Passive Real Estate Investing show

Passive Real Estate Investing

Summary: Take the guesswork out of real estate investing. Learn how BUSY PEOPLE like you can build substantial passive income while creating wealth for the long-term. Gain expert knowledge and advice on real estate investing as Marco Santarelli (of Norada Real Estate Investments) shares his strategies and valuable insights with a special emphasis on Turnkey (done-for-you) real estate investments. Discover proven strategies for making money with real estate in ANY market and how to avoid common and costly mistakes. If you’re looking for “bigger pockets” and ACTIONABLE advice on the road to financial freedom, then this is the podcast for you! With new episodes every week, be sure to SUBSCRIBE TODAY!

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  • Artist: Expert Advice for Creating Wealth and Cash Flow through Real Estate Investing with inspiration by Robert Kiyosaki "Rich Dad" | A Smart Passive Income Alternative to the Stock Market, Dave Ramsey, Clayton Morris, BiggerPockets and Grant Cardone.
  • Copyright: © 2016 Norada Real Estate Investments. All Rights Reserved.

Podcasts:

 What To Expect When Buying A Turnkey Rental Property | PREI 069 | File Type: audio/mpeg | Duration: 53:13

On today's show, I have one of my senior investment counselors, Steve, and we will talk about what to expect when buying a turnkey rental property. We answer a lot of frequently asked questions and all of our clients, whether they're new or newbies or they are fully seasoned investors, have certain questions and certain expectations. They all want to know what the next step is and what to do at a certain point and what to do in certain situations and how to move the purchase along. We have certain answers for all these situations. If you missed our last episode, be sure to listen to How Trump’s Presidency Could Affect Real Estate Investing. Enjoy the show! - - - - - - - - - - - - - - Download your FREE copy of: The Ultimate Guide to Passive Real Estate Investing. Get your FREE coffee mug by leaving us a Rating and Review on iTunes. Here's how. See our available Turnkey Cash-Flow Rental Properties. Please give us a RATING & REVIEW (Thank you!) SUBSCRIBE on iTunes | Stitcher | Podcast Feed

 How Trump’s Presidency Could Affect Real Estate Investing | PREI 068 | File Type: audio/mpeg | Duration: 39:08

In less than two weeks, we have president-elect Donald Trump taking over the Oval Office. What will that mean to us? How is that going to change the environment? How will Trump's presidency affect real estate investing? On today's episode we talk with Greg Rand about how Trump's presidency might affect the real estate investing industry. If you missed our last episode, be sure to listen to 5 Mindset Myths That Are Killing Your Wealth Potential. Enjoy the show! - - - - - - - - - - - - - - Download your FREE copy of: The Ultimate Guide to Passive Real Estate Investing. Get your FREE coffee mug by leaving us a Rating and Review on iTunes. Here's how. See our available Turnkey Cash-Flow Rental Properties. Please give us a RATING & REVIEW (Thank you!) SUBSCRIBE on iTunes | Stitcher | Podcast Feed

 5 Mindset Myths That Are Killing Your Wealth Potential | PREI 067 | File Type: audio/mpeg | Duration: 49:56

Today, we're going to talk about five of the most common myths, mindset myths that are holding us back. You might not even realize that you believe certain things or are not doing what you should be doing because of this deeply ingrained, indoctrinated belief system that we have.

 How to Choose the Best Market for Your Real Estate Investment | PREI 066 | File Type: audio/mpeg | Duration: 22:51

Successful real estate investing relies on several factors, but as the old adage goes, “location, location, location” is top of the list. But “location” is a broad term, and evaluating the right place to invest your dollars in real estate means identifying the right market in both the macro and micro senses. On today's episode we talk about the factors that make up a good market for your investment dollars.

 A Wealth Capture Machine – M.C. Laubscher | PREI 065 | File Type: audio/mpeg | Duration: 44:39

On today's episode we speak with M.C. Laubscher about a not-so-new concept of how to be your own bank. M.C. Laubscher is a wealth strategist, educator, and financial freedom fighter. He is the founder and president of Valhalla Wealth Financial.

