so
  • 00:35:18
    a lot of people say like you could be
  • 00:35:19
    here or whatever like yeah I didn't take
  • 00:35:20
    a lot of those risks I did it low and
  • 00:35:22
    slow which is fine too um but the
  • 00:35:26
    biggest one was
  • 00:35:29
    was um rehabbing a property for rent not
  • 00:35:32
    having the right team not having you
  • 00:35:35
    know the right contracts in place and uh
  • 00:35:38
    not getting it rehabbed in time and just
  • 00:35:40
    letting it draw on and on to the point
  • 00:35:42
    where it's like it ate up the extra
  • 00:35:44
    funds it ate up everything I was like
  • 00:35:46
    man you know like just took way too long
  • 00:35:49
    it should have been done right and again
  • 00:35:52
    that was in a new market and all that
  • 00:35:53
    stuff so I kind of knew that there was
  • 00:35:55
    the risk of that going on should have
  • 00:35:56
    managed it better right should have
  • 00:35:58
    probably been higher on top of it
  • 00:36:01
    understand your labor in one Market's
  • 00:36:02
    not the same as labor in another Market
  • 00:36:04
    you know you got to really manage
  • 00:36:05
    culture and manage um the Styles
  • 00:36:08
    differently and stuff and that's the
  • 00:36:09
    same thing I would say if you're here
  • 00:36:10
    local in New Jersey same thing north to
  • 00:36:13
    south east to west right you got to just
  • 00:36:15
    you know definitely manage your
  • 00:36:17
    contractors don't let any you know
  • 00:36:20
    nothing go for granted right you could
  • 00:36:22
    be pay you could be there weekly right
  • 00:36:24
    checking in on them and being really
  • 00:36:26
    clear on what the end goal is so that's
  • 00:36:28
    my major thing is a rehab that didn't go
  • 00:36:32
    according to
  • 00:36:33
    timeline yeah for your first time for
  • 00:36:35
    your first-time investor would you
  • 00:36:36
    recommend staying pretty localized so
  • 00:36:38
    you can have more of a Hands-On and get
  • 00:36:40
    involved in in ways that you wouldn't be
  • 00:36:42
    able to out of
  • 00:36:44
    market for sure but if it's going to
  • 00:36:46
    hold you back for too long because
  • 00:36:48
    prices aren't there you really can't
  • 00:36:49
    figure out money or down payments or
  • 00:36:51
    partners then I I say you
  • 00:36:55
    know this the world got so much smaller
  • 00:36:58
    especially since Co right if you're
  • 00:37:00
    willing to go out there and take care of
  • 00:37:01
    your Investments and nurture it once a
  • 00:37:03
    quarter Etc I would say do it so that
  • 00:37:05
    you can get in because any real estate
  • 00:37:07
    investor is going to tell you this
  • 00:37:08
    what's your biggest regret is that I
  • 00:37:10
    didn't start sooner or I didn't scale
  • 00:37:12
    quicker or anything like that so because
  • 00:37:14
    real estate over time is a really
  • 00:37:16
    amazing investment right so every year
  • 00:37:19
    or five that you don't get involved
  • 00:37:21
    because you can't figure it out here
  • 00:37:22
    because it's super expensive you could
  • 00:37:24
    do like I did right and go out to to a
  • 00:37:27
    different Market does it take time yeah
  • 00:37:30
    but I I you know I there I don't know
  • 00:37:33
    anybody who should tell you that real
  • 00:37:34
    estate I mean if you want to have really
  • 00:37:36
    passive real estate Investments that
  • 00:37:38
    give you some tax benefits just put your
  • 00:37:40
    money in a reate right but then don't
  • 00:37:42
    forget you're losing your control right
  • 00:37:44
    so so with that I would say like yeah
  • 00:37:47
    use your local market if you've if
  • 00:37:49
    you've got partners and you're involved
  • 00:37:50
    in the real estate game yeah and you
  • 00:37:52
    know the local market that's definitely
  • 00:37:53
    going to give you less risk but that
  • 00:37:56
    doesn't mean you can't take down the
  • 00:37:57
    risk in another Market you just have to
  • 00:37:59
    do your research you have to take your
  • 00:38:00
    time right right so I would say if it's
  • 00:38:02
    going to stop you um go ahead and go to
  • 00:38:05
    another market right so yeah it's like
  • 00:38:09
