https://www.powerpodcasters.com/seo-domination-with-gmbgenius-and-john-currie-part-2/
SEO Domination With GMBGenius and John Currie – Part 2
John Currie returns to walk through how his software works to help you dominate your local markets!
Tuesday, June 30, 2020
SEO Domination With GMBGenius and John Currie - Part 2
https://www.powerpodcasters.com/seo-domination-with-gmbgenius-and-john-currie-part-2/
Monday, June 29, 2020
Do Family Trusts Work? #2
https://streetsmartinvestor.com/101-cashflow-accelerator/do-family-trusts-work-2/
Do Family Trusts Work?
The answer is, absolutely! It’s one of the best things you can do for yourself and your family. It’s an important step to take to protect the assets for generations to come.
I got a FREE book here that you can download to learn more about how to do this.
I hope to see you soon. Yeah, baby!
Hi! It’s Lou Brown. I’m asked, do family trusts work? And the answer is absolutely. It’s one of the best things you can do for yourself and your family. And it’s an important step to take to be able to protect the assets for the generations to come, but also to create an additional step and layer in your estate planning. Now, here’s what’s important to know. If the properties are not moved to trust prior to death, there’s a thing called probate, and that thing can be avoided. The expense. The confusion. The delay. That can all be avoided when families make the decision to go ahead and move their assets into trusts. So number one is creating the trust. Number two is moving the assets into trust. It certainly is a wonderful thing to do. I highly recommend it.
I’ve been doing trusts since 1984, and I love, love, love trusts. I’ve got licensees of my system in all 50 States who are using, because they’ve learned that it’s an important thing for a family. And to create those assets moving into trust. Now there’s a couple of things that I’ve got for you. I’ve got a book, a free download book that tells you more about trusts and it’s called MaximumAssetShield.com/book And that gives you some background and some details about the wonderful thing called the Land Trust that I love. And in fact, I’ve got a course on land trusts, where we actually take you through step by step on a home study, where all the forms and everything you need are present to be able to create your own set of trust documents that you can have reviewed by an attorney in your local market.
Another thing that we provide to use the forms on disk, so you can actually print out the forms, all done. There’s eight audio CDs to take you step by step through the process. And then I’ve got another friend, a companion called The Personal Property Trust. So Land Trust is for real estate and Personal Property Trust is for everything else in your life. Stocks, bonds, mutual funds, bank accounts, CDs, Cdos, mobile homes, motor homes, gun collections, coin collections. Everything in your life should be in Personal Property Trusts. And also to give you more information. We also have a live training that we do annually as well. So check us out MaximumAssetShield.com We’ve got all the information there. And also download your free books so that you can learn more about what to do and how to do it for your family and your family trust.
Good meeting you. Yeah, baby! See you soon.
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Friday, June 26, 2020
Tim Knox, Revolved Realty and Video Marketing
https://www.powerpodcasters.com/tim-knox-revolved-realty-and-video-marketing/
Using video and podcasting as a marketing tool for Real Estate and other industries.
Tim Knox is a Real Estate Entrepreneur whose background includes over 30 years of experience as a Serial Entrepreneur and Marketing Expert. He has consulted with companies like AOL, Boeing Aerospace, Teledyne Technologies, Time-Warner, Newhouse Publications, Mercedes-Benz, UAH, UAB, NASA, US Army, and dozens more!
As a teacher, Tim is a certified FastTrac® instructor who has led numerous seminars and has lectured extensively on the subjects of Entrepreneurship, small business, technology and e-business.
John Currie and How to Dominate With GMB's
https://www.powerpodcasters.com/john-currie-and-how-to-dominate-with-gmbs/
John Currie in South Africa joins Scott Paton to share his knowledge on GMB – Google My Business, Google Maps and more as Google Properties gives you an unfair advantage if you know how to leverage them.
You may visit https://gmbgenius.com/
If you are a small business, Entrepreneur or local marketer who wants to dominate your competition, you are in the right place!
Automatically Create Google Sites
Build Unlimited Cloud Pages & BackLinks
Dominate Local Searches & Niches
Create & Stack Authority from Google
Rank Multiple Keywords In The Map Pack
Funnel Targeted Search Engine Traffic
Dan Morris - How to Grow Your Book Audience!
https://www.powerpodcasters.com/dan-morris-how-to-grow-your-book-audience/
Three Question:
1. What’s the difference between self-publishing and traditional publishing?
2. What’s your favorite method to growing an audience for the book?
3. How do you create a situation where people share the book?
Bio:
Dan R Morris is the marketing guy behind BC Stack, Blogging Concentrated, and FindingJoy.net.
He helps people launch and market their books, get publishing deals and grow their audience.
He’s gotten clients on the Today Show, on the cover of magazines and on hundreds of podcasts.
Thursday, June 25, 2020
Bryce Vance on Lead Generation
https://www.powerpodcasters.com/bryce-vance-on-lead-generation/
Bryce Vance is the CEO/Founder of Funnel Driven. As a lead strategist, web & app development strategist, and an expert on data driven behavior, he helps small business owners generate & covert leads as well as develop systems, programs, and tools to level up their business.
Bryce would love the opportunity to be an entertaining and informative guest while providing valuable tips, tricks, strategies, and resources that your audience can utilize immediately; giving them an edge in this rapidly increasing online market.
Bryce’s most popular topics are:
Why communication is key.
How content is evolving.
The new way to capture attention.
Avoiding “Shiny Object” Syndrome.
You can learn more about Bryce here: https://results.closemorebiz.com/
Wednesday, June 24, 2020
405 Is Velocity Banking A Good Strategy to Use
http://moneyripples.com/2020/06/24/405-is-velocity-banking-a-good-strategy-to-use/
Chris Miles, the "Cash Flow Expert and Anti-Financial Advisor," is a leading authority on how to quickly free up and create cash flow for thousands of his clients, entrepreneurs, and others internationally! He’s an author, speaker, and radio host that has been featured in US News, CNN Money, Bankrate, Entrepreneur on Fire, and spoken to thousands getting them fast financial results.
Listen to our Podcast here:
https://www.blogtalkradio.com/moneyripples/2020/06/03/405--is-velocity-banking-a-good-strategy-to-use
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Hello, my fellow Ripplers! This is Chris Miles. Your Cash Flow Expert and Anti-Financial Advisor. Welcome you out for a wonderful show. Show that's for you and about you. Those of you that work so sticky hard for your money and you're ready for your money to start work harder for you. Now! You want that freedom. That cash flow. That prosperity. Today! Not 30 or 40 years from now, not some day in retirement, if the market smiles on you just the right way, but today. So you can have that life that you love. Doing what you love. With those that you love. But guys this is so much more, so much more than your own prosperity and not your own passive income and cash flow to be able to have that freedom to work because you want to not because you have to, right? It's so much more than that because as you become financially free, you can create a ripple effect in the lives of others too.
And that's what makes you a Rippler. That's what makes you so special. And I'm so proud to be one of you today because man, through you, I can create a ripple effect as well. And I've been so appreciative of you that have been joining in. You've been binging and sharing with other people and creating conversations that are different. That are out there today. Things that are actually above and beyond the status quo. Something that actually is real and works. And guys, I'm so proud of that. Thank you so much for tuning in and being a part of this movement.
As a reminder, check out our website, MoneyRipples dot com. There's actually new blogs on there. Even video blogs, you know, you can check out our YouTube channel as well. It's like Chris Miles, Money Ripples channel there's things on there as well. Or Chris Miles with Money Ripples. You can check out our YouTube channel and even see some of these very episodes on there now. So check that out!
So today I want to talk about a strategy that I get asked about all the time and there's been different episodes. I've brought it up occasionally, but I want to put a focus towards this particular topic specifically with Velocity Banking, because people will say, Chris, have you heard of Velocity Banking? It sounds so awesome! Isn't it? Like, is that what you tell people to do to? Or what is it that you recommend with that? And well, what do you think about it, Chris? Like what do you think about the strategy? And so I want to dive into that because there's some things I like, and there's a lot of things I don't like with that strategy. And so I really want to get into that because if you're not careful, this could be the strategy that does you end. This could be the strategy that actually puts you in a worse position than you were previously. So I want to address that right now.
So anyways, so let's talk about the strategy. Those you've never heard of Velocity Banking. This is not infinite banking, right? There's a lot of banking concepts out there. This is not infinite banking. We're using your life insurance. It's not that strategy at all. It's not even talking about taking that money and paying off your house. No, we're not talking about that. Velocity Banking is simply this. You set up your mortgage to be a home equity line of credit, right? So you basically create a credit line as a home equity line of credit. That's your whole mortgage. It's not a second mortgage. Your entire mortgage. The first mortgage is that home equity line of credit. Now you have your paychecks automatically deposited into this home equity line of credit. Now, what it does is it pays down the balance of your mortgage.
So say for example, that your mortgage is $300,000. Your check comes in for $8,000. You know, now that balance pays down to 292,000, right? Which means your average daily interest being charged is a little bit less. And you start to pay your bills and everything else charging up from the home equity line of credit. And so what happens that, you know, at least if you're positive cash flow, right? If you're actually positive cash flow, this strategy pays down your house faster. And this is a big opportunity for people. And some people will even look at it from an investment standpoint. They'll say, Hey, I can use this to go and invest in real estate. Not necessarily pay down my house, but I could. By using that real estate to pay off my house and then charge it back up to buy more real estate and then use that cash flow to pay off my house, charge it up.
And between the cash flow, the real estate and my paychecks pay off my house faster and just keep doing it over and over. Now, when you run the numbers, they look kind of cool, right? Because you can't pay off your mortgage in 7 to 10 years, depending on your situation. Now here's the problem I have with it, right? Because if you go based on the calculations, if life is perfect, life is grand. Nothing ever happens. No hiccups, basically life doesn't happen. This is great, right? But there are some limitations here. First and foremost. Number one, why would I want to pay on something that gives me a 0% rate of return. Now you might say Chris, well, I save on the interest of the mortgage. That's true, but equity earns nothing in the house. Wether you have a mortgage or not. Your house will appreciate, or even depreciate in some instances whether you like it or not, right, by the way, if the market does depreciate, you're in a whole heck of a lot of trouble, because now you just pay down a mortgage that isn't worth something.
I'll tell you from the last recession. That was a big lesson I learned because I started applying extra money towards paying down my house, a bigger down payments, paying more towards principle, believing just like with the Heloc strategy, I can pull that money back out. Well, that's not always the case. So anyways, that's the first thing. It's first and foremost, do we really want to pay off our mortgage? Or could that be the very thing that costs us our freedom? Now and in the future.