 Leveraging Hidden Assets | PREI 064 | File Type: audio/mpeg | Duration: 20:45

On today's episode we talk about some of the hidden assets you may not be aware of, and how you might be able to put them to better use and get a higher yield. It's a quick episode but a topic an important topic to consider.

 How to Pay Less in Taxes – Amanda Han | PREI 063 | File Type: audio/mpeg | Duration: 45:52

If you want to succeed in real estate, your tax strategy will play a HUGE role in how fast you grow. A great tax strategy can save you thousands of dollars a year — and a bad strategy could land you in legal trouble. On today's episode we discuss some ways to maximize your tax deductions, Little known secrets to take control of your retirement money, clever ways to write off your kids, and so much more. If you missed our last episode, be sure to listen to the Maverick Mistakes in Real Estate Investing. Enjoy the show! - - - - - - - - - - - - - - Download your FREE copy of: The Ultimate Guide to Passive Real Estate Investing. Get your FREE coffee mug by leaving us a Rating and Review on iTunes. Here's how. See our available Turnkey Cash-Flow Rental Properties. Please give us a RATING & REVIEW (Thank you!) SUBSCRIBE on iTunes | Stitcher | Podcast Feed How to Pay Less in Taxes – Amanda Han and Matthew MacFarland Welcome to Passive Real Estate Investing. I'm your host, Marco Santarelli. Today we've got what might be perceived as a boring topic, and that is about taxes. But remember that taxes are your biggest expense throughout your lifetime. Not only do you need to choose your income wisely because your income, depending on how you generate it, will be taxed at different rates. But if you invest wisely, like with real estate for example, you can have some of the best tax breaks available through the IRS code in the United State. See, the more you earn through your job or through your business, the more you're going to get taxed. But the system is actually set up in a way that actually punishes people who earn employment income. This is your W9 and, to some degree, your 1099 income. It is designed to reward business owners and investors. Real estate, rental real estate, income producing real estate, falls in that I quadrant. That's all about investing. Wage income not only requires hard work but it gets taxed at a very high rate and on top of that, you have to pay what are known as FICA taxes, which have to do with your Medicare. It's just not the best way to protect yourself from the taxes that will erode and eat away at every paycheck. How do you protect yourself? The best way is through rental real estate, income producing real estate. Why is that? Because it has many tax advantages, especially over wage income. You got this capital gains rates that, on real estate, caps out at 15%. Now, that's assuming you've held a property for a minimum of twelve months, but you compare that 15% federal tax rate on the capital gains to the 35% or so that you would be charged on wage income. There's a huge difference right then and there. On top of that, you have state taxes, and then on top of that, some states even have further discounts on those capital gains income. It really adds up. Remember that capital gains requires that you hold the property for a minimum of twelve months. This does not apply to flippers. Unfortunately, if you're wholesaling and flipping property, you lose out on this capital gain benefit. Now, there's also that 1031 exchange, which is basically a way for you to roll your profits over from one rental property into another and defer those taxes. You could potentially defer indefinitely. Your tax basis in doing so actually just rolls from one property to another to another. This is the great thing about the 1031 exchange, it's a tax deferred exchange. Now, there are some rules you have to follow. You have to close within 180 days and you have to identify those properties within 25 days. We've actually talked about this in a previous episode not too long ago. You can go back and listen to that to figure out how this all...

 Maverick Mistakes in Real Estate Investing – Damion Lupo | PREI 062 | File Type: audio/mpeg | Duration: 48:24

