Passive Real Estate Investing

    Have you ever wondered how the rich keep getting richer while broke people stay broke and the middle class continues to shrink?  This isn't as mysterious as it may appear when you examine the specific differences in how broke people, the middle class, and the rich spend their money. Today we talk about The Wealth Creation Formula. If you missed last week's episode, be sure to listen to Finding The Drive To Be A Huge Success In Real Estate with Rod Khleif. 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 Wealth Creation Formula Our show is about creating substantial passive income and creating wealth for the long term. That's the subject of today's episode. It's wealth creation, or more specifically, the wealth creation formula. Have you ever wondered how the rich keep getting richer, while broke people stay broke and the middle class continue to shrink? This isn't a mystery as it may appear when you examine the specific differences on how broke people, the middle class and the rich spend their money. This is such a simple concept, yet it's so profound. I believe I finally understood this concept on a train ride with my wife from Rome to Florence, Italy. I had picked up a new book called Rich Dad, Poor Dad by Robert Kiyosaki. Once I started reading it, there was no putting it down. What was made clearer to me at the time is how the rich spend their money. What I'm going to explain to you today is why the rich keep getting richer, the broke keep getting broker and why the middle class remain stressed out. Before we start, it's important to understand some common financial terms. The reason is many people misunderstand their real meaning. The terms that you need to be familiar with are the following: Cashflow, which is the money that you bring in. Expenses is the money that you spend. Asset is somewhat of a confusing term because most people are familiar with the traditional definition of an asset, which is something you own or have equity in. However, Robert Kiyosaki introduced us to a new definition of an asset in his Rich Dad series of books. Robert defined an asset as something that pays you, and that's the definition I've adopted and the one that we'll use here. Liabilities, is defined as those things that cost you money. A typical example is one's house, which is often viewed as an asset, but it can actually be a liability. Anything that costs you money is a liability, not an asset. If you have a mortgage on your house, it's an asset to your bank because it pays them every month. However, a house or other property can also be considered an asset under the right circumstances. If that property generates income, like a rental property, and it pays you a positive cashflow every month after all expenses, then it would be considered an asset. Just remember that an asset has to put money in your bank account. Cashflow is the money you make, while expenses is the money you spend. Let's take a look at how broke people spend their money. Keep in mind that my definition of a "broke person" are not those that are destitute. I'm referring to that large portion of our society that live paycheck to paycheck and never seem to have any money. In fact, they often have to borrow from Peter to pay Paul, run up credit cards and they find themselves with more month leftover at the end of their money. Broke people purchase what I'm going to call stuff.

    Our guest today is Rod Khleif.  Rod has personally owned more than 2,000 single family homes, and multiple apartment communities.  Rod has also built several multi-million dollar businesses, and has dedicated himself as a community philanthropist.  A compelling rags-to-riches-to-rags-to riches story, Rod soared from humble beginnings as a young impoverished Dutch immigrant to incredible success. Why is psychology more important than technical knowledge in real estate? How does one find the drive to be a huge success in real estate? What’s the difference between Achievement and fulfillment in your real estate business? And so much more.   If you missed last week's episode, be sure to listen to Inflation, Debt and the Investment Landscape with David Stein. 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 Finding The Drive To Be A Huge Success In Real Estate – Rod Khleif It's my pleasure to welcome Rod Khleif to the show. Rod has personally owned over 2,000 single-family homes and multiple apartment communities. Rod has also built several multimillion dollar businesses and has dedicated himself as a community philanthropist. He has a compelling rags to riches to rags to riches story. Rod has soared from humble beginnings in Holland, I believe it is, to incredible success here in the US. Having said that, Rod, welcome to the show. Thanks, Marco. It's awesome to be here. It's my pleasure to have you on the show. I didn't know much about you until recently. In doing my due diligence on you and learning more about you and listening to your podcast, I was very impressed with a lot of the things that you had accomplished in years past. Then I was even more impressed with your Tiny Hands Foundation. I'm going to do a little thing that's out of the ordinary for me here. I usually start with tell us about yourself and whatnot. If you don't mind, before we get into you and real estate investing, can you just take two minutes or so and tell us about that Tiny Hands Foundation? Because I'm very intrigued with it. I was a narcissist back in the day, probably seventeen, eighteen years ago. I came across Tony Robbins, I went to a Tony Robbins' event. I saw what he does for needy families. He has something called a Basket Brigade. I decided to model it the year I went to my first event with him. I decided to feed five families and called the church, found out who needed help. My brother and I went and delivered big boxes of food to five families. One of the families, the lady came out of the house, she was in the shack and she came out of the shack, and she started crying when she saw the food. Then her five children all came out and they all started crying. I was hooked. The next year, I fed 50 families. This is for the holidays, a big holiday meal with gifts and things like that. In fact, I used to do turkeys. Literally, I deliver a turkey for Thanksgiving. I did 50 the next year, I did 100 the year after that. I doubled it every year, 200, 400, 800, 1,600. I paid for it all up to 1,600. That was '07. Then '08 hit. I was in real estate in '08, need I say more. I formed a foundation called The Tiny Hands Foundation. We have now fed, in the last sixteen years, 40,000 kids for the holidays. We've also done thousands of backpacks filled with school supplies. In fact, we're doing 1,

