Discover the Best Real Estate Investing Courses

So here's the question. What's better to flip a house for five grand? or to use Creative Financing and make over $200,000. Here's what we're going to dig in today, for those of you who are brand new, I want to welcome you to NoteSchoolTV. My name is Brian Lauchner. I'm on the teaching team here at NoteSchool. And I want to just first say if today it's something that you get a chuckle out of, or you learn something, or this is valuable content to you. Make sure you are liking this video, we would love for you to subscribe to this channel. And if you want to participate in these live shows, or you want to comment on these videos, make sure you're pressing the notification bell to actually alert you when we go live so that you can always jump on the stream and pop in your questions.

Brian Lauchner (00:55):

Today we're going to be digging into some really great content that I think is going to be kind of mind opening. And for those of you who are kind of like, I am still unsure even what a note is or what NoteSchool is or what this stuff is you're talking about. And if you're wanting to learn a little bit more about what NoteSchool does, you can go to www.NoteSchool.com/TV. And it'll tell you a little bit more about kind of what we do, what we teach and how you can learn even more. And so today we have an incredible case study with a student who's going to kind of walk us through a really unique story that I think you could probably relate to. If you're, especially, if you're talking to sellers, if you're talking to sellers right now, this is going to sound kind of familiar.

Brian Lauchner (01:38):

And this might be an opportunity that you might say, wait a minute, I've walked away from a deal just like that. And so we've got some awesome guests with us, but I also have the the power team as I call them. I've got Eddie Speed and Joe Varnadore here who are going to jump on and we're going to dig into some of this stuff so that we can get straight to the meat of it. How are you guys doing?

Eddie Speed (01:59):

We are awesome.

Joe Varnadore (02:01):

Are you ready? We are ready for Thanksgiving, Brian.

Eddie Speed (02:06):

I wore my Thanksgiving shirt today, kinda my, you know, Fall's shirt, I'm in the spirit, and I'm excited for it.

Brian Lauchner (02:16):

Yeah.

Joe Varnadore (02:16):

I'd love to pick that out for him.

Eddie Speed (02:18):

Martha picks out a lot for me. Yeah, for sure.

Joe Varnadore (02:22):

Martha being Mrs. Speed.

Brian Lauchner (02:23):

Yeah. So Eddie, tell us a little bit about, you know, you're gonna kind of tell us about the creative financing element and kind of, what's so special about what we're talking about today.

Eddie Speed (02:33):

You know, this story that we're going to have today is a weekly story. It's a daily story with us. And that is the guy that we have on is now last week we had Seth and he's a Ninja, right? He buys hundreds of houses a year and Jay this week he's not that big of an operator now he's a Ninja operator. He just doesn't try to go do Ninja volume.

Eddie Speed (02:57):

But he's a smart guy, very seasoned real estate investor. And I remember very well the first time he came to a class and he says, I'm doing this really well, but I feel like I'm leaving a lot of money on the table and I'm not sure which times I am leaving money on the table, in which times I'm not. And I think this was a great example of a deal that he sort of positioned it and said, you guys show me, give me some light here of how we could do this. And it's a great story, good guy. And you know, I always want NoteSchool to be an impact for it's students. And I believe that NoteSchool has been an impact for Jay.

Brian Lauchner (03:40):

I love it.

Joe Varnadore (03:41):

Yes, absolutely.

Brian Lauchner (03:42):

Well, I think it's something that a lot of us can resonate with. I mean, it reminds me of in 2016, when I first met you Eddie, and you said Brian, you're wholesaling houses. If you just consider adding Creative Financing to your business, it could really change your business. Now I was a little we'll just say hardheaded and didn't quite get it, but I have seen the light now. Right? And I've seen the light now, Scott, I mean, clearly we've got some smarter people on the call today. And so I'll kind of hand it over to Joe and you can kind of walk us through what we're going to be talking about.

Joe Varnadore (04:15):

Alright. So I want to introduce you guys to Jay Redding from Fort Wayne, Indiana. How are you, Jay?

Jay Redding (04:24):

Doing fantastic Joe. Great to see you Eddie, thanks Brian.

Joe Varnadore (04:27):

You look very official today with your headsets and so on, on man. I mean.

Jay Redding (04:33):

It's called old ears, that's what it's called.

Joe Varnadore (04:34):

Well, we've got, you know, the three older guys, then we've got our, you know, our good luck and talent up there in the top left corner right. So Jay, tell us a little bit about your deal here and just a little bit about your background as well. You came to NoteSchool, and again, Eddie said he remembered you being in class. And we did, we were in Indianapolis.

Jay Redding (05:03):

Indy, Indianapolis that's right.

Joe Varnadore (05:03):

You sit right on the, there was actually the class we set up in like four different sections. We had a big class and you were right there on the front row all three days, man.

Jay Redding (05:11):

Yep.

Joe Varnadore (05:11):

And I remember it like it was yesterday. So you were doing some rentals and you were doing some fix and flips along with your son-in-law right?