Born with an entrepreneurial spirit Damion started his first business at age 11, has started 30 since then, and is the published author of 5 books. Damian paid for his first rental house with a VISA, then over next 5 years bought 150 houses across 7 states, and went through a $20,000,000 meltdown in 2008. Damian’s personal philosophy combined with a love of financial markets and money psychology drove him to start the Austin-based financial-tech company, Total Control Financial in 2016. His aim was to disrupt wall street and empower main street. On today’s episode we discuss some of the messes and misfortunes Damion made as a real estate investor. What can we learn from his experience? Let’s find out, and enjoy our other interesting tangents of discussion. If you missed our last episode, be sure to listen to the Ask Marco: Asset Protection, Holding Title, Closing Dates. Maverick Mistakes in Real Estate Investing – Damion Lupo Welcome to Passive Real Estate Investing. I'm your host, Marco Santarelli. As you know, this is the show where busy people like you learn how to build substantial passive income and create wealth for the long term. On today's show, I wanted to bring on a guest who I find rather interesting because he has been very, very successful in real estate in years past. But then, has also learned from a lot of messes and misfortunes. I'm hoping that he can share some of those lessons in maverick mistakes in real estate investing with us today. I guess, us, as investors, if we can learn from other people's successes and other people's mistakes, it will just spring board our success and it will shorten or compress the length of time that it takes for us to get to where we want to achieve those investment goals. My guest today is Damion Lupo. He is born with an entrepreneurial spirit. Damion started his first business at the age of eleven. He's started 30 since then. He is the published author of five books. Damion paid for his first rental house on a Visa, of all things. Then, over the next five years, bought 150 houses across seven states. Then he went through a $20 million meltdown in 2008. Damion's personal philosophy combined with a love of the financial markets and money psychology drove him to start his Austin based financial tech company, Total Control Financial in 2016. His aim was to disrupt Wall Street and empower the Main Street, which I just love. Damion, welcome to the show.  Hey, Marco. It's awesome to be here. Thanks for having me. It's my pleasure. Before we get into meat and potatoes here, I have a curiosity thing. I took martial arts for many, many years. In my earlier years, I spent many years studying Judo and then I spent years in Aikido and Hapkido, which is a Korean version of the martial art. Apparently, you have three black belts and you created your own martial art, called Yokido. I was wondering if you could maybe tell me a little bit about that, because I'm very curious. Definitely. I started Aikido about the same time I started my real estate investing. Actually, it was the same year. Over the next decade and a half, I ended up with three different black belts in Aikido or versions of Aikido. At some point, about five or six years ago, I started studying yoga and realized there was such powerful component of yoga, with breath work and core, strength that could really be brought into the Dojo, the martial arts space. And empower people to use their breath, which is so important that gets left out often times, and infusing things like the meditative aspects of yoga and bring that in so that people could be more powerful simply by breathing correctly. This was a good bridge for women that loved yoga and really wanted to feel comfortable walking around.

 Ask Marco: Asset Protection, Holding Title, Closing Dates | PREI 061 | File Type: audio/mpeg | Duration: 23:47