Secondly, and this is kind of going on with what I just said, what I dealt with in the last recession, right? This is the biggest problem. And I've been saying this for a few years. When people keep bringing this up, I keep saying, Hey, the strategy sounds great, but I have seen this strategy blow up in people's faces by the way, this is not a new strategy. Just so you know, like the, I remember even the last recession people were saying, Hey, have you heard of this whole Australian line of credit thing? Right? It was like the whole Australian way of paying off your mortgage faster. And there's a lot of companies promoting that at that time. But again, I saw it fall short. There's a few problems with it. One first and foremost, these numbers only work. If you have positive cash flow. If you can not make your ends meet each and every month, your balance will actually run up and eventually you'll run out of money anyways. So first and foremost, if you're a spender, this could be a very bad idea. The ironic thing is secondly, if you're a spender, this could be a great idea. But if you're a spender, you probably would need to have forced payments towards your mortgage.
Not something that gives you choice, right? So if you're an uncontrollable spender, I still wouldn't recommend a strategy. I would say, go, just know, get a mortgage. That's still within the comfort level, but forces you to pay principal. Right? But when it comes to this strategy, though, if you're a spender, it doesn't ever, ever the balance doesn't actually go down. You kind of make this not worthless. Right? But it really does depend on you having extra cash flow. Because what they're saying is this, say that same example, $8,000, right? Pays down on your mortgage. It's from that 300,000, you were at tutor 92,000, right now, what if you only paid 6,000 a month in expenses? Well, now it runs the balance back up to 298,000. So now the balance is $2,000 less than before. You know, what else, what other strategy actually does the same thing? Just paying an extra principal on your mortgage.
It's exactly the same thing. It's just saying, Hey, all the leftover cash I've leftover every month, throw it onto my mortgage. Right? Throw on my mortgage. Here's a thing. If you actually have a 30 year fixed mortgage, which had, would have decently low payment, right? But the mortgage interest is much, much lower than if you got one of these Helocs. Cause if you get one of these Helocs, because it is higher risk and they know this, they charge you more interest. Now the interest has come down a little bit, but I'm seeing these interests just within the last year have been around 6% or 7%. And now it's either maybe around the fives, right? But still 6% or 7% when you could be getting three point something, nothing per cent, you know, like three point something on a 30 year mortgage right now, fixed, not a variable rate, but a fixed rate.
And if they do fix the rate, the problem is they're gonna fix it at a much higher rate than the going rate right now, too. And so there's a lot of issues there where you're actually paying more interest anyways. So if your goal was to pay out for mortgage, which again, many, many cases I don't agree with, right? It is a strategy, not a principle, but it's one strategy that could be effective. That is your goal to pay off your mortgage. I would rather go for that 30 year mortgage and just take my extra paycheck. Assuming I have good cash reserves for emergencies already in place. That's a big if then yeah, you could throw your whole paycheck towards him. Words paid off faster. And guess what? You will do it faster than using your home equity line of credit. Than doing this Velocity Banking strategy.
So that's a big point number one. Big point number two is again what happened the last recession, they cut back lines of credit. See, I thought I could just go to the bank and get money whenever I needed it. That's why I pay down my mortgage. But when they told me, they said, sorry, Chris, not doing cash out refinance anymore, sorry. We're not letting people get access to equity. I was trapped now, by the way, this was not 2008, 2009. This was starting in July of 2007. I remember I asked them, they said, Ooh, we may have requirements a little bit more strict. Come back in August. I came back in August, met all the criteria, but they said, Oh, do these other few things, these other hoops jump through, then we'll do it. Then September '07 came around. I said, okay, I did all your hoops.
My credit score is even higher than it was a couple months ago. Let's do this. Let's do this cash out refinance. Now what did I want the refinance? Because I can see the writing on the wall. I was negative cash flow. I needed to get that money out to be able to reposition things and get myself in a better place. Well guess what? September '07. They said, sorry, we don't do those anymore. And there was, all that equity I'd throw on my home thinking I could get it back out, was trapped. Then the double whammy was of course, because it was tracking because money was restricted from the banks. What happened then? All of a sudden, bam, the house prices came down. Now, any equity I did have, even if it was trapped in the house now is disappearing.
Understand that that's not a good thing to have happened to you. Right? So put money into a house to only watch it disappear with depreciation. It's just as bad as watching your stock market go down, right? This is where there's a big issue. And so now I'm not saying this is going to happen again. At least with the depreciating home prices, I'm sure it could happen in certain areas at some point during this recession, but I can definitely guarantee you because the banks have already started doing it. That they're cutting back on those lines of credit. Do you realize right now trying to find a line of credit. Home economic credit going above 80% is pretty much nonexistent now. That just happened in the last month. That just happened the last month. Guys, just barely. That's the thing. Banks are calling the shots here. The best thing you could possibly do.
If you're gonna use a Heloc strategy like this, right? And I said, this months ago. The best thing you can do is pull all that cash out and hold that cash. Hold the equity in your own pocket. Not in theirs because when it's in their control, you can't get access to it. Someone will say, yeah, but Chris I'm paying for that. Hey Chris, I got a hundred thousand dollars out on that Heloc and I'm paying 400 bucks a month. Good. How long could that $400 a month last? Forever? Yes, exactly. You know, you can keep paying that for 20 years, you know, but I'm not saying that's the strategy you use. I'm just saying, you know, when you look at worst case scenarios, there's a lot worst case scenarios that can happen. Now. Yes. The money still has to be paid back at some point. Somebody asked me the other day, they said, Chris, well, what do we do with this Heloc that we have?
I mean, do we, you know, and their's got the normal Heloc. Not this Velocity Banking Heloc. They like to wait, pay it back. After 10 years or 15 years, we're going to start paying this back. You know, more aggressively. They have a balloon payment that comes up at year, whatever. Right? And I said, well, here's the thing. First, are you going to be in this house this long? He said, well, I don't know if we'll be in this house that long. Well, once you sell your house, you pay off the loan. Anyways, as long as there's equity, which obviously is, cause they won't let you get out all of your equity. Great. You're fine. Not a big deal. Plus you're paying down on your, in their case. They're paying in the first mortgage anyways, because they're paying on that, that principal, Hey, your balance is going to be less anyways. So that's not a big risk.
Secondly, even if you do stay there that long, we refinance. We'll probably refinance it into a first mortgage or something like that. And fix the rate. We might do it sooner, either way. It's not a bad thing, you know? So I'm not opposed to the home equity lines of credit. Don't get me wrong. I actually think they could be great if you can get access to them. And that, that time frame, that deadline is quickly shortening. I'm just telling you that because the Helocs right now, the money you're able to get at home, they're restricting it. And there will be a point where they'll say, sorry, no more. No. We cannot let people keep cashing money out of their house. We've got to stop this or put a limit to it, right? So again, you know, imagine this habit, if you had this Velocity Banking, home equity line of credit, right? This Heloc.
If you had this Heloc in place that the Velocity Banking does where it's a whole mortgage, first mortgage, you pay it down. Maybe you pay down a hundred thousand dollars aggressively. And then also when they do, they cut back your line of credit to the balance. So say it was 300,000 before you paid a 200,000 and you think, man, if I keep going, I'm going to be good. In fact, I'm going to pay down a little bit more and then charge it up to buy some properties or do some things to get passive income. You pay down 200,000 bucks and they say, Oh, we just notified you by letter, but we already did it because it's effective. Last week, we actually cut your limit down to 200,000. So now you were maxed out, you can't get that a hundred thousand back that you paid off.
All that extra cash you could have in your control is gone. Kaput! It's out of here, right? That will happen. I guarantee it. And so I know those groups that are out there promote this. Like this is the strategy, but you have to understand. Principles first. Strategy second. The principle is not bad, but the strategy is flawed. Especially when you run into a recession. When we're not in a recession, this tends not to be an issue. Well, when we're in a recession, this is when you, you should not be paying off your home equity line of credit. If anything, you might be charging it up and try to keep it at the max. Because if you at least get it to the max or somewhere near there, right? Whatever you charge it up to, right? If you pull money out to invest it, right?
Here's the thing is that they're not going to cut the limit below the balance. They can't because that would make you upside down. That wouldn't work. So who are they going to cut back? The people have paid off or pay down their lines of credit. By the way, if you've have a payoff, home equity line of credit with no balance on it. It's very possible. They only cut the limit down or even cancel that home equity line of credit off your credit. Which by the way, does hurt your credit score. If that's now off your credit. So right now the strategy I would not use to pay off your house aggressively. I don't think this is the time to do that. Again. Individual circumstances can vary. This is not giving you blanket advice because there are some circumstances I might agree. Say, you know what?
Paying off your house would be the best opportunity for you with given your present condition. But for many, many people, those especially in the Velocity Banking strategy, I'm not a big fan. Again. I think I could get a fixed mortgage, put money towards that. Just get a low, low rate, much lower interest than you would pay on that Heloc anyways. You can pay off your house as aggressively as you want, but you don't have to. Right. That I think is a much safer strategy to go. Helocs. I love them if you're going to use them, Okay, I'd much rather. And I know I've done this in my own case. I ran up that home equity line of credit up to the max. I cash it out and I bought properties with it. That's what I did personally. That's not what you should do. That's not advice of course, but that's what I did to go and create cash flow now.
And that cash flow will exceed the monthly payment increase on that equity line of credit that I had way exceeded. So, it was, for me, it was a no brainer. For you, if you don't have the right connections, the right knowledge and things like that, it could be the worst thing you do. So again, it's not about what you do with the money per se, but it's about who you are as an investor and what connections and what things you understand and what you know and what you can do with it. That is the key. And I'm telling you, your house could be the key to your freedom. It may not be the way that they teach with Velocity Banking. That may not be the key, but there are other ways you can use your house very effectively and safely in a way that allows you to have cashflow and essentially have your cake and eat it too.
Right? You can have assets and cash flow too. So now your house has actually been paying you something versus just being an expense. And that's why people want to pay it off. Not because there's a balance. People don't care about the mortgage balance. They don't care about what they owe. They care what the fact that they have to keep making that of payment every single month. Well, what if you could use that equity to make money for you, that it made your mortgage payment for you? That would be pretty cool. Wouldn't it? That is the goal. That to me is a safer way to go than just trying to pay it off and I'll have, have the money. You know, mainly there. I granted, if you have a paid off house, great, the problem is in the interim. When you don't have a paid off house, you keep aggressively paying it down.
