If you enjoyed this episode, or are enjoying the Scalable REI show overall, show your support by buying the Scalable REI team a cup of coffee: https://www.buymeacoffee.com/scalablereiCharles Hernandez was in the mortgage game before the 2008 crash. Charles ran a few companies in the mortgage industry and worked side by side with hard money lenders to help investors structure creative finance deals. Like everyone else, Charles didn’t see the 2008 crash coming a took a big hit.When the crash came, Charles didn’t give up because a couple of bad months…. But when all the banks started shutting down, he lost a lot of clients, he lost a lot of money and he had no choice but to throw in the towel.In 2012, everything was on the up and up so Charles decided to open up HBHS (Home Buying Home Selling) as a Solopreneur.  Charles saw investors in 2006 making money hand over fist so this time around, instead of helping other investors make money, Charles became an investor himself.Charles found himself getting more deals than he could handle so when his Daughter’s boyfriend, Mike Llanas, came back from the Army in 2012, Charles convinced Mike to become a licensed real estate agent and handle the traditional, home selling side of HBHS. In his first 3 years as a real estate agent, Mike earned numerous awards through NAHREP for closing 60-70 traditional deals per year, while STILL being active duty in the Army! In 2013, Mike and Charles purchased their first flip together. In 2016, Mike and Charles hired their first employee and broke their first million dollar year! Today Mike and Charles bring in seven figures a year with a strong emphasis on creative finance deal structuring.Mike and Charles run San Antonio’s largest Real Estate Investment Association (REIA) and teach their students “How to Stop Foreclosures”, “How to Buy Homes with No Banks” and “How to Sell Homes and be the Bank”! Mike and Charles believe in maintaining a strong company culture by preaching to their team and vendors to, “Work with us and not for us”!Helpful Links:https://www.hbhsacademy.com/https://www.facebook.com/groups/homebuyinghomesellingassociationhttps://www.instagram.com/turnupthehustle/https://www.youtube.com/channel/UCRXDZ_00JHm-UtLp9dp51YAhttps://youtu.be/W1_GWdW16DQBest Way to Contact Uncle Charles:https://hbhs.link/alliance Episode Highlights:- Employees work with and not for HBHS. Each person is an entrepreneur.- When analyzing your loan data, always pay attention to new loans on old houses because this usually means the house was renovated, which means less capital outlay for you when you purchase it.- With most sub-to deals, the best strategy is to have your seller put the property into an irrevocable trust with you or your attorney as the trustee. Conversely, if you put the property in an LLC, the power of attorney the seller granted you will expire in 10 years, which will make it very difficult to sell the property if the seller is incapacitated, deceased, or otherwise difficult to contact when you need to obtain a new power of attorney.

If you enjoyed this episode, or are enjoying the Scalable REI show overall, show your support by buying the Scalable REI team a cup of coffee: https://www.buymeacoffee.com/scalablereiChris Larsen is the founder and Managing Partner of Next-Level Income, through which he helps investors become financially independent through education and investment opportunities. Chris has been investing in and managing real estate for over 20 years.  He began syndicating deals in 2016 and has been actively involved in over $400 million of real estate acquisitions.In addition to real estate, Chris has invested in equities, oil & gas, and small business lending, as well as being active in Venture South, one of the nation’s Top 10 Angel Investing groups. Chris lives with his wife and two boys in Asheville, NC where he loves spending time with them in the outdoors and enjoying the food and culture that the region has to offer.  Episode Highlights:- The best way to build real wealth is by combining both passive and active real estate investment strategies such as wholesaling combined with syndication investments. - Seeing your house as an investment is a common fallacy. It’s typically cheaper to rent. While it is good to build equity in your house, the problem is the return you’re earning on this capital locked in your house that you can’t access is typically always going to earn a lower return than what you could earn in other vehicles. - Paying down your mortgage early in large chunks actually increases the risk that your bank will call the loan due immediately when the next market downturn hits. This is because the bank knows that there is a much higher chance they will earn back all of their loan principal amount, plus additional profit if they’re able to take the house from you in a foreclosure. By doing the counterintuitive thing of not paying extra principal amounts, you are keeping the leverage over the bank because the bank will know if they foreclose on the property, they might not recover all of the outstanding loan principal in a fire sale. - Utilizing a dividend paying whole life insurance policy, as mentioned in prior episodes, can be a powerful tool that creates a wheel of wealth. Typically dividends on the policy pay you 5%. You then borrow at 3% so you’re still earning 2%. While you’re earning this 2% you can reinvest that money into syndications and other investments. Typically any excess cash you earn from real estate deals or other activities should be invested into your policy first before putting into the bank because you will always earn a higher return. At the same time, the policy is contractually obligated to grow every year no matter what you do and is growing tax efficiently since all funds are after tax dollars and not a part of your estate. - If you’re a W2 worker, investing in oil and gas syndications allow you to offset your W2 income dollar for dollar for any loss generated in the investment from depreciation. This differs from traditional real estate investment syndications, which prevents W2 earners from using passive losses to offset active income as a result of the tax reform act passed in 1986.  - The oil and gas syndication deals that Chris is able to refer his investors to are comparable to value add multifamily deals in which the sponsor invests in wells that are already producing, improves the operations, then sells for a higher profit. Helpful Links:https://www.nextlevelincome.com/ Best Way to Contact Chris:chris@nextlevelincome.com