On today's episode we respond to some listen questions about asset protection and how I like to structure my asset protection plan.  As well as how to hold title and use a client as an example scenario.  And a quick look at closing dates and what to expect in practice. If you missed last week's episode, be sure to listen to the Listener Questions / Jacksonville Update. Enjoy the show! -  -  -  -  -  -  -  -  -  -  -  -  -  - Download your FREE copy of:  The Ultimate Guide to Passive Real Estate Investing. Get your FREE coffee mug by leaving us a Rating and Review on iTunes.  Here's how. See our available Turnkey Cash-Flow Rental Properties. Please give us a RATING & REVIEW   (Thank you!) SUBSCRIBE on iTunes  |  Stitcher  |  Podcast Feed Ask Marco: Asset Protection, Holding Title, Closing Dates I want to apologize for missing last week. I was very, very busy. In fact, we've all been very busy around here lately. This has just been an unbelievable year in terms of investor interest and sales. We recently hired a new transaction coordinator. I think she's been with us for three or four months. Lately, we've been in the process of finding a new investment counselor and we are now in the process of onboarding her and doing some training. It just never ceases to end, how busy things are around this country in terms of real estate and how busy we've been. A lot of that is thanks to you guys. For all you, past, current and future clients, we want to thank you very much. We appreciate your business. We love working with you and we love helping you and we love educating you. Keep up the good work. Don't lose the momentum. There are still lots of great deals to be found and we have a lot of those on our website. Even though inventory is tight and it moves quickly, we see a very big velocity in the number of properties being turned over, but they are there. A question for you, in your opinion, do you think the stock market is hugely overvalued? Obviously, there's a little bias in that question. I do. I think the stock market is irrationally high. I think that's the reason why we are so busy. I think there's a lot of investors who are coming to the realization that the stock market is overvalued and has had a long, long bull run. Some people I think are smart enough to start pulling some of those chips off the table and taking that cash and redeploying it into other areas, other assets. Some people might be sitting on the sidelines in cash, other people are investing those funds into hard assets. One of the best hard assets out there you can invest in is obviously income producing rental properties. What do you think? I'd like to know. I personally think the stock market is heavily overvalued. One of the metrics or indicators that people look at is the PE ratio, the price to earnings ratio. This is a valuation indicator that is probably the most quoted in the financial media. Nevertheless, according to that data, which by the way, I believe is compiled by Yale-Shiller. It is the index that was put together by Robert Shiller of the famous Case-Shiller index. Based on the standard estimates for the second quarter of this year, that ratio currently stands at 25.2 to 1. If that doesn't mean anything to you, let's look at it this way. A “normal” range is often in the 12-15 to 1 ratio. At least historically, that's what we've seen is being "normal." Realize this, that number is higher than 89% of the past bull market peaks. Where we stand today in the stock market, we are above where we have been at our peak in 89% of the past bull market peaks. You decide. I always tell people to not be heavily vested in the market. That's not financial advice, that's just me and my opinion and how I feel about it. At the end of the day,

 Listener Questions / Jacksonville Update | PREI 060 | File Type: audio/mpeg | Duration: 34:41

On today's episode we briefly revisit Jacksonville, Florida to look at some new pre-construction investment opportunities. I also answer several listener questions about getting started, property tax rates as an out-of-state investor, and whether a cash-out refinance on a principal residence makes sense. If you missed last week's episode, be sure to listen to the Market Spotlight: Little Rock, Arkansas. Enjoy the show! -  -  -  -  -  -  -  -  -  -  -  -  -  - Download your FREE copy of:  The Ultimate Guide to Passive Real Estate Investing. Get your FREE coffee mug by leaving us a Rating and Review on iTunes.  Here's how. See our available Turnkey Cash-Flow Rental Properties. Please give us a RATING & REVIEW   (Thank you!) SUBSCRIBE on iTunes  |  Stitcher  |  Podcast Feed Listener Questions / Jacksonville Update On today's show, we're going to cover two things. One, we're going to have Brian back on the show here to give us a quick Jacksonville update. He’s got some new construction opportunities in the Jacksonville market, which I think you might be excited about. Then I have three great questions that have come in recently from our listeners. I'm going to cover that here right after we talk to Brian. It's my pleasure to welcome back one of our Jacksonville providers. I have Brian on the line here who wants to give us an update on the Jacksonville market. More importantly, he wants to give us an update on an exciting new construction project that he has going on. Brian, welcome back. Thanks so much for having me Marco. It's good to hear your voice. Thanks for coming back on the show for a quick update on the Jacksonville market. That's a good place to start, Brian. Let's talk about what has transpired since episode number 21, where we did an entire episode with you on the Jacksonville market and we talked about not only what's going on there, but the product type that you are producing as far as turnkey rental properties. What has changed since then? If you want, just highlight some of the things you talked about in the past that would make good highlights for new listeners. To revisit just very briefly for the listeners, we started investing in single-family homes and foreclosed property in particular back in '98 in Bakersfield. That, at the time, had a third of the foreclosure activity in the state of California. We saw it as a huge opportunity. We went in there pretty green and made some mistakes in the beginning and very quickly built a really good team. From '98 to '04, we built up a portfolio of a couple hundred homes. Most of the listeners know what happened in California between '04 and '06. We were fortunate enough to start liquidating in '04 and we sold every home that we owned in California between '04 and '06. We made a really good play there and made millions of dollars fairly quickly and then moved a lot of the resources and the capital into Jacksonville. Timing wasn't the best to do that in '06 and '07 and Florida was not the best place to be placing capital. We realized that very quickly and then backed off 2008 to 2011 when Jacksonville bottomed out. Then 2011, fast forward to today, we came back into the market slowly in '11 and since have built up a good sized portfolio. We're right around 170 homes and providing a lot of turnkey investments for investors like yourself. An update on Jacksonville, since we spoke last, Marco, which was only about a year ago, honestly, nothing has radically changed. Obviously, the fundamentals are what they are. Really just to focus and give you an update on the timing in the market and where we're at this cycle, we are still moving through recovery in a buyer's market, in my opinion, in our niche in Jacksonville.