There is risk there because if you need money, you need cash. You cannot always pull out of a home. You cannot count on that. So either you're safe as bad as the other one property house a hundred percent or two use the equity from your home to create enough passive income to pay your mortgage payment or better yet pay even more than your mortgage payment. So those are the kinds of things. I would say that for you to consider before you look into velocity banking, really heavily considered that this may not be the time or the right strategy for you right now, or for many people right now. It could be one of the riskiest things you do. Beware of that strategy. Everybody hope you take it to heart. If you have questions, shoot me an email, Chris@MoneyRipples.com and we'll see what we can do to help you out there. Anyways, guys make a wonderful and prosperous week. We'll see you later.
Chris Miles, the "Cash Flow Expert and Anti-Financial Advisor," is a leading authority on how to quickly free up and create cash flow for thousands of his clients, entrepreneurs, and others internationally! He’s an author, speaker, and radio host that has been featured in US News, CNN Money, Bankrate, Entrepreneur on Fire, and spoken to thousands getting them fast financial results.
Listen to our Podcast here:
https://www.blogtalkradio.com/moneyripples/2020/06/03/405--is-velocity-banking-a-good-strategy-to-use
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Hello, my fellow Ripplers! This is Chris Miles. Your Cash Flow Expert and Anti-Financial Advisor. Welcome you out for a wonderful show. Show that's for you and about you. Those of you that work so sticky hard for your money and you're ready for your money to start work harder for you. Now! You want that freedom. That cash flow. That prosperity. Today! Not 30 or 40 years from now, not some day in retirement, if the market smiles on you just the right way, but today. So you can have that life that you love. Doing what you love. With those that you love. But guys this is so much more, so much more than your own prosperity and not your own passive income and cash flow to be able to have that freedom to work because you want to not because you have to, right? It's so much more than that because as you become financially free, you can create a ripple effect in the lives of others too.
And that's what makes you a Rippler. That's what makes you so special. And I'm so proud to be one of you today because man, through you, I can create a ripple effect as well. And I've been so appreciative of you that have been joining in. You've been binging and sharing with other people and creating conversations that are different. That are out there today. Things that are actually above and beyond the status quo. Something that actually is real and works. And guys, I'm so proud of that. Thank you so much for tuning in and being a part of this movement.
As a reminder, check out our website, MoneyRipples dot com. There's actually new blogs on there. Even video blogs, you know, you can check out our YouTube channel as well. It's like Chris Miles, Money Ripples channel there's things on there as well. Or Chris Miles with Money Ripples. You can check out our YouTube channel and even see some of these very episodes on there now. So check that out!
So today I want to talk about a strategy that I get asked about all the time and there's been different episodes. I've brought it up occasionally, but I want to put a focus towards this particular topic specifically with Velocity Banking, because people will say, Chris, have you heard of Velocity Banking? It sounds so awesome! Isn't it? Like, is that what you tell people to do to? Or what is it that you recommend with that? And well, what do you think about it, Chris? Like what do you think about the strategy? And so I want to dive into that because there's some things I like, and there's a lot of things I don't like with that strategy. And so I really want to get into that because if you're not careful, this could be the strategy that does you end. This could be the strategy that actually puts you in a worse position than you were previously. So I want to address that right now.
So anyways, so let's talk about the strategy. Those you've never heard of Velocity Banking. This is not infinite banking, right? There's a lot of banking concepts out there. This is not infinite banking. We're using your life insurance. It's not that strategy at all. It's not even talking about taking that money and paying off your house. No, we're not talking about that. Velocity Banking is simply this. You set up your mortgage to be a home equity line of credit, right? So you basically create a credit line as a home equity line of credit. That's your whole mortgage. It's not a second mortgage. Your entire mortgage. The first mortgage is that home equity line of credit. Now you have your paychecks automatically deposited into this home equity line of credit. Now, what it does is it pays down the balance of your mortgage.
So say for example, that your mortgage is $300,000. Your check comes in for $8,000. You know, now that balance pays down to 292,000, right? Which means your average daily interest being charged is a little bit less. And you start to pay your bills and everything else charging up from the home equity line of credit. And so what happens that, you know, at least if you're positive cash flow, right? If you're actually positive cash flow, this strategy pays down your house faster. And this is a big opportunity for people. And some people will even look at it from an investment standpoint. They'll say, Hey, I can use this to go and invest in real estate. Not necessarily pay down my house, but I could. By using that real estate to pay off my house and then charge it back up to buy more real estate and then use that cash flow to pay off my house, charge it up.
And between the cash flow, the real estate and my paychecks pay off my house faster and just keep doing it over and over. Now, when you run the numbers, they look kind of cool, right? Because you can't pay off your mortgage in 7 to 10 years, depending on your situation. Now here's the problem I have with it, right? Because if you go based on the calculations, if life is perfect, life is grand. Nothing ever happens. No hiccups, basically life doesn't happen. This is great, right? But there are some limitations here. First and foremost. Number one, why would I want to pay on something that gives me a 0% rate of return. Now you might say Chris, well, I save on the interest of the mortgage. That's true, but equity earns nothing in the house. Wether you have a mortgage or not. Your house will appreciate, or even depreciate in some instances whether you like it or not, right, by the way, if the market does depreciate, you're in a whole heck of a lot of trouble, because now you just pay down a mortgage that isn't worth something.
I'll tell you from the last recession. That was a big lesson I learned because I started applying extra money towards paying down my house, a bigger down payments, paying more towards principle, believing just like with the Heloc strategy, I can pull that money back out. Well, that's not always the case. So anyways, that's the first thing. It's first and foremost, do we really want to pay off our mortgage? Or could that be the very thing that costs us our freedom? Now and in the future.
Secondly, and this is kind of going on with what I just said, what I dealt with in the last recession, right? This is the biggest problem. And I've been saying this for a few years. When people keep bringing this up, I keep saying, Hey, the strategy sounds great, but I have seen this strategy blow up in people's faces by the way, this is not a new strategy. Just so you know, like the, I remember even the last recession people were saying, Hey, have you heard of this whole Australian line of credit thing? Right? It was like the whole Australian way of paying off your mortgage faster. And there's a lot of companies promoting that at that time. But again, I saw it fall short. There's a few problems with it. One first and foremost, these numbers only work. If you have positive cash flow. If you can not make your ends meet each and every month, your balance will actually run up and eventually you'll run out of money anyways. So first and foremost, if you're a spender, this could be a very bad idea. The ironic thing is secondly, if you're a spender, this could be a great idea. But if you're a spender, you probably would need to have forced payments towards your mortgage.
Not something that gives you choice, right? So if you're an uncontrollable spender, I still wouldn't recommend a strategy. I would say, go, just know, get a mortgage. That's still within the comfort level, but forces you to pay principal. Right? But when it comes to this strategy, though, if you're a spender, it doesn't ever, ever the balance doesn't actually go down. You kind of make this not worthless. Right? But it really does depend on you having extra cash flow. Because what they're saying is this, say that same example, $8,000, right? Pays down on your mortgage. It's from that 300,000, you were at tutor 92,000, right now, what if you only paid 6,000 a month in expenses? Well, now it runs the balance back up to 298,000. So now the balance is $2,000 less than before. You know, what else, what other strategy actually does the same thing? Just paying an extra principal on your mortgage.
It's exactly the same thing. It's just saying, Hey, all the leftover cash I've leftover every month, throw it onto my mortgage. Right? Throw on my mortgage. Here's a thing. If you actually have a 30 year fixed mortgage, which had, would have decently low payment, right? But the mortgage interest is much, much lower than if you got one of these Helocs. Cause if you get one of these Helocs, because it is higher risk and they know this, they charge you more interest. Now the interest has come down a little bit, but I'm seeing these interests just within the last year have been around 6% or 7%. And now it's either maybe around the fives, right? But still 6% or 7% when you could be getting three point something, nothing per cent, you know, like three point something on a 30 year mortgage right now, fixed, not a variable rate, but a fixed rate.
And if they do fix the rate, the problem is they're gonna fix it at a much higher rate than the going rate right now, too. And so there's a lot of issues there where you're actually paying more interest anyways. So if your goal was to pay out for mortgage, which again, many, many cases I don't agree with, right? It is a strategy, not a principle, but it's one strategy that could be effective. That is your goal to pay off your mortgage. I would rather go for that 30 year mortgage and just take my extra paycheck. Assuming I have good cash reserves for emergencies already in place. That's a big if then yeah, you could throw your whole paycheck towards him. Words paid off faster. And guess what? You will do it faster than using your home equity line of credit. Than doing this Velocity Banking strategy.
So that's a big point number one. Big point number two is again what happened the last recession, they cut back lines of credit. See, I thought I could just go to the bank and get money whenever I needed it. That's why I pay down my mortgage. But when they told me, they said, sorry, Chris, not doing cash out refinance anymore, sorry. We're not letting people get access to equity. I was trapped now, by the way, this was not 2008, 2009. This was starting in July of 2007. I remember I asked them, they said, Ooh, we may have requirements a little bit more strict. Come back in August. I came back in August, met all the criteria, but they said, Oh, do these other few things, these other hoops jump through, then we'll do it. Then September '07 came around. I said, okay, I did all your hoops.
My credit score is even higher than it was a couple months ago. Let's do this. Let's do this cash out refinance. Now what did I want the refinance? Because I can see the writing on the wall. I was negative cash flow. I needed to get that money out to be able to reposition things and get myself in a better place. Well guess what? September '07. They said, sorry, we don't do those anymore. And there was, all that equity I'd throw on my home thinking I could get it back out, was trapped. Then the double whammy was of course, because it was tracking because money was restricted from the banks. What happened then? All of a sudden, bam, the house prices came down. Now, any equity I did have, even if it was trapped in the house now is disappearing.
Understand that that's not a good thing to have happened to you. Right? So put money into a house to only watch it disappear with depreciation. It's just as bad as watching your stock market go down, right? This is where there's a big issue. And so now I'm not saying this is going to happen again. At least with the depreciating home prices, I'm sure it could happen in certain areas at some point during this recession, but I can definitely guarantee you because the banks have already started doing it. That they're cutting back on those lines of credit. Do you realize right now trying to find a line of credit. Home economic credit going above 80% is pretty much nonexistent now. That just happened in the last month. That just happened the last month. Guys, just barely. That's the thing. Banks are calling the shots here. The best thing you could possibly do.
If you're gonna use a Heloc strategy like this, right? And I said, this months ago. The best thing you can do is pull all that cash out and hold that cash. Hold the equity in your own pocket. Not in theirs because when it's in their control, you can't get access to it. Someone will say, yeah, but Chris I'm paying for that. Hey Chris, I got a hundred thousand dollars out on that Heloc and I'm paying 400 bucks a month. Good. How long could that $400 a month last? Forever? Yes, exactly. You know, you can keep paying that for 20 years, you know, but I'm not saying that's the strategy you use. I'm just saying, you know, when you look at worst case scenarios, there's a lot worst case scenarios that can happen. Now. Yes. The money still has to be paid back at some point. Somebody asked me the other day, they said, Chris, well, what do we do with this Heloc that we have?