If you enjoyed this episode, or are enjoying the Scalable REI show overall, show your support by buying the Scalable REI team a cup of coffee: https://www.buymeacoffee.com/scalablereiEric purchased his first apartment building when he was 18 while still in college. After graduating he worked as an actuary where he was dismayed to see hundreds of company pension plans being rolled over into 401(k)s shifting the retirement risk to employees. This made him reconsider traditional beliefs about retirement savings. It also made him question his role as an actuary so he joined the lucrative technology industry. A few years later he lost a fortune during the Dot com crash of 2001 and he started looking for ways to earn passive income and stop trading time for money. He started various businesses, including a gourmet sauce company, but eventually came back to his first love real estate investing and formed MartelTurnkey with his sons. After just four years of rapid success he was able to retire from his day job. Now he wants to share what he’s learned so you don't make the same mistakes he did.Episode Highlights:- Eric’s allocation of his sources of deals are 50% from the MLS, 25% from wholesalers, and 25% from pocket deals from realtors and property management companies. Instead of using a strict 1% rule, his team uses a range of 0.75%to 1.25% because there are often houses on both ends of the spectrum, but not a lot that perfectly fit the 1% monthly return.- Typically Eric targets properties with $25,000 or less in repairs that will have an ARV (After Repair Value) of at least $110,000.- The primary markets MartelTurnkey focuses on historically have been St Louis, Detroit, Nashville, and Cleveland, but they have done deals in neighboring cities and plan to expand further throughout 2022. - One of the primary keys to Eric’s and his company’s success has been having solid teams in place in each market they’re involved in. For example, since they’re able to do large volume, his team of contractors solely focus on MartelTurnkey properties, which hedges the risk of a contractor abandoning your job to work on another job where they’ll make more money, or the risk that your contractor takes your money but disappears without doing any work at all. Eric and his team regularly physically travel to the markets they’re in to maintain the relationships with their boots on the ground teams and to keep a pulse of the local market.- Criteria Eric considers when evaluating a new market is first identifying an MSA with a healthy amount of industry diversification, stable population, and good GDP. However, he intentionally avoids markets like Miami, San Francisco, and Phoenix that have seen 4%, 10%, or more growth in housing prices. Other factors include median house value, median rent, median income, overall affordability of the city, and the percentage of renters vs. homeowners.- After an investor purchases a turnkey property, she/he should expect to cash flow approximately $200 to $300 per month- Always match your investment period to the term of the loan. For example, if you plan to hold the investment for 5 years then get a 5 year loan. If your holding period is indefinite, then get the longest possible loan of 30 years. This lowers your monthly payment and reduces your liability with time given that you’re paying the same amount each month for 30 years, while the bank is receiving a dollar that is continuously eroded by inflation.Helpful Links:https://martelturnkey.com/https://www.instagram.com/e_martel/?hl=enhttps://www.amazon.com/Stop-Trading-Your-Time-Money/dp/B08KQV31F2Best Way to Contact Eric:https://www.facebook.com/eric.martel.ca/eric@martelturnkey.com

