The Real Estate Way to Wealth and Freedom show

The Real Estate Way to Wealth and Freedom

Summary: Are you interested in Real Estate Investing, but don't know how or where to start? Are you a young professional or just starting to explore the possibility of investing in cash flowing real estate? The Real Estate Way to Wealth and Freedom podcast aims to help people just like you build wealth and achieve financial freedom through real estate investing, with a focus on investing in apartment buildings. With actionable content from weekly interviews with real estate investors, lenders, brokers, tax attorneys, and other real estate professionals, you'll have the education necessary to begin your real estate investing journey. Jacob Ayers is a young professional who started investing in real estate at the age of 25. As a real estate investor and entrepreneur, Jacob aspires to help you achieve financial freedom through real estate investing. If terms such as passive income, lifestyle engineering, wealth creation, and freedom resonate with you, then you're sure to get value from this podcast! If you want to live a life of fulfillment while doing the things you love, then this is the podcast for you!

Podcasts:

 266: Deferring Capital Gains Taxes with Brett Swarts | File Type: audio/mpeg | Duration: 36:22

Brett is an entrepreneur, one of the most well-rounded Capital Gains Tax Deferral Experts, Commerical Real Estate investor, podcaster, deferred sales trust educator/trustee, Founder of Commercial Realty Apartment Advisors and the CEO of Capital Gains Tax Solutions, an educational platform inspires and helps business professionals execute a passive capital gains tax deferral wealth plan of their own. He holds series 22 & 63 licenses. Brett has been featured in various notable podcasts across the web and who trains hundreds of business professionals at companies such as Marcus & Millichap, Keller Williams, Western International Securities, Multifamily Investing Academy & Equilus Financial Group, Inc. Key Points     Capital Gains Tax versus Income Tax     What is smart debt, risky debt, and dumb debt     The Pros of Deferred Sales Trust (DST) versus 1031 Exchanges     How to defer capital gains tax on the sale of business or primary home and invest into commercial real estate all tax-deferred     How  to create and preserve more wealth     Why one would want to defer taxes     The role of Trustee and what to look for     Estate Tax Planning      How to avoid overpaying  taxes and escape from 1031 exchange Resources Visit Audible for a free trial and free audiobook download! Capital Gains Tax Solutions LinkedIn Biggerpockets YouTube Email - Info@capitalgainstaxsolutions.com  Deferred Sales Tax Calculator

 265: Cash Out Refinances – Friday Fundamentals | File Type: audio/mpeg | Duration: 12:00

Leverage Real estate investing is kinda cool, I like to think. From building long term wealth to generating residual passive income, there are some really powerful benefits to investing in real estate. One of the things that make real estate so attractive is the ability to leverage debt. When most people hear the word "debt" they automatically think "bad". We're told to avoid debt where possible, pay debt off as fast as possible, and be debt-free. Used wisely debt can be a tool that maximizes your wealth and income. Used incorrectly, and it goes the other way.  Good debt and bad debt, as Robert Kiyosaki defines them, are as follows. Bad debt is debt that you have to pay yourself, typically on liabilities. In this context liabilities are anything that takes money out of your pocket every month (think car loans, credit card bills, etc.). Good debt, on the other hand, is debt that someone else pays back for you, typically on assets. Assets, opposite of liabilities, are things that put money in your pocket every month (think investment properties, dividend paying stocks, businesses, etc.).  Using debt to purchase income-producing real estate can be a great thing that magnifies your return on investment. Any time that you can achieve a higher ROI by using debt than you could without, is good leverage.  Let's look at an example of how debt can impact your cash on cash return of a rental property.  Scenario 1: Cash Purchase You buy a $50K rental property without using debt. This means you buy the property for all cash. The property rents for $500/month. Your expenses for insurance, taxes, maintenance, and management total $200/month.  Your cash flow is $300/month or $3,600/year. $3,600 divided by your investment of $50,000 = 7.2% cash on cash return.  Scenario 2: Using Debt You buy the same $50K rental property in Scenario 1, but this time you use debt. With a 20% down payment of $10,000, you borrow $40,000 at 4% for 30 years (a typical fixed-rate mortgage).  The property rents for $500/month. Your expenses for insurance, taxes, maintenance, and management total $200/month.  Your mortgage is $191/month. Total expenses including mortgage = 391 Your cash flow is $109/month or $1,308/year. $1,308 divided by your down payment of $10,000 = 13.08% cash on cash return.  Even further - let's look at appreciation. Let's say the $50K property appreciated at 5%, to a value of $52,500. This is a gain in equity of $2,500.  Scenario 1: Cash Purchase $2,500 in equity gain / $50,000 = 5% Scenario 2: Using Debt  $2,500 in equity gain / $10,000 = 25% Notice here that the amount of equity you have in your property does not matter. The property appreciated, regardless of your equity position. Both scenarios have the same appreciation rate of 5%. However, in scenario 2 using leverage, your return is 5x that without using leverage.  As my good friend Keith Weinhold from Get Rich Education says, the rate of return on equity is and always will be 0%.  Alright, so that's the case for using debt to invest in cash-flowing real estate.  Velocity of Money Let's talk more about how to keep your money and, more importantly, other people's money working for you. Knowing now that the rate of return on equity is and always will be 0%, we want to manage and minimize to a certain level the amount of equity we keep in an investment property. This can be done through several ways, once of which is doing a cash out refinance.  A cash out refinance is simply taking out a new loan on your investment property, paying off the original loan, and pocketing the difference. Let's look at an example of this. 