 Market Spotlight: Little Rock, Arkansas | PREI 059 | File Type: audio/mpeg | Duration: 34:08

On today's episode we take a look at the great "under the radar" market of Little Rock, Arkansas. Little Rock has a great economy, and terrific number in terms of purchasing and rates of return.  It's also one of the most landlord friendly states in the country with average eviction times of only 21 days! Why invest in Little Rock, AK? What is the local economy like? What is the local housing market like? What is the local rental market like? What are the typical turnkey rental properties like in Little Rock?   If you missed last week's episode, be sure to listen to the Investing in Turnkey Properties — My Journey, Setbacks and Advice. Enjoy the show! -  -  -  -  -  -  -  -  -  -  -  -  -  - Download your FREE copy of:  The Ultimate Guide to Passive Real Estate Investing. Get your FREE coffee mug by leaving us a Rating and Review on iTunes.  Here's how. See our available Turnkey Cash-Flow Rental Properties. Please give us a RATING & REVIEW   (Thank you!) SUBSCRIBE on iTunes  |  Stitcher  |  Podcast Feed Market Spotlight: Little Rock, Arkansas Today, we have an exciting show for you because it's another market spotlight. The market I'm talking about was ranked the fourth strongest economy in the US by Business Week in 2013. This market that I'm talking about has been under the radar. It is a gem that most investors don't know about or even talk about. Those that know about this market are doing extremely well there. The market I'm talking about is Little Rock, Arkansas. On today's show, I have two of the principals of the company that we have a relationship with and do work with down in Little Rock. They are our provider of course. They're going to be here with us today to talk about the market and why it makes such a great market to invest in, why invest there, what the economy and the housing is like, the types of investment properties that are available there. Although they are in somewhat short supply, we have a revolving inventory. It is fairly consistent and we will have something for everybody if this is a market that is of interest to you. It's my pleasure to welcome Jeremy and Brian to the show. Jeremy and Brian are two of the principals and partners of our Little Rock, Arkansas provider. Jeremy has a background as an Electronics Engineer and is a full-time real estate entrepreneur. He owns and manages a portfolio of his own properties. Brian, his partner, is a lifetime native of Little Rock and owns 27 properties out there. Guys, welcome to the show. Thanks, Marco. This is a little overdue because we have been keeping our eye on the Little Rock, Arkansas market. It really is under the radar. I wanted to get you on today to talk about it. This is going to be our market spotlight. We're going to start pushing some inventory. Let's begin by you telling us a little bit about yourselves and how you got involved in real estate. Maybe Jeremy, we could start with you. I got started in real estate about ten years ago. Again, I come from the corporate world, nine years of experience in the semiconductor industry. I started buying rentals in Memphis, managing them, going through the process of learning how to be an investor, got involved through a local area and met my current partner in Memphis. We started building a company there. Through a mutual connection on his end, we met, we hooked up with Brian in Little Rock and started business there about three years ago. That's how things got started. Brian, of course, has been investing in Little Rock for about twenty years. He's a lifetime native. In the last two or three years, we've just seen extraordinary growth in the Little Rock market. Brian, what about you?