I mean, do we, you know, and their's got the normal Heloc. Not this Velocity Banking Heloc. They like to wait, pay it back. After 10 years or 15 years, we're going to start paying this back. You know, more aggressively. They have a balloon payment that comes up at year, whatever. Right? And I said, well, here's the thing. First, are you going to be in this house this long? He said, well, I don't know if we'll be in this house that long. Well, once you sell your house, you pay off the loan. Anyways, as long as there's equity, which obviously is, cause they won't let you get out all of your equity. Great. You're fine. Not a big deal. Plus you're paying down on your, in their case. They're paying in the first mortgage anyways, because they're paying on that, that principal, Hey, your balance is going to be less anyways. So that's not a big risk.
Secondly, even if you do stay there that long, we refinance. We'll probably refinance it into a first mortgage or something like that. And fix the rate. We might do it sooner, either way. It's not a bad thing, you know? So I'm not opposed to the home equity lines of credit. Don't get me wrong. I actually think they could be great if you can get access to them. And that, that time frame, that deadline is quickly shortening. I'm just telling you that because the Helocs right now, the money you're able to get at home, they're restricting it. And there will be a point where they'll say, sorry, no more. No. We cannot let people keep cashing money out of their house. We've got to stop this or put a limit to it, right? So again, you know, imagine this habit, if you had this Velocity Banking, home equity line of credit, right? This Heloc.
If you had this Heloc in place that the Velocity Banking does where it's a whole mortgage, first mortgage, you pay it down. Maybe you pay down a hundred thousand dollars aggressively. And then also when they do, they cut back your line of credit to the balance. So say it was 300,000 before you paid a 200,000 and you think, man, if I keep going, I'm going to be good. In fact, I'm going to pay down a little bit more and then charge it up to buy some properties or do some things to get passive income. You pay down 200,000 bucks and they say, Oh, we just notified you by letter, but we already did it because it's effective. Last week, we actually cut your limit down to 200,000. So now you were maxed out, you can't get that a hundred thousand back that you paid off.
All that extra cash you could have in your control is gone. Kaput! It's out of here, right? That will happen. I guarantee it. And so I know those groups that are out there promote this. Like this is the strategy, but you have to understand. Principles first. Strategy second. The principle is not bad, but the strategy is flawed. Especially when you run into a recession. When we're not in a recession, this tends not to be an issue. Well, when we're in a recession, this is when you, you should not be paying off your home equity line of credit. If anything, you might be charging it up and try to keep it at the max. Because if you at least get it to the max or somewhere near there, right? Whatever you charge it up to, right? If you pull money out to invest it, right?
Here's the thing is that they're not going to cut the limit below the balance. They can't because that would make you upside down. That wouldn't work. So who are they going to cut back? The people have paid off or pay down their lines of credit. By the way, if you've have a payoff, home equity line of credit with no balance on it. It's very possible. They only cut the limit down or even cancel that home equity line of credit off your credit. Which by the way, does hurt your credit score. If that's now off your credit. So right now the strategy I would not use to pay off your house aggressively. I don't think this is the time to do that. Again. Individual circumstances can vary. This is not giving you blanket advice because there are some circumstances I might agree. Say, you know what?
Paying off your house would be the best opportunity for you with given your present condition. But for many, many people, those especially in the Velocity Banking strategy, I'm not a big fan. Again. I think I could get a fixed mortgage, put money towards that. Just get a low, low rate, much lower interest than you would pay on that Heloc anyways. You can pay off your house as aggressively as you want, but you don't have to. Right. That I think is a much safer strategy to go. Helocs. I love them if you're going to use them, Okay, I'd much rather. And I know I've done this in my own case. I ran up that home equity line of credit up to the max. I cash it out and I bought properties with it. That's what I did personally. That's not what you should do. That's not advice of course, but that's what I did to go and create cash flow now.
And that cash flow will exceed the monthly payment increase on that equity line of credit that I had way exceeded. So, it was, for me, it was a no brainer. For you, if you don't have the right connections, the right knowledge and things like that, it could be the worst thing you do. So again, it's not about what you do with the money per se, but it's about who you are as an investor and what connections and what things you understand and what you know and what you can do with it. That is the key. And I'm telling you, your house could be the key to your freedom. It may not be the way that they teach with Velocity Banking. That may not be the key, but there are other ways you can use your house very effectively and safely in a way that allows you to have cashflow and essentially have your cake and eat it too.
Right? You can have assets and cash flow too. So now your house has actually been paying you something versus just being an expense. And that's why people want to pay it off. Not because there's a balance. People don't care about the mortgage balance. They don't care about what they owe. They care what the fact that they have to keep making that of payment every single month. Well, what if you could use that equity to make money for you, that it made your mortgage payment for you? That would be pretty cool. Wouldn't it? That is the goal. That to me is a safer way to go than just trying to pay it off and I'll have, have the money. You know, mainly there. I granted, if you have a paid off house, great, the problem is in the interim. When you don't have a paid off house, you keep aggressively paying it down.
There is risk there because if you need money, you need cash. You cannot always pull out of a home. You cannot count on that. So either you're safe as bad as the other one property house a hundred percent or two use the equity from your home to create enough passive income to pay your mortgage payment or better yet pay even more than your mortgage payment. So those are the kinds of things. I would say that for you to consider before you look into velocity banking, really heavily considered that this may not be the time or the right strategy for you right now, or for many people right now. It could be one of the riskiest things you do. Beware of that strategy. Everybody hope you take it to heart. If you have questions, shoot me an email, Chris@MoneyRipples.com and we'll see what we can do to help you out there. Anyways, guys make a wonderful and prosperous week. We'll see you later.
Monday, June 22, 2020
404 From Teacher to Investor - Interview with Todd Dexheimer
http://moneyripples.com/2020/06/22/404-from-teacher-to-investor-interview-with-todd-dexheimer/
Chris Miles, the "Cash Flow Expert and Anti-Financial Advisor," is a leading authority on how to quickly free up and create cash flow for thousands of his clients, entrepreneurs, and others internationally! He’s an author, speaker, and radio host that has been featured in US News, CNN Money, Bankrate, Entrepreneur on Fire, and spoken to thousands getting them fast financial results.
Listen to our Podcast here:
https://www.blogtalkradio.com/moneyripples/2020/05/31/404--going-from-teacher-to-investor-with-todd-dexheimer
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Chris Miles (00:00):
Hello, my fellow Ripplers. This is Chris Miles. Your Cash Flow Expert and Anti-Financial Advisor. Welcome you out for a wonderful show. Show that's for you and about you. Those of you work so hard for money and you're ready for your money. Start working harder for you. Now! You want that freedom. That cash flow. That prosperity. Today! Not 30, 40 bazillion years from now, but right now, so you can live that life that you love doing what you love being with those that you love, but it's so much more than you guys. Than just having a lot of money and being comfortable and, you know, driving flashy cars and that kind of thing. Because if you're following us, we're not those kind of people. We're real people. We're sincere. We're authentic. And the truth is that you're a Rippler. That you, yes, you can create lots and lots of money create the life of your dreams, but your life is much more than that. You want to create a ripple effect through the lives of those, around you, whether it be your family, whether it be your community, the country, or across the world. And that's ultimately what this ripple effect's about. And I appreciate you guys allowing me to create a ripple effect through you because without that, we couldn't do it. And you guys have been bingeing on these shows. You've been spreading the word you've been sharing it. And I love seeing these numbers grow every single day. So thank you for being a part of this.
Chris Miles (01:20):
Hey, as a quick reminder, check out our website MoneyRipples.com. You've got the great ebook on there called Beyond Rice & Beans. Seven Secrets. Free up cash today, and you can check out other information on there as well. So check it out.
Chris Miles (01:29):
Alright! Today, guys, I'm bringing on another great, great investor on our show here. This is actually a guy by the name of Todd Dexheimer here. Now, Todd, like Todd's been doing real estate. He got in right during the last recession. Like he was born out of the fire, right? He was born out of those flames when everybody says real estate stinks. And that's exactly when Todd said, alright, let's do this. He actually started as a high school industrial tech teacher. Then went to real estate in 2008. Now, interesting thing about him is that he's the CEO of venture properties, LLC. Yeah. He's also been, has purchased and renovated over 800 units guys. Has focuses on syndicating value, add multifamily and emerging markets, as well as coaching other inspiring investors. He's the host of the Pillar of Wealth Creation Podcasts that actually I've been on as well. He's also been doing contributing things like Bigger Pockets. And he's been on various shows, whether it's like, you know, big real estate investing advice ever, or the Michael Blank show and many, many more. And so he lives in Minnesota, his wife, and two kids love skiing, hunting, camping, hockey running. Of course he's in Minnesota. He's got to love hockey. Right? So anyways, Todd, welcome to our show.
Todd Dexheimer (02:41):
Yeah. Appreciate you having me on, I appreciate the introduction, man. I'm like, I'm pumped up. I, that intro was awesome! I'm pumped up to hopefully add some value to the show and yeah. This is, this is an exciting community. It sounds like we got here. So...
Chris Miles (02:58):
Absolutely. No, these are good people. These are the best ones you'll ever, ever witness. I'll tell you that. So, you know, tell us like, how did you even go from, you know, high school teacher to real estate? Like what even sparked that because everybody's freaking out in 2008 and you're like, Hey, why not? Right.
Todd Dexheimer (03:14):
Yeah. I've been, what was I going to lose, man?
Chris Miles (03:16):
That's right!
Todd Dexheimer (03:18):
I was making you know, not very much as a high school teacher. And I think there was, I don't, I don't know exactly what sparked it like it was, I don't know if it was just a spark, but I've always, I think had this entrepreneurial spirit with me. I actually built shipping crates for my dad's company that he worked at. He was a manufacturing engineer and they're making these vises and I built shipping crates for these vises. So I had my own decks, custom crates business that my brother and dad kind of formed and along with me, and then I took over and did that. So that was fun. And that was when I was in high school, I had the lawn mowing business, you know, but then I decided to be a teacher and just, just quite frankly, it just didn't click. Like I thought it was going to be great. And there was parts of it. That was, was great, but it just didn't click. And it wasn't for me. And I bet within like a month or two, I was telling my wife, I gotta figure out what I'm going to do when I grow up because this aint it. And so...
Chris Miles (04:26):
It, wasn't a scary moment for her to say, wait, all of this to now say you want to get out. Right?