    especially if you're saying you're in
  • 00:38:10
    the Northeast right here like your risk
  • 00:38:12
    is going to be your time being able to
  • 00:38:14
    prepare yourself to have enough finances
  • 00:38:16
    to buy a property in the Northeast to
  • 00:38:18
    where um if you were to say Midwest you
  • 00:38:22
    know your risk is obviously you're not
  • 00:38:23
    going to be boots on the ground all the
  • 00:38:25
    time but the you know you the money is
  • 00:38:28
    not going to be as tight you might have
  • 00:38:30
    a little bit more flexibility with you
  • 00:38:32
    know your finances and you can fund
  • 00:38:35
    certain things a little bit more and
  • 00:38:36
    speed up the process so it's you know
  • 00:38:38
    it's all a calculation of what your risk
  • 00:38:40
    tolerance could be right I think a lot
  • 00:38:42
    of people get caught up with analysis
  • 00:38:44
    paralysis too you over analyze things
  • 00:38:46
    you get stuck like you said Kev like
  • 00:38:47
    when you first did it like there's years
  • 00:38:49
    of just trying to learn things and you
  • 00:38:51
    know everybody you know I think a lot of
  • 00:38:53
    us do the same thing like we're digging
  • 00:38:55
    in we're reading you know reading books
  • 00:38:56
    listening to allio you know audible we
  • 00:38:58
    we're we're watching videos on different
  • 00:39:00
    Investments and how they're operating
  • 00:39:01
    and trying to figure out what's the best
  • 00:39:03
    goal and what what's the best plan for
  • 00:39:05
    us and you get stuck in that cycle over
  • 00:39:07
    and over again until you finally pull
  • 00:39:08
    the trigger you know it's like for you
  • 00:39:10
    like what finally pushed you over that
  • 00:39:12
    edge say screw it like I gotta just do
  • 00:39:14
    it like
  • 00:39:16
    like um
  • 00:39:18
    definitely uh and I learned it this
  • 00:39:22
    particular lesson I learned for a lot of
  • 00:39:23
    things in life right is this lesson is
  • 00:39:25
    just like make all your decisions before
  • 00:39:27
    you're in the emotion right so if it's a
  • 00:39:30
    10% return on your money and cash flow
  • 00:39:32
    of x amount and you have your money
  • 00:39:34
    rules when it lands in the box right you
  • 00:39:38
    really don't have too much decision it
  • 00:39:40
    landed in your box go for it right right
  • 00:39:43
    so if you don't do all that when the
  • 00:39:45
    deal comes on your desk you're gonna oh
  • 00:39:48
    but oh but oh but and then it's G to
  • 00:39:49
    pass you right so if you could take all
  • 00:39:52
    do all this decision when it's not
  • 00:39:54
    emotional right and make it very factual
  • 00:39:57
    that when I was able to say like hits
  • 00:39:59
    all the money rules right like you know
  • 00:40:01
    and let's just do it you know right um
  • 00:40:04
    that and then of course having good
  • 00:40:05
    mentors and having good folks who did it
  • 00:40:07
    before me who are like look we open book
  • 00:40:10
    about like these are my profits and
  • 00:40:12
    losses let me show you right so that I
  • 00:40:14
    actually got to
  • 00:40:15
    experience I did a lot of Guru learning
  • 00:40:19
    at first and um while you learn a lot
  • 00:40:24
    you not just not sure if like they have
  • 00:40:26
    something different that I didn't have
  • 00:40:28
    you're like what am I missing right
  • 00:40:30
    there something there that I didn't have
  • 00:40:32
    yeah is there something else I have to
  • 00:40:33
    do that they're not telling me like you
  • 00:40:35
    know you get Lo yeah you get stuck right
  • 00:40:37
    right so when I started attending Lo
  • 00:40:39
    local real estate investment club
  • 00:40:41
    meetings and started working with people
  • 00:40:43
    and and believe it or not my mentor
  • 00:40:44
    wasn't like this big real estate
  • 00:40:45
    investor right I didn't come from folks
  • 00:40:48
    who had real estate right so I needed to
  • 00:40:50
    learn that so it was like literally
  • 00:40:52
    almost like The Neighbor Next Door
  • 00:40:53
    pretty much who was just like look I got
  • 00:40:55
    a couple rental properties here's how it
  • 00:40:56
    works right here's all the things that
  • 00:40:58