 264: Creating Forever Cash with Michelle Bosch | File Type: audio/mpeg | Duration: 50:13

Michelle Bosch Michelle Bosch is the Co-Founder and CFO of Orbit Investments and a full-time real estate investor since 2002. She has bought and sold over 4000 pieces of real estate and built the 3rd largest land investment and auction company in the U.S., bringing that company successfully into the 8-figure revenues in a matter of 18 months. Through the recession, she positioned Orbity Investments for rapid growth in the single-family and multifamily investing space with over $40M in assets under management. Michelle is also the co-creator of nationally recognized Land Profit Generation Progam focusing on teaching others how to invest in land. Key Points One time cash (land flipping) vs. forever cash (apartment investing) Using income from land flipping to invest in multifamily real estate Using systems to scale Lightning Questions What was your biggest hurdle getting started in real estate investing, and how did you overcome it? Michelle and her husband, as immigrants to the United States, had to overcome the language barrier at first. They started with an easy to understand asset class - raw land.  Do you have a personal habit that contributes to your success? Michelle connects every morning with something bigger than her with breathwork, meditation, and prayer.  Do you have an online resource that you find valuable? My Fitness Pal app for tracking meals and exercise Notarize.com What book would you recommend to the listeners and why? Essentialism by Greg McKeown If you were to give advice to your 20-year-old self to get started in real estate investing, what would it be? Surround yourself with the right team, and start creating your core values together early.  Resources LandProfitGenerator.com Land Profit Generator Facebook Group MichelleBosch.com InFlow Podcast with Michelle Bosch Visit Audible for a free trial and free audiobook download!

 263: Goal Setting – Friday Fundamentals | File Type: audio/mpeg | Duration: 8:21

Goal Setting With the new year fast approaching and less than two months until the end of the year, this is a good time to reflect on your goals for this year and also start planning for next. First reflecting on your goals and progress this year, look back at everything you set out to accomplish and all the progress you made. Recognize how much you've accomplished, grown, and learned.  But also look to where you could have done better, made more progress, and where you fell short. This will help you take those lessons learned and apply them to your next year. Goals, which are probably the most discussed Friday Fundamental topic, are absolutely necessary if you want to live your life with intention. David Osborn, author of Wealth Can't Wait, Miracle Morning Millionaires, and Tribe of Millionaires, talks about creating his flight plan for his life. This flight plan is a set of goals that he uses to live an intentional life. They're the set of plans to get from one point to the next. You can create your own flight plan for your life. By assessing where you are now and where you want to go, you can develop a flight plan to get you there. What this really means is creating goals that will get you to where you want to go. I've learned that setting and achieving goals is a learned skill. My personal goal-setting journey started out with New Year's Resolutions like so many others do. Then I started setting 10X goals, writing them down every day. This 10X goal setting, inspired by Grant Cardone, is great at creating an extraordinary vision. But I found writing down 10X goals every day, I wasn't necessarily making actionable progress towards them. These 10X goals were more of an intention than a goal, meaning they were my desired outcome, not the action required to get those outcomes. It's here I started to realize this difference in goals and intentions. You might have an intention to be fit with

