Passive Real Estate Investing

In this episode of "Ask Marco" we answer more listener questions including: Do you have any newspapers or real estate journals you read frequently? Any books you can recommend to someone with little capital? What benchmarks do you use when evaluating a property as it relates to the property's age? Do old houses appreciate as well as newer houses? Does a remodel catch an old house up to new house profitability? What is the process like for a Canadian to invest in real estate? And more...   Here is my list of the Top 10 Real Estate Investing Books - - - - - - - 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 Investment Properties. Please give us a RATING & REVIEW   (Thank you!) SUBSCRIBE on iTunes  |  Stitcher  |  Podcast Feed   Ask Marco - Top 10 Real Estate Books, How Important is a Property’s Age, Investing as a Foreigner On today's show, we're doing another Ask Marco episode. We have three questions here that were sent in just not too long ago from our website at PassiveRealEstateInvesting.com. Our first email is from a guy named Josh. He says, "Hi, Marco. I recently started listening to your Passive Real Estate Investing podcast and love it. I just graduated from school. Despite not having the money to invest now, I am looking to educate myself in anticipation of the opportunity. Do you have any newspapers or real estate journals you read frequently or any books you can recommend to someone with little capital? I appreciate your willingness to answer questions and guide newcomers to the field. Keep putting out a great podcast." First of all, I don't know why newspapers are still around. It's just amazing that there are still around after all these years, especially with the explosion of the internet. Newspaper started dying off in the 1950s after the introduction of the television, at least when it went mainstream. Ever since the internet exploded, information at your fingertips, you can pull up almost anything instantly. There's so much free information out there. I don't know if you really need a newspaper. However, magazines are still around. I like magazines actually, I like holding them even though I have an iPad where I read everything from. There are two magazines in the US where you can get good information on real estate investing. One is called Personal Real Estate Investor Magazine. It has a limited circulation, but you can find it or you can subscribe to it. I do have it. I rarely find the time to read it so it just sits on my credenza. But there are good articles in there. The other publication is called Realty411. You can actually see a copy of it on our website at NoradaRealEstate.com. In fact, it's the issue that I'm on the cover. You can click on that and it'll take you to their website. From there, you could probably figure out how to subscribe to it. However, I'm not necessarily suggesting that you use newspapers and magazines to educate yourself. There is so much free content on the internet, on real estate forums, with podcasts and with all the books that are out there that you could find yourself swimming in information to the point where you may not even end up doing anything. It might be analysis paralysis. I do agree that knowledge is the key. It is fundamental. It's my first rule of successful real estate investing. You do need to educate yourself. I consider knowledge to be the new currency. If you don't educate yourself and you don't have that knowledge, then you're really going to be stuck or doomed following other peopl...

In this episode we talk to one of our youngest investor clients who is on track to purchase seven (7) turnkey investment properties this year.  He started at the age of 22, and plans to acquire a lot more next year in 2016. He shares with you some tips and suggestions on how he got started, what he looks for in his investments and how you can do the same.  There is no magic, just following a system and doing your due diligence.  All this and more on today's episode. If you missed last week’s episode, be sure to listen to The “Buy & Hold” Strategy with Linda McKissack. 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 Investment Properties. Please give us a RATING & REVIEW   (Thank you!) SUBSCRIBE on iTunes  |  Stitcher  |  Podcast Feed Client Case Study on Turnkey Real Estate Investing In today's show, we have a current client of ours. His name is Lance. I wanted to bring him on as a bit of a case study because this guy is only 26 years old. He started investing at the age of 22. He's on track to close on his seventh property this year. He'll potentially have eight by the end of the year. He plans to buy a whole lot more next year. He's really following our philosophy and our advice of buying prudent income-producing properties in market's that make sense, that cashflow from day one. He's diversifying according to the strategy that we've laid out for all of our investors, all our clients. He's really jumped in and made it work. He's had great success. He's also an analytical person who likes to do his research and due diligence. As Ronal Reagan used to say, "Trust but verify." That's exactly what Lance does. It's my pleasure to welcome one of our clients. His name is Lance. He's one of our youngest clients. I believe he's 26 years old. He's got some very clear and aggressive real estate investing goals, which is just fantastic. I wanted to bring him on the show today as a bit of a case study to share his experience with investing, not only on his own but even through our network at Norada Real Estate Investments. I'm sure he'll be able to share some tips and some ideas for you today. His name is Lance. Lance, welcome to the show. Thanks for having me on, Marco. It's my pleasure. You are one of our youngest real estate investors at the age of 26. We have had clients from the ages of 19 all the way up to their 60’s. It's quite a wide range. You started off quite young as I recall. I remember you contacted us. It was actually my birthday. January of 2015 is when you had first called our office. I like you to share with our listeners how you got started in real estate investing, where it all began and how it progressed, because I know you started off at a very young age. I always knew when I was younger that I was going to get into real estate investing at some point whether it was residential or commercial. I wasn't exactly sure where. My family owns some real estate so I thought it was a good investment. When I was 22, I actually made my first purchase. I purchased a townhouse. At the time, it was a place that I would live in. I also was looking for, "If I move out of this place, I want to make sure that it would be cashflow positive." That was my only criteria. At the time I was thinking, "Here's an investment I'm going to make and 30 years from now it's probably going to pay off. That's where I'm really going to make the money.” I purchased it and shortly after, I ended up getting moved for work. I rented it out. I did pretty well and at the end of it all, I ended up netting probably $150 to $200 a month thr...

