Multifamily Legacy Podcast

Do you store your wealth in IRAs? Did you know that you can use that money to invest in real estate? Want to learn all about private money in the self-directed space? If you need cash, you need to go where the money is available to create long-term wealth. Today, my guest is Edwin Kelly, founder and CEO of Specialized IRA Services and Specialized Trust Company, which provide self-directed retirement accounts. Edwin describes how to create a fortune and build a real estate empire using your or someone else’s IRA. Topics on Today’s Episode: In 2017, $24.7 trillion was inside retirement accounts, and in 2018, it was $25.3 trillion; number increases because of new flow of funds into retirement plans Self-Directed: You have a retirement account that allows you to invest in anything that the government allows you to invest in $500 billion in retirement accounts is self-directed; small amount because most people are not aware of what they can do with their money - options are available 172 million Americans have retirement accounts, but only 1% has money set aside that they can actually invest; self-directing changes it from 1% to 70% $1 trillion is expected to come into self-directed accounts in the next decade; people will be looking for investment opportunities that appeal to them Stock market does not generate predictable and consistent income, but real estate is an alternative and the Holy Grail to make such income People look for alternatives; view stock market as not viable standalone option 5 in 100 Americans were financially secure by age 65; 95% failed to create financial wealth or security Investment uncertainty, fees, volatility, and taxes affect wealth creation Record lows follow record highs in the stock market; people become emotional and don’t understand the market or make rational decisions - buy high, sell low Create Wealth: Eliminate taxes, fees, commissions, and uncertainty Is using IRA funds for real estate investments illegal or not? IRS sets restrictions Incorporate private money as part of investment portfolio and capital structure 3 Steps to Success: Open an account, deposit money in the account, and direct money into an investment Links and Resources Mentioned: Specialized IRA Services A Foolish Take: What goes down must come up for the market IRS IRA FAQs Merrill Lynch Edward Jones Chase   Quotes: “If you’re looking to raise money, you’ve got to go where the money is.” Edwin Kelly “Self-directed is where you have a retirement account (that) allows you to invest in anything that the government allows you to invest in.” Edwin Kelly “Most Americans don’t have a lot of discretionary income or money sitting around.” Edwin Kelly “People just don’t trust the stock market because they don’t understand it.” Corey Peterson Don’t forget to download my Free Workshop Quickstart Video Series, and if you like what you have heard please leave a review on iTunes. Text the word MONEY to 408-500-1127 to get my free private money program and credibility kit for single family.

Let’s talk about rehabbing because most people get it wrong. How does it work and relate to work processes for your properties? What does it look like? What should you do? You don’t want your property to look like a construction zone. Some believe the correct way is to do all improvements and repairs at the same time. The right way is to make the rehab process gradual to show that you care and manage tenants’ expectations. Tenants expect rent to go up every year, and we never disappoint them by doing clean, nice, consistent A-class management. You have to earn the right to charge more. Topics on Today’s Episode: First thing done at properties is to change the lighting; take out ugly ones and replace with bright lights for people to notice before and after difference Important for managers and maintenance to know people in the “community” and how they perceive where they live Be methodical when transitioning a property; constantly improve assets Raising rents can just mean having a good, trained salesperson If renting apartments, aim for a 65% renewal rate; renewals make you money Spend time and money cleaning up or putting away cables and wires Do as many improvements and repairs in-house to be efficient and save money Best form of flattery is when tenants find your next tenants through referrals Manage properties up; up rents, credit scores, standards, and improvements Keep tenants’ home life happy, and they will pay you a lot of money     Links and Resources Mentioned: Multifamily Legacy Podcast on Facebook   Quotes: “You should never want your property to look like a construction zone.” - Corey Peterson “You have to earn the right to charge more.” - Corey Peterson “We’re in the people business where people live...their home” - Corey Peterson “You want to be very methodical in how you’re transitioning your property.” - Corey Peterson Don’t forget to download my Free Workshop Quickstart Video Series, and if you like what you have heard please leave a review on iTunes. Text the word MONEY to 408-500-1127 to get my free private money program and credibility kit for single family.