 Investing in Turnkey Properties — My Journey, Setbacks and Advice | PREI 058 | File Type: audio/mpeg | Duration: 21:42

On today's episode I share my journey investing in rental real estate from my early start at the age of 18, through my trials and tribulations, to where I am today.  We should all learn from our past experiences, good and bad, because they provide us knowledge and the wisdom to improve and do better as we go. Regardless of where you are in your investing journey, I encourage you to listen in, and feel free to share your story with us. If you missed last week's episode, be sure to listen to the Indianapolis Update and Listener Questions. Enjoy the show! -  -  -  -  -  -  -  -  -  -  -  -  -  - Download your FREE copy of:  The Ultimate Guide to Passive Real Estate Investing. Get your FREE coffee mug by leaving us a Rating and Review on iTunes.  Here's how. See our available Turnkey Cash-Flow Rental Properties. Please give us a RATING & REVIEW   (Thank you!) SUBSCRIBE on iTunes  |  Stitcher  |  Podcast Feed Investing in Turnkey Properties -- My Journey, Setbacks and Advice Today, I wanted to talk about the concept of investing in turnkey properties. Investors sometimes ask me, “If I had to go back and do it all over again, what would I do different? What did I learn?” Really, it's just about the journey of where I started and how I got to where I am. People just want to know where I started and how I got to where I'm at. If I was to just rewind the clock and tell you where I started, I was only eighteen years old when I bought my first investment property. I have to tell you, at that time, it was an exciting time and a scary time. In fact, I had never read a book or taken a course on real estate up to that point. I only really had experience in rental properties through helping my parents, aunts and uncles renovate a single property they bought as a group when I was in my early teens. It really was a family project, and it really was the only rental property that they ever bought and fixed up. It was more daunting and more work than they anticipated, so it ended up taking weeks to get done. It was a job that was done in evenings and on weekends because everybody had a full-time job, we were in school so it was really a side project, if you will. My first investment property was a rundown, two-story townhome that needed a decent amount of work and upgrading. I was able to purchase it with financing because the lender considered the property to be livable and I qualified for the financing because I was employed for over two years with a good paying job and it was a part time job. I then hired my uncle who was a general contractor. With the help of my immediate family for some of the demolition, we jumped in to get the property cleaned, upgraded and prepared to lease. That project probably took a couple of weeks. I recall running an ad in the local paper. Remember back then, there were no iPhones and there was no internet so it was the newspaper or you stuck a sign in the yard. I would have people come by the property to fill out applications while we continue working on the property inside. I had absolutely no experience in screening tenants. I'm sure I relied on my gut feeling at least as much what they wrote on their applications. I kept that property and managed it for probably a few years before I decided to sell it. I made a nice profit on it. All in all, it was a very good experience and one that I can look back and reflect on. The property was local to me. The price was right and I was ambitious enough to literally jump in and just do it. My biggest regret though with that first property was selling it. Over time, the market value exceeded ten times the price I originally paid for it. I can't imagine what the cashflow would be like today if I had kept it. It probably would be free and clear. I would be raking in,

 Indianapolis Update and Listener Questions | PREI 057 | File Type: audio/mpeg | Duration: 41:23