 262: Building a Business Around Your Lifestyle – with Tim Bratz | File Type: audio/mpeg | Duration: 43:25

Tim Bratz  is the CEO and founder of CLE Turnkey Real Estate, a real estate investment company that acquires and transforms distressed commercial and apartment buildings into high-performance investment assets for their own portfolio. Working in real estate, Tim has learned how to build a passive business and create a residual income that allows him to live the lifestyle of his choice. He’s here to educate and empower others to become financially free through commercial real estate. Key Points From brokering deals, to learning to invest in deals Using resourcefulness as the ultimate resource Building a resume by giving up large amounts of equity partners Time blocking Finding money and finding deals - the two most important skills Lightning Questions What was your biggest hurdle getting started in real estate investing, and how did you overcome it? Youth was a hurdle with Tim, getting started when he was in his early 20's. Tim used that resourcefulness to find deals and find capital, leveraging partnerships. Do you have a personal habit that contributes to your success? Time blocking. Do you have an online resource that you find valuable? Excel and Google Docs What book would you recommend to the listeners and why? Twelve Pillars by Jim Rohn If you were to give advice to your 20 year old self to get started in real estate investing, what would it be? Find a mentor or mastermind group. Resources Visit Audible for a free trail and free audio book download! www.CLETurnkey.com Commercial Empire

 261: Building the Best Team – Friday Fundamentals | File Type: audio/mpeg | Duration: 9:58

Real estate investing is a team sport. You don't have to look far to see that. Take buying an investment property for example. We'll walk step by step through the process and look at the team it requires to be a successful real estate investor. You, the investor, look for an investment property to purchase. Likely, that search isn't solo. You might enlist the help of a realtor to find on-market deals, or build a direct-to-seller campaign using the help of virtual assistants, local support, and many other creative ways to find those elusive off-market deals. Once you've found the perfect deal, the next step is to get it under contract. Your realtor can help with this process, or if you're more experienced you can navigate it on your own. Using your state's real estate commission approved real estate contract is usually a good approach. Next, it's time to get the financing process started. You'll need a good lender who is experienced with investment property loans. Your lender will be able to help you apply and qualify for a loan that fits your investment strategy. They will also help and guide you through the process of getting to the closing table with the title company, and preparing the loan documents needed to close. Behind the scenes, your title company is doing the heavy lifting, making sure the property has a clear title with no leans, encumbrances, etc. Your title company handles the transfer of the funds, working with your lender to transfer the funds to the seller, only after all the appropriate paperwork has been signed by both the buyer and seller. Finally, you'll close on the property, and this is just the beginning. Now you need a solid team to operate the property. You will typically enlist the help of a property manager unless you decide to self manage the property. The property manager will take care of the day-to-day activities from showing and leasing, to collecting rent, handling maintenance requests, and creating monthly P&L reports. Keeping an accurate record of your finances is crucial. These records will feed into your tax returns and future loan applications. Hiring a bookkeeper can be a huge help in this area. If you're just starting out, you may manage the bookkeeping on your own. I've found Stessa to be a great asset management software that helps me manage the finances in my portfolio. Taxes are one of the five ways you're paid as a real estate investor, so it's important to make sure you're getting the most out of it as you can. Hiring a good CPA to handle your taxes is critical. Unless you're a CPA experienced with real estate investments, I suggest you get a good CPA on your team. They'll be worth their weight in gold, not to mention saving you a lot of liability when you file your taxes on your own. Your CPA will be able to help maximize your deductions, consult on different tax saving strategies, and so much more. Definitely hire a good CPA, and you won't regret it. Investing in real estate will sometimes require you to enlist legal assistance. From dealing with tenant/landlord suits to asset protection and corporate setup, specialized attorneys can be an asset on your team. There are many different areas of law, and finding an attorney who specialized in a  specific area you need is important. Ask around for references and find an attorney who will fit well on your team when you need them. You can scale this team up or down to meet your needs. Each one of these team members will serve an important role on your team. But fortunately for you, this doesn't mean you have to hire a team of a dozen people full time sitting in your office. You can hire each of these people for a specific task, kind of like a consultant. Other team members you may consider, depending on your specific business are: Partners Investors Syndication attorney Cost segregation consultant