Our guest today is David Stein.  David was the Chief Investment Strategist and Chief Portfolio Strategist at Fund Evaluation Group, LLC, a $33 billion investment advisory firm.  Today he likes to teach people about money, how it works, how to invest it and how to live without worrying about it. What is inflation, and what causes it? Why you shouldn't pay off your mortgage. What does the current investment landscape look like? Plus other topics we discussed on tangents.   If you missed last week's episode, be sure to listen to How to be Mortgage Free in Five to Seven Years. 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 Inflation, Debt and the Investment Landscape – David Stein Welcome to Passive Real Estate Investing. I am your host, Marco Santarelli. If this is your first time here, welcome. If this is not your first time here, I am glad you made it back. Today, I wanted to do a show that was a little different than what we typically do, which is hyper focused on real estate specifically. So much of what ties into real estate and investing in general has to do with what is going on in the economy and around the world, whether it be oil prices or interest rates or countries devaluing their currency versus our currency. Changing the cost of goods that goes into transportation and changing the cost of the materials that go into housing, etc. It is really a very wide complex interconnected web. What I am going to start doing in future episodes, I am going to sprinkle in a show here and there about the economy and about economics, and about some topic related to real estate but not directly. Hopefully, that's going to help enlighten you and broaden your knowledge about what is going on around the country and the world. I don't get into politics, of course, but maybe something that is happening in Washington is going to affect financing or what you can and can't do with your properties. Who knows? Today, I am bringing a guest on by the name of J. David Stein, a really smart guy. He used to manage billions of dollars in a fund, not a hedge fund but an investment fund and he is a strategist. He has an interesting way to look at things and he explains things in a fairly clear way. In fact, he's got a great podcast that I listen to and I enjoy. It's just one of many sources of information that I get. Anyway, I was a little pressed on time on my interview with him, so I had to rush it a little bit and I apologize about that in advance. It's my pleasure to welcome, David Stein to the show. David was the Chief Investment Strategist and Chief Portfolio Strategist at Fund Evaluation Group LLC, a $33-billion investment advisory firm. Today, David likes to teach people about money, how it works, how to invest it and how to live without worrying about it. He is also the host of the personal finance podcast, Money for The Rest of Us, which by the way is a great podcast. David, welcome to the show. Thanks, Marco for having me. It’s good to be here. It's great having you on the show. I actually am a listener of your podcast. I enjoy it very much because it's an interesting, easy listening format to learn about money and the economy and everything else surrounding that, which is not exactly what our show is about. I wanted to bring you on because I think a lot of our listeners are either sophisticated and or interested in diffe...

How would you like to be completely mortgage free in less than a decade? There's a new way to manage your mortgage and monthly cash flow so that you, and not some banker, get to squeeze the most use out of every dollar that comes in, and every dollar that goes out.  The strategy is called Equity Acceleration.  It's not such a big secret in Australia and the United Kingdom, where as many as 1-in-4 homeowners are accelerating the mortgages. Join me on this exciting episode to discover how you can be mortgage free in 5 to 7 years on your principal residence or investment properties. And, if you missed last week's episode, be sure to listen to From Broke to $10,000 per Month at Age 24 – Sean Gray. 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 be Mortgage Free in Five to Seven Years - Jordan Goodman Today, we have a very exciting episode because we're going to tell you how you can cut your mortgage down and have it paid off in about one third of the time. Typically, that's going to be five to seven years but it could be seven to nine. In either case, it's going to be about one-third of the time. Our goal here is to share the knowledge and methods of actually owning your properties and your home mortgage-free much sooner than you imagined. Think about this interesting statistic, in 1929, only 2% of Americans had a mortgage on their home. In 1962, 98% of Americans had a mortgage on their home. That's a huge difference. Take a look at the history of mortgages in America and you'll start to understand why this has changed so radically. Do you know where the idea of the amortization concept came from? It was actually developed after the great depression as a way to stimulate home ownership and of course banks' profitability. That is still true today. Until that time, most loans were five years in interest only and they had a balloon payment at the end of the five-year term. Bankers didn't determine that payments were a problem. They thought that those monthly payments were actually the biggest hindrance to someone owning a home. What they did is they dragged out the mortgage for as long as they possibly could to generate these low monthly payments. That made home ownership and affordability much, much easier. Initially, they stretched it out to ten-year loans. That's what was common and then twenty and then 30-year loans. That seems to be the norm nowadays. For some of you, if you remember back in the mid-2000s, we saw 40 and even 50-year loan amortizations, which is just absolutely crazy. If you think about it, the longer that term, the more interest you're paying to the bank over the course of the life of that loan. Really, at the end of the day, who's winning there? Is it you or is it the bank? Your lower monthly payment is given up in lieu of much, much larger interest payments. Today, would you buy a $250,000 home and pay $500,000 for it? Of course, you'd say no but that's exactly what you're doing when you finance a property. Don't get me wrong, 30-year fixed rate mortgages are great because it's good debt. It allows you to acquire a larger portfolio of rental properties than you could if you were buying all cash. Leverage is a wonderful thing if it’s used properly. Real estate is a great vehicle to allow you to do that. You have to understand that there's a cost involved and of course, your tenant is actually paying the mortgage off for you, not you.