    went wrong in a year and all I got to
  • 00:41:00
    see their bills and like okay they just
  • 00:41:02
    called this plumber like what' you do
  • 00:41:04
    you just called this plumber okay it
  • 00:41:05
    seems so hard to manage but it's like a
  • 00:41:07
    called a plumber what would you do for
  • 00:41:08
    your house right right but it costs
  • 00:41:10
    money right so you just got to know you
  • 00:41:12
    have that money as part of your
  • 00:41:13
    investment once I saw all that I was
  • 00:41:15
    just like it's really not that hard
  • 00:41:18
    right but it was just seeing somebody
  • 00:41:20
    else have walked two steps in my shoes
  • 00:41:22
    ahead right and then just following them
  • 00:41:25
    um I was trying I was probably comparing
  • 00:41:28
    my step one to somebody else's step
  • 00:41:30
    10,000 and that was my biggest that's I
  • 00:41:33
    it held me back too long because I
  • 00:41:35
    wasn't looking for for somebody who had
  • 00:41:37
    was that step 10 I kept looking at that
  • 00:41:39
    step 1,000 like how the hell am I gonna
  • 00:41:42
    get there right so I just had to pull it
  • 00:41:44
    back and be like you got a couple how
  • 00:41:46
    did you do it right and then just get
  • 00:41:48
    into that because you're not gonna go
  • 00:41:49
    from zero to a thousand right right I
  • 00:41:52
    think that's what really boom got me
  • 00:41:54
    over because when you get to that guy
  • 00:41:55
    who's in 10 he's you know show you right
  • 00:41:57
    and you're going to live it with them
  • 00:41:59
    for a year and everything like that
  • 00:42:00
    which is why you know I kind of take on
  • 00:42:03
    some family members as mentors now and
  • 00:42:05
    again to try and help them get over
  • 00:42:07
    their hurdles too and and just if I
  • 00:42:08
    could look back I would do it for almost
  • 00:42:11
    anybody so right because I didn't have
  • 00:42:13
    it you know I had to bust through learn
  • 00:42:15
    a lot of things took me way too long and
  • 00:42:17
    if man if I could have started in 2008 n
  • 00:42:19
    10 we'd be right now but uh yeah so so
  • 00:42:24
    that said um I really do think that
  • 00:42:27
    you know over the time I've learned a
  • 00:42:29
    lot so I've been trying
  • 00:42:31
    to take what we do as realators right
  • 00:42:35
    and that's just one tiny piece of the
  • 00:42:38
    real estate market right and most people
  • 00:42:40
    participate in just that one piece but I
  • 00:42:43
    think um a lot of folks are opening
  • 00:42:45
    their minds to say like I owe my house
  • 00:42:47
    but what about other real estate and
  • 00:42:48
    things like that so those of us who have
  • 00:42:50
    been involved in the markets for a long
  • 00:42:52
    time whether you're investing or just as
  • 00:42:54
    a realtor right like I think we have a
  • 00:42:55
    lot of insights to offer people M right
  • 00:42:58
    um I had a a retail client that came to
  • 00:43:02
    me that said like hey I'm G maybe I want
  • 00:43:04
    to buy my first rental property and you
  • 00:43:06
    know they were looking at properties in
  • 00:43:07
    the 500,000 in this area I was like look
  • 00:43:10
    your rent's just not going to like
  • 00:43:11
    what's what's your plan what's your goal
  • 00:43:12
    is it all appreciation I'm all for it
  • 00:43:15
    right but if you're looking for cash
  • 00:43:16
    flow let me show you why these numbers
  • 00:43:17
    don't work and it was just I was just so
  • 00:43:20
    happy to be able to show him like here's
  • 00:43:22
    what years of working numbers look like
  • 00:43:24
    and whatever and teach him how to do
  • 00:43:25
    that this way they can go and research
  • 00:43:27
    properties and feel comfortable this way
  • 00:43:29
    when they're making their investment
  • 00:43:30
    we're there to advise them and we're not
  • 00:43:32
    you know um bringing people into deals
  • 00:43:35
    that they don't know what they're
  • 00:43:36
    getting into right right right I think
  • 00:43:38
    it's a real value ad that we all have I
  • 00:43:41
    mean Jay man like deal check buddy like
  • 00:43:45
    you like the the way you advocate for
  • 00:43:47
    actually putting numbers in and at least