Linda McKissack is an investor, entrepreneur, best-selling author, business coach, and a highly regarded speaker.  In 2013, Linda was co-author of the national best-seller “HOLD - How to find, buy and rent homes to build wealth”.  Her authenticity makes you believe – If she can do it then so can I. In this episode we talk to Linda about the "Buy & Hold" strategy and her huge success investing in single-family homes.   She has accumulated 108 units in real estate, and is working on other passive income projects right now.  Her basic strategy and formula is:  Find, Analyze, Buy, Manage, Grow. Here is the Amazon link for her book: HOLD: How to Find, Buy, and Rent Houses for Wealth - - - - - - - Download your FREE copy of: The Ultimate Guide to Passive Real Estate Investing. See all our available Turnkey Investment Properties. SUBSCRIBE on iTunes  |  Stitcher  |  Podcast Feed Please give us a RATING & REVIEW   (Thank you!)   The "Buy & Hold" Strategy with Linda McKissack Why is the Buy and Hold strategy the best? The Buy and Hold methodology, as it applies to property, is and always has been the cause for making more millionaires than any other method. The main reason for this is really because it lets you develop equity through appreciation and amortization over a period of time. There are numerous short-term techniques like lease options, wholesaling and flipping properties that can create some cash or what I call, chunks of cash. But in no way will it improve your long-term net worth. I found in my many years of investing experience that purchasing real estate is the most significant part of the ownership cycle. It's very important that you buy right; buying the right market, the right location, the right property, the right cashflow. These are all things that we help our investors do in Norada Real Estate. If you're interested in that, talk to one of our investment counselors. The selling side of it is pretty straightforward. As long as you're in the right market and you have the right market cycle, liquidating property is very simple. That is one of my biggest regrets. I purchased a property for $40,000 many, many years ago. In fact, it was the first property I ever purchased at the age of 18. That $40,000 property would have been long paid off today and that property today is worth close to $400,000. It has appreciated considerably, certainly kept up with the rate of inflation. When it comes to Buy and Hold, your goal in property investing must be to develop as much equity as you can in the property while still having enough passive income to get you there. As long as you own the property, you'll have the advantage of tax sheltering some or all of your income. You cannot get that from other short-term investment methods. The Buy and Hold strategy is the basic reason that explains why people have become wealthy over time. Today's guest is someone who I like and admire. I like the way she thinks. She's a famous author, a New York Times Best Seller. The book is HOLD. It's one of the Gary Keller Trilogy books, which are all fantastic books. I highly recommend them. Her name is Linda McKissack. ------ I'd like to introduce Linda McKissack to the show. Linda McKissack is an investor, an entrepreneur, a bestselling author, a business coach and a highly-regarded speaker. In 2013, Linda was co-author of the national best seller, HOLD: How to Find, Buy and Rent Homes to Build Wealth. Her authenticity makes you believe if she can do it, then so can I. Welcome to the show, Linda. Thank you, Marco. I appreciate it. It's great to have you here. Just to give our audience a sense of geography, can you tell them where you're located?

Jacksonville is a very large coastal city located in the state of Florida.  Unlike some cities where white-collar or blue-collar occupations dominate the local economy, Jacksonville is neither predominantly one nor the other. With a population expected to more than DOUBLE over the next 10 years, Jacksonville offers exceptional investment opportunities hard to find in most markets around the country today. In this episode we explore the five key fundamentals that create the "perfect storm" for real estate investors in Jacksonville.  Listen in as we dive in and uncover a golden investment opportunity. If you missed our last episode, be sure to listen to The Truth about Property Insurance. Enjoy the show! - - - - - - - Download your FREE copy of: The Ultimate Guide to Passive Real Estate Investing. See all our available Turnkey Investment Properties. SUBSCRIBE on iTunes  |  Stitcher  |  Podcast Feed Please give us a RATING & REVIEW   (Thank you!) Hot Investment Opportunities in Jacksonville, Florida We’re going to talk about the Jacksonville, Florida market. This is a relaunch for us in that market because we have just had a hard time getting good inventory, but that all changes today. We are bringing on our local market partner here to talk about the market, the opportunities there. Why it’s such a great market and why so many investors just don’t know about that market is beyond me. Anyway, it’s a good opportunity for us if you know what’s going on. Timing and the market cycle really play into your decisions as to where to invest when you’re investing in real estate. What you’ll find is that Jacksonville is almost a perfect storm. We’ve got everything going on there that is in our favor as a real estate investor. Brian is our new local market partner in Jacksonville, Florida. When I say new, what I mean is this show is effectively marking the relaunch of Jacksonville, Florida. We’ve been in the Jacksonville market for a number of years. However, the greatest challenge we have found is getting the right inventory and enough of it. That sounds like a problem with some good fundamentals, but it is a problem. We needed to bring on a new team that has excellent product that are in the right areas. Brian and his team are well-vetted. They are fantastic. Their knowledge of the market is exceptional. I wanted to bring Brian onto the show today to talk about the Jacksonville market, the opportunity there for you as an investor, and share with you what we potentially could bring to the table, if you’re interested in opportunities down there. Brian, welcome to the show. Thank you so much for having me, Marco, and the audience as well. It’s my pleasure. I’m glad to have you on. I’m very impressed with your team. I’m also very impressed with your success story. As I understand it, you started off in California. You weren’t born here, but you were an investor here in California. Then you took that success and you repeated that model in Jacksonville. I have a trademark saying, “Live where you want. Invest where it makes sense.” Let’s start off by you telling our audience about your background and how you got started. Actually, our first portfolio in California dates back when we started our first deal in 1998 in a place called Bakersfield, California. We were actually living in Santa Barbara, so live where you want and invest where it makes sense and the fundamentals. Living in Santa Barbara, the numbers made absolutely zero sense even in 1998. The median price in the coast there was $750,000. You could not cashflow property. My business partner and I have always, from day one, been focused on cashflow affordable property. We’ve made lots of mistakes along the way.