 260: Tribe of Millionaires with Mike McCarthy | File Type: audio/mpeg | Duration: 56:28

Mike McCarthy is an entrepreneur, speaker, and bestselling author, as well as regional owner of the Keller Williams Greater PA Region, overseeing 50 offices and 8.5k agents who closed over 52k units in 2018 for $14 billion. Mike attributes his success to his own grit, but also to the individuals who have kept him on track. In 2015, Mike was named CEO of GoBundance, a fast-growing peer group of successful men who understand one another’s unique set of needs and hold each member accountable to his own high standards, all in pursuit of helping one another plan, execute and achieve their financial and lifestyle goals. Since the inception of GoBundance, new members have been added to the tribe each year. Today, membership has grown to over 200. In addition to serving as co-founder and CEO of GoBundance, Mike is the co-author of Tribe of Millionaires and the founder of FamBundance, a mastermind community for entrepreneurial families. He is also a LEAF Certified Appreciative Inquiry Facilitator, where he designs and delivers high-level group collaborations in high-stake scenarios. His GoBros affectionately refer to Mike as “McLovin,” and he resides in Austin with his wife and two children. Key Points How your environment shapes your destiny A powerful purpose can help you overcome the greatest obstacles How evolution has wired accountability into our very nature Discovering your purpose through being present The 6 Effects from Tribe of Millionaires Let's look at a few ways you can grow, change, and control your mindset. The Influence Effect - Your destiny is shaped by those around you The Multiplier Effect - The right group of people compounds your efforts The Accountability Effect - Responsibility to others is the world's most powerful force The Authenticity Effect - You find your true self among those you trust The Purpose Effect - The right people reveal your richest source of power The Connection Effect - Your life will be measured by the quality of your relationships Resources Tribe of Millionaires GoBundance.com 1LifeFullyLived.org Connect with Mike at GoMikeMcCarthy.com Visit Audible for a free trial and free audiobook download!

 259: Potential – Friday Fundamentals | File Type: audio/mpeg | Duration: 8:48

Potential Potential, defined,  is having or showing the capacity to become or develop into something in the future. Similarly, in the world of physics, potential energy is the energy possessed by a body by virtue of its position relative to others, stresses within itself, electric charge, and other factors. Think of potential like a slingshot, pulled all the way back. With a simple release of the strap, the object in the slingshot is rocketed forward. Who knew I was inadvertently studying physics as a young kid while causing trouble with my home-made slingshots made of tree branches and bicycle tire innertubes. You, just like that slingshot, have potential. You're made up of potential energy. This life is filled with endless opportunities. You can do and be anything you want, so why not live up to your full potential and life a purposeful life?! Whether you realize it or not, you have the ability to tap into your potential and direct it towards wherever you so choose. We live in a world where we get to choose how to live. Take a moment and think about that. Yes, you get to choose how to live, where to live, who to spend time with, what hobbies and interests to pursue, and so much more. You have so much potential. It's just a matter of tapping into that potential and directing your focus towards your goals. Let's look at some effective ways that will help you do just that. Try new things. There is so much for you to experience, opportunities you didn't even know existed. The only way to find those is to get out and try new things. It's impossible to know what interests you unless you are trying new things. You have to explore both the outside world and yourself to be able to realize what opportunities exist, and what you are capable of. Put yourself out there. It's easy to stay in your comfort zone. But you'll never challenge yourself, grow, and reach your full potential by staying where you're comfortable. Progress happens when you are challenged because you are forced to solve problems, learn new things, experience new opportunities, and grow to new levels. Put yourself out there and don't be afraid to fail. Nurture your environment. Whether you realize it or not, your environment is the single biggest factor in your success. The people who you surround yourself with, your physical location, and the information you process are all part of your environment. When you have an environment that supports your growth, learning, and improvement then you can more easily reach your full potential. Be a lifelong learner. Continuously study new things. Your mind is your most valuable asset, so be sure to always invest in it first. Podcasts, books, online courses, conferences, and networking with others are all great ways to learn and study new things. You'll never be too educated.  Take action. This is a vital part of realizing your potential. Taking action doesn't always mean it's the right action. Often times, you'll do something that may or may not be effective. Either way, it's a success so long as you learn from it. Implement the things you learn, pull the lessons out from things that did and didn't work, and create that feedback loop so that you're always improving and getting better.  Your potential is massive. You likely won't tap into it overnight. It's a process that you've got to stick with for the long run. In a journey to become your best self, there really is no finish line. It's more of a lifestyle of constant improvement. You can start right this minute. In fact, you have already started just by listening to this podcast, which simply required you to hit play. Take hundreds, thousands, or even millions more of those tiny steps in the direction of self-improvement, and just imagine where you'll be in 1 year, 10 years, or even 50 years in the future.  My wish for you is that you'll realize your full potent...