  • 00:43:49
    taking a look at the property before
  • 00:43:51
    going in emotionally like oh I this
  • 00:43:53
    could turn into a rental it's got three
  • 00:43:54
    bedrooms it's got a separate door it's
  • 00:43:56
    like wow that's just not how it works
  • 00:43:58
    like that's the HDTV version of it
  • 00:44:02
    right right and then you know also
  • 00:44:05
    having the knowledge base to go okay how
  • 00:44:07
    can I you know with this property the
  • 00:44:10
    layout of the property is there any way
  • 00:44:12
    I can force appreciation can I add a
  • 00:44:14
    bedroom can I add something you know can
  • 00:44:17
    I add a level down the road should it
  • 00:44:19
    does the neighborhood warrant adding a
  • 00:44:21
    level are the other houses in the area
  • 00:44:24
    do they have two stories you know so
  • 00:44:27
    it just having a broad knowledge of what
  • 00:44:30
    the property is now and then what it
  • 00:44:32
    could potentially be down the road you
  • 00:44:34
    know and um in analyzing that um but I
  • 00:44:37
    think that like you said like that as
  • 00:44:39
    long you know you said you know it took
  • 00:44:42
    you a while to make that first move but
  • 00:44:44
    I mean you are collecting you know
  • 00:44:46
    invaluable information to be able to
  • 00:44:48
    feel confident to make that move um
  • 00:44:50
    because I think I think so many people
  • 00:44:54
    are they'll analyze a deal and be like
  • 00:44:56
    this looks good but what am I missing
  • 00:44:59
    because they don't have that that solid
  • 00:45:01
    knowledge base in the background that
  • 00:45:02
    you went through just yet that's it
  • 00:45:04
    that's it um and that hesitation can you
  • 00:45:07
    know stop them and you know and they
  • 00:45:10
    look back and say I wish I got started
  • 00:45:12
    sooner I wish I took that leap of faith
  • 00:45:14
    for sure that everyone's gonna tell you
  • 00:45:17
    like you know I wish I got over that
  • 00:45:18
    fear it was really nothing but you know
  • 00:45:20
    fear is a killer and I've been a victim
  • 00:45:22
    of it too right I just you know how do
  • 00:45:25
    just every it's mindset we talk about
  • 00:45:27
    this a lot and I know a lot of the folks
  • 00:45:28
    that you interview on this particular
  • 00:45:30
    Channel and show talk about mindset and
  • 00:45:33
    the and the real mindset is you know
  • 00:45:36
    what's the way to overcome fear is
  • 00:45:37
    knowledge right if I'm worried about
  • 00:45:40
    what it's going to cost to fix the
  • 00:45:42
    plumbing on this house where the um
  • 00:45:45
    where the Copper got ripped out call a
  • 00:45:48
    plumber right get an estimate call
  • 00:45:51
    another plumber get an estimate what if
  • 00:45:53
    I'm getting ripped off call a third
  • 00:45:54
    plumber and see what the average is
  • 00:45:56
    right
  • 00:45:57
    and you know draw up your contract
  • 00:45:59
    whatever your knowledge just erased your
  • 00:46:00
    fear it's going to cost 2500 bucks it's
  • 00:46:02
    going to cost
  • 00:46:03
    $3,000 okay like all right if I use my
  • 00:46:06
    down payment and I put my 300 it's still
  • 00:46:08
    good gonna be a good property right so
  • 00:46:10
    right um just try to overcome that fear
  • 00:46:13
    with knowledge use mentors use people
  • 00:46:15
    who are a step ahead of you use your
  • 00:46:16
    real estate professionals right because
  • 00:46:18
    they know the markets really well they
  • 00:46:20
    know how things have been changing up
  • 00:46:22
    and down and um you know uh they could
  • 00:46:25
    show you Trends and things things like
  • 00:46:27
    that you can make an educated decision
  • 00:46:28
    based on your goals right based I mean
  • 00:46:33
    you mentioned you know knowledge um the
  • 00:46:36
    you know the equation would be knowledge
  • 00:46:38
    and then action because you can have the
  • 00:46:40
    knowledge but if you don't take the
  • 00:46:41
    action to call the plumber or you don't
  • 00:46:43
    take the action to figure out to solve
  • 00:46:45
    the problem you know all the information
  • 00:46:46
    you know what you should be gathering
  • 00:46:48