In today's episode I talk to one of my insurance agents (Joshua Dupree) to answer many common (and not so common) questions that real estate investors ask.  Insurance is a necessity but there is so much confusion surrounding what coverage to get, how much coverage, what deductible, and replacement cost versus actual cash-value.  All that and so much more. Don't miss this episode - it is full of great information that might have you review and questioning your current insurance policy. For those interested, here is Joshua's contact information: Joshua Dupree Missouri Farm Bureau Insurance Services (816) 833-4440 www.mofb.com - - - - - - - Download your FREE copy of: The Ultimate Guide to Passive Real Estate Investing. See all our available Turnkey Investment Properties. SUBSCRIBE on iTunes  |  Stitcher  |  Podcast Feed Please give us a RATING & REVIEW   (Thank you!) Welcome to Passive Real Estate Investing. I'm your host, Marco Santarelli. On today's show, we're going to talk about the truth about property insurance. We get a lot of questions from investors about where to get insurance, how much insurance, how high their deductible should be, what's covered and then there's the always confusing question about replacement cost versus actual cash value, which seems to be debated in perpetuity online in real estate forums. I wanted to bring my insurance agent on, a guy named Joshua in Missouri where I'm buying properties right now. I asked him a bunch of questions about property insurance, what's the proper coverage, how to compare different policies, how much deductible is enough, etc, etc. It's really not as confusing as you might think, but it's important to understand what you're looking at and how to compare one policy to another policy. Without further delay, we're going to get him on here in just a moment. But before I do, I wanted to talk about a listener question that came in recently. The question was, "Can I put my property in an LLC after I close with conventional financing?" The short answer is, yes, you can. After you close escrow on your property and you take title, you can do whatever you want with your title. In other words, if you want to take it out of your name and put it into your LLC, for example a holding LLC, a limited liability company, you're more than welcome to do that. Now, keep in mind that lots of mortgage documents, most mortgage documents have what's called a due-on-sale clause. Technically speaking, if you do transfer title out of your name, when you have a mortgage on that property and you put it into another entity, you technically breached or triggered that due-on-sale clause. What that means is that if the lender wanted to, they could accelerate the loan and demand that the loan is due in full and payable immediately. Now, I've never seen that happen. I've heard of it happening. But I think to be quite honest with you, it is extremely rare because at the end of the day, if the lender is getting a payment every month like clockwork from you, they're not going to care anything about whether you're holding title in your name or in an LLC. They may not like it but they're not likely going to accelerate the loan because it's just too costly and too much of a risk for them to try and do that knowing that they’re going to get monthly payments as opposed to try and collecting the whole amount of that mortgage balance from you. If you close escrow on a property, you could put it into a trust, you could put it into an LLC. You're free to do what you choose to do with it. Just keep in mind that there is this due-on-sale clause in the document, but you can hold title in any entity or trust that you choose. Many investors do this. It's not really a prudent thing to hold title to your ...