 258: The Art of Beliefology™ with Brad Blazar | File Type: audio/mpeg | Duration: Unknown

Brad is an effective sales leader, coach, speaker and author who over a decade ago set out on a mission to compile stories from his prior business career as founder and CEO of a small oil company, in addition to the encounters he had from meetings and speaking events with some of the most world's best leaders in sports, business and politics. His encounters include 43rd President of the United States George W. Bush, former Commander in Chief of the Armed Forces Oliver North, NFL Hall of Fame recipients Joe Namath and Fran Tarkenton, NBA legend and former LA Laker Magic Johnson, accomplished business leader and Shark Tank personality Kevin O'Leary, and Rudy Ruettiger who was made famous thru the movie about his life at Notre Dame. Brad is the founder of The Art Of Beliefology™ - believing that you have the power to change your limiting beliefs and providing a path to the millions of men and women around the world raising their hands for help. In On the Wings of Eagles - Learning to Soar in Life Brad has assembled his copious notes into this book. Taking the message from each encounter, while sharing stories from his past, Brad has put together a book on success, what it means to be committed, and changing one's limiting beliefs. Key Points How to raise capital  Dreamers, Blamers, and Game Changers How a coach can be an asset  What to look for in a coach - SEC (support, encourage, & challenge)  Resources BradBlazar.com Visit Audible for a free trial and free audiobook download!

 257: Your Tribe – Friday Fundamentals | File Type: audio/mpeg | Duration: 10:30

Your Tribe Your tribe is who you spend most of your time with - your circle of friends, family, co-workers, peers, etc. These people aren't necessarily the closest relationships you may have, but rather specifically those you spend the most time with. If you work a 40 hour per week job, then you spend 1/4 of your life at work - depressing to think about, I know. So chances are, you're spending quite a bit of time with those you work with. Then you have friends, family, and likely your significant other. "You are the average of the five people you spend the most time with." - Jim Rohn Take a minute and think about the 5 people you spend the most time with. List each person. If you're driving, then do this later and think of them instead. Give some thought to each person, and ask yourself the following questions. Who are they? What do they do for a living? What is their general socioeconomic status? How healthy are they? How happy do they seem? Are they a positive or negative person? Do they continue to grow or are they stagnate? Do they live life abundantly or scarcely? These are just a few cues you can use to determine the average of the 5 people you spend the most time with. Then ask yourself the same questions about you. Chances are, you are very similar to these 5 people. Is it a coincidence? Are you similar because you spend time together? Or do you spend time together because you are similar? It's a bit of a chicken and egg question, I know. Now, what's this all about? Why does it matter who you spend your time with, you might be wondering. In Tribe of Millionaires, Simon, the executor to Ethan's Dad's estate, explains to Ethan the importance of who you surround yourself with by saying: "We tend to feel like we make conscious decisions about our lives. We make decisions. We take action. We get results. We shape our destinies. What we don't realize is that subconsciously, there are powerful forces at work that affect how we think and act. We're being subtly shaped by the world around us all the time." We think we are in control of our future. But we don't realize just how important our environment is. Part of our environment is our tribe. Your tribe has a huge impact on your life - from shaping your thoughts to guiding your actions and much more. People come and go in your life, like an ebb and flow of influence. If who you surround yourself is as important as Jim Rohn and so many others say, then being intentional about your tribe would only make sense. Building Your Tribe You can create and control your environment in many aspects. Growing your tribe is one of the most impactful ways you can create your environment. Network with people who are doing what it is that you want, or are where you want to be. These can be meetup groups, conferences, mastermind groups, etc. Seek out people online and learn from them. You don't have to personally know Warren Buffet to learn from him. You don't have to be pals with Ken McElroy to replicate his success as a multifamily investor. By following people online and learning from them, you are elevating your mindset, your actions, and your results. Grow new relationships. Your tribe will change over time. People will come and go. With that, comes the opportunity to develop new relationships with people. Contribute to your tribe. In a traditional tribe, each member has a role. When each person is playing their part, the tribe functions like a well oiled machine. When someone starts lacking, it pulls down the entire tribe. The same is true with you and your tribe. You have so much to offer, so be sure to bring value to your tribe where you can. The 6 Effects Let's look at a few ways you can grow, change, and control your mindset.