If you enjoyed this episode, or are enjoying the Scalable REI show overall, show your support by buying the Scalable REI team a cup of coffee: https://www.buymeacoffee.com/scalablereiNick and Eric are full-time real estate investors, developers, and founders of Winterspring Capital, a private equity firm based out of Boston, MA. Since starting their company, Nick and Eric have owned ordeveloped over $56 million of multifamily assets, with an additional $40 million of currently ongoingdevelopments in the pipeline. Nick and Eric focus on several different types of multifamily investments:from value add 100+ unit complexes in the Southeast that they syndicate alongside their investor base, toaffordable housing development, to luxury multifamily condominium developments.Episode Highlights:- Affordable housing can mean a variety of things depending on what market you're in. In this episode, Nick and Eric discuss an affordable housing project in which the City of Boston requested proposals to construct homes that were specific to their requirements. To keep the homes affordable for buyers, Boston mandates a certain lower than market price for buyers, and Nick and Eric make their fee from the development fee they charge the city. Boston also has rules in place that prevent buyers from turning around and flipping the homes at higher prices. Affordable housing differs from Section 8 housing in that Section 8 housing is a rent program in which the government subsidizes a portion of the rent so that the total rent is at market rates. Conversely, the project Nick and Eric did was selling the entire home (not renting) and also selling them at below-market rates.- The key to running a successful real estate development business that operates on a sustainable business model is to have the right architect, engineer, and other team members in place. The developer also needs to be very familiar with the zoning of the local area, floor area ratios, and other particularities in each specific market.- Never underwrite for rent or capital appreciation. Dial-in rent growth of 0% so that any realized rent growth is icing on the cake. If the deal still looks good using this conservative approach, then chances are that it will turn out better than expected when executed.- Nick and Eric's returns on development deals are usually in the 20% to 30% range, which is a major differentiator compared to plain vanilla multifamily value-add syndication deals. Winterspring Capital utilizes a mix of development deals (somewhat analogous to house flipping) and buys and holds multifamily assets with indefinite hold periods.- To choose your market, you must confirm that there's been steady population growth of at least 5% or more.Helpful Links:https://winterspringcapital.com/Best Way to Contact Nick and Eric:Instagram:@winterspringcapitalLinkedin:https://www.linkedin.com/in/eric-dinicola-2408897ahttps://www.linkedin.com/in/nicholas-earls

Lazaro Vento, Managing Director of Happy Travels Miami, shares how he built a million-dollar Airbnb empire without owning any property. Highlights include optimizing Airbnb portfolios, leasing cars for rental purposes, and the advantages of real estate investing.