In this episode of "Ask Marco" we answer some listener questions.  Here is the actual email text: Hello Marco, I'm looking to purchase my first investment property sooner rather than later.  I've been reading tons of books, blogs, and and listening to podcasts incessantly for the past couple of months, including the Passive Real Estate Investing Podcast (which is a great podcast. Thank you!) I live in NYC which has way too high an entrance cost into the market. Having lived in Portland Or for 9 years, I know the areas and market.  It has a much lower entrance cost than NYC.  But, I feel it's kind of at the top end of a boom and I would still need to save for about a year for down payment money. Being a fan of your podcast I decided to look into Norada and was kind of blown away at how accessible rental properties are in other markets.  I got excited at the prospect of being able to acquire multiple properties within a year.  So, I guess my first question is addressing my lack of knowledge about these cities. I know NYC and Portland. I'm not too familiar with, say, Kansas City or Dallas and I'm uncertain of exactly what I'd be buying.  This is my biggest source of uncertainty. Second, I love that Norada has a lot of the due diligence right there for each property.  But, in the spirit of "trust but verify," what research would you recommend I put forward beyond the wonderful data provided? And lastly, say I saw a property you have on Norada and decided it was what I wanted to purchase.  What would the first steps be? Thank you for your time and help, Robert F. - - - - - - - Download your FREE copy of: The Ultimate Guide to Passive Real Estate Investing. See all our available Turnkey Investment Properties. SUBSCRIBE on iTunes  |  Stitcher  |  Podcast Feed Please give us a RATING & REVIEW   (Thank you!)   Ask Marco – Making the Leap, Due Diligence, The First Step In today's episode, I want to do an Ask Marco episode because we get questions from investors throughout the week, every week, via email and voice mail and through our online voice mail recorder on our websites. Sometimes, we get some really great questions that I know other investors are thinking about, other investors are probably asking but maybe not coming right out and asking us about it. On this episode, I wanted to go over a recent email that I got from an investor yesterday. His name is Robert. He has three questions in his email that I think are excellent to cover in a dedicated podcast episode. Robert from New York, his subject is: Question about making the leap into real estate investing. His message is, "Hello Marco, I'm looking to purchase my first investment property sooner rather than later. I've been reading tons of books, blogs, and I've listened to podcasts incessantly for the past couple of months including the Passive Real Estate Investing podcast, which is a great podcast. I live in New York City, which has way too high in entrance cost into the market. Having lived in Portland, Oregon for nine years, I know the areas and market. It has a much lower entrance cost than New York City, but I feel it's at the top end of a boom and would need to still save for about a year for down payment money. Being a fan of your podcast, I decided to look into Norada and was blown away at how accessible rental properties are in other markets. I got excited at the prospect of being able to acquire multiple properties within a year. My first question is addressing my lack of knowledge about these cities. I know New York City and Portland. I'm not too familiar with say, Kansas City or Dallas and I'm uncertain exactly of what I'd be buying. This is my biggest source of uncertainty.”

In this episode we explore to importance of mindset and how some people achieve their goals faster and easier than others. Our guest is J. Massey -- a full-time real estate investor, entrepreneur, popular podcast host, author, speaker, coach and all-around problem solver.  He invests his time looking for investment opportunities (i.e. problems to solve through real estate transactions), and teaching others how to find and manage similar opportunities. In 2014 he released his highly acclaimed book, Cashflow Diary: 10 Steps to Creating Wealth in ANY Economy! You can get a free copy of J. Massey's book at www.CashFlowDiary.com/freebook - - - - - - - Download your FREE copy of: The Ultimate Guide to Passive Real Estate Investing. See all our available Turnkey Investment Properties. SUBSCRIBE on iTunes  |  Stitcher  |  Podcast Feed Please give us a RATING & REVIEW   (Thank you!) The Success Mindset with J. Massey Tied in with that passive income and wealth creation is something that you need to have. It’s a critical ingredient that is called, mindset. What happens between your ears will help determine your level of success and whether you even get to where you want to get to.  You’re in for a real treat today because my guess is J. Massey. If you want to talk about a real rags-to-riches story, he’s got it and he is very inspiring. I wanted to bring him on the show because I thought this is the guy that I think you, our audiences, need to hear.  If you’re stuck in a rut, just getting started or want to break out and take your success today to the next level.  That’s what today’s show is about. It’s about having a successful mindset and how to get there.  It’s my pleasure to bring on J. Massey to this show. J Massey is a full-time real estate investor. He’s an entrepreneur, a popular podcaster, an author, speaker, coach, and an all-around problem solver. He invests his time looking for investment opportunities, which means that he solves problems to real estate and teaches others how to find and manage some more opportunities.  J, welcome to the show. Thanks for having me. I’m glad to be here. It’s my pleasure to have you.  Just to give our audiences a sense of geography.  Can you tell them where you’re located? I'm out here in sunny Southern California, Mission Valley to be specific. The reason I wanted to bring you on the show is you have one of the most inspiring stories. I’ve learned at a young age that mindset and attitude is absolutely key in order to be successful in anything you do.  Not just real estate investing but anything. I was fortunate enough or maybe just lucky to come across Anthony Robbins when I was a teenager.  This goes many, many years ago. I had ordered his Personal Power Program on audio cassette. I listen to those audio tapes over and over and over again, and I really drilled it in as to the importance of mindset and attitude. What I’d like you to do, if you don’t mind, is start off with your story.  I’d like to call it a rags-to-riches-story.  Tell us where you came from and how you got started because it’s the most inspiring story I’ve heard in a long time. Thank you for saying those kind things. I wouldn’t have chosen this to be my story, so let’s be very clear on that. Secondly, I know that someone out there, I don’t know who you are, but that’s part of the reason I’m here today is because I’m hoping that whatever I say, something that I say inspires you to realize that there’s still something left. You still have something in the tank and it can happen, it is possible and you are the one that have been uniquely designated to go make that happen. A few years ago, my wife and I, she by trade is a recruiter, I was a financial planner.