    but without action you know you're
  • 00:46:50
    you're just basically a stalemate you're
  • 00:46:52
    just stuck Frozen 100% I'm so glad you
  • 00:46:54
    said that because I have I'm one of
  • 00:46:56
    those folks that has the propensity to
  • 00:46:58
    just take action I'm I'm a little bit
  • 00:46:59
    more shoot than Point um and that's just
  • 00:47:02
    everybody's personality right but it's a
  • 00:47:04
    really good point because a lot of
  • 00:47:05
    people will have the to-do list for the
  • 00:47:08
    day and then for whatever reason why
  • 00:47:11
    didn't you do it I don't know well you
  • 00:47:13
    know better I know go do it right but it
  • 00:47:17
    because again there's that little bit of
  • 00:47:18
    fear but again that's why I say first
  • 00:47:20
    step is just knowledge it doesn't hurt
  • 00:47:22
    to call the plumber call whomever and
  • 00:47:23
    get a price right free estimate you know
  • 00:47:27
    not that you want to waste anybody's
  • 00:47:28
    time but you are potentially investing
  • 00:47:30
    right so yeah take down as much of the
  • 00:47:34
    unknowns as you possibly can right with
  • 00:47:37
    knowledge and then take action you got
  • 00:47:39
    it so awesome Kev love it ke Kev what El
  • 00:47:42
    what else you got going
  • 00:47:44
    on what else I have going on well um
  • 00:47:48
    yeah so I got some new Ventures going on
  • 00:47:50
    I've been really thinking about what are
  • 00:47:52
    the ways that I could take all this time
  • 00:47:55
    that I have working with um retail
  • 00:47:58
    clients and working on the buy and sell
  • 00:48:00
    side as a realer and then take my
  • 00:48:02
    investing knowledge and my fix and
  • 00:48:04
    flipping knowhow abilities to GC time
  • 00:48:08
    that we have and saying like how could I
  • 00:48:10
    bring that to service more of my
  • 00:48:13
    colleagues in real estate as well as
  • 00:48:15
    home sellers and buyers and so um I'm on
  • 00:48:18
    a path to have a business that is going
  • 00:48:21
    to help and it's called you know we'll
  • 00:48:24
    call it renovation cells right so really
  • 00:48:27
    maximize the profit on the side so to be
  • 00:48:29
    able to do just quick cosmetic updates
  • 00:48:33
    to the home so that it is literally like
  • 00:48:36
    everybody's looking for that Instagram
  • 00:48:37
    ready house right so um I wanted to say
  • 00:48:41
    how could I bring my rehab kind of my
  • 00:48:44
    eye and for rehab and my ability to GC
  • 00:48:47
    and get things done quickly because hey
  • 00:48:50
    it could take six months but what I
  • 00:48:51
    think I've really gotten down is how
  • 00:48:53
    could I do the quick updates that add a
  • 00:48:55
    lot of value and get in and out on a
  • 00:48:58
    timeline that's very predictable and
  • 00:49:00
    create a lot of value in a home so that
  • 00:49:03
    we can maximize on the other side and
  • 00:49:06
    the reason why is because um I think
  • 00:49:09
    what we're finding is a lot of Homes at
  • 00:49:11
    this point from the buyer side
  • 00:49:13
    unfortunately in our Market are having
  • 00:49:14
    to settle you know there's only so many
  • 00:49:17
    homes in the market so I'm going to go
  • 00:49:18
    ahead and and settle in and it wasn't
  • 00:49:21
    the Instagram ready kitchen I wish I had
  • 00:49:23
    or I wish the floors were changed and
  • 00:49:25
    whatever so my idea is to kind of couple
  • 00:49:28
    that along with and help out you all as
  • 00:49:31
    reals all of us as reals and partner
  • 00:49:34
    with reals to say you know hey I have a
  • 00:49:36
    quick cosmetic renovation business that
  • 00:49:38
    we can be in and out right as you're
  • 00:49:40
    prepping the house for sale we could
  • 00:49:42
    have the kitchen updated with all the
  • 00:49:44
    newest colors fixtures and everything to
  • 00:49:46
    really maximize the profit and the value
  • 00:49:49
    in this house on the market and then on
  • 00:49:51
    the flip side for the buyers to say hey
  • 00:49:53
    before you move in right we can take
  • 00:49:55
    this kitchen and bring you know Get You
  • 00:49:57
    Sage cabinets and new courtz countertops
  • 00:49:59
    and a new backsplash it'll look like