If you enjoyed this episode, or are enjoying the Scalable REI show overall, show your support by buying the Scalable REI team a cup of coffee: https://www.buymeacoffee.com/scalablereiMatt Van Horn is a self storage industry veteran, being involved for over 20 years. He is also the founder of Black Swan Storage Advisors, a full service Self Storage Operations Company specializing in Feasibility Studies, Underwriting & Investment Analysis, Site Selection, Facility Management & Operations, Revenue Management, and Training within the Self Storage Industry. Episode Highlights:- The 5 largest self-storage REITs own approximately 30% of the self-storage industry across the country. In the past 1 to 2 years these REITs have started offering property management services, which serves as another channel for future acquisitions to grow their portfolios.- Demand for self-storage is expected to be strong for the next 4 years. However, as long as there’s demand, new development will catch up with demand, eventually saturating the markets. We are currently in a development cycle. The last one was from 2003 to 2006. - To determine the market saturation, you need to look at a radius from the target property. If it’s highly urbanized such as Manhattan, the radius is one city block, but if it’s in a suburban area, the radius increases to 3 miles. For RV and boat storage the radius can increase significantly. However, there’s no clear demand data established for RV and boat storage at this time.- Rent is typically measured on a rent per square foot basis. Using this metric, the rent per square foot is typically always lower for RV / boat storage compared to self-storage. This difference is driven by the fact that the different unit size mix in self-storage increases the overall average rent per square foot, while RV and boat storage units are all large, so rent is allocated over a larger surface area.- One of the most important drivers for determining feasibility is the convenience and what population you’re going to draw tenants from. In self-storage there is no brand loyalty, which results in tenants renting from the self-storage facility that’s nearest to their home or work. Even if there’s enough population in your specific market, if a potential tenant must drive past 7 other self-storage facilities before getting to yours, then they are not going to rent from you. - The self-storage industry has experienced significant cap rate compression with Class A properties in primary markets (i.e., the top 50 MSAs) ranging from 3.8% to 4.5%, and secondary markets ranging from 4.55% to 5.5%. Class B properties have been averaging 6.2% and the industry overall has been 6.1% on average. - Although there is a lot of focus on the deal and acquiring the property, an often overlooked step is determining how to manage the facility after closing on it. Helpful Link and Best Way to Contact Matt:https://www.blackswanstorage.com/

If you enjoyed this episode, or are enjoying the Scalable REI show overall, show your support by buying the Scalable REI team a cup of coffee: https://www.buymeacoffee.com/scalablereiAl Nicoletti kills it on Florida Probate, going above and beyond for clients. Formerly educated and graduated from the University of Miami (Bachelor of Arts in Music and Minor in Business Law) and Barry University School of Law (Juris Doctor), Al is a Florida Bar Attorney with the capability of handling cases across the state and headquartered conveniently in Jacksonville, Fl. Specializing in Real Estate Law, Al serves investors, business owners, contractors, landlords alike regarding Probate, Probate Litigation, Foreclosure Defense Litigation, Trust Administration, Wills, Trusts, Estates, Personal Injury, and much much more. Al’s success has been driven by the desire to serve each client with the attention they deserve, going above and beyond to find the most creative solutions, even if it takes an extra trip to the courthouse to see a Judge. Episode Highlights:- Probate is a legal process that is required in Florida to transfer the title of a property from a deceased person to her or his heirs so that the heirs can legally sell and convey the property. - Probates start at a cost of approximately $2,500.00 and increase from there depending on the time and complexity of each case. Al is able to complete a simple probate within 2 to 8 weeks.- Probates are often a great tool to unlock value in a deal that other investors might walk away from. They can often solve very large title issues.- Quiet title is a longer, more expensive lawsuit that notices every possible party that may have rights to a property and extinguishes them from the chain of title if each party does not respond within a specific time period.- Adverse possession is when someone can take ownership of a property if they have maintained and added value to the property for a period of at least 7 years in the State of Florida. For other states, this 7-year time frame may vary. Adverse possession can be bifurcated into those cases that have the color of title (the person seeking ownership of the property is on a deed, judgment, or court order) and those with no color of title (the person seeking ownership of the property is NOT on a deed, judgement or court order). For cases where there is no color of title, the person must prove that they have been paying taxes and must file a tax department of revenue form within 30 days after the 7 year anniversary of paying taxes. If the person has color of title, she or he does not need to prove that they have been paying taxes.Helpful Links:Facebook: https://www.facebook.com/flattorneynicoletti/Instagram: https://www.instagram.com/attorneynicoletti/?hl=enYoutube: https://www.youtube.com/channel/UCjBxmuAXQBJiQJKHR-GU4wwThe Al Nicoletti Show podcasthttps://alnicoletti.com/Best Way to Contact Al:Phone: (904) 999-0053Email: al@alnicoletti.com