Today, my guest is Michael Blank, Apartment Building Investing podcast host and coach. He realized that it doesn’t matter how much money he has in the bank or his salary. It’s all about highly leveraged passive income. Michael was hook, line, and sinker in the search for financial freedom. He put his nose to the ground, started some single-family and multifamily flips, and learned how to raise money. Now, he shares his knowledge about apartment buildings with others.  Topics on Today’s Episode: Michael settled on multifamily because there’s always something to worry about and you can’t control value with single-family properties People think they don’t have the experience and cash needed to do multifamily,  but all that’s not necessary - can overcome both quickly Real estate is the vehicle, but it’s about building cash flow and legacy wealth Multifamily is a different language; so there’s no reason to not start now Educate yourself and build a team to appear as an experienced investor Get started with multifamily through experience, education, and raising money   Michael has blazed a trail that works and believes in the power of mentorship Most people who have become financially free, after a state of confusion, they give back and serve others Blueprint for financial freedom is in Financial Freedom with Real Estate Investing; at the heart of it is your first deal Believe in yourself and take action; make a decision that enough is enough Focus on your first deal - whether it is big or small - to start cash flow Education Program: Find and do a deal that is meaningful and achievable; phase 2 is to analyze deals, form a team, and meet potential investors Only takes 1-2 years to replace your W-2 job; may mean just 1 deal a year Links and Resources Mentioned: Michael Blank Apartment Building Investing Podcast Financial Freedom with Real Estate Investing Rich Dad Poor Dad David Lindahl Tony Robbins   Quotes: “It doesn’t matter how much money I have in the bank, what my salary is. It’s all about passive income.” Michael Blank “I was hook, line, and sinker in the search for financial freedom.” Michael Blank “Multifamily - it’s a whole different language.” Corey Peterson “You’ve blazed a trail that works, and the power of mentorship is important.” Corey Peterson Don’t forget to download my Free Workshop Quickstart Video Series, and if you like what you have heard please leave a review on iTunes. Text the word MONEY to 408-500-1127 to get my free private money program and credibility kit for single family.

Have you ever failed at anything? If you have, that failure may actually point you in the right direction and encourage you to take risks that payoff. After failing at college, Tom Cafarella thought about what he wanted to do - earn enough passive income to not have to work. He has built up a passive income portfolio to where he does not have to work much. However, it turns out that he loves to work and puts in 80-90 hours each week because he enjoys real estate so much. Tom had strong mentors in his life to show him the way to make his dream of passive income come true. While growing up, the only person he knew who had a decent amount of money was his grandfather, who worked minimum wage jobs his whole life. But the one thing he did do was buy multifamily real estate in and around the Boston area. He was the only person Tom knew that really didn't have to work that hard. Tom decided to follow in his grandfather’s footsteps. He decided to go after it because he always wanted to be a passive income investor and buy multifamily properties. Topics on Today’s Episode: When starting a business, you've got to be prepared to get your teeth kicked in - doesn’t matter who you are, how smart you are, or how hard you work Find a mentor because you'll get kicked in the teeth less, if you have somebody who's already been through the fight Tom has multiple streams of income, and every single one has been taught to him by somebody Right now, there's a ton of money being made on the fix-and-flip side of the real estate business; things change, so even out your cash flow and be nimble When most successful entrepreneurs use a system that works, just follow it and model success; don’t try to recreate the wheel To survive when things aren’t working, find a new plan and shift gears; what's the fastest way to cash? Prime capital to deploy, buy strategically based on cash flow and model, and have infrastructure in place to efficiently make money when change happens People who are not seasoned operators overpay, and a tweak in the interest rates changes a whole paradigm for a lot of people Everybody was buying with crazy loans, and nobody was renting, so rents decreased; prices are too high, but there's no good alternative, if they start to fall Tom is doing development because they're brand new and easier to manage Tom’s private money comes from a lot of different sources: Levering out personal assets, owning rental properties, refinancing, and utilizing average individuals It’s harder to raise capital in the beginning because people want to see a track record; once you have one, it becomes much easier to point to your successes Links and Resources Mentioned: Tom Cafarella on YouTube Tom Cafarella Webinar Real Estate Mogul Podcast David Lindahl Brett Tanner Mike Hambright   Quotes: “I'm a pretty entrepreneurial person, very entrepreneurial. It (college) was kind of just like trying to fit a square peg in a round hole type of thing, and I wanted to get into real estate.” Tom Cafarella “If you can model what other successful people do, it gets you there so much faster.” Corey Peterson “I think that anybody who's in real estate is very fortunate because most professions, people get up, they hate what they do, but real estate is truly fun.” Tom Cafarella “You'll get kicked in the teeth less, if you have somebody who's already been through the fight themselves.” Tom Cafarella Don’t forget to download my Free Workshop Quickstart Video Series, and if you like what you have heard please leave a review on iTunes. Text the word MONEY to 408-500-1127 to get my free private money program and credibility kit for single family.