  • 00:50:01
    that Instagram ready kitchen you'll feel
  • 00:50:03
    great about the house that you're buying
  • 00:50:05
    now even though maybe you had to settle
  • 00:50:06
    because there wasn't so many things out
  • 00:50:08
    there right and then also I mean we all
  • 00:50:11
    know what happened during covid right
  • 00:50:13
    people moved from the city or moved
  • 00:50:14
    wherever for a backyard and they settled
  • 00:50:17
    in maybe the home you know just because
  • 00:50:20
    they wanted to get out of an apartment
  • 00:50:21
    and get into a home so we we moved into
  • 00:50:23
    maybe you know a lot of our houses are
  • 00:50:25
    built 40s 50s 60s 70s and they just
  • 00:50:27
    never been updated you've got those pink
  • 00:50:29
    tile bathrooms or you know maybe great
  • 00:50:33
    wood cabinets in your kitchen it's just
  • 00:50:35
    maybe functionally obsolescent because
  • 00:50:37
    there's no room for a dishwasher so for
  • 00:50:39
    those who aren't buying or selling for
  • 00:50:40
    those who are staying just giving them a
  • 00:50:42
    cosmetic facelift where they could
  • 00:50:44
    actually bring the home up to date if
  • 00:50:46
    they're really comfortable and feel like
  • 00:50:48
    they haven't been stuck in a home that
  • 00:50:49
    they weren't happy with right what they
  • 00:50:51
    bought maybe during or right after covid
  • 00:50:53
    was for the yard and whatever and now
  • 00:50:55
    that they're trying to to make best use
  • 00:50:58
    of the space while they don't want to
  • 00:50:59
    trade in their low interest rate for a
  • 00:51:02
    new house maybe we've just refreshed the
  • 00:51:04
    house so I figured um let me take what I
  • 00:51:06
    know and bring those cosmetic quick
  • 00:51:08
    updates to homeowners buyers and sellers
  • 00:51:11
    and be a good partner for uh my real
  • 00:51:13
    estate colleagues out there to help them
  • 00:51:15
    quickly sell houses on a predictable
  • 00:51:17
    budget awesome love it that's great man
  • 00:51:21
    yeah so look out for announcements on
  • 00:51:22
    that and I'll be more than happy to um
  • 00:51:25
    come back and and talk about that
  • 00:51:26
    process once it's all settled absolutely
  • 00:51:29
    absolutely is there anything that we
  • 00:51:31
    didn't cover that you wanted to or
  • 00:51:33
    anybody wanted to mention in regards to
  • 00:51:36
    you know real estate investing any top
  • 00:51:38
    any tips any
  • 00:51:42
    anything
  • 00:51:44
    um know this what we talked about just
  • 00:51:47
    barely scratched the surface on what
  • 00:51:49
    real estate investing could be there's
  • 00:51:51
    land tax deeds commercial right mixed
  • 00:51:54
    use there are so many other categories
  • 00:51:57
    there's storage there's um tiny homes
  • 00:52:01
    there's Airbnb right all of those
  • 00:52:03
    categories maybe I haven't talked about
  • 00:52:05
    because it's not what I chose to invest
  • 00:52:07
    in but again if you start on your
  • 00:52:09
    goals right and you think about what it
  • 00:52:12
    is that you really want right you might
  • 00:52:15
    get to Airbnb because hey I would like
  • 00:52:17
    to just have something that pays for
  • 00:52:18
    itself which is in a really nice Coastal
  • 00:52:20
    Community someday that I want to move
  • 00:52:22
    into dude that says Airbnb to me all day
  • 00:52:24
    long but it's just not something for me
  • 00:52:26
    me right so for you if you start with
  • 00:52:27
    your goals then realize that there's the
  • 00:52:30
    world of real estate is big and huge
  • 00:52:32
    right and there's many different things
  • 00:52:34
    out there It'll point you in the right
  • 00:52:35
    direction then all you need to do is go
  • 00:52:37
    find somebody who's a thousand steps
  • 00:52:39
    ahead to be inspired but maybe 10 steps
  • 00:52:41
    ahead to get you
  • 00:52:43
    involved so I do have a quick question
  • 00:52:45
    Kev yeah when you first started what was
  • 00:52:48
    your
  • 00:52:50
    goal my goal was to create Legacy wealth
  • 00:52:54
    for my kids right so to um we both work
  • 00:52:59
    corporate jobs we have pensions and
  • 00:53:01
    401ks and then there's Social Security