On today's show we speak with one of our local Indianapolis market experts and property provider about the growth and opportunities in the Indianapolis market.  We have some news and updates from our Indianapolis market spotlight early this year. I also answer several listener questions, and talk about leveraging your existing equity to build a larger portfolio with more cash flow. If you missed last week's episode, be sure to listen to Pros and Cons of Rehabbing and Flipping – Matty Aitchison. Enjoy the show! -  -  -  -  -  -  -  -  -  -  -  -  -  - Download your FREE copy of:  The Ultimate Guide to Passive Real Estate Investing. Get your FREE coffee mug by leaving us a Rating and Review on iTunes.  Here's how. See our available Turnkey Cash-Flow Rental Properties. Please give us a RATING & REVIEW   (Thank you!) SUBSCRIBE on iTunes  |  Stitcher  |  Podcast Feed Indianapolis Update and Listener Questions On today’s show, I wanted to focus on Indianapolis again, but this is not a market spotlight per se. It’s really just another update on the market and what has been going on because we have had some changes there. Although Indianapolis is a perennial market for us, we've been there for probably ten years, if not longer. We have had some changes there. We've brought in a couple of new providers that we've been working with for about a year or more, and things have been going very, very well, clients are very happy, we've had many people fly out there to visit with our team; kick the dirt, see properties, see neighborhoods. They're always very impressed. I thought, “Let’s just take another look at the Indy market and bring one of our providers on. Today, I’m going to bring on a gentleman by the name of Josh. He is one of the team members that we work with out there, who manages a large team of people. Josh, welcome to the show. Thanks, Marco. I appreciate you having me today. I’m happy to have you on because I think it’s a good time to take a quick look at Indy again. Like I had said, it’s a perennial market. The numbers always seem to make sense there. There’s a constant flow of inventory, which I think is very important. Before we jump in to asking that all-important question of why invest in Indianapolis, why don’t you tell our listeners a little bit about yourself and your partner, Scott, and how you guys got involved in real estate? Scott and I worked together at a firm in the late ‘90s. It was our first experience together. We managed a high volume of investment property, generally distressed sale managements. We were acquiring properties all over the state, more of a C class or inner city-type property situation rather than what we focus on today. We did it at pretty high volume. We had probably at one point in time, over 500 properties under management. We were acquiring somewhere in the neighborhood of 20 to 40 properties a month. It was just a different time, different market than it is today. We found that it wasn’t as reliable and as certain as what we’re hoping for. That was when we first got together. We had been working together in various different operations over several years. We all know what happened in 2008. Everything went sideways in most markets. Indianapolis, it had an issue, but we didn’t really have it as it affects nationwide. We definitely had increased amount of foreclosures. That’s what I spent my time focusing on. We managed properties for Fannie Mae, Freddie Mac, HUD, Chase, all the big firms. We really focused on the management and sales side of that for probably about eight years. My partner, Scott, was building this company where there was a defined need in around 2010 for turnkey investment property providers. There was just a lot of interest in people,

 Pros and Cons of Rehabbing and Flipping – Matty Aitchison | PREI 056 | File Type: audio/mpeg | Duration: 47:19

Matty Aitchison is a millennial entrepreneur, real estate investor, and wealth building evangelist who has had great success following his turbulent start.  Ranked in the Wall Street Journal’s Top 1000 for real estate teams nationwide, Matt has personally flipped over 100 houses in 5 years, and now passionately mentor others on their journey of unlocking a rich and fulfilling life. Listen in as Matty and I discuss the pros and cons of rehabbing and flipping properties. If you missed last week's episode, be sure to listen to The Four Real Estate Market Cycles. Enjoy the show! -  -  -  -  -  -  -  -  -  -  -  -  -  - Download your FREE copy of:  The Ultimate Guide to Passive Real Estate Investing. Get your FREE coffee mug by leaving us a Rating and Review on iTunes.  Here's how. See our available Turnkey Cash-Flow Rental Properties. Please give us a RATING & REVIEW   (Thank you!) SUBSCRIBE on iTunes  |  Stitcher  |  Podcast Feed   Pros and Cons of Rehabbing and Flipping - Matty Aitchison It's my pleasure to welcome Matty Aitchison to the show. Matty is a millennial entrepreneur, real estate investor and wealth-building evangelist who has had great success following his turbulent start. Ranked in the Wall Street Journal's Top 1000 for real estate teams nationwide, Matty has personally flipped over 100 houses in five years and now passionately mentors others on their journey of unlocking a rich and fulfilling life. Matty, welcome to the show. It's a pleasure to be here, Marco. Thanks for having me, man. My pleasure to have you on the show. You have an interesting background. You're a relatively young guy. If I'm not mistaken, I think you're in your late 20s, is that true? That's correct. Again, another millennial. I think you're the second or third millennial I've had on the show here in the recent past. You guys not only intrigue me, but you guys inspire me. You have an interesting background, Matty. Why don't we start off by you telling us about yourself and your background? I'm from Sacramento, California and born and raised here. I was heavily into sports. It's funny, a lot of people ask me, "How did you get into real estate investing?" I go back to when I was twelve, thirteen, fourteen. My mom, who was always worked in corporate America her whole life, was going to those guru flipper seminars and she would take me with her. At a young age I was exposed to this idea of real estate investing being this vehicle for wealth building and had the ability to put no cap on your income. You had the freedom to be your own boss. You could add value to communities and people in that space. It had always been in the back of my head. I actually got into trouble a little bit in school, as most teens often do, and I was expelled from high school. I went on to go to UC Santa Barbara for college. In my first year in college, I actually got arrested for the exact same thing that got me expelled from high school. That was my fork in the road, my “oh shiz” moment, I like to call it of thinking, “Man, what am I doing with my life?” The direction that I said I wanted to go in was not being backed up by my actions. My video and the things that I was doing was not matching my audio and the things that I was saying and telling people that I wanted to accomplish. I had a big reflection time at that point in my life. I remember my dad actually spoke some great wisdom to me at that point in my life where I could have gone in a really wrong direction. He said, “Your rear view mirror is there for a reason and I want you to look at this as an opportunity to say your past doesn't have to equal your future.