Atlanta is a large city located in the state of Georgia.  Atlanta is a decidedly white-collar city, with fully 89% of the workforce employed in white-collar jobs, well above the national average.  In addition, Atlanta is a major college town. As is often the case in college towns, the many students that live in Atlanta have a strong influence on the local culture and music scene. The citizens of Atlanta are among the most well-educated in the nation: 46.8% of adults in Atlanta have a bachelor's degree or even advanced degree, whereas the average US city has 21.8% holding at least a bachelor's degree.  The per capita income in Atlanta in 2010 was $35,890, which is wealthy relative to Georgia and the nation. In this episode we explore the greater Atlanta market and the reason why it might make sense for you to invest there.  We talk to one of our local market specialists, host of The Deal Farm podcast and long-time team member to learn more about the benefits that Atlanta has to offer. - - - - - - - Download your FREE copy of: The Ultimate Guide to Passive Real Estate Investing. See all our available Turnkey Investment Properties. SUBSCRIBE on iTunes  |  Stitcher  |  Podcast Feed Please give us a RATING & REVIEW   (Thank you!)   Market Spotlight: Stability in Atlanta, GA Today's show is about Atlanta and the stability and investment opportunities located in that market. Atlanta is a business-friendly city. It is a large transportation hub. We've been in the Atlanta market for about eight years. For us, it's a perennial market. A lot of major companies and corporations have their headquarters there, from Coca-Cola to Home Depot. It is a very broad and diverse economy. It's not made up of just one sector. It's very white-collar. There is a large workforce employed in the white-collared job community. Although Atlanta itself is about 450,000 people, the entire metropolitan area is closer to 6.5 million people. There are many cities all clustered together making it one of the largest cities in the US. Therefore, there are a lot of opportunities because all real estate is local and you can get down to the neighborhood level if you have to in order to find the right deals in the right markets. I'd like to welcome Ken to the show. Ken is our local market specialist based in Atlanta, Georgia. He is a full time real estate investor. He's host of The Deal Farm podcast. Ken has a business degree from University of Georgia, a master’s degree from Georgia Tech. He has bought and sold over 600 properties in the Metro Atlanta area over the last several years. He's a national speaker and author and he has written multiple articles educating investors on all aspects of real estate investing. He's married with three kids and currently lives in Woodstock, Georgia. Ken has a vast understanding of how and where to invest profitably in the Atlanta metro area, which is the reason why I wanted him on the show today to talk about Atlanta. Welcome to the show, Ken. Hey, Marco. How are you doing? Thanks for having me. It's great to have you here. I've known you for many, many years. Our listeners know we've actually worked together for many years. We've actually carried and sold a lot of your product to investors around the world. It's great to have you on our new podcast. Again, thanks for having me. Let's start off by talking a little bit about you. Give us a quick idea of your background, if you don't mind. As you mentioned, I graduated from the University of Georgia in 1999. I came out and worked for a large insurance brokerage for five years. Actually, it was a great first job out of school. I loved what I did but just knew I wanted to get into real estate.

Have you ever asked how do you purchase property in other markets or out-of-state? Well there is a clearly defined method that works every time.  It has been refined over the years and in this episode we break down that process into phases and talk about each one. Some of the topics we discuss include: Selecting a market. Selecting a neighborhood and property. Doing your due diligence. Financing your purchase. The closing process. What to do post-closing. - - - - - - - Download your FREE copy of: The Ultimate Guide to Passive Real Estate Investing. See all our available turnkey investment properties. SUBSCRIBE on iTunes  |  Stitcher  |  Podcast Feed Give us a RATING & REVIEW   (Thank you!) How to Purchase Property in Other Markets Welcome to Passive Real Estate Investing episode sixteen. I'm your host, Marco Santarelli. Welcome. Thanks for joining us again. Today's show is about how to purchase property out of state or out of your area or in another market. It's what I've developed over the years and I call it the purchase process checklist. Essentially, I started investing out of state from California in three different states back in 2004. I was buying up a lot of property in a very short period of time. That process was not something that I knew exactly how to do from day one. It was a process that I learned very quickly. Through that process, I made a lot of mistakes, I did lose some money. But I also learned how to properly, quickly and efficiently identify investment opportunities, put them under contract, do my due diligence pre contract, post contract and get to a close. Although there's no rocket science in this process, it is important to understand. Because a lot of investors find this process to be somewhat foreign, especially if you haven't done it once or twice. Knowing what to look for and how to purchase property out of state or out of your local area is very important if you want to be successful. Because the truth is, a lot of people live in markets that are inflated and overpriced. The numbers just don't make sense there. For example, coastal markets like in California, New York, New Jersey. The rent to value ratios there are so low, they might be .5%, .4%, .3%. The numbers just don't make sense. On top of that, those property values are so high that your investment capital, which is limited, will only go so far. When you look outside of your local market, you will find markets that are probably better off economically, have better opportunities, more choice for good quality income property. You'll find that your cash on cash returns are higher and your overall down payment will be lower, which means that you can take your fixed amount of down payment capital and leverage that into a larger real estate portfolio, meaning that you can purchase more properties than you could locally. Let's start with basically phase number one, that is select your market. Once you know what your investment strategy is and you've detailed out your investment criteria, then you can narrow down the markets that meet your strategy and criteria. In other words, there's over 400 markets in the US. You can't be in all those markets. It's also very difficult to know where to start. If you define your investment criteria, then you can eliminate majority of those markets and focus on certain ones. Obviously, we have our favorites. Within our company, we focus on about eight or nine different markets for various reasons, but they're all really good markets. If you focus on maximizing your cash flow, then the markets you want to focus on are the ones that'll provide you higher rent to value ratios. These are typically what I call linear markets.