How does a 22-year old go from being broke, clueless, and sleeping on the floor of a small home with ten other broke college buddies to making over $10K per month, traveling the world, meeting his business heroes, all within six months? Well meet Sean Gray.  He started by asking himself better questions, and as he likes to say, “being the person who he is becoming.”  Today, at age 24, he’s an author, speaker, real estate investor, business owner, and Rich Dad Education rep. Join me for a great interview with many nuggets of great information. If you missed last week's episode, be sure to listen to What You Need to Know About Cash-Flow – Frank Gallinelli. 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   From Broke to $10,000 per Month at Age 24 – Sean Gray Welcome to Passive Real Estate Investing. I'm your host, Marco Santarelli. If you're a millennial, I really want you to pay attention to this show. But if you're not a millennial, I still want you to pay attention to the show because I have a question for you. How does a 22 year old go from being broke, clueless and sleeping on the floor of a small home with ten other broke college buddies, to making over $10,000 per month, traveling the world, meeting his business heroes all within six months? Meet Sean Gray. He started by asking himself better questions and, as he likes to say, "Being the person who he is becoming." Today at age 24, he's an author, speaker, real estate investor, business owner, a Rich Dad education rep. With that, welcome to the show, Sean. Thank you, Marco. That was quite the introduction. It's all true. You have an amazing story. What impressed me a lot about you is you were 22 at the time, you're 24 now, if I'm not mistaken. Correct. That puts you in the millennial category. It depends on whose numbers you read, but there's over 82 million of you guys out there. I think a lot of millennials really are lost. A lot of them still live at home because they just don't have the income, because they don't have the jobs. A lot of them are in school or they were in school and dropped out. They're trying to find their way. This is the reason I wanted to bring you on the show, is because I think you can be a massive inspiration for a lot of these people. It's not just those people that are listening to the show. We have everybody, from 18 to 70 year old people listening to this show. You can be an inspiration for everybody. I'm very happy to have you on the show. I'm happy to be here. Let's begin with a very basic question. What do you do? That is a great question. It seems like a basic question but it's like peeling back layers of the onion. I get asked that question a lot. I'm not sure how to answer it. Sometimes I answer it with just basic, "I do sales, marketing," because I can't tell if they're really wanting to know or if they're just making small talk. For the conversations like this, when you really want to know what I do, at the 30,000 foot level, what I do is I travel around and I build my brand, I build my network through building relationships and keeping my eyes open for opportunities. When opportunities present themselves that align with my values, where I want to go, the things that I want to accomplish, I put myself in those environments to take advantage of them. I know that's a 30,000 foot view level and not very specific but I...

The only way to win the real estate investing game is by mastering the numbers. If you’re truly interested in real estate investing then you must first realize that investing in income properties is all about the numbers.  It’s about discounted cash flow and rates of return and net operating income and cap rates.  If you understand how these and other key concepts work, then you’re on your way to success – and that’s exciting. Our guest, Frank Gallinelli is the author of the best-selling book, "What Every Real Estate Investor Needs to Know About Cash Flow... " now in its third edition, as well as other books and numerous articles on real estate investing and finance.  A graduate of Yale University, he serves as Adjunct Assistant Professor of Real Estate Development at Columbia University.  Frank has been involved in real estate for more than 40 years and is the founder & president of RealData, a real estate software firm that has provided analysis and presentation tools for investors and developers since 1982. What Every Real Estate Investor Needs to Know About Cash Flow... And 36 Other Key Financial Measures can be purchased on Amazon.com. If you missed last week's episode, be sure to listen to Increasing Cash-Flow, Deferring Taxes and Reducing Risk using a 1031 Exchange. 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 What You Need to Know About Cash-Flow – Frank Gallinelli Welcome to Passive Real Estate Investing. I’m your host, Marco Santarelli. Today’s episode is about what you need to know about cash flow. I have the most appropriate guest for that subject. His name is Frank Gallinelli. He’s the author of about two or three books, which can be found at Barnes & Noble, Amazon.com and few other places. Real estate investing is a number’s game. The only way to win at this game is to understand the numbers. It’s important to know how to evaluate property, how to understand the cash flow, the rates of return, etc. but you don’t need to be a rocket scientist. On today’s episode, we do get into some deep conversation, things that are maybe initially hard to understand or conceptualize. This podcast is on demand. You could listen to it two or three times. You can also educate yourself through books and various other resources that are available out there. This is something that you need to understand, at least, at a high level, if not be an expert at it. At least understand it at a conceptual level so you know what cash flow, cash-on-cash return is, your net operating income. These are all acronyms and part of the vocabulary. The only way to elevate yourself from being a novice or a newbie investor to a more sophisticated investor is to really grasp the vocabulary so you know what these terms mean and how you can use them and calculate them. Let’s jump in here in one moment and talk to Frank Gallinelli. It’s my pleasure to welcome Frank Gallinelli to this show. Frank is the author of the best-selling book, What Every Real Estate Investor Needs to Know About Cash Flow, now on its third edition. He’s written other books and numerous articles on real estate investing and finance. He’s a graduate of Yale University and he serves as Adjunct Assistant Professor of Real Estate Development at Columbia University. Frank has been involved in real estate for more than 40 years. He’s the founder and president of RealData, a real estate software firm that has provided analysis an...