How can you take relationships to the next level for them to enhance your money-making capabilities in life and business? Today, my guests are Matt and Greg Sneyd, who I have known for about 10 years. They are big-time investors who taught me about the wholesaling business. Now, I’m teaching them a few things about apartments. Matt and Greg got into rehabbing, wholesaling, high-end remodeling, and acquiring rental properties. Then, they started to get into new construction. Now, Matt and Greg are phasing out of construction to take on some development and land entitlement. They’re converting all their active money into long-term money and long-term wealth.   Topics on Today’s Episode: You meet a lot of people, but you click with very few; you need to have the same mindset and have fun - find good fits to go above and beyond Matt and Greg make a successful father-and-son duo, but getting into business with family often turns sour; each has certain strengths Turning your wheels and not getting traction? Do things the easy way through life hacking and figuring things out - take what the market’s giving you If a business model isn’t working, figure out what else you can do; talk to people in your market to see what’s going on to make shifts at different points Add a zero to your profit; most people in the flip business are trying to get $30,000 as their profit - what if you add a zero and make $300,000 on a deal? Process of finding a good asset, operating, and making some cash flow; when you incubate it for five years, you keep growing Multifamily and Relationships: There’s enough spoils to make you money, to make me money; we all get paid, have a good time, and share the workload OPM: Finding private money is the real bread and butter in the real estate/syndication business; also talk to people who believe, like, and trust you Have integrity and do what you say you’re going to do; always pay back your private lenders - take care of the money and the money takes care of you Communicate with investors and lenders; offer full disclosure and documentation People think that you have to buy run-down properties to make money in the multifamily world, that’s really not true; you’re buying a property that’s occupied Power of Closing and Transacting: Brokers call you up about another deal from a different seller: “It’s a lot like the deal you just bought. We want you in the deal.” Write off over $3 million - accelerated appreciation; when you sell, you pay capital gains tax but end up paying a lot less tax or roll it over and defer that tax Make money from the day you buy a property, and it can only go up; tenants expect rents to go up - don’t disappoint them It’s just Monopoly; trade out some houses for some commercial, and then trade some commercial for some bigger commercial Links and Resources Mentioned: Greg Sneyd email Matt Sneyd email The Muve Group Businesses Need Financial Guidance Now More than Ever Hawkeye Towers Collective Genius Mastermind Jack Bosch Sean Terry Cory Boatright Than Merrill Greg Clement Jeff Watson Quotes: “You go to a lot of seminars, and you meet a lot of people. But very few of them you actually really click with.” Greg Sneyd “If you’re not sharing your successes or able to talk to people about it and they have similar successes, it doesn’t jive all the time, it kind of feels lonely.” Matt Sneyd “Everything has got to be in alignment. Our relationship, it was the right fit. You have to be finding these good fits because the only way that you are going to really go above and beyond is to do it with other people that you fit well with.” Greg Sneyd “I tagged you guys as farther down the road than I was, so I was like, ‘I’m just going to grab onto their coattails and see what they know’.” Corey Peterson Don’t forget to download my Free Workshop Quickstart Video Series, and if you like what you have heard please leave a review on iTunes. Text the word MONEY to 408-500-1127 to get my free private money program and credibility kit for single family.