Jay Redding (05:19):

That is correct. Actually we have a 45 rentals. We do about three to five retail flips a year. We buy some tax liens and we were wanting to incorporate some Seller Financing into this, looking playing more of the long-term game in gradually reducing the number of rentals over time. That's been our game plan.

Joe Varnadore (05:39):

Right.

Joe Varnadore (05:40):

You've been moving in that direction with the rentals as well, right?

Jay Redding (05:44):

Yes we are. And so in this particular deal we purchased this property with our own capital at 37,000. All right. We scheduled about a 50,000 rehab for it.

Joe Varnadore (05:58):

Right.

Jay Redding (05:59):

And we're not inexperienced in doing rehabs and retail flips that type of thing. But every once in a while, and anyone that has retail or rehabbed a property, we'll find that every once in a while, you're running into a situation where the more you dig into it, the worse it gets. And that was kind of the situation on this home. So we ended up blowing our budget for 20 grand. Okay, which put us in, but we fixed everything's going to be a great, it's a great home for the new buyers, but now we're into it at about 107, a 108,000 and the retail markets are at 125, 129. And by the time you take in the realtor fees or whatever, if you're selling it on the open market, there just wasn't much juice in that strategy. There was only about five to seven on a good day, So.

Joe Varnadore (06:48):

So it is a flip, the squeeze, the juice wasn't worth the squeeze was it.

Jay Redding (06:54):

No. Really, it was not. Now in my previous years, I would have just took it on the chin and okay, live another day, and here we go. And we were far enough into the training here with you guys. And it's like, well, there's no better time than this to try it.

Joe Varnadore (07:10):

Right.

Jay Redding (07:10):

So that's what we basically did. We marketed at what we marketed at 129,900. We put the signs in the yard. We started to do the marketing on Facebook marketing marketplace, excuse me. And my tree trimmer who I've worked with for years actually contacted me. I actually asked him to do a bid for me on one of our other places. And he just asked me, do you have any houses? Cause he knows what we do.

Joe Varnadore (07:44):

Right.

Jay Redding (07:44):

And I said, well, yeah, we've got this one right now where we'd be willing to Seller Finance it with you so, but you got to go through underwriting. You're going to have to go through all of this, that type of stuff. And we talked good guy. But he will never qualify for a bank mortgage because his business is, he works really hard for about 10 months, 10 to 10 and a half 11 months out of the year and January and February. You just don't do too much when there's snow on the ground and snow up on the trees and everything else.

Joe Varnadore (08:16):

So Jay, let me stop you right there. So this gentleman is the gentleman that we talk about at NotesSchool all the time, right.

Jay Redding (08:25):

Yep, that's exactly.

Joe Varnadore (08:25):

That just misbuyer, he's self-employed, he's a contractor and he's just, you know, he was just one of these guys that just couldn't go out and couldn't qualify for bank financing.

Jay Redding (08:37):

Correct.

Joe Varnadore (08:37):

Actually, you know, since the whole COVID thing back, you know, started several months ago. So yeah, this is our buyer. This is what we talk about. This is what we talked about with Seth last week. It's just that just misbuyer. So you talk to this guy and he says in, you went through an RML all with this guy, residential mortgage loan originator, and he was your guy, right?

Jay Redding (08:59):

He really was. I mean, he had a credit score of 714 even.

Joe Varnadore (09:04):

Wow.

Jay Redding (09:04):

Okay. All that. So it's like and he was willing to put 18 plus down as the down payment. And so it was about 14 is down payments, about 14% of the purchase price. And it's like, okay, this is all lining up really well. And we did the full underwriting with him. It helped our renewing all right for a number of years. So he's a good professional business person and what he does. All right, good hard worker, good character. And it's like, this is perfect. So what we did, we actually went then and got a private lender. We do a lot of our business with private lenders and brought a private lender on board to be able to pull our money out of the deal.

Joe Varnadore (09:47):

Right.

Jay Redding (09:47):

At 80,000, All right. For 240 months for 20 years at 6%. And then we did a wrap note over top of this, to our buyer at a 30 year, 360 month at nine and a half percent. And that nets out then at 366 a month on monthly cashflow.

Joe Varnadore (10:09):

For 240 months.

Jay Redding (10:10):

For 240 months, and then 939 a month for the last 120 months.

Joe Varnadore (10:16):

Right. So let's, let's talk about that just a second. So you had an underlying lien with with a private lender. This is the, these are those guys that we talk about every week, you know, in NoteSchool just a private lender. Who's got some capital, they could be a burnout landlord, right. We call them a BOL. Right? And you borrowed $80,000 at 6% for 240 months. And then you sold the property subject to that underlying you did, what's called a wrap around. And so you had a 240 month loan with your private lender, right. You were netting 366 a month. Right. And then after that 240th payment, the underlying lien is paid off. And then you've got that full 939 a month in cash flow for another 120 months. Plus you had the defer, you have the down payment, right?