Would you like to defer (or eliminate) your capital gains taxes?  How about increasing the cash-flow of your real estate portfolio? The taxable gain in real estate is due to a combination of the appreciation in value and the amount of depreciation taken over the period of time that it was owned by the investor.    The tax savings using a 1031 exchange can be enormous.  And using a 1031 exchange can help you re-position your real estate holdings into more, and better income real estate to increase your cash-flow and lower your risk. This is a content-rich episode, so get ready to expand your knowledge. If you missed last week's episode, be sure to listen to The Difference Between Rich and Wealthy (and Which is Better). 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 all our available Turnkey Cash-flow Rental Properties. Please give us a RATING & REVIEW   (Thank you!) SUBSCRIBE on iTunes  |  Stitcher  |  Podcast Feed Increasing Cash-Flow, Deferring Taxes and Reducing Risk using a 1031 Exchange Today’s show is pretty special. There’s a reason why real estate is one of the most tax favored assets in the entire country. There are a lot of great benefits to owning income producing real estate. We’ve talked about depreciation in past episodes, how you can amortize or depreciate the improvements of your property over 27 and a half years. You don’t need to spend a single penny to get that depreciation. It is absolutely incredible. At some point, that will run out. After 27 and a half years, that clock will run out. Now, you don’t have that ability. There is a way around it. There is a way too reset the clock. There’s also a way to take equity that you have in your existing properties and move that equity into other better, larger properties. That doesn’t necessarily mean that you're going from single family homes to fourplexes or apartments. What it does mean is that you can take the existing equity you have across one or more of your properties and leverage that into more property, better property that increases your cash flow. In the process of doing that, because there are sales involved, you can defer your capital gains taxes. In fact, done right, you can defer them forever, indefinitely or at least until you pass away. Then there are some nifty things that happened like a step-up in the basis of that property so those that you will or heir the property to can start the clock over for themselves without any tax impact. It’s really a powerful thing. That’s what you're going to learn about today. I have a really special guest who’s going to go into a lot of detail. I went through a lot of information before bringing him on the show. I structured my questions in a logical format where we can just start with the most basics and go through some complicated scenarios. First, I want to take one of my listener questions here, which I don’t think I've covered in the past, but it ties in somewhat nicely to what our topic is today. This person writes and says, “Hi, Marco and Michael, a quick question about depreciation on tax returns. I know you guys are not CPAs but I’m sure you must have done it so many times. If a property is older than 27 and a half years when I bought it and if I bought it rehabbed, can I still claim the depreciation on the building, not the land? Does the counter get reset somewhere during the process or is this something that is applicable to properties newer than 27 years old or just one string of life of the building? Thanks, guys.” I know what you're asking but you're asking the wrong question.

Many people think that being rich and being wealthy are the same thing.  They’re related but not the same.  You see, the rich have lots of money but the wealthy don’t worry about money. What’s the difference? Join me as we take a look and compare the two. And if you missed last week's episode, be sure to listen to Financing for Foreigners and the Self-Employed. 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 all our available Turnkey Cash-flow Rental Properties. Please give us a RATING & REVIEW   (Thank you!) SUBSCRIBE on iTunes  |  Stitcher  |  Podcast Feed The Difference Between Rich and Wealthy (and Which is Better) Today's show is about the difference between rich and wealth, and which is better. Yes, there is a difference between the two. You see many people think that being rich and being wealthy are the same thing. They're related, but they're not the same. The rich have lots of money, but the wealthy don't worry about money. That's the key distinction. While the rich might have lots of money, they may also have lots of expenses that keep them up at night or they might have a high paying job, but they have to get up every day to go to work and possibly have the fear of getting laid off or getting injured and not being able to work for a long term. Either way, this situation can be stressful because you depend and rely on your regular income. The wealthy on the other hand don't have these worries. Why? What's the difference? First, let's look at the definition of wealth. The definition of wealth can be defined as the number of days that you can survive without having to physically work and still maintain your standard of living. For example, if your monthly expenses are let's say, $5,000 and you have $20,000 in savings, your wealth is approximately four months or 120 days. Therefore your wealth is actually measured in time, not dollars. What you want to do is build a business and invest in assets like income producing real estate to increase your cashflow. You want to add assets to your personal balance sheet that generate monthly income. Once that income from your assets exceed your monthly expenses and it does this on a predictable basis, then you're no longer rich, you're wealthy. You're out of that so-called rat race. This is what I refer to as true financial freedom. It's being out of that rat race. Now, you've actually created streams on income. This income can cover all your expenses and support your lifestyle, support your cost of living, support your monthly and annual needs. Ultimately, it's not how much money you make that matters, but how much you keep and how long that money works for you. There are a lot of people out there who make a great income and I know many of these people, yet they're not wealthy. If they lost their business or they got injured, there's a high probability that they wouldn't last for more than six months to a year. There are people out there who come into these chunks of cash, who simply blow it on consumer items like bigger homes and cars and boats and vacations or whatnot. Many go into deeper debt, as in bad debt in the process of doing this. This behavior is actually what separates the rich from the wealthy. The smarter thing to do is to use those funds to build your assets to increase your cashflow and then let that cashflow pay for those consumer items and those luxuries. What some people do to afford new things is to budget or live below their means. I'm sure you've heard this statement before. I don't want to necessarily point fingers,