Do you know about cost segregation studies and how they apply to new tax laws? There are exciting changes regarding shorter-life assets that will have a big impact for investors. Immediate expensing will be a boon for real estate. It offsets income made and all other income, then it carries forward indefinitely. However, most business owners hate accounting. It gets in the way and is a distraction from what they should be doing. That’s why there is Duckett Ladd. Today, my guest is Bill Ladd, a CPA and co-owner of the full-service Duckett Ladd firm that specializes in real estate.  He spends a lot of time on Section 42 properties, which features a low-income credit that incentivizes developers to build in depressed communities. But a lot of regulations and rules go along with such development. Even so, Duckett Ladd decided to zero in on this market, own that space, and add value for people.   Topics on Today’s Episode: Consult a tax advisor about passive income; there’s all kinds of ways the IRS tries to trip you up Tax forms now have limited ability to take net operating losses, which impacts offsetting taxes For every property I own, a cost segregation study is a standard practice Quarterly meetings with your tax advisor should be mandatory; get together and hold each other accountable Good and bad aspects of 1031 properties - do the numbers work? Do they lead to abandoned income and limited ability to defer entirety of gain? Partnerships: Find the right fit, make sure to communicate, and be on the same page; adjust your business model as necessary I made a financial commitment that I would have clean and perfect books on all accounts, and Duckett Ladd has made that possible Every company needs a financial component and should make it a priority from the start; accounting is the language of business, yet is underutilized Links and Resources Mentioned: Duckett Ladd Duckett Ladd on Facebook Duckett Ladd on Instagram Contact Duckett Ladd at (417) 883-6590 Quotes: “I cut my teeth very early on in the multifamily space and really spend a lot of time on Section 42 properties.” Bill Ladd “As I’ve kind of grown up in my career and watched other people, it’s really fun to watch because you see certain people that just have it figured out.” Bill Ladd “There’s all kinds of ways the IRS tries to trip you up.” Bill Ladd “I don’t think we even understand the depth of how much this is going to help when it comes to generating cash flow by saving on taxes.” Bill Ladd Don’t forget to download my Free Workshop Quickstart Video Series, and if you like what you have heard please leave a review on iTunes. Text the word MONEY to 408-500-1127 to get my free private money program and credibility kit for single family.

Today, my guest is RJ Bates of Titanium Investments. RJ started his career at Pizza Hut as a delivery driver. He worked his way up from shift manager to assistant manager, and then got his own restaurant. RJ didn’t know what he wanted to do in his life and got stuck in a job. He wasn’t happy, and it wasn’t what he was meant to do with his life. He was a slave to the restaurant business. But he learned a lot of business skills and will never regret the time he spent with Pizza Hut. After he quit at Pizza Hut, he took a minimum-wage job at a golf course and cashed in his 401k from Pizza Hut to buy his first rental property that cash flows like no other. Now, RJ lives the life he wants and is in control of his own destiny! Topics on Today’s Episode: Being an entrepreneur and do what you need to do - fake it, till you make it Becoming a Wholesaler: Purchased a house, did the work, and flipped it; but learned that being a wholesaler was the way to go and make money Going from contracting to real estate investing; conquering the world, one residence at a time What it takes to be successful is a sure will of determination; making a commitment to do something Work on and research your craft, if you have questions, go look it up; reach out to others for guidance, and make help reciprocal Understand your core vision and live your life according to it; follow what you want personally and professionally An entrepreneurial environment is exciting and feels like anything is possible; determine what’s important and serves you Be authentic and don’t try to be the smartest person in the room; be around like-minded people who are more successful than you Titanium: RJ and Cassi’s favorite number are 22, and titanium is the 22nd element on the periodic table; building a brand using “Titanium” Failure is not an option, but a way to success; you learn a lot about what you should’ve done for systems and processes when going into a new market Focus on creating and diversifying passive income; Titanium does wholesale and rehab to make funds to keep the engine going to buy rentals Going through tough times and struggling; change your journey through action, dedication, and tenacity Links and Resources Mentioned: RJ Bates on Facebook Titanium Investments The Titanium Vault podcast A Successful Business is a Marriage with Communication - Cassi DeHaas Visual Assets Elevate Your Status - Daniel Woods Flipnerd BiggerPockets Investor Fuel Gary Harper Tucker Hughes Marino   Quotes: “I actually cashed in my 401k money from Pizza Hut and bought my first property that I still own today. It’s a rental property and it cash flows like no other.” RJ Bates “If you have a good deal, it’ll sell itself.” RJ Bates “We’ve tried to conquer the world, one residence at a time.” RJ Bates Don’t forget to download my Free Workshop Quickstart Video Series, and if you like what you have heard please leave a review on iTunes. Text the word MONEY to 408-500-1127 to get my free private money program and credibility kit for single family.