In this episode we talk to Joel Grasmeyer, a real estate investor, engineer, and entrepreneur who started PropertyTracker.com in 2004 to create user-friendly, yet powerful tools for real estate analysis. Some of the topics we discuss include: The importance of tracking your rental properties. What metrics do most investors like to track? What tools do real estate investors use? What is PropertyTracker.com? Mobile phone Apps that can also help investors. Get a FREE 30-Day Trial plus a 20% discount here: http://www.PropertyTracker.com/Norada - - - - - - - Download your FREE copy of: The Ultimate Guide to Passive Real Estate Investing. See all our available turnkey investment properties. SUBSCRIBE on iTunes  |  Stitcher  |  Podcast Feed Give us a RATING & REVIEW   (Thank you!)   How to Track Your Real Estate Portfolio Today’s show is about tracking your real estate portfolio. It’s one thing to look at and analyze properties before you purchase them. What happens after you’ve purchased them and you’ve added them to our portfolio? As your portfolio grows, you’ll want to keep track of the income and the expenses, and more importantly, the performance of those properties. It might make sense to sell some of them or do a tax deferred 1031 exchange into other markets or maybe refinance them to increase your rate of return or pull equity out and move that over into other markets. There are many things that you can do, but it’s important that you keep track of your real estate portfolio. This actually all came about, when I had a client of ours, a guy name Kevin contact me about two weeks ago. He asked me how to keep track of his new portfolio. He’s just starting out, he’s just building that portfolio but he’s already creating these elaborate Excel spreadsheets and I thought, “There are online tools that can help you and there’s even mobile apps.” I wanted to bring on my guest here today, a guy named Joel, and talk about what he looks at as far as metrics for analyzing his properties, as well as what tools he uses. Obviously, he likes his own tools, but we can learn a little bit more about that. This is just one option. It’s not something that is absolute necessity. However, it does make your life a lot easier. Especially, at tax time, when you can just click a button and produce a report and give it to your CPA or your accountant and have your taxes put together for you very quickly and easily. I’d like to welcome, Joel Grasmeyer to the show. Joel is a real estate investor. He’s an engineer and it seems he’s a serial entrepreneur. He started PropertyTracker.com back in 2004 to create a user-friendly but powerful tool for real estate analysis. Then, in 2008 he created Property Evaluator for the iPhone. Later in 2010, he launched RealEstateTools.com, which is a variety of real estate investment tools, so it’s a market place for that. Lastly, in 2012, he launched the Construction Cost Estimator out to help contractors quickly estimate construction cost using the iPhone, iPad and a Mac. Welcome to the show, Joel. Thanks for having me on. It’s great to have you here. Let’s give our listeners a sense of geography, where are you located? I’m in Ogden, Utah which is about an hour north of Salt Lake City and right next to world class skiing. I love Salt Lake City, the views there are amazing. You were a native Californian, if I remember correctly? Yeah, I lived in Southern California from about 1998 to 2006. Then we decided to escape the rat race to Utah and get out of California while the getting was good. Tell us a little bit about your background.

In this episode we talk to Aaron Chapman, an 18 year veteran in the mortgage industry with a focus on real estate investors, about financing real estate investments. Some of the topics we discuss include: The investor's mindset and why that's important. The landscape of mortgage loans for investors. What is loan sequencing. Mortgage loan products available today. Qualification requirements. How to finance more than 10 properties. You can visit Aaron's website at www.BighausChapman.com. - - - - - - - Download your FREE copy of: The Ultimate Guide to Passive Real Estate Investing. See all our available turnkey investment properties. SUBSCRIBE on iTunes  |  Stitcher  |  Podcast Feed Give us a RATING & REVIEW   (Thank you!) Financing Real Estate Investments | PREI 014 Welcome to Passive Real Estate Investing episode 14. I'm your host, Marco Santarelli. Today's show is about financing your real estate investments. This is a very important subject matter because real estate is an investment class that allows you to finance up to 80% of the purchase price using other people's money at historically low rates and control that property over the course of 30 years under a mortgage that is paid off by your tenant. This is incredible. Nowhere else in the world can you do this like you can in the United States. Financing is a confusing subject because regulations are thick, they continually change, mortgage terms and interest rates fluctuate. It's hard to keep up on everything that's going on and the changes in the industry. There are people out there who really know their stuff and can help you in understanding and navigating this space in terms of strategizing your mortgage financing to getting the best product to help you finance those purchases. It's critical that you work with the right people. Today on the show, we have one of the mortgage brokers and portfolio lenders actually that we work with to help our investor clients finance their purchases, not only just get a loan but strategize on how to best finance all their properties and build their portfolio. The focus is beyond one property. You really should have a focus that encompasses your goals and where you want to go with your financing, where you want to go with your portfolio. It's not enough to say, "I'll just pick a property today and I'll think about buying another one next year and we'll deal with the financing situation then." It's better to look at the big picture and just see where you have to go. For example, we have some clients that want to purchase fourplexes and we have some clients that want to purchase single family homes. I advise that they start off by purchasing the fourplex first because the down payment amount on his first four mortgages would be five percent lower than the down payment on it as if he had purchased it later after purchasing the single family homes first. The net result to him was a down payment that was five percent lower by starting off with the more expensive property. Many investors know this but it's surprising how many investors really don't know what is referred to as mortgage sequencing. This is just an example. Today, I wanted to bring on one of the companies and one the people that we work with. Very smart guy, understands this space of mortgage financing for investors very, very well. He's an eighteen year veteran and his name is Aaron. It's my pleasure to welcome Aaron Chapman to the show. He's an eighteen year veteran in the financing industry with a focus on real estate investors. He has a team of eleven total staff members who help him finance investment loans. He's been married for nineteen years, has four children.