Todd Dexheimer (04:31):
Well, we just started our life together, you know, as like all this. So it was kind of crazy, but at the same time I knew it wasn't for me. So it was just exploratory and just trying to figure out and real estate made a ton of sense. And like you said, it was right during that like firestorm, right. Everything was crashing. Everybody was running in the opposite direction. And I got in a little bit about, you know, I was naive. I didn't really understand a hundred percent what happened cause I wasn't involved. Like I didn't lose anything. Right? So it was a little bit of maybe me being naive, but also seeing the opportunity. Understanding like that real estate will go back up in value, even though some people sat and I heard this a lot of times real estate will never go back up to where it used to be. Never. And that's very shortsighted. And I knew that it was like, yeah, see, but these are people that got, just got burned. Right? And so it just made so much financial sense and I understood the industry being an industrial tech teacher and you know, doing construction through the summers too, work my way through high school and college. It just made sense.
Chris Miles (05:44):
Yeah. So what was your first deal? Like what'd you start out doing?
Todd Dexheimer (05:48):
You know what, I did three deals pretty much at one time, which is, which is crazy. And I didn't have any money, by the way. My wife and I had probably like $30,000 saved up, maybe $25,000 saved up. And so we bought a single family that we ended up living in, but it was a foreclosure. We did this 203K loan. So you can get in for very little money. And then we did the renovation ourselves, big renovation. I mean, when we moved in, there was no plumbing, water wasn't working. So like the first, like, I shouldn't say when we moved in, like probably the day we moved in, I just got it going. I can still remember working on some, we didn't have heat, which is fine. Cause we moved in in August, but we had to get heat because at Minnesota, by end of September, you need heat. So I, they like get around is we're on a time deadline. Yeah. But so that, that was one of them. The other one was a flip that I partnered with a guy that had money and we did the fix and flip. And then the other one was a single family rental house. I bought that out of foreclosure. For like 60,000, somewhere around there stuck another 10, 15,000 into it. Did all the work myself with my wife and a couple of friends came and helped me in, but that was it. And then was able to then refinance that house actually in that snowball, from there. Fix and flip, actually ended up being a flop. I bet I made a thousand dollars on it. I did all the work
Chris Miles (07:27):
You got to learn pretty quickly. Like it's probably better that happened because in some people's case where they hit really big on that first flip, they think that's the way it's always going to be. Right?
Todd Dexheimer (07:35):
Oh, this is easy!
Chris Miles (07:37):
Yeah, exactly. And you're like, okay, that wasn't as cool as I thought that was, that was like a dollar an hour. Gosh.
Todd Dexheimer (07:43):
But it probably wasn't even that much.
Chris Miles (07:47):
Well, that's great. And you've done. I mean, you've done flips, you've even done mobile home, parks and you did a ski resort, is that right?
Todd Dexheimer (07:53):
Yeah. Yeah.
Chris Miles (07:55):
Tell us about that.
Todd Dexheimer (07:55):
Well, I bought a defunct ski resort, so it was just a ski resort that, you know, we had some really bad winters in the early, the late 90's to early 2000's where there just wasn't a lot of snow. And so when that happens, these little skiers are just can't handle it. And so they ended up shutting it down. Somebody got hurt really bad too. And so there was a big lawsuit. And so it was just shut down. The guy that owned it originally passed away, handed down to his kid and grown adult, but yeah, just didn't want to do it anymore. So they ended up shutting it down and we stumbled upon it. Actually the business partner at the time was actually hunting nearby and he was seeing all these deer trails. And they all led into this property.
Todd Dexheimer (08:48):
So we went and talked to the owner and then was like, Hey, what's going on here? And we ended up striking a deal. Then we ended up getting the property and we got it for such a cheap price that we had a bank that financed it a hundred percent.
Chris Miles (09:01):
Wow!
Todd Dexheimer (09:02):
It appraised for a million dollars and we were buying it for $450,000 and they fund us to a hundred percent of the deal.
Chris Miles (09:10):
That's incredible.
Todd Dexheimer (09:12):
Yeah. It was incredible. And that was 2000, maybe 13 or 14. So things, I mean still were a little iffy, you know, probably 13. Yeah. We're still a little iffy. There is banks. Weren't being super friendly. Yeah. Not like that, but...
Chris Miles (09:29):
But the numbers made sense. It said, all right. Go for it.
Todd Dexheimer (09:32):
Yup. Yup. So we ended up just taking that. We did some work to it. We were thinking about doing something with it, but it ended up just being more of a distraction to try to get it up and running. So we ended up selling it. So I basically flipped the ski resort. You know, I tried to convince my wife to move down there. She said, no.
Chris Miles (09:50):
I'm saying it as a skier. You were probably really tempted weren't you?
Todd Dexheimer (09:53):
Yeah, it was great. It was. And it's amazingly beautiful piece of property and it's just amazing.
Chris Miles (09:59):
That's great. What kind of deals are you doing now? Like what kind of multifamily stuff are you doing? Cause I know with different people I've had on the show, some were kinda like, you know what, I'm getting so strict with my underwriting. Like I am almost refused things left and right, right?
Todd Dexheimer (10:13):
Yup. Yup. And kind of the same actually. Things were heating up quite a bit, obviously that was pre-COVID. Things were heating up quite a bit and it was really tough to find a deal that made sense. Now people were just buying these properties for crazy amounts and we weren't willing to. So I'm buying, you know, value add, B class multifamily, typically a hundred plus units. So we can have some scale. We can have the onsite staff and, and we're buying those in a few markets cross country that are kind of emerging or markets that have some, the, all the right fundamentals that we're really looking for and we're doing the syndication. So we're raising the funds for down payment, all that kind of stuff. So that's, that's kind of our bread and butter. And I anticipate that to still be our bread and butter as we kind of emerge through this whole COVID deals will probably come out of this. You know, we don't know exactly the future yet, but I think there'll be some opportunity down the road.
Chris Miles (11:24):
Yeah. I mean, not that I, I glory in people's pain right? Or do something bad, but I definitely foresee that there's a lot of deal operators that really weren't operators. They were just greedy people wanting to get in on the, on the ride. Right. And buy these properties even probably have investor's money out there. And, but they've never done a deal before and they don't know how to operate something. And I imagine that's where there could be some good opportunities coming up.
Todd Dexheimer (11:47):
I think so. I think so. And like you said, we don't like for me, it's you, when you look at it and go, Oh, I really, so some people are excited. They're like, Oh, it's great. I can't wait for people to start losing their properties. It's like, well you do you understand like that, that actually only hurts you as well. Like I've got properties. So if the guys around me guys and gals around me lose their properties, those value, my property pretty value is going to go down. Right. And so it's, it's it's yeah. Well, do I wish ill will upon anybody? No. But the matter of the fact is exactly what you said, likely there's going to be people that are gonna end up maybe not losing the property, but be told to sell. Lenders have low incompetence and you are going to be told to sell if you're not hitting your numbers. And so you're going to be forced, basically forced to sell and yeah, you're right. A lot of those people had no clue what they're doing or even if they did have a clue what they're doing, they were just going about it the wrong way, or they're going after these properties for fees. I think that's a lot of things. A lot of what was happening is people are going, wow, I can do this deal. I can syndicate it and I can make $300,000 right up front on this deal. That's a great payday Al's I need to do is one to two of those each year. And I'm doing really well. And some people are doing two, maybe three deals a year, they're making 600 to a million dollars, man. They didn't care how good the deal was. That's, Unfortunately I think what was happening.
Chris Miles (13:21):
Yeah. No, there's, there's definitely, I've seen that. I have definitely seen that out there and you're right. Like we don't want people to have to sell off, like in a sense of just being, you know, selling off for dirt cheap or anything like that, you know, I would more see like where's the opportunity of increasing profits and it's something that's already there. Right. It's like, you know, where they just didn't operate it well, and yeah. In your opinion, like right now, I mean, what are you seeing? Are you seeing like good deals or you see in most everything's just junk currently?
Todd Dexheimer (13:50):
Yeah. So currently I would say we haven't seen much adjustment. The sellers aren't quite ready to take a discount and yeah, I don't need the salaries to take a bath. Like I don't need, in order for me to feel comfortable with the buy. It's not like I need the sellers to sell for 40% discount or something like that now would that be great? Sure. You know, I need the sellers to come off of their, their price by let's call it 10%, maybe 15% and then, okay, I'm ready to, I'm ready to start buying. For me, my company. We don't need to buy Properties, dirt cheap. Now will we? If that happens. Absolutely. But all right. It's still about the fundamentals of the piece of real estate and how the numbers work and can we get our business plan to be able to take any, can we execute it? And so that's what really important part. So...
Chris Miles (14:43):
Yeah. What kind of cash flow or NOI can you get from it? Right?
Todd Dexheimer (14:46):
Yup. So I've been talking to a lot of brokers that deal in my space and they're kind of the same, most sellers are looking for right now between a 10% and a 20% discount or sorry, most buyers are looking for a 10% to 20% discount. Most sellers are well expecting to sell either at the previous high or within at least 10%. So they, I have heard from brokers, but a lot of sellers are understanding. They've got to come down 5% to 10% and but most buyers are actually even more than that. So we've got a gap there eventually that'll close.
Chris Miles (15:22):
Yeah. It's got to take some time before they start adjusting and believing the numbers and say, okay.
Todd Dexheimer (15:27):
Real estate. It's not the stock market. I mean, you're right, Chris. I mean the stock market goes like this and actually overreacts quickly. Where real estate actually Under reacts and takes a while for those, those drops to happen.
Chris Miles (15:41):
Isn't that the beautiful thing about real estate? Is that it doesn't happen overnight. Right. Where people are used to, if they'd been watching the stock market, it's, it's painful to watch. You can't watch it, you know, without freaking out, you know. Where at least the real estate there's slow adjustments typically. I mean, whether the price go down or up, usually there's there's time involved.
Todd Dexheimer (16:00):
Yup. Yeah. I mean, right now I've got a property on the market and I have priced at about the 15% below where I would have expected to sell it just a few months ago and I'm kicking myself because I should have sold it in January, but I didn't know this was happening for some reason.
Chris Miles (16:16):
Of course.
Todd Dexheimer (16:17):
But I still want to sell the property and I'm happy to take a 15% discount because quite frankly, it's still gonna, I'm still gonna do really well on it. And I see there's opportunity potentially coming. So I'd rather take that capital, be able to have it, be able to do it. Okay. Put it out there when better deals do come. So right now, if you're wanting to be a seller, it's Still sell because real estate slowly, as you said, it's going to take awhile.
Chris Miles (16:43):
That's a good point, too. Like you said, you don't always have to find bad deals. It could be someone just like you, who already bought a great deal. It's appreciated, you know, you've add value to it. And of course now price is great. Even if you have to take a discount, you're still gonna make good, good money on it. So there's plenty of those deals too.