How do you get financing for investment real estate if you're a self-employed or a foreigner (non-resident or non-U.S. citizen)?  It's not hard as there may be many options available to you. We talk to a lot of investors who are self-employed or live abroad who want to purchase investment property with financing.  Well, the good news is there are a number of financing options and we work with a number of lenders who can provide you financing on virtually any of our  turnkey investment properties. On today's episode we speak with just one of portfolio lenders who has helped a number of our clients purchase properties here in the United States.  Listen up as we discuss the commonly asked questions and terms available today. If you missed last week's episode, be sure to listen to The Importance of Reputation. 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 all our available Turnkey Cash-flow Rental Properties. Please give us a RATING & REVIEW   (Thank you!) SUBSCRIBE on iTunes  |  Stitcher  |  Podcast Feed Financing for Foreigners and the Self-Employed Today, I wanted to talk about the subject of financing, but financing specifically for foreigners and the self-employed. These are two types of people that we find to be a little bit on the challenging side to get financed because they don't fit into the conventional box or the box of financing that comes down through the government sponsored entities of Fannie Mae and Freddie Mac. Obviously, that's where you get your best rate. I wanted to bring on Matt Lineberger, one of the individuals that we work closely with. They are one of our preferred lenders. Matt is the Vice President of Business Development for Lima One Capital. What they are is a specially private lender for financing investment properties. They are especially useful to foreign investors, basically our clients around the world, and to those who are self-employed. With that, Matt, welcome to the show. Thank you, Marco. I appreciate you having me on. It's great having you on. I think this is a very important topic and one that will be of great interest to people around the United States who are self-employed, especially to our past, current and future clients around the world that are living in other countries; they're not residents of the United States, they don't necessarily have US based credit. Then they ask the question, "I want to invest in the United States. The opportunities are great, the affordability is great, but I can't get financing." They don't have any options. They're either all cash or they have to find their own private money or they have to work with a lender like yourself. That's correct. As a matter of fact, I'd say 20% to 25% of our clientele are actually foreign investors. We identified that there is a niche and a need there and trying to fill that gap where the conventional lenders have left off. Let's start off by you telling us a little bit about yourself and a little bit about Lima One. I have been in real estate in some form or fashion about thirteen years now. I absolutely love it. I've been an investor, a lender, a contractor, you name it. I like to think I've been involved in just about everything. I'm sure there's a whole lot more to come. I can somewhat identify with some of the borrowers and some of the challenges of the real estate industry. From a standpoint of Lima One Capital, it has just been a great past couple of years for the company. As you were saying, we are private money lenders, we are not a traditional bank. We don't go to the conventional route.