In this episode we take a look at Kansas City, MO and why it's such a great market for real estate investors.  Most investors are not even aware of the incredible opportunities available to them there.  So we'll dive in and take a look at why it's a great market and what you can expect to find for your real estate investment portfolio. Kansas City is a largest city in Missouri made up of 147 constituent neighborhoods.  With a population of over 463,000 people in the actual city, the greater metropolitan population is expected to grow to 2,200,000 by 2020. The overall education level of Kansas City citizens is substantially higher than the typical US community, as 29.6% of adults in Kansas City have at least a bachelor's degree. Jobs are plenty with many large employers spread across a diverse range of industry sectors, and the cost of living is 15.3% below U.S. average. Click here to view the latest Kansas City investment properties. - - - - - - - Download your FREE copy of: The Ultimate Guide to Passive Real Estate Investing. See all our available turnkey investment properties. SUBSCRIBE on iTunes  |  Stitcher  |  Podcast Feed Give us a RATING & REVIEW   (Thank you!) Market Spotlight: Cash Flow in Kansas City, MO Welcome to Passive Real Estate Investing episode 13. I'm your host, Marco Santarelli. Today's show is a market spotlight. Today we're going to look at Kansas City. We've been in Kansas City for about eight years with tremendous success. There is so much opportunity there and you could pick up properties in a wide range of price ranges, from $50,000 on the low end to $150,000, $160,000 on the high end. That's really not even the high end, you could get $200,000, $300,000 properties there, although I don't recommend those as investment grade properties. The numbers don't work out as well on those types of properties. Kansas City has been growing year after year. It has a large growing population that is expected to increase to about 2.2 million by the year 2020. That's only about six years away. Kansas City is a large city in the state of Missouri. It has a population of about 470,000 people. It's made up of over 147 constituent neighborhoods. Kansas City has a very diverse economy. It's neither blue collar nor white collar. It's got a mixed workforce and it expands every sector, from healthcare to professionals, office workers, service providers, industrial, sales jobs, management type positions, administrative support, technology is a new big one. Kansas City has more people living there that work with computers and math than 95% of places around the US. That's an interesting statistic. Of the large cities around America, Kansas City is one of the most car oriented. 83% of the people in Kansas City drive to work in their own car every day, most often alone. Also, the overall education level of Kansas City people or citizens is substantially higher than the typical US community. About 29.5% of adults in Kansas City have at least a bachelor's degree. The average American community has only 21.4%. Also the per capita income in Kansas City back in 2010 was over $25,000 per person, which is actually wealthy relative to Missouri. It's considered upper middle income relative to the rest of the United States. What this means is it equates to an annual income of about $103,000 for a family of four. Kansas City contains every type of person. Its demographic ranges from the very wealth to poor people as well. It's not much different than any other metropolitan area. We love Kansas City. We've been there for many years. We've had properties there from as little as $45,000 in B- neighborhoods all the way up to, like I said, $150,000 properties.