Today, my guest is Larry Goins, who has always thought about wanting to do business. Even when he was a kid, he used to go down to the sawmill and get stakes. Then, he would resell them at the flea market as tomato stakes. Then, he moved on to painting cars, lawn care, and reading books about real estate. Larry eventually got real estate and contractor licenses. He did his very first depot in 1986, more than 30 years ago. There’s a lot of people who have not been investing that long. Larry has seen more market cycles than most can ever dream of.   Topics on Today’s Episode: Technology is the biggest change Larry has witnessed in real estate Fix and flip is a bit of a trap because you get used to the quick profits;what happens is you get lost and let all the wrong things become a priority in your life Being a Hustler: Having a good work ethic, mentality of “you cannot outwork me” Real estate is hot right now; even though real estate is like this, it will eventually go like this - business is cyclical Why am I doing this? I’m supposed to be doing this, to not have to do this Larry came to the realization that he has to start taking care of himself, his family; there’s more than just work, but work is his passion Larry is a firm believer in education, but one thing nobody ever taught him was you’ve got to have a personal vision; money can’t be a part of it Larry has always focused on business and has had a lot of acquaintances, but it’s hard for others to get him; allow yourself to be vulnerable and open up People will remember if you’re able to give them a little something that could change their life generationally Analogy of Business: When you first start, it’s a lot of work for you; get some staff to delegate some of the work; don’t be a bottleneck in your business Larry loves real estate because there’s so many ways to do it; there’s so many different types, models, and sources with real estate Take action; success doesn’t happen overnight, there’s short-term pain for long-term gain Priorities change and you want to level-up your game; find smart guys with money and find them some deals Be straightforward and honest with people; build rapport and get them to like, know, and trust you Links and Resources Mentioned: Larry Goins Larry Goins on Facebook (videos) Larry Goins’ HUD Homes Half Off book Brain Pick a Pro podcast Brag Radio Robert Allen Al Lowry Wade Cook The One Thing Shaun McCloskey Ron Phillips Corey Peterson on Facebook Nido Qubein Jay Conner Quotes: “The most important piece of real estate you will ever you will ever invest in is the six inches between your ears.” Larry Goins “(MLS book) That’s just like the dark days of real estate when it was the wild, wild west.” Corey Peterson “I have always had a really, really good work ethic. I get up early, I stay late, nobody has ever called me lazy. Even having employees at the office, I’ve always had the mentality of ‘you cannot outwork me’, right?” Larry Goins “Why am I doing this? I’m supposed to be doing this, to not have to do this anymore.” Larry Goins Don’t forget to download my Free Workshop Quickstart Video Series, and if you like what you have heard please leave a review on iTunes. Text the word MONEY to 408-500-1127 to get my free private money program and credibility kit for single family.

Today, my guest is my business partner, Cory Boatright. In 2005-2006, Cory became interested in short sales due to the economic crash. He knew that there was an opportunity because people couldn't afford their house, bought too much house, didn’t have enough money, and were going to lose their house. Cory figured out a way to capitalize on the short sale market and built software that, at the time, specialized in short sales. Then, thyroid cancer changed his perspective and life. Cory decided that he didn't want to do short sales anymore. He closed his loss mitigation company and sold the remaining portion of his software company. Cory started focusing on bigger things, such as life and what’s most important. He spent time with his mom and other people he cared about. Cory started looking at the low-hanging fruit in real estate - wholesaling. Topics on Today’s Episode: Tax Benefits: Ability to save, different strategies, self-directed IRA It's all based on numbers; reposition the property, make a profit Raising Other People’s Money (OPM) can be difficult; don’t lose faith Not as simple as asking your friends for money; they are in your circle and already doing big things, so they are clobbered with opportunities daily Don’t ask somebody for something, bring them something that they wouldn't have otherwise without your involvement; leverage relationships Rather than thinking about how to do it faster and better, put on your private money hat and have a conversation about something that helps someone People pull out of deals, don't take it personally; feed off energy of your next call When meeting someone in person, get centered to create some space between something that happened and whatever's getting ready to happen When raising private money, real estate people are the wrong avatar; they always want equity, a piece of the deal Best places to find money are with working professionals People cannot stomach the ups and downs of the stock market; go for a smoking deal that gives you a solid return Wholesaler’s challenge is their whole mentality is hot potato; get rid of the potato, slow down, and change your mindset Raising private money is about building