I just came back from a real estate forum in Florida where I was speaking on a panel answering questions about real estate and turnkey operators in the industry.  As it turns out, I was asked a very important question about building your reputation in an industry with shady operators.  Unfortunately, they only gave me two minutes to answer a question that required at lease 15 minutes. So, I felt the question was important enough to cover as a podcast episode.  Especially in our industry where there truly are shady operators. And if you missed last week's episode, be sure to listen to Common Investor Questions (Part 1). 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 all our available Turnkey Rental Properties. Please give us a RATING & REVIEW   (Thank you!) SUBSCRIBE on iTunes  |  Stitcher  |  Podcast Feed The Importance of Reputation Today's show is about the importance of reputation. I'll tell you why I have chosen this topic for today's episode. I just came back from Miami, Florida for the 4th Annual Single-Family Rental Investment Forum. It was great. I had a lot of fun. I got to network with a lot of people that I know in the industry. I was actually speaking on a panel there on turnkey operators. We all got asked questions of various sorts about the industry and turnkey providers specifically and how we operate and just what is going on. It was interesting. I got asked one question that was, "How do you build your reputation in an environment with some shady operators?" There's just no way that I could've answered this question in the 30 seconds or a minute or two minutes that they gave me to answer this particular question. I thought it would be a good idea to actually have a podcast episode on the importance of reputation, especially in an industry like ours where let's say, nine out of ten operators are actually worthy and ethical and have a decent or good reputation and one or maybe two out of ten, don't. You as a consumer, you as an investor, need to know, you should want to know who has a good reputation and who doesn't because obviously, you don't want to work with somebody who's going to sell you a lemon or a money pit for a property or tell you one thing and it's something else like you're in a good neighborhood, but then you end up finding out there are a bunch of crack dealers down the street. This is not a good thing. I have seen this happen. Having been in this industry for 12.5 years, again, being one of the first turnkey providers in the country on a nationwide basis, I've seen a lot of people come and go. I've seen a lot of operators die on the vine. The reputation of a business is essential to its survival. You have to have trust and confidence. The trust and confidence of the consumer does have a direct and profound effect on a company's bottom line. While reputation is an intangible concept, having a good reputation can benefit a business in many, many ways. It expands from consumer preference to support foreign organization when it's in times of crisis or controversy. It also affects the future value of an organization in a marketplace. Having a good reputation just adds to a company's brand strength and goodwill. I was doing a little research and I came across a reference to a study that indicated there were ten main components to an organization's reputation. The first of those ten is ethics. An organization that behaves ethically is admirable, is worthy of respect and is trustworthy. I think this is a very important thing, especially as the first item on this particular list because a company needs to be ethical before it ca...

  We get asked a lot of great questions from real estate investors and our clients.  On this episode I invited one of our Investment Counselors where we both provide answers to some of our most common investor questions. And if you missed last week's episode, be sure to listen in to better understand how to predict real estate prices. 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 all our available Turnkey Rental Properties. Please give us a RATING & REVIEW   (Thank you!) SUBSCRIBE on iTunes  |  Stitcher  |  Podcast Feed Common Investor Questions (Part 1) On today's show, we're going to do something a little bit different. I've never had one of our investment counselors on the show before. This is the first time we're going to do that. I'm going to bring on one of my investment counselors. His name is Steve. A very sharp, smart individual. He's helped a lot of our clients to date. We thought we'd do something a little different. I think what I'm going to do going forward is have the occasional frequently asked question podcast episode. What we'll do is we'll cover three or four questions on each one of those episodes that we get asked by our clients on a regular basis. Steve, welcome to the show. Good to be here. Thanks for having me, Marco. It's my pleasure. Steve, tell us a little bit about yourself and just share a little bit of your background with our listeners. I'm Steve. I love real estate. It's probably the first thing I think about every morning when I wake up. That might be a bit of a problem. I like it that much. I've been in real estate my whole career and involved in a lot of different capacities. A lot of buy and hold on single-family. I've even done some assignment deals on raw land. I've done a ton of wholesaling. Back then, I used to own a franchise that all we did was wholesale and flip properties. I learned a lot doing that business. It brings a lot of value when I work with Norada clients on what to look for and what to watch out for in a property because I'm good at reading inspections and pointing out what matters, what doesn't matter and sorting through all the things that happen in a real estate deal. It's pretty amazing. On a typical turnkey deal, you've got ten, eleven, twelve people that all have their hands on that deal. It's a miracle it turns out as well as it does, as often as it does considering all the moving parts. That's what we do. I enjoy that, I enjoy making deals and helping people acquire properties. I've been in this business literally my whole career in one capacity or another. You have a lot of experience. I think you're being a little bit humble because I know you have done a lot more than what you're talking about and you've done a lot of rehabs from a remote distance. You've been an active real estate investor in a market that's not local to you. You've been very successful with that. You've seen all those moving parts and you've seen the good, the bad, the ugly, dealt with bad contractors. I don't know if you ever lost money on a particular flip, but I think we've all experienced that at some point if you're in the game. Losing some right now. I'm sorry to hear that. It's not a lot, but sometimes they just don't go the way you planned. It's a particular property in Memphis, Tennessee. Probably you’ll lose a little bit of money, a couple thousand dollars, but that's part of the risk that you take. I've heard a lot of people say this and I totally agree with it: Flipping properties and wholesaling properties really ...