If you enjoyed this episode, or are enjoying the Scalable REI show overall, show your support by buying the Scalable REI team a cup of coffee: https://www.buymeacoffee.com/scalablereiDr. Phil is a business breakthrough specialist, mentor, and coach that has worked with over 20,000 clients to date. Before that he owned and operated his own chiropractic clinic that he grew from one suite to 2,700 square feet occupying the entire left side of his office building. Helpful Links:Take the FREE quiz: https://programs.dragrios.com/a/2147496377/CCpfHW3tTranscendence 101 Course: https://programs.dragrios.com/a/2147487738/CCpfHW3tRising Above Adversity Course: https://programs.dragrios.com/a/2147488328/CCpfHW3tBest Way to Contact Dr. Phil:dra@dragrios.comhttps://www.linkedin.com/in/dragrios/Episode Highlights:- We are all born with 3 inborn self-sabotaging traits that cause us to subconsciously prevent ourselves from having tremendous success in the number of real estate deals we do, or really anything else we’re doing in life.- The self-sabotaging traits are director, communicator, and supplier. Typically each person will be primarily affected by one of the three and affected to a lesser extent by the other two. Fortunately there is an antidote to each of these three traits. By applying the antidote, you can live a balanced, harmonious life. - Your business also has its own inborn sabotaging trait and its own antidote. Knowing which trait it is and applying the antidote can effectively remove all bottlenecks and allow your business to grow exponentially.

If you enjoyed this episode, or are enjoying the Scalable REI show overall, show your support by buying the Scalable REI team a cup of coffee: https://www.buymeacoffee.com/scalablereiGus is a prior Microsoft Senior Engineer that turned to real estate in 2010. He runs one of the largest real estate inside sales teams in North America with 65 agents making over 50,000 outbound calls per day and booking about 100 appointments per day. Helpful Links:http://www.powerisa.com/https://facebook.com/groups/powerisamastermindBest Way to Contact Gus:https://facebook.com/groups/powerisamastermindEpisode Highlights:- Google PPC is the best when it comes to online advertising because each lead has a dramatically higher intent than a lead from a Facebook ad. For Facebook leads you need to text, call, email, schedule an appointment, qualify the lead, and go to the appointment. It is significantly more work to convert the lead.- It’s usually best to start with ringless voicemails, SMS campaigns, cold calling, and mailers first, and then gradually transition to online ads.- Autodialers should only be used when the quality of the data is very low. By dialing multiple numbers at once, most people will pick up with no one else on the other end, resulting in your number being blocked.- PowerISA selects agents for your business based on your specific marketing needs.

If you enjoyed this episode, or are enjoying the Scalable REI show overall, show your support by buying the Scalable REI team a cup of coffee: https://www.buymeacoffee.com/scalablereiKent is CEO of Hudson Investing, a multifamily investment company based in Indianapolis, IN which has invested over $8m in 625 units.Helpful Links:https://www.linkedin.com/in/kentritterhttps://www.kentritter.com/ Best Way to Contact Kent:Kentritter.com Contact page - sends you to his Calendly linkkent@hudsoninvesting.com- It’s always important to personally speak with the sponsor for your deal. For Ken’s second deal he invested with a sponsor through a crowdfunding website that he never spoke with and all investors ended up losing money in the deal.- Always ask your sponsor what differentiates them from other sponsors.- Always ask for the contact information for other passive investors that have already invested with the sponsor. When you speak with the investors, it’s more to understand the process and less about whether or not the investor says good things about the sponsor.- Kent adds value to his multifamily properties by partnering with local internet service providers to resell high speed fios internet to tenants- Setting up SOPs and KPIs is always key to holding your team accountable and ensuring they meet their goals.- Using smart locks to give prospective tenants access to units remotely for self-guided tours significantly reduces the time property managers need to spend working with that lead. It also eliminates the risk of prospects not showing up for a tour.- Larger property management companies often will not manage any property less than 100 units. To overcome this issue, Kent realizes economies of scale in his business by having one property manager manage multiple smaller multifamily properties in the same general geographic area. The more units you can spread the property manager’s cost over, the cheaper the cost will be. - Keeping multiple security cameras recording on all properties at all times allows a property manager to more efficiently manage multiple properties remotely at the same time. This is achieved by laser focusing the property manager’s time on only the properties that need attention at any given time. This reduces costs by avoiding the need to have full-time on-site staff limited to one property.