 256: Building Wealth Through Apartments with Mark Kenney | File Type: audio/mpeg | Duration: 37:35

Mark Kenney is a seasoned real estate investor, entrepreneur and founder of Think Multifamily. Mark started his real estate career over 20 years ago and has extensive experience in property valuation, acquisition, and operations. He has a passion for helping other succeed in the multifamily arena. Mark is invested in over 3,500 units and has a top-notch reputation among the multifamily investment community for providing exceptional value to investors and the community while being easy to work with. Mark is a 1993 graduate at Michigan State University, Accounting and is a CPA. Mark has also provided IT technical and business consulting for 20 years and is leveraging his vast IT experience to bring new creative technologies that will help others in the multifamily space. He has worked for large organizations such as KPMG Consulting, EDS, SAP, and HP; he founded Simplifying-IT in 2008 which provides IT services to fortune 500 companies. Key Points Turning the corner from small multifamily properties to large apartment deals How to position yourself to raise capital What value you can bring to partnerships  Real estate is a relationship business - you have to build personal relationships  Be willing to be scared  Lightning Questions What was your biggest hurdle getting started in real estate investing, and how did you overcome it? Mark's biggest hurdle was the fear of raising capital. TO overcome that fear, he put himself out there by going to events and talking with people.  Do you have a personal habit that contributes to your success? Always stay humble and exercise.  Do you have an online resource that you find valuable? Google.com What book would you recommend to the listeners and why? The ABC's or Real Estate Investing by Ken McElroy If you were to give advice to your 20 year old self to get started in real estate investing, what would it be? You don't have to start out small. Find someone who is doing what you want, and learn from them.  Resources Visit Audible for a free trail and free audio book download! Think Multifamily Email: Mark@ThinkMultifamily.com

 255: The Power of Your Mind – Friday Fundamentals | File Type: audio/mpeg | Duration: 10:52