a relationship with a solid foundation; the deal will stand on its own Newer investors often become your best advocates; no one ever tells you how much they have available and there's more money than you could imagine Apply your specialized knowledge; raise private money because people giving private money don't typically have that knowledge and don't want to have it Listen and people will tell you what they want Tell a story about why you think it's a good deal Objections for capital include not offering enough return Some things you do naturally, others are psychological things you need to be aware of; what goes on during a conversation is powerful, so protect the capital Only question at the forefront of people’s brain is, “Am I going to lose or what am I going to get out of it?" Believe in yourself and what you're capable of doing; overcome invisible beliefs to step into the realm of what's possible Money is a big reason for stress; if you don’t have to worry about money, then the stress is not there and you get to do what you want Multifamily provides freedom of time and freedom to build a life that you always wanted; paradise is possible As a wholesale, you are transactional, nut you also need to step out and start building relationships; they could be investors in your deals To raise private money, do not assume that you think the person you're talking to is only going to invest X dollars; talk to them as if they have $1 million to invest Links and Resources Mentioned: Coaching from Cory Boatright Real Estate Investing Profit Masters Corey Peterson on YouTube Kahuna Cashflow Calculator Kahuna Boardroom Collective Genius Mastermind How To Win Friends And Influence People Covert Persuasion Pitch Anything Quotes: “Wholesaling is the low hanging fruit in real estate.” Cory Boatright “I'm excited about this journey on apartments.” Cory Boatright “The reason that these people are in your circle is because they're already doing big things, they're already being clobbered with the opportunity daily.” Cory Boatright “It is slowing down, it is building the relationships that are driven around people that are interested in doing deals and private money, and building those relationships.” Cory Boatright Don’t forget to download my Free Workshop Quickstart Video Series, and if you like what you have heard please leave a review on iTunes. Text the word MONEY to 408-500-1127 to get my free private money program and credibility kit for single family.

Most people work their entire lives, except Bruce Wayne. He was in control, had nice cars, and a house on the beach. His phone was not ringing because he had his stuff together. I'm coming to you from Kauai, which is my favorite island. About 17 years ago, I came to the “Bruce Wayne” house that I’m sitting in right now. He's not Batman, but he was loaded and living what I consider the perfect life because he had time and money. He owned apartments, and that's how my story began. Bruce was not a great mentor, but he gave me the perfect vision - I am going to own this house some day. And I may need to work with a broker to get it! Topics on Today’s Episode: Have a vision, cultivate it, pursue it, and actively start living out the destiny Dealing with brokers: Their job is to get the seller a buyer; sometimes they come off as very pushy, aggressive, and intimidating Don’t let a broker steer you in their direction; have extreme confidence to start changing the dialogue and challenge the broker’s crazy statements Brokers often give you information that means nothing; you should just care about how a property underwrites and its potential Create a structured process for fact-finding missions/site visits Ask questions and interview those who understand a property - people running it Splinters happen; a side conversation that they weren’t telling you gets spilled Everybody's watching you and making their own judgments on can you buy or not, you have operational excellence, and do you know what you’re doing Don’t do most of the talking, ask the questions and then be quiet Unit Refresh Process: Always look at the worst units and floor plans; get a good sense of what the units look and feel like, and how much work is needed Know the cost on stuff and have an idea of what the market is already bringing Become friends with the brokers to build trust Negotiating is rough and feelings can get hurt, unless you are with professionals Throw in a low-ball offer; you still have to play the game Respect the brokers, but they should also respect you; demonstrate your ability to call things out and know your process Links and Resources Mentioned: Corey Peterson on YouTube Kahuna Cashflow Calculator Kahuna Boardroom   Quotes: “They have a job...get the seller a buyer, and sometimes they come off very pushy, sometimes they come off very aggressive, and they can be quite intimidating.” Corey Peterson “Brokers are really good at giving you a lot of information that means nothing.” Corey Peterson “The best people that truly understand this property are the ones that are running it.” Corey Peterson “They weren’t questions that we sit there to demonize anybody or to put in a bad light of anything, but we did need to know the information.” Corey Peterson   Don’t forget to download my Free Workshop Quickstart Video Series, and if you like what you have heard please leave a review on iTunes. Text the word MONEY to 408-500-1127 to get my free private money program and credibility kit for single family.