  Is it possible to learn how to predict real estate prices? Learn why property values and price trends are so important.  If you can see where a market has been, and where it may be headed, you can lower your risk and improve your results. We welcome back my good friend and successful real estate investor, David Campbell, to discuss market drivers, inflation, currency and other factors that investors should be aware of. 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 all our available Turnkey Rental Properties. Please give us a RATING & REVIEW   (Thank you!) SUBSCRIBE on iTunes  |  Stitcher  |  Podcast Feed How to Predict Real Estate Prices - David Campbell Welcome to Passive Real Estate Investing. I’m your host, Marco Santarelli. On today’s show, I have my good friend, David Campbell back. David is a good friend of mine and the founder of Hassle-Free Cashflow Investing. David started investing in real estate part-time while he was working as a full-time high school band director with zero net worth. Within six years and before the age of 30, David became a financially independent millionaire through part-time real estate investing. David has been involved with new home construction. In fact, he was one of our new home builders in the state of Texas for a number of years. He’s been involved in land development, commercial real estate and he has been focused as a professional mortgage known investor for over a decade now. David, welcome back to the show. Hey, Marco. Thank you so much for having me back. I love talking with you and your listeners. I’m excited to see what we learn today. I’m excited too. I think we have a great topic. I’ve titled it, How to Predict Real Estate Prices, which is of interest to most, if not all, real estate investors. What do you think? I think your title is very specific about real estate prices rather than real estate values, because values and prices are two different things. As an investor, when were focused on profits, it’s the increase in prices that makes us money, not necessarily the increase in value. You’re jumping in, that’s great. Break that down, define value, define price, because for a lot of people, they think they’re one and the same. I know what you’re talking about but a lot of people are saying, “What’s the difference?” Value is the usefulness of a particular item. For example, the usefulness of a gallon of gasoline is pretty much constant. It gets you from point A to point B by creating a certain amount of energy when it’s burned. The price of gasoline fluctuates every single day because of different variables. It could be the supply of the gasoline. It could be the demand for that gasoline. It could be the supply of the currency, which is used to purchase that gasoline, or it could be the demand or the velocity of that currency that’s used to purchase gasoline as well. Everything you’re talking about comes down to two or three fundamental things. One is supply, and supply could be measured on many, many different things. Second is demand. The third, we’ll get to hear in a moment because we really haven’t jumped into talking about real estate specifically. Before we go down that road, I always want to start off my episodes with people talking about them. I’d like to just ask you the question, how did you get involved in real estate? Maybe you could just take a minute to talk about that, if you don’t mind? Sure, Marco. When I was a high school band director, I started in the mid to late ‘90s.

Is it truly possible to purchase turnkey rental properties for about $6,000 total out-of-pocket? On today's episode we show you that it is, and we explain how it works and how you too can benefit if you choose. Join us as we speak to one of our Memphis property specialists about the market and the opportunity. If you missed last week’s episode, be sure to listen to Ask Marco – Pre-Construction Risks, Evaluating Cash-Flow and Rates of Return. 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 all our available Turnkey Rental Properties. Please give us a RATING & REVIEW   (Thank you!) SUBSCRIBE on iTunes  |  Stitcher  |  Podcast Feed $6,000 Total Out-of-Pocket Turnkey Properties in Memphis Today's show is a little bit special. I wanted to bring on one of our local specialists, a guy by the name of Nick that we've worked with here for a few years. He's an awesome provider for us as far as building quality turnkey investments. It's not just that these investments are your typical turnkey property. What we have and what we've been selling in the Memphis market now for about a year are investment properties that you can acquire for approximately $6,000 total out-of-pocket. You may be wondering, “How is that possible?” If there's no down payment, it's only $6,000 out-of-pocket. That's what we're going to explain today. To some degree, this is going to be a market spotlight on the Memphis market, but we're going to save half the show to talk about how this investment opportunity works and whether it's right for you or not, because it may not be right for you. With that, I want to bring on Nick, who is, like I said, one of our specialists in the market. He has been a valuable asset. Him and his team have put together some great opportunities for us. Nick has been a real joy to work with. I am happy to have him on the show. Nick, welcome to the show. Thanks, Marco. I appreciate it. Thanks for having me. It's my pleasure. Nick, we were talking here a little bit about how you got started in real estate. I always like to start with that question of how you got involved in real estate because everybody has a unique story. Some people fall into it accidentally, other people planned it that way. Why don't you tell us about how you got started and transitioned into real estate? I never had intentions of being in real estate. It just worked out that way. I moved out to Memphis from Michigan fifteen, sixteen years ago and took a job in the service industry. As I was working, I got married and started a family and had a son and just realized that I was working from seven in the morning until seven at night. I didn't really get a chance to hang out with my family, so I figured I needed to try something new. I got into real estate, looked into becoming an agent, got my license and just morphed into the whole investment side of things. Were you investing for yourself personally or you're actually buying and flipping properties at the time? At the time, as I was working in the service industry, at my other job, I was buying houses and selling them. I'm basically on the side just onesies and twosies just to try to make a little extra money. We've been in Memphis for a long, long time. It seems that Memphis is one of those perennial markets where you open it up as a market, you invest in it as a market, you build up a portfolio there and there are still opportunities to be found. I never really put my finger on exactly why that is. If there's just a lot of foreclosures in that market or if it's just a market that is so large and...