Todd Dexheimer (16:59):
Yup.
Chris Miles (16:59):
Well, great. Well how like, like tell us more about your show, the Pillars of Wealth Creation Show. Tell us about that.
Todd Dexheimer (17:05):
Yeah. So Pillars of Wealth Creations, mainly a real estate show, but we're, we also talk to a lot of people that not aren't necessarily real estate investors first and foremost. So we're, the show is kind of more catered towards the business side of the real estate. Like not necessarily talking the nuts and bolts of real estate. I can learn that in a book for the most part. And there's a lot of other podcasts that talk about nuts and bolts. But one of the big things that we like to focus on is how do you really build a business the right way? So how do we take cause so many real estate investors are transactional, right? They think they think about real estate as just buying a piece of property and that's it. And then we're going to, we're going to be passive, right? We're going to buy this piece of property. We're gonna buy this a hundred unit apartment. And then we're going to be able to sit back on the beach and relax. Cause now we got all this cash flow. Well, that's not how it works. If you want to do that, then you need to passively truly passively invest in real estate.
Chris Miles (18:05):
That's right.
Todd Dexheimer (18:07):
But, if you're going to buy the piece of property and that you're going to be a part of that deal, you've got to be an active business owner. You've got to learn how to make a business plan. You've got to learn, you know, how to set up systems and processes. And you've got to learn how to build teams. You've got to do all the things that a regular business owner does. And so many real estate investors have no clue that that's even part of what they should be learning.
Chris Miles (18:28):
It's so true. Like I'm in a kind of a high level mastermind group where you usually have to have at least a hundred doors to be in that group. And it's so common even with those guys, those guys who legitimately do have a business, right. Even for them to say, Oh, like I am getting up at 4:00AM, 5:00 AM to basically get to work and just hammer this out. And I'm trying to manage everybody. And I don't know if I should have a CEO or not, or a COO or, you know, they're like going nuts. They went from just trying to make money on a few flips and deals like that. And now they're like, man, like just to make these millions of dollars, I have no life like no real passive income. And, and that's a big difference. There's a big difference in lifestyle between that active investor, right? The person that is a business owner versus those that are just passively investing in. Like some sort of what you offer.
Todd Dexheimer (19:14):
Yup. Yup. Absolutely.
Chris Miles (19:17):
Yeah. Well, great. So obviously like if people follow your show, you, when you talk about syndications, you're probably talking about your syndications and deals you're doing right then too. Right. If you're, if people are looking for passive investments, you've got to, you've got your own funds as well, right?
Todd Dexheimer (19:30):
Yeah. You know, on the show, I try not to, I don't probably talk too much about the deals as are going, but if we, when we close on a deal, I usually will give kind of a, Hey, here's what we did. Here are the lessons we learned along the way, you know, here's maybe some things we, you know, found in due diligence and why we made adjustments. And so we'll talk about, yeah, there's a lot of mistakes and lessons learned even along active deals, I've been doing this for a while, but I still make mistakes. I still learn a lot of things on every single deal that I feel like it can bring to my audience and allow them to hopefully learn as well. From what I've learned from my mistakes. So...
Chris Miles (20:13):
Well, the thing I love is what you do is you're not the kind of guy to say, Hey, this deal looks awesome. Like you're not just, you know, running around like a monkey with a machine gun. Right. You're actually like, Hey, this deal doesn't fit my parameters, next. Okay. Like takes me 30 seconds. See this, this one's a no, like you just keep passing and passing. And those are like the best investors in my mind are the ones that say no to almost everything just like Warren Buffett did. He would always say, I say no to almost everything. And yes, the very, very few things, you know, and then you have to, you have to right. Like, there's, you can't be successful if you're just chasing after every little deal, you're going to have big, you're gonna have losses and maybe some gains, but you're gonna have a lot of losses. You won't be in business very long.
Todd Dexheimer (20:52):
Yeah. A hundred percent. Yeah. I mean, Warren Buffett's obviously a pretty smart man. And you know, there, he says that for a reason, there's so many deals out there and those are deals for everybody else. Not for me.
Chris Miles (21:06):
Yeah. I actually remember him. He said a quote. And he said that to one of my friends in an interview, he said the difference between the successful and the ultra successful is that the ultra successful say no, almost every time.
Todd Dexheimer (21:16):
Yeah.
Chris Miles (21:17):
You know, I know it's true. And I know you're that kind of guy too. So same way as you know, listeners, you guys, those who are following this, like check out his website, for sure. What's, do you have a website that people could follow?
Todd Dexheimer (21:30):
Yeah. A couple of websites, Pillars of Wealth Creation. They can get to my podcast and then just my general website, which should, they can actually still get to my podcasts or that is at VentureDProperties.com. So it's venture and then D as in dog or Dexheimer properties.com.
Chris Miles (21:49):
Awesome. Yeah. I'll definitely make sure we get to get those links in the show notes. So if you can follow you, follow your show or even check out your site and get to know you more, obviously, especially if people are looking for investing in opportunities and things of that nature, because obviously you're looking right now, you're actively looking for the right deals. Not just any deal.
Todd Dexheimer (22:06):
Yeah. Looking for the right deals and there's opportunities that are going to come down the pipeline. And I think the important part for people that right now to be just thinking about is, what are the paradigms that are going to be shifting through this whole event, right? People's paradigm shift. Consumers, thoughts are going to shift, workers habits are going to shift. So there's going to be different things that are going to come out of this. And how can we make sure we're positioning ourselves to be able to take advantage of the opportunities that are in front of us. And it's not necessarily take advantage of other people. It's take advantage of the people's wants and needs that, you know, the consumers wants and needs out there. If you can best serve them. I think you're going to have a lot of success. And that's what I'm working with. Multifamily with real estate in general, I consider myself a value add real estate investor multifamily. I love a lot, but I also look at other asset classes. So we look at, you know, what are the strengths and weaknesses? What are the trends? Where do we, I think that things are going to be going, and we're trying to make the best decisions obviously for ourselves and our investors on that.
Chris Miles (23:06):
Yeah. Working to improve upon something and make it better, you know, for everybody. Right. And that's...
Todd Dexheimer (23:10):
Absolutely!
Chris Miles (23:12):
What cooler way to make money than actually bettering people's lives and making money from that? I mean, that's the way life and that's where the world should be in my opinion. Yeah. Well, great. Hey, I appreciate your time so much Todd. Like this is awesome. Again, everybody check out the links in the show notes, you know, follow his podcast or check out his site. So everybody, you remember, it's all about patience. It's all about looking for the right thing. Not just anything but the very right thing. So follow Todd and everybody, I hope you make it a wonderful and prosperous week. We'll see you later!
Chris Miles, the "Cash Flow Expert and Anti-Financial Advisor," is a leading authority on how to quickly free up and create cash flow for thousands of his clients, entrepreneurs, and others internationally! He’s an author, speaker, and radio host that has been featured in US News, CNN Money, Bankrate, Entrepreneur on Fire, and spoken to thousands getting them fast financial results.
Listen to our Podcast here:
https://www.blogtalkradio.com/moneyripples/2020/05/31/404--going-from-teacher-to-investor-with-todd-dexheimer
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Chris Miles (00:00):
Hello, my fellow Ripplers. This is Chris Miles. Your Cash Flow Expert and Anti-Financial Advisor. Welcome you out for a wonderful show. Show that's for you and about you. Those of you work so hard for money and you're ready for your money. Start working harder for you. Now! You want that freedom. That cash flow. That prosperity. Today! Not 30, 40 bazillion years from now, but right now, so you can live that life that you love doing what you love being with those that you love, but it's so much more than you guys. Than just having a lot of money and being comfortable and, you know, driving flashy cars and that kind of thing. Because if you're following us, we're not those kind of people. We're real people. We're sincere. We're authentic. And the truth is that you're a Rippler. That you, yes, you can create lots and lots of money create the life of your dreams, but your life is much more than that. You want to create a ripple effect through the lives of those, around you, whether it be your family, whether it be your community, the country, or across the world. And that's ultimately what this ripple effect's about. And I appreciate you guys allowing me to create a ripple effect through you because without that, we couldn't do it. And you guys have been bingeing on these shows. You've been spreading the word you've been sharing it. And I love seeing these numbers grow every single day. So thank you for being a part of this.
Chris Miles (01:20):
Hey, as a quick reminder, check out our website MoneyRipples.com. You've got the great ebook on there called Beyond Rice & Beans. Seven Secrets. Free up cash today, and you can check out other information on there as well. So check it out.
Chris Miles (01:29):
Alright! Today, guys, I'm bringing on another great, great investor on our show here. This is actually a guy by the name of Todd Dexheimer here. Now, Todd, like Todd's been doing real estate. He got in right during the last recession. Like he was born out of the fire, right? He was born out of those flames when everybody says real estate stinks. And that's exactly when Todd said, alright, let's do this. He actually started as a high school industrial tech teacher. Then went to real estate in 2008. Now, interesting thing about him is that he's the CEO of venture properties, LLC. Yeah. He's also been, has purchased and renovated over 800 units guys. Has focuses on syndicating value, add multifamily and emerging markets, as well as coaching other inspiring investors. He's the host of the Pillar of Wealth Creation Podcasts that actually I've been on as well. He's also been doing contributing things like Bigger Pockets. And he's been on various shows, whether it's like, you know, big real estate investing advice ever, or the Michael Blank show and many, many more. And so he lives in Minnesota, his wife, and two kids love skiing, hunting, camping, hockey running. Of course he's in Minnesota. He's got to love hockey. Right? So anyways, Todd, welcome to our show.
Todd Dexheimer (02:41):
Yeah. Appreciate you having me on, I appreciate the introduction, man. I'm like, I'm pumped up. I, that intro was awesome! I'm pumped up to hopefully add some value to the show and yeah. This is, this is an exciting community. It sounds like we got here. So...
Chris Miles (02:58):
Absolutely. No, these are good people. These are the best ones you'll ever, ever witness. I'll tell you that. So, you know, tell us like, how did you even go from, you know, high school teacher to real estate? Like what even sparked that because everybody's freaking out in 2008 and you're like, Hey, why not? Right.
Todd Dexheimer (03:14):
Yeah. I've been, what was I going to lose, man?
Chris Miles (03:16):
That's right!