A placebo is an inert (inactive) substance, typically a tablet, capsule or other dose form that does not contain an active drug ingredient. Placebos are often used in clinical trials as an inactive control so that researchers can better evaluate the true overall effect of the experimental drug treatment under study. In these clinical trials, one subset of patients would receive the placebo and one group would receive the experimental drug, but neither group is aware of which treatment they have received. In addition, researchers in the study would not know which patients have received active or placebo treatments. Why am I telling you this? Because I want to introduce and talk about the Placebo Effect. The Placebo Effect is defined as "a beneficial effect produced by a placebo drug or treatment, which cannot be attributed to the properties of the placebo itself, and must therefore be due to the patient's belief in that treatment". Let's look at and well-known placebo study.  I first heard of this study in Vishen Lakhiani's book, Code of the Extraordinary Mind. This study and corresponding article titled "Mind-Set Matters: Exercise and the Placebo Effect" was lead by Harvard University Psychology professors, Alia Crum and Ellen Langer. In a study testing whether the relationship between exercise and health is moderated by one's mindset, 84 female room attendants working in seven different hotels were measured on physiological health variables affected by exercise. Those in the informed condition were told that the work they do (cleaning hotel rooms) is good exercise and satisfies the Surgeon General's recommendations for an active lifestyle. Examples of how their work was exercise were provided. Subjects in the control group were not given this information. Although actual behavior did not change, 4 weeks after the intervention, the informed group perceived themselves to be getting significantly more exercise than before. As a result, compared with the control group, they showed a decrease in weight, blood pressure, body fat, waist-to-hip ratio, and body mass index. These results support the hypothesis that exercise affects health in part or in whole via the placebo effect. I find the placebo effect fascinating, due mostly to the power of the mind. Everything we do starts in our mind. But strangely enough, it's not necessarily what or how we do things that impact our outcomes, but rather our mindset.  I had a coach that recently told me the only difference in feeling excited and feeling nervous is your mindset. The feeling is the same, and the only difference is your mindset.  I  think that the only difference in living an extraordinary life and an average life is your mindset. And the best part is, you can control your mindset.  Your Mindset Let's look at a few ways you can grow, change, and control your mindset.  The world around is filled with both absolute truths and relative truths. Absolute truths are the things that are... well absolutely true. An absolute truth is the sun rises in the East and sets in the West. No matter who you are, this is true. A relative truth would be there are 2 political parties. This is true in some sense, yet only relative to U.S. politics. In other political systems, there are two political parties. To constantly grow and expand your mind, you can challenge these relative truths. Doing so will make you look at things in new perspectives, possibly even solving challenges with new solutions.  Growth mindset vs. a fixed mindset. A fixed mindset is one that doesn't change. The way things are now is the way they'll always be in a fixed mindset. With no perception of abundance, one with a fixed mindset settles for how things currently are and thinks that's the way they'll always be. ON the other hand, a growth mindset is one that is constantly growing and changing.

 254: Commercial Real Estate Lending with Nick Chapman | File Type: audio/mpeg | Duration: 24:48

Nick Spent 15 years in the lending side of banking. Originally focusing on residential mortgages but as a result of the financial collapse in 2008, he transitioned to business banking and was recruited to work for one of the largest privately held lenders in the country. Shortly after being introduced to Jake and Gino through some mutual friends in the real estate industry, Rand Capital was created as part of the Jake and Gino family of companies. Our goal is to serve our community of students with education about the different lending options available in the market along with providing financing for every deal possible. Key Points How and why banks lend on commercial real estate Agency debt - Fannie Mae and Freddie Mac - how they work  CMBS - commercial mortgage-backed securities  What lenders require and look for when lending on commercial assets  How a commercial real estate broker can help you get the best financing  Agency lending limits - how that impacts investors  Interest-only terms, non-resource, and other unique features of commercial loans Resources Rand Capital LLC Email Nick at Nick@RandCapLLC.com for a white paper