  • 00:53:03
    right but my concern about let me tell
  • 00:53:07
    you a quick story my father-in-law
  • 00:53:08
    worked for a car company for a very long
  • 00:53:10
    time his whole career and then um for
  • 00:53:13
    whatever reason the US and the
  • 00:53:16
    international division wanted to
  • 00:53:17
    consolidate so they Brank up the US
  • 00:53:19
    portion of the company including his
  • 00:53:22
    pension wow after working all those
  • 00:53:25
    years
  • 00:53:27
    the pension check is like very small
  • 00:53:29
    compared to what he expected to be and
  • 00:53:31
    that was my eye opener because my wife
  • 00:53:33
    and I both worked in pharmaceutical
  • 00:53:35
    Corporate America with great pension and
  • 00:53:37
    whatever and I was like oh my gosh what
  • 00:53:38
    if that's not there right right and then
  • 00:53:42
    you couple that with the rising costs of
  • 00:53:44
    things which inflation now but when I
  • 00:53:47
    started it was just like hey 4% every
  • 00:53:50
    year right if you just do the math on
  • 00:53:53
    you know what Social Security will be
  • 00:53:55
    whatever the one thing you're going to
  • 00:53:56
    find find is like security Social
  • 00:53:58
    Security will pay you an infinite amount
  • 00:54:00
    of benefits but what your money can buy
  • 00:54:02
    at that time who knows so I was looking
  • 00:54:05
    for an investment that not only would
  • 00:54:07
    last the test of time but it was also
  • 00:54:09
    indexed for inflation so my rents on my
  • 00:54:12
    holds go up 4% every year right so as my
  • 00:54:17
    taxes go up and the cost of things go up
  • 00:54:18
    so do my rents right so not that that
  • 00:54:21
    makes you a bad landlord or anything
  • 00:54:22
    like that but otherwise it's a dying
  • 00:54:25
    proposition right so I wanted my money
  • 00:54:27
    to be invested in something that's going
  • 00:54:29
    to grow proportionately over time
  • 00:54:31
    appreciate in value rents will go up
  • 00:54:34
    along according to the market and it's
  • 00:54:36
    something that when I'm gone I'll pass
  • 00:54:39
    to my children so that they don't have
  • 00:54:40
    to start over like I did that's awesome
  • 00:54:43
    that landed me into rental long-term
  • 00:54:46
    rental real estate nice so and depending
  • 00:54:49
    on who you talk to people will tell you
  • 00:54:51
    that's nuts there's better ways to do it
  • 00:54:53
    to get rich quick and all that stuff and
  • 00:54:55
    that's fine but uh for me I just wanted
  • 00:54:58
    that long-standing Legacy wealth you got
  • 00:55:00
    to find what your tolerance is and you
  • 00:55:02
    have to you know like you said from the
  • 00:55:03
    beginning that your goals we're g
  • 00:55:05
    they're going to direct you to where you
  • 00:55:06
    need to be yeah and you know there's
  • 00:55:08
    also going to be people that'll tell you
  • 00:55:09
    like Kevin so like why is your long-term
  • 00:55:11
    plan to 1031 all these singles and
  • 00:55:13
    duplexes into a building someday just
  • 00:55:15
    get involved in a building today right
  • 00:55:18
    well you know it's all Paradigm right so
  • 00:55:21
    came from a family of laborers who told
  • 00:55:25
    us my my wife and I like go to school
  • 00:55:27
    get a job we got a proper job our
  • 00:55:29
    Paradigm was like this is it so for me
  • 00:55:31
    jumping into like a 100 unit multif
  • 00:55:33
    family is a lot right right so having my
  • 00:55:36
    little single doors that have little
  • 00:55:38
    single problems and duplexes and
  • 00:55:40
    whatever but I've been growing right and
  • 00:55:42
    so now I'm looking to turn my duplexes
  • 00:55:44
    into fourplexes and six plexes and 10
  • 00:55:46
    plexes right understand that there's a
  • 00:55:48
    strong cut in four units or less on the
  • 00:55:51
    type of loans that you get right so
  • 00:55:53
    that's what I was comfortable with but
  • 00:55:54
    I'm learning and I'm exploring doing all
  • 00:55:56
    I'm on the next part of my journey right
  • 00:55:58
    so so that's that's what I would say is
  • 00:56:01
    like yeah so some people go to multif
  • 00:56:03
    family investing courses and boom they
  • 00:56:04