After returning from a two-week vacation in Thailand, I'm back to work answering listener questions.  On today's episode I talk about some miscellaneous stats and cover some listener questions including: What do the successful 2% do that the other 98% don't? Do you deal with "active" real estate investments? How should I evaluate a property's cash-flow and rates of return? Are there more risks with pre-construction properties? Enjoy the show! If you missed last week’s episode, be sure to listen to Leveraging Your Cash, Equity and Time – Keith Weinhold. 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 all our available Turnkey Rental Properties. Please give us a RATING & REVIEW   (Thank you!) SUBSCRIBE on iTunes  |  Stitcher  |  Podcast Feed Ask Marco - Pre-Construction Risks, Evaluating Cash-Flow and Rates of Return Today, I'm actually going to be your guest too. You have me on both ends. Today I want to talk about some listener questions that we've been getting. I appreciate you sending in your questions from week to week. We do try and cover them live with you on the phone or via email, but once in a while, I'll post some of those out and cover them here on the podcast episodes. First, I just want to let you know that I just got back from Thailand. In fact, I'm running on coffee at this point. I don't think I've slept in the last 48 hours because it's about 22 hours of travel. Yesterday, I couldn't sleep at all because of the time change. I'm effectively running on about 48 hours here of sleep deprivation. But the trip to Thailand was absolutely amazing. It's a beautiful country. The hospitality is amazing. We were able to eat some great food, ride and feed elephants, go kayaking in the caves, snorkel, go on some river raft rides. The people there are just unbelievably friendly and patient and courteous. It's a different culture, but it is something that is worth experiencing if you haven't been there. What was amazing, and I'm always looking at these different cities and markets in a different light. I always look at it from an economic perspective. I look at the businesses and I try to think about what the opportunities are there and what the restrictions are. This is true for any economy, not just Thailand. We had several tours and I asked our tour guide what the average annual income is of a person in Thailand. The range is pretty diverse. His comments were that the average Thai person makes 120,000 Thai Baht. To translate that into US dollars, 120,000 actually works out to be $3500 per year, not per month, $3500 US per year. That's according to our tour guide. I did a Google search on the same thing and I wanted to find out how much they make according to some analysis or reports online. What I was able to find was about half of that. It's amazing that these people really just live day-to-day, hand to mouth. They make just enough to survive to pay for their accommodation and food. They really don't have disposable money to spend on things like nice cars or jewelry or trips. They are just hand to mouth, but they're very happy. I won't say they're all happy, but they are satisfied. I talked to and met a lot of Thai people, many of which didn't speak much if any English. Everybody was just very courteous. We had a great time. We were there for two weeks. I apologize that I never had a podcast episode out last week. Obviously, that's the reason why. In fact, I purposely chose not to bring my laptop with me. I did bring my iPhone just to keep up on some email,

On today's episode our guest is Keith Weinhold.  Keith is the founder of Get Rich Education and is a popular podcaster, active real estate investor, business owner, and good friend. Keith shares his story of how he started in real estate and became an "accidental millionaire".  Many of you may want to copy that same formula. We discuss the differences between compounding and leverage.  Which one is better? We explore the concept of return on time - one of my personal favorites. And Keith shares some tips and advice for new investors looking to build a portfolio, and for seasoned investors wanting to get to the next level. Keith's website can be found at www.GetRichEducation.com. 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 all our available Turnkey Rental Properties. Please give us a RATING & REVIEW   (Thank you!) SUBSCRIBE on iTunes  |  Stitcher  |  Podcast Feed   Leveraging Your Cash, Equity and Time – Keith Weinhold It’s my pleasure to welcome Keith Weinhold to the show. Keith is the founder of Get Rich Education and is a popular podcaster. He’s an active real estate investor, a business owner and a good friend. Keith, welcome to the show. Thank you so much for having me today, Marco. It’s great having you on. How’s the weather up there in Anchorage, Alaska? It is a gray, rainy, windy day here, but it didn’t stop me. I just got back from going on a run about an hour ago anyway. I’m feeling invigorated. You like to mountain climb, if I remember right? Yes, that is right. I wasn’t born and raised in Anchorage but I moved here because this place just fits me. I do a lot of mountaineering and skiing here in this city of 300,000, Anchorage Alaska. Only 300,000. It’s a beautiful place. I’ve seen many pictures of Alaska and Anchorage and it’s gorgeous. The lakes are just beautiful. One of these days, maybe I’ll have to fly up and go out for dinner with you. Yes, you sure will at some point. Only 300,000. This is the big city here. Almost half the population lives in this one city. A lot of old time sourdough Alaskans, they frown on urban Alaska and urban Anchorage. They make jokes. They say, “From Anchorage, you can see Alaska.” That’s a good one. All real estate is local. I have that saying, live where you want, invest where it makes sense. This segues into your story. Let’s get into your story here. You remind me of the “accidental” millionaire because of how you got started in real estate. Tell our listeners your story of how you discovered real estate investing. It was a little bit accidental. I was born and raised in Pennsylvania. I did not come from an entrepreneurial or a real estate family at all. In 1999, I moved to a place I dreamed of living, Anchorage, Alaska because I had vacationed here four times previously. I was really young when I moved here, I was coming of age. When it’s about time for me to buy my first home, I was hanging out with some friends that were, I guess productive-minded friends, aspirational. Like they say, you are the average of the five people that you spend most time with. Two of my friends, what they had done is they had bought their first home not as a single family home but what they did is they bought a fourplex building. They lived in one unit and rented out the other three. Now, one of my friends really had his act together, and the other was kind of a screw off. I knew if the screw off could do it, I could do it. In 2002,