 The Four Real Estate Market Cycles | PREI 055 | File Type: audio/mpeg | Duration: 21:13

In order to make profitable investments, it’s vital for investors to understand the four real estate market cycles because they directly affect the price of the properties you may want to consider, or the properties you currently own. If you missed last week's episode, be sure to listen to The Wealth Creation Formula. Enjoy the show! -  -  -  -  -  -  -  -  -  -  -  -  -  - Download your FREE copy of:  The Ultimate Guide to Passive Real Estate Investing. Get your FREE coffee mug by leaving us a Rating and Review on iTunes.  Here's how. See our available Turnkey Cash-Flow Rental Properties. Please give us a RATING & REVIEW   (Thank you!) SUBSCRIBE on iTunes  |  Stitcher  |  Podcast Feed The Four Real Estate Market Cycles Today, we're going to talk a little bit about market cycles. In order to make a profitable investment, it's vital that you understand the cycles of the real estate market because they actually affect the value of the properties that you want to consider or the properties that you own. Let's be clear right from the beginning, I am not suggesting or implying that you focus on appreciation or potential appreciation in lieu of cashflow. For me, cashflow is still the number one priority, it's at the top of the list. It is the most important factor that I look at. I look at cashflow in terms of dollars, but I also look at cashflow in terms of what's my cash-on-cash return? That's how I judge a good performing asset. In terms of market cycles, the first thing to understand is just as the weather has four seasons, so does the real estate market. It has four general cycles. An upmarket, a peak market, a down market and a bottom market. In other words, just as temperatures fluctuate during spring, summer, fall and winter, so do property prices in residential real estate. They go up and down in their cycles. However, unlike weather seasons, market cycles tend to last longer at approximately seven to ten years. That's an entire cycle from beginning to end. Keep in mind that these cycles are normal functions of dynamic markets. They're affected by factors within those markets. For now, let's take a closer look at these four general markets and what goes on in each of them. We're going to consider a little bit more of a technical definition later, but let's just talk about this in general terms. First and foremost is our favorite, an upmarket. This occurs when home prices are rising. It's also called a "sellers' market." I'm sure you've heard that term before. It's called the sellers' market because sellers can pretty much get the price that they want when they want it and there are so many people who are buying properties at these higher prices that it continues to push the price up. In essence, demand exceeds the supply. What are the signs of an upmarket? Prices are appreciating, that's obvious. But inventory levels are low or that trend is dropping. You'll see inventory start to dry up. Tied in with that is you'll see a shorter number of days on market. This is referred to as the DOM, days on market. You will see that properties don't sit on the MLS or on a street for very long before it goes into a pending and sold status. There are multiple offers on properties. Often, you will see people bidding against the same property. That just further drives prices up. There is optimism and excitement or a buzz among people and within that market. You can tell that there's some sort of euphoria going on. This is what sometimes leads to that irrational exuberance as the book talks about. Investors feel good about investing. There's that general feeling of, "This is the right thing to do and the right place to be." When you're in a rising market, it's exciting because the tide floats all ships.

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