    do it right it just my level of comfort
  • 00:56:07
    and and everything and like we weren't
  • 00:56:09
    willing to sacrifice and risk and take
  • 00:56:11
    that takes a lot of time too right so
  • 00:56:13
    sure TurnKey passive rentals you could
  • 00:56:16
    still work right again it's what's your
  • 00:56:17
    goals right and that's where we were
  • 00:56:20
    right it's I think that's important
  • 00:56:21
    instead of having analysis paralysis is
  • 00:56:24
    what you know one of the key takeaways
  • 00:56:26
    from
  • 00:56:26
    our interview right now is make sure
  • 00:56:28
    that you have a clear goal so you can
  • 00:56:31
    stay focused on what method you're going
  • 00:56:33
    to use and you can learn all the ins and
  • 00:56:35
    outs of that method so you you can take
  • 00:56:37
    action after you build that knowledge
  • 00:56:40
    and then like you say your your goals
  • 00:56:42
    are going to evolve in in regards to
  • 00:56:45
    what your risk tolerance is because of
  • 00:56:46
    the knowledge base that you've built you
  • 00:56:48
    know all the ins and outs now so there's
  • 00:56:50
    really no right or wrong way to do it as
  • 00:56:53
    long as you're you're taking action and
  • 00:56:55
    you're understanding the numbers and the
  • 00:56:57
    risk tolerance and and then applying
  • 00:56:59
    reapplying the new knowledge base that
  • 00:57:01
    you got so that's great and then if you
  • 00:57:05
    like for example right now my method of
  • 00:57:08
    getting involved in big apartment comp
  • 00:57:10
    complexes is participating in
  • 00:57:12
    syndications which someone else runs I
  • 00:57:15
    have an active role in reviewing all
  • 00:57:17
    those numbers every time every quarter
  • 00:57:18
    and everything like that I don't just
  • 00:57:20
    put my money in and let it sit I want to
  • 00:57:22
    make sure these guys are doing their job
  • 00:57:23
    but do I'm not ready to turn a 100 you
  • 00:57:26
    know
  • 00:57:26
    buy a value ad 100 unit and as people
  • 00:57:29
    leave turnover profit turnover but
  • 00:57:31
    someone else is right so that's another
  • 00:57:34
    lesson here right know your goals but
  • 00:57:36
    then also know you can participate right
  • 00:57:38
    I'm involved in a number of flips
  • 00:57:39
    there's a flip going on in hackin sack
  • 00:57:41
    right now that I drive past every day am
  • 00:57:42
    I putting the sighting on no but my
  • 00:57:44
    money is invested in it it's not my flip
  • 00:57:46
    but I still wanted to be involved in
  • 00:57:48
    that flip so how else could I have done
  • 00:57:49
    it use 401K money right so think to
  • 00:57:52
    yourself what are my goals how can I
  • 00:57:54
    participate and is there other ways that
  • 00:57:55
    I could par ipate in different types of
  • 00:57:57
    things and man you're Off to the Races
  • 00:58:01
    right um and then I guess the last big
  • 00:58:05
    tip everyone take away right don't
  • 00:58:07
    compare yourself to step 1000 it'll you
  • 00:58:10
    won't it'll hold you back right step
  • 00:58:13
    1,000 is so you can get your goal what's
  • 00:58:15
    my vision right but then get somebody
  • 00:58:17
    who's at step 10 and follow them nice
  • 00:58:21
    excellent Kev thank you so much for the
  • 00:58:23
    wealth of knowledge and taking the time
  • 00:58:25
    to uh share that with us for sure oh of
  • 00:58:28
    course anytime I always this is like my
  • 00:58:31
    jam I love talking about real estate as
  • 00:58:32
    you guys know but so do you and that's
  • 00:58:34
    why I join join the group with you all
  • 00:58:36
    this has just been really awesome so uh
  • 00:58:39
    if you have any questions or anybody
  • 00:58:40
    does they can feel free to reach out
  • 00:58:42
    yeah we'll definitely do a check in and
  • 00:58:44
    see how follow to this one buddy this is
  • 00:58:46
    exting ex sounds good awesome Kev
  • 00:58:50
    appreciate it all right everybody thanks
  • 00:58:51
    thanks je buy be good bud bye now bye
Tags
  • Real Estate Investing
  • Entrepreneurship
  • BRRR Method
  • Fix and Flip
  • Real Estate Strategies
  • Investment Goals
  • Networking
  • Mentorship
  • Capital Management
  • Out-of-State Investing