Todd Dexheimer (03:18):
I was making you know, not very much as a high school teacher. And I think there was, I don't, I don't know exactly what sparked it like it was, I don't know if it was just a spark, but I've always, I think had this entrepreneurial spirit with me. I actually built shipping crates for my dad's company that he worked at. He was a manufacturing engineer and they're making these vises and I built shipping crates for these vises. So I had my own decks, custom crates business that my brother and dad kind of formed and along with me, and then I took over and did that. So that was fun. And that was when I was in high school, I had the lawn mowing business, you know, but then I decided to be a teacher and just, just quite frankly, it just didn't click. Like I thought it was going to be great. And there was parts of it. That was, was great, but it just didn't click. And it wasn't for me. And I bet within like a month or two, I was telling my wife, I gotta figure out what I'm going to do when I grow up because this aint it. And so...
Chris Miles (04:26):
It, wasn't a scary moment for her to say, wait, all of this to now say you want to get out. Right?
Todd Dexheimer (04:31):
Well, we just started our life together, you know, as like all this. So it was kind of crazy, but at the same time I knew it wasn't for me. So it was just exploratory and just trying to figure out and real estate made a ton of sense. And like you said, it was right during that like firestorm, right. Everything was crashing. Everybody was running in the opposite direction. And I got in a little bit about, you know, I was naive. I didn't really understand a hundred percent what happened cause I wasn't involved. Like I didn't lose anything. Right? So it was a little bit of maybe me being naive, but also seeing the opportunity. Understanding like that real estate will go back up in value, even though some people sat and I heard this a lot of times real estate will never go back up to where it used to be. Never. And that's very shortsighted. And I knew that it was like, yeah, see, but these are people that got, just got burned. Right? And so it just made so much financial sense and I understood the industry being an industrial tech teacher and you know, doing construction through the summers too, work my way through high school and college. It just made sense.
Chris Miles (05:44):
Yeah. So what was your first deal? Like what'd you start out doing?
Todd Dexheimer (05:48):
You know what, I did three deals pretty much at one time, which is, which is crazy. And I didn't have any money, by the way. My wife and I had probably like $30,000 saved up, maybe $25,000 saved up. And so we bought a single family that we ended up living in, but it was a foreclosure. We did this 203K loan. So you can get in for very little money. And then we did the renovation ourselves, big renovation. I mean, when we moved in, there was no plumbing, water wasn't working. So like the first, like, I shouldn't say when we moved in, like probably the day we moved in, I just got it going. I can still remember working on some, we didn't have heat, which is fine. Cause we moved in in August, but we had to get heat because at Minnesota, by end of September, you need heat. So I, they like get around is we're on a time deadline. Yeah. But so that, that was one of them. The other one was a flip that I partnered with a guy that had money and we did the fix and flip. And then the other one was a single family rental house. I bought that out of foreclosure. For like 60,000, somewhere around there stuck another 10, 15,000 into it. Did all the work myself with my wife and a couple of friends came and helped me in, but that was it. And then was able to then refinance that house actually in that snowball, from there. Fix and flip, actually ended up being a flop. I bet I made a thousand dollars on it. I did all the work
Chris Miles (07:27):
You got to learn pretty quickly. Like it's probably better that happened because in some people's case where they hit really big on that first flip, they think that's the way it's always going to be. Right?
Todd Dexheimer (07:35):
Oh, this is easy!
Chris Miles (07:37):
Yeah, exactly. And you're like, okay, that wasn't as cool as I thought that was, that was like a dollar an hour. Gosh.
Todd Dexheimer (07:43):
But it probably wasn't even that much.
Chris Miles (07:47):
Well, that's great. And you've done. I mean, you've done flips, you've even done mobile home, parks and you did a ski resort, is that right?
Todd Dexheimer (07:53):
Yeah. Yeah.
Chris Miles (07:55):
Tell us about that.
Todd Dexheimer (07:55):
Well, I bought a defunct ski resort, so it was just a ski resort that, you know, we had some really bad winters in the early, the late 90's to early 2000's where there just wasn't a lot of snow. And so when that happens, these little skiers are just can't handle it. And so they ended up shutting it down. Somebody got hurt really bad too. And so there was a big lawsuit. And so it was just shut down. The guy that owned it originally passed away, handed down to his kid and grown adult, but yeah, just didn't want to do it anymore. So they ended up shutting it down and we stumbled upon it. Actually the business partner at the time was actually hunting nearby and he was seeing all these deer trails. And they all led into this property.
Todd Dexheimer (08:48):
So we went and talked to the owner and then was like, Hey, what's going on here? And we ended up striking a deal. Then we ended up getting the property and we got it for such a cheap price that we had a bank that financed it a hundred percent.
Chris Miles (09:01):
Wow!
Todd Dexheimer (09:02):
It appraised for a million dollars and we were buying it for $450,000 and they fund us to a hundred percent of the deal.
Chris Miles (09:10):
That's incredible.
Todd Dexheimer (09:12):
Yeah. It was incredible. And that was 2000, maybe 13 or 14. So things, I mean still were a little iffy, you know, probably 13. Yeah. We're still a little iffy. There is banks. Weren't being super friendly. Yeah. Not like that, but...
Chris Miles (09:29):
But the numbers made sense. It said, all right. Go for it.
Todd Dexheimer (09:32):
Yup. Yup. So we ended up just taking that. We did some work to it. We were thinking about doing something with it, but it ended up just being more of a distraction to try to get it up and running. So we ended up selling it. So I basically flipped the ski resort. You know, I tried to convince my wife to move down there. She said, no.
Chris Miles (09:50):
I'm saying it as a skier. You were probably really tempted weren't you?
Todd Dexheimer (09:53):
Yeah, it was great. It was. And it's amazingly beautiful piece of property and it's just amazing.
Chris Miles (09:59):
That's great. What kind of deals are you doing now? Like what kind of multifamily stuff are you doing? Cause I know with different people I've had on the show, some were kinda like, you know what, I'm getting so strict with my underwriting. Like I am almost refused things left and right, right?
Todd Dexheimer (10:13):
Yup. Yup. And kind of the same actually. Things were heating up quite a bit, obviously that was pre-COVID. Things were heating up quite a bit and it was really tough to find a deal that made sense. Now people were just buying these properties for crazy amounts and we weren't willing to. So I'm buying, you know, value add, B class multifamily, typically a hundred plus units. So we can have some scale. We can have the onsite staff and, and we're buying those in a few markets cross country that are kind of emerging or markets that have some, the, all the right fundamentals that we're really looking for and we're doing the syndication. So we're raising the funds for down payment, all that kind of stuff. So that's, that's kind of our bread and butter. And I anticipate that to still be our bread and butter as we kind of emerge through this whole COVID deals will probably come out of this. You know, we don't know exactly the future yet, but I think there'll be some opportunity down the road.
Chris Miles (11:24):
Yeah. I mean, not that I, I glory in people's pain right? Or do something bad, but I definitely foresee that there's a lot of deal operators that really weren't operators. They were just greedy people wanting to get in on the, on the ride. Right. And buy these properties even probably have investor's money out there. And, but they've never done a deal before and they don't know how to operate something. And I imagine that's where there could be some good opportunities coming up.
Todd Dexheimer (11:47):
I think so. I think so. And like you said, we don't like for me, it's you, when you look at it and go, Oh, I really, so some people are excited. They're like, Oh, it's great. I can't wait for people to start losing their properties. It's like, well you do you understand like that, that actually only hurts you as well. Like I've got properties. So if the guys around me guys and gals around me lose their properties, those value, my property pretty value is going to go down. Right. And so it's, it's it's yeah. Well, do I wish ill will upon anybody? No. But the matter of the fact is exactly what you said, likely there's going to be people that are gonna end up maybe not losing the property, but be told to sell. Lenders have low incompetence and you are going to be told to sell if you're not hitting your numbers. And so you're going to be forced, basically forced to sell and yeah, you're right. A lot of those people had no clue what they're doing or even if they did have a clue what they're doing, they were just going about it the wrong way, or they're going after these properties for fees. I think that's a lot of things. A lot of what was happening is people are going, wow, I can do this deal. I can syndicate it and I can make $300,000 right up front on this deal. That's a great payday Al's I need to do is one to two of those each year. And I'm doing really well. And some people are doing two, maybe three deals a year, they're making 600 to a million dollars, man. They didn't care how good the deal was. That's, Unfortunately I think what was happening.
Chris Miles (13:21):
Yeah. No, there's, there's definitely, I've seen that. I have definitely seen that out there and you're right. Like we don't want people to have to sell off, like in a sense of just being, you know, selling off for dirt cheap or anything like that, you know, I would more see like where's the opportunity of increasing profits and it's something that's already there. Right. It's like, you know, where they just didn't operate it well, and yeah. In your opinion, like right now, I mean, what are you seeing? Are you seeing like good deals or you see in most everything's just junk currently?
Todd Dexheimer (13:50):
Yeah. So currently I would say we haven't seen much adjustment. The sellers aren't quite ready to take a discount and yeah, I don't need the salaries to take a bath. Like I don't need, in order for me to feel comfortable with the buy. It's not like I need the sellers to sell for 40% discount or something like that now would that be great? Sure. You know, I need the sellers to come off of their, their price by let's call it 10%, maybe 15% and then, okay, I'm ready to, I'm ready to start buying. For me, my company. We don't need to buy Properties, dirt cheap. Now will we? If that happens. Absolutely. But all right. It's still about the fundamentals of the piece of real estate and how the numbers work and can we get our business plan to be able to take any, can we execute it? And so that's what really important part. So...
Chris Miles (14:43):
Yeah. What kind of cash flow or NOI can you get from it? Right?
Todd Dexheimer (14:46):
Yup. So I've been talking to a lot of brokers that deal in my space and they're kind of the same, most sellers are looking for right now between a 10% and a 20% discount or sorry, most buyers are looking for a 10% to 20% discount. Most sellers are well expecting to sell either at the previous high or within at least 10%. So they, I have heard from brokers, but a lot of sellers are understanding. They've got to come down 5% to 10% and but most buyers are actually even more than that. So we've got a gap there eventually that'll close.
Chris Miles (15:22):
Yeah. It's got to take some time before they start adjusting and believing the numbers and say, okay.
Todd Dexheimer (15:27):
Real estate. It's not the stock market. I mean, you're right, Chris. I mean the stock market goes like this and actually overreacts quickly. Where real estate actually Under reacts and takes a while for those, those drops to happen.
Chris Miles (15:41):
Isn't that the beautiful thing about real estate? Is that it doesn't happen overnight. Right. Where people are used to, if they'd been watching the stock market, it's, it's painful to watch. You can't watch it, you know, without freaking out, you know. Where at least the real estate there's slow adjustments typically. I mean, whether the price go down or up, usually there's there's time involved.