 253: Leverage – Friday Fundamentals | File Type: audio/mpeg | Duration: 11:50

Leverage is a powerful tool. It can come in many different forms, from the mechanical leverage of a seesaw to the financial leverage of a real estate loan. We're constantly using leverage in some form or another. Leverage defined is: use (something) to maximum advantage. use borrowed capital for (an investment), expecting the profits made to be greater than the interest payable. Financial leverage is simply borrowing money to invest, with the expectation of making a profit. Leverage, in the context of real estate investing, is debt. We've been conditioned to view debt as a negative thing, and rightfully so. But not all debt is created equal. There is good debt (the kind that others pay for you) and then there is bad debt (the kind you have to pay yourself). Leverage is an area where many real estate investors struggle because it can be counterintuitive in the sense that real estate debt can and usually is a good thing. Let's look at how that can be true. Leverage magnifies your return on investment, both positive and negative returns. Let's look into some investing metrics here. Two important metrics are Cash on Cash Return (CoC) and return on equity (ROE). Let's take a duplex for example. This duplex purchase price is $100,000, and rents for $500/unit per month for a total of $1,00o total rents per month.  One of the most important things we consider as real estate investors is the bottom line cash flow number - that is how much does the property profit per month, after paying all the expenses from the rental income. There are two ways we can look at this example: Scenario 1. We buy the property without leverage, and pay all cash for it. Scenario 2. We buy the property with leverage, by borrowing money from a bank and putting down 20% of the purchase price which is $20,000. Let's look at Scenario 1 where we do not use leverage. The monthly break down looks like this: 1,000 in monthly rents - $400 in expenses (Vacancy, Insurance, Maintenance, Taxes, Utilities, Management) = $600 per month in positive cash flow Now let's look at Scenario 2 where we use leverage and put down 20%. Our loan for the remaining 80% is a 30 year fixed rate with a 4% interest rate. 1,000 in monthly rents - $400 in expenses (Vacancy, Insurance, Maintenance, Taxes, Utilities, Management) - $382 for the mortgage (principal and interest) = $218 per month in positive cash flow At first glance, you might look at the $600/mo. cash flow of scenario 1 as outweighing the $218/mo. cash flow in scenario 2. But let's compare the important Cash on Cash returns. Scenario 1: We paid $100,000 for the property in cash. The property makes $600/mo., which equals $7,200/year. $7,200/$100,000 = 7.2% Cash on Cash return. Scenario 2: We put $20,000 down for the property and it makes $218/mo., which equals $2,616/year. $2,616/$20,000 = 13% Cash on Cash return. That other important metric we mentioned is the Return on Equity, or ROE. Let's calculate the ROE of each scenario. In both examples our $100,000 duplex appreciates 5% over 1 year. Scenario 1 (no leverage): After one year our property is now worth 5% more, or $105,000. We made $5,000 from the appreciation of our property. This $5,000/our initial $100,0000 investment = 5% ROE. Scenario 2 (with leverage): After one year our property is now worth 5% more, or $105,000. We made $5,000 from the appreciation of our property. This $5,000/our initial $20,0000 investment = 25% ROE. With these two CoC and ROE metrics, you can begin to see how leverage magnifies your returns. Leverage Your Way to Wealth "Savers are losers and debtors are winners." - Robert Kiyosaki The ability to leverage debt is what makes real estate investing so p...

 252: Rockstar Real Estate Investing with Robert Martinez | File Type: audio/mpeg | Duration: 36:36

Robert founded Rockstar Capital in March 2011 and since directed the growth of Rockstar's portfolio to 19 apartment communities consisting of 3,243 rental units. He entered the multifamily industry in March 2007 when he co-founded a previous management company and oversaw operations of 11 apartment communities consisting of over 2,000 units. Since 2011, he has directed the underwriting, acquisition, and management of 30 apartment communities consisting of greater than 5,243 rental units. Robert holds an Engineering Degree from Texas A&M University and in 2013 earned the National Apartment Association Independent Rental Owner of the Year Paragon Award. Under Robert’s visionary leadership, Rockstar Capital and its staff have earned 15 city, state and national apartment awards as well as being named #15 in the Fast 100 Fastest growing companies with the Houston Business Journal. Robert shares a passion for soccer with his two boys, Ryan and Conner and enjoys supporting their daily efforts in local club soccer. Robert’s favorite saying is: “You only have one life. If you don’t like your situation, do something about it.” Rockstar Capital Management is a superior real estate organization founded in 2011 as an investment and property management company. With a dedicated hands-on approach, each of Rockstar's communities are managed by a seasoned team of professionals that pride themselves in taking care of its managed properties and valued residents. Rockstar's highly motivated and well-trained team provides the highest quality of service and expertise in managing multifamily properties. Members of Rockstar Capital Management are top in the industry and have received numerous awards for workplace excellence. It validates that their properties operate with market-leading occupancy, resident retention, and profitability. Key Points The myth of saving your money and retiring with a nest egg Breaking into the multifamily apartment space Building your network and marketing yourself Do whatever it takes to be successful Buy one deal and guard it with your life Reputation is everything - you have to have a great online presence Lightning Questions What was your biggest hurdle getting started in real estate investing, and how did you overcome it? Fear and analysis paralysis. Do you have a personal habit that contributes to your success? Ivan listens to good content on self-development, sales, and real estate. Do you have an online resource that you find valuable? Podcasts, BiggerPockets, and Audible What book would you recommend to the listeners and why? If You're Not First, You're Last by Grant Cardone If you were to give advice to your 20-year-old self to get started in real estate investing, what would it be? Tell them all the things he's figured out at 30 - focusing on cash flow! Resources Rockstar Capital Apartment Rockstar Podcast  Connect with Robert on Social Media here

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