In this episode we talk to David Campbell, the founder and Hassle Free Cash Flow Investing.  He 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 had become a financially independent millionaire through the vehicle of part-time real estate investing.  David has been involved with new home construction, land development, commercial real estate and has been focused as a professional mortgage note investor for over a decade. You will learn: How to make money as the bank by acquiring an income producing mortgage note secured by quality real estate. Why now is the best time in the market cycle to acquire a mortgage note. How to buy a mortgage note to create a portfolio of tax-free and tax-deferred passive income for life. Why the most savvy investors are buying real estate outside of their IRA and buying mortgage notes inside their IRA but usually not the other way around.   Get your FREE copy of David's white paper on Mortgage Note Investing by emailing him at lending@hasslefreecashflowinvesting.com - - - - - - - Download your FREE copy of: The Ultimate Guide to Passive Real Estate Investing. See our available turnkey investment properties. SUBSCRIBE ON ITUNES  |  Stitcher  |  Podcast Feed Give us a RATING & REVIEW   Passive Income Investing in Mortgage Notes Today’s show is all about passive income and specifically, it's about mortgage notes. I have a long interview here with a good friend, who is involved with mortgage note investing and he has been for over a decade. He's very successful at it. He has a very large portfolio of notes, and he really understands the ins and outs of mortgage note investing and how to profit from it. It's my pleasure to welcome David Campbell to the show. David is a founder of Hassle-Free Cash Flow Investing. He 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 financially independent. In fact, he became a millionaire through the vehicle of part-time real estate investing. David has been involved with new home construction, land development, commercial real estate and he has been focused as a professional mortgage note investor for over a decade. Welcome to the show, David. Marco, it’s a pleasure to be here with you and your audience. Thanks. It’s great having you here. Just give our audience a sense of geography. Where are you located? I am in a suburb of San Francisco. Today’s subject is about mortgage note investing. I need to be honest with our audience. I am not a big fan of “paper assets.” However, I do make an exception with mortgage notes. The reason is because it’s actually an IOU that is backed by a real tangible asset, which in this or my case, would be real estate. That's the only thing I would invest in. I like mortgage notes for that reason. The other thing is, our show’s theme is passive real estate investing, so this fits right in with that model of passive real estate investing. I think the best place to start for people who are not that familiar with what notes are or mortgage notes specifically is maybe you can explain what mortgage notes are and what they look like. A mortgage note is shorthand. It’s a way of saying promissory note secured by a piece of property. That security instrument can be either a mortgage or a Deed of Trust. It depends on what state you're doing business in or which security instrument you're using. It's a two-part instrument and they move together.

Since the early 2000′s, the number of self-directed IRAs has more than doubled!  These plans give individuals the ability to invest into assets that they understand and can control such as real estate.  Investors who have knowledge and expertise in a particular investment can purchase them in a tax-free or tax-deferred environment The and Checkbook IRA and Solo 401k are viable solutions that allow you to investment in virtually any asset including real estate, provide you with “Checkbook Control” over your retirement account, and minimize or eliminate custodian fees. In this episode we talk to Dmitriy Fomichenko the founder and president of Sense Financial Services LLC, a boutique financial firm specializing in self-directed retirement accounts with checkbook control. We also take a look at another available turnkey investment property in our Deal of the Day segment. - - - - - - - Download your FREE copy of: The Ultimate Guide to Passive Real Estate Investing. See our available turnkey investment properties. SUBSCRIBE ON ITUNES  |  Stitcher  |  Podcast Feed Click here to give us a RATING & REVIEW   Investing Using Your Retirement Accounts Today’s show is about self-directed IRAs and Solo 401Ks. What is that? These are retirement accounts. A lot of people don’t realize what they can and can't do with retirement accounts. Most people use these accounts to sock away some savings and then invest in mutual funds or the stock market, which I don’t personally think is a great investment. A lot of people don’t realize that you can turn those retirement accounts into self-directed retirement accounts where you can actually invest in whatever asset class you want. There are very few restrictions but the great thing about it is you can invest in passive income investments like notes and income producing real estate. You can do this quite easily and you can have complete control over it. You know I’m big on control. It’s my ninth rule of successful real estate investing. When you have the control to invest and direct the funds within your retirement account into assets that you have complete control over as well because they’re hard assets, then you have an amazing and a powerful combination. The contribution limits on some of these retirement accounts are actually quite impressive. A lot of people don’t even realize that they can do a lot more with their retirement account than what they are told they can do by their financial planners or stock advisers or custodians, because they really don’t know about it or they don’t want you investing in other assets. Today, we have a great guest who is someone I've known for many years. He specializes in working with investors who want to use their retirement accounts to invest in real estate related assets. I’d like to introduce and welcome Dmitriy Fomichenko to the show. Dmitriy is the founder and president of Sense Financial Services, a boutique financial firm that specializes in self-directed retirement accounts with checkbook control. He began his career in financial planning and real estate investing fifteen years ago. He now owns multiple investment properties in various states and is a licensed California real estate broker. Dmitriy, welcome to the show. Thank you, Marco. It’s great to be here with you. I love your subject matter. I think it’s going to be invaluable to our listeners. Let’s begin by just asking the question: Where are you located? Here in Southern California, in Orange County. I met you back in the mid-2000s. Back then I know you were involved in selling investment properties, so you had your feet wet with investment property. My question is, at least to get things started,

The number one problem most real estate investors face today is knowing "how to protect" not "what to protect."  Caught between attorneys, tax professionals, and self-proclaimed gurus, the average real estate investor finds himself awash in the quagmire of information and ideas with little coherency or consistency. Unfortunately, the reality is that most professionals do not understand the complex nature of real estate asset protection from the legal and tax perspective.  As a result you are left with a piece-meal plan based upon a fragmented stream of advice that seldom allows you to feel secure in your planning. In this episode we talk to asset protection attorney Clint Coons to examine some of the entities and strategies used by real estate investors to protect their wealth. Clint is a successful real estate investor and the manager of Anderson Business Advisors and Law Group. Check here to get your Free Asset Protection Blueprint Consultation. - - - - - - - Download your FREE copy of: The Ultimate Guide to Passive Real Estate Investing. See our available turnkey investment properties. SUBSCRIBE ON ITUNES  |  Stitcher  |  Podcast Feed Click here to give us a RATING & REVIEW