Todd Dexheimer (16:00):
Yup. Yeah. I mean, right now I've got a property on the market and I have priced at about the 15% below where I would have expected to sell it just a few months ago and I'm kicking myself because I should have sold it in January, but I didn't know this was happening for some reason.
Chris Miles (16:16):
Of course.
Todd Dexheimer (16:17):
But I still want to sell the property and I'm happy to take a 15% discount because quite frankly, it's still gonna, I'm still gonna do really well on it. And I see there's opportunity potentially coming. So I'd rather take that capital, be able to have it, be able to do it. Okay. Put it out there when better deals do come. So right now, if you're wanting to be a seller, it's Still sell because real estate slowly, as you said, it's going to take awhile.
Chris Miles (16:43):
That's a good point, too. Like you said, you don't always have to find bad deals. It could be someone just like you, who already bought a great deal. It's appreciated, you know, you've add value to it. And of course now price is great. Even if you have to take a discount, you're still gonna make good, good money on it. So there's plenty of those deals too.
Todd Dexheimer (16:59):
Yup.
Chris Miles (16:59):
Well, great. Well how like, like tell us more about your show, the Pillars of Wealth Creation Show. Tell us about that.
Todd Dexheimer (17:05):
Yeah. So Pillars of Wealth Creations, mainly a real estate show, but we're, we also talk to a lot of people that not aren't necessarily real estate investors first and foremost. So we're, the show is kind of more catered towards the business side of the real estate. Like not necessarily talking the nuts and bolts of real estate. I can learn that in a book for the most part. And there's a lot of other podcasts that talk about nuts and bolts. But one of the big things that we like to focus on is how do you really build a business the right way? So how do we take cause so many real estate investors are transactional, right? They think they think about real estate as just buying a piece of property and that's it. And then we're going to, we're going to be passive, right? We're going to buy this piece of property. We're gonna buy this a hundred unit apartment. And then we're going to be able to sit back on the beach and relax. Cause now we got all this cash flow. Well, that's not how it works. If you want to do that, then you need to passively truly passively invest in real estate.
Chris Miles (18:05):
That's right.
Todd Dexheimer (18:07):
But, if you're going to buy the piece of property and that you're going to be a part of that deal, you've got to be an active business owner. You've got to learn how to make a business plan. You've got to learn, you know, how to set up systems and processes. And you've got to learn how to build teams. You've got to do all the things that a regular business owner does. And so many real estate investors have no clue that that's even part of what they should be learning.
Chris Miles (18:28):
It's so true. Like I'm in a kind of a high level mastermind group where you usually have to have at least a hundred doors to be in that group. And it's so common even with those guys, those guys who legitimately do have a business, right. Even for them to say, Oh, like I am getting up at 4:00AM, 5:00 AM to basically get to work and just hammer this out. And I'm trying to manage everybody. And I don't know if I should have a CEO or not, or a COO or, you know, they're like going nuts. They went from just trying to make money on a few flips and deals like that. And now they're like, man, like just to make these millions of dollars, I have no life like no real passive income. And, and that's a big difference. There's a big difference in lifestyle between that active investor, right? The person that is a business owner versus those that are just passively investing in. Like some sort of what you offer.
Todd Dexheimer (19:14):
Yup. Yup. Absolutely.
Chris Miles (19:17):
Yeah. Well, great. So obviously like if people follow your show, you, when you talk about syndications, you're probably talking about your syndications and deals you're doing right then too. Right. If you're, if people are looking for passive investments, you've got to, you've got your own funds as well, right?
Todd Dexheimer (19:30):
Yeah. You know, on the show, I try not to, I don't probably talk too much about the deals as are going, but if we, when we close on a deal, I usually will give kind of a, Hey, here's what we did. Here are the lessons we learned along the way, you know, here's maybe some things we, you know, found in due diligence and why we made adjustments. And so we'll talk about, yeah, there's a lot of mistakes and lessons learned even along active deals, I've been doing this for a while, but I still make mistakes. I still learn a lot of things on every single deal that I feel like it can bring to my audience and allow them to hopefully learn as well. From what I've learned from my mistakes. So...
Chris Miles (20:13):
Well, the thing I love is what you do is you're not the kind of guy to say, Hey, this deal looks awesome. Like you're not just, you know, running around like a monkey with a machine gun. Right. You're actually like, Hey, this deal doesn't fit my parameters, next. Okay. Like takes me 30 seconds. See this, this one's a no, like you just keep passing and passing. And those are like the best investors in my mind are the ones that say no to almost everything just like Warren Buffett did. He would always say, I say no to almost everything. And yes, the very, very few things, you know, and then you have to, you have to right. Like, there's, you can't be successful if you're just chasing after every little deal, you're going to have big, you're gonna have losses and maybe some gains, but you're gonna have a lot of losses. You won't be in business very long.
Todd Dexheimer (20:52):
Yeah. A hundred percent. Yeah. I mean, Warren Buffett's obviously a pretty smart man. And you know, there, he says that for a reason, there's so many deals out there and those are deals for everybody else. Not for me.
Chris Miles (21:06):
Yeah. I actually remember him. He said a quote. And he said that to one of my friends in an interview, he said the difference between the successful and the ultra successful is that the ultra successful say no, almost every time.
Todd Dexheimer (21:16):
Yeah.
Chris Miles (21:17):
You know, I know it's true. And I know you're that kind of guy too. So same way as you know, listeners, you guys, those who are following this, like check out his website, for sure. What's, do you have a website that people could follow?
Todd Dexheimer (21:30):
Yeah. A couple of websites, Pillars of Wealth Creation. They can get to my podcast and then just my general website, which should, they can actually still get to my podcasts or that is at VentureDProperties.com. So it's venture and then D as in dog or Dexheimer properties.com.
Chris Miles (21:49):
Awesome. Yeah. I'll definitely make sure we get to get those links in the show notes. So if you can follow you, follow your show or even check out your site and get to know you more, obviously, especially if people are looking for investing in opportunities and things of that nature, because obviously you're looking right now, you're actively looking for the right deals. Not just any deal.
Todd Dexheimer (22:06):
Yeah. Looking for the right deals and there's opportunities that are going to come down the pipeline. And I think the important part for people that right now to be just thinking about is, what are the paradigms that are going to be shifting through this whole event, right? People's paradigm shift. Consumers, thoughts are going to shift, workers habits are going to shift. So there's going to be different things that are going to come out of this. And how can we make sure we're positioning ourselves to be able to take advantage of the opportunities that are in front of us. And it's not necessarily take advantage of other people. It's take advantage of the people's wants and needs that, you know, the consumers wants and needs out there. If you can best serve them. I think you're going to have a lot of success. And that's what I'm working with. Multifamily with real estate in general, I consider myself a value add real estate investor multifamily. I love a lot, but I also look at other asset classes. So we look at, you know, what are the strengths and weaknesses? What are the trends? Where do we, I think that things are going to be going, and we're trying to make the best decisions obviously for ourselves and our investors on that.
Chris Miles (23:06):
Yeah. Working to improve upon something and make it better, you know, for everybody. Right. And that's...
Todd Dexheimer (23:10):
Absolutely!
Chris Miles (23:12):
What cooler way to make money than actually bettering people's lives and making money from that? I mean, that's the way life and that's where the world should be in my opinion. Yeah. Well, great. Hey, I appreciate your time so much Todd. Like this is awesome. Again, everybody check out the links in the show notes, you know, follow his podcast or check out his site. So everybody, you remember, it's all about patience. It's all about looking for the right thing. Not just anything but the very right thing. So follow Todd and everybody, I hope you make it a wonderful and prosperous week. We'll see you later!
Case Study 6 - Existing Facility in Branson, MO
This facility is in Branson, Missouri. The price is 1.37 million, which equates to roughly a 9% cap rate existing. Earnest Money is 50,000.
As you can see here, there's additional room to build out RV and boat storage. Population in the area is about 85,000 people. Median House Hold Income is just shy of 40,000. Some of the value adds that can be done on this facility. That's already pretty stable is, you can raise the rents to market. The manager does live on site and there's currently 39 spots for RV parking, but that can be expanded. The Net Rentable square feet is 36,500. There's 219 units. And the occupancy is currently at 93%. Usually what we see when occupancy creeps up above 90% is that the rates are not high enough. You always want to be floating at about 90% occupancy
Vehicles per day on this property is a little light at 4,800. It is pretty stable though, so that we can kind of look past that aspect of it. All competitors at 90 plus percent occupancy. This is a huge thing for us. Anytime we go into a market and we see that all the competitors are basically full. That means that there's pent up demand in that market. And we can either raise rates or expand the facility that we're purchasing. Here's a map of the current competitors.
So to recap, here, Total Revenue is 148,000. Operating Expenses about 25,000, which leaves us an NOI of $123,000, which brings the existing cap rate to a 9% Price on this one is 1.37 million. And the Earnest Money is 50,000. You'd like to learn more about self storage, feel free to drop me a line. You can go to www.TheStorageStud.com. Thank you very much!
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Fernando O. Angelucci is Founder and President of Titan Wealth Group. He also leads the firm’s finance and acquisitions departments. Fernando Angelucci and Steven Wear founded Titan Wealth Group in 2015, and under his leadership, the firm’s revenue has grown over 100% year over year. Today,
Find out more at
https://www.TheStorageStud.com
http://titanwealthgroup.com/
Titan Wealth Group operates nationwide sourcing off market investment properties for Titan Wealth Group’s acquisition as well as servicing a network of thousands of active real estate investors world wide. Prior to founding Titan Wealth Group, Fernando worked for Dow Chemical, a Fortune 50 company, rolling out a flagship product estimated to gross $1B in global revenues.
With an engineering background, Fernando is able to approach real estate investing with a keen analytical mindset that allows Titan Wealth Group to identify opportunities and project accurate pictures of future performance.
Fernando graduated from the University of Illinois at Urbana-Champaign with a B.A. degree in Technical Systems Management.
Titan Wealth Group was founded in 2015 with the vision of gathering individual investors that have the means to invest but lack either the time to find high-yield investment opportunities or the access to these off-market deals. All too often, founders Fernando Angelucci & Steven Wear came across investors who had deployed their capital only to regret the lack of consistency or degree of returns their investments were producing. In response, Titan Wealth Group provides access to highly-vetted real estate secured investments and off-market acquisition opportunities primarily in the Greater Chicago MSA. Today, Titan Wealth Group not only assists individual investors but has grown to support the acquisition goals and capital deployment of investment groups, private equity firms, and real estate investment trusts (REITs).
As a facilitator of wealth growth, Titan Wealth Group believes that success is not limited to the sum of our efforts and is infinite with what can be accomplished through partnership.
#SelfStorage #RealEstateInvesting #AlternativeFunds
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