Jay Redding (11:11):

That's correct, yeah. It is $18,000 down payment. Now I applied the 18,000 directly to our debt service to be able to get out. So we would not have to borrow as much with the private lenders what we did. But I mean the cash flow is great on this. I fully anticipate this particular bar cause I just understand how he works. He'll probably pay it off early in chunks and that's fine. Okay. That's no problem at all with that. But yeah, I have essentially turned what would have probably been in my younger years, only about a five grand to seven grand profit. Now, something that's really given us long-term development of wealth over time with some of our other properties.

Joe Varnadore (11:55):

To go to term, you have made over $200,000, right?

Jay Redding (11:58):

That is correct. Yeah. And the other great thing is now we still had $9,000 into the deal of our own money.

Joe Varnadore (12:05):

Right.

Jay Redding (12:05):

Okay. In the first year, our returns at 49% alright. On the money we got into the deal. We have all of our money back in two years and it's, we got no money in the deal after that point. And so it's a, win-win, it's a win for the private lender, a win for the end buyer and it's a win for us. So it's a, it's the great way to do business.

Joe Varnadore (12:26):

Well, and this is exactly the type of thing that we, you know, we teach at NoteSchool, right.

Jay Redding (12:32):

Uh-huh.

Joe Varnadore (12:32):

On a weekly basis. This is the type of thing that we see our students. Right. And you've, and Jay, here's one of the things that, you know, Eddie and I, and Brian talk about all the time. You're one of those guys that, you know, you, came to the class, right? You learn what we taught and then you went out and you applied it. Right.

Jay Redding (12:51):

Exactly. Right. You know what, I remember Eddie talking in the first, well that's our first meeting. Okay. Was that about showing up for practice? He was making the analogy, you know, you got to show up for practice. Well, that resonated with me because I was a former division one track and field coach, you know, I get that. I understand. So that's why I show up for practice every day, right?

Joe Varnadore (13:14):

Jay you didn't say it quite, right?

Jay Redding (13:15):

Okay.

Joe Varnadore (13:15):

Jay, Jay you gotta show up for practice.

Jay Redding (13:20):

You gotta show up for practice, there you go.

Joe Varnadore (13:20):

Let's put in Eddie on right now that we've kind of poked him a little bit. So let's bring Eddie on and let's talk to Eddie a minute about this deal.

Eddie Speed (13:33):

Oh yes. So Joe and those guys, Jay, you know, they never missed an opportunity, but apparently they think I have a Southern accent.

Jay Redding (13:39):

Some type of an accent.

Joe Varnadore (13:41):

I have one too. So.

Eddie Speed (13:46):

Jay, I would say that there were a couple of puzzle pieces here that I just wanted to point out that you utilized, okay. I say this all the time and a lot of people around the real estate investing business, I don't think really get this, but you now really get this.

Jay Redding (14:04):

Yes, very much. So.

Eddie Speed (14:05):

You borrowed $80,000 from what would have been a prior landlord. They have money. They just don't want to be a landlord. They don't want that second job. They want to be just the bank. And so you positioned this deal very well and showed a private lender, how they could loan you $80,000 and Get a 6% true interest on their investment every year or interest on their loan. And by the way, if I'm listening correctly, you immediately gave him 18,000 from the down payment money. And so now they only, they only had 60,000 out, not 80,000 out.

Jay Redding (14:44):

That's not true. Cause I used the 18,000 to only borrow, cause we were into this at 107.

Eddie Speed (14:50):

Okay, I got it.

Jay Redding (14:50):

Okay.

Eddie Speed (14:52):

So they loaned you 80,000. And so that puzzle piece was you used long term, low rate money. People talk about private capital all the time. And I sort of think that they are not talking about the same private capital that we talk about.

Jay Redding (15:06):

Right.

Eddie Speed (15:06):

Right. Some people think going to the real estate investor meeting and getting 10% money is getting private capital. That's what I that's pawn shop money. What you borrowed was not pawn shop money. Right? That was one significant puzzle piece. This all can be done, but people have to have develop a mindset of understanding. There is that guy that needs to get his money out. Right? So you did a great job of finding that private capital. Once you structured the financing with the low cost money in place, then reselling, it really wasn't automatic. Now you happen to sell it to a guy that you knew.

Eddie Speed (15:47):

And definitely, I agree with Joe, he was that penalty box buyer. I have a high volume real estate investor that I was talking to yesterday, guy that you hear on the deal labs, Jay. And he said that he just finished a Refi, he's got perfect credit. He had perfect income. And he said, he just finished a Refi on a rent house. And he said, it took him over three months. And he said, I went through the most hoops I've ever gone through in my career. And I said, and understand that this is the direction the market is going. Real estate is on fire right now, but mortgage lending has tightened their criteria drastically. But Jay, think about this. That guy is a perfect buyer. The mortgage industry is not going to make him a loan and left him behind. You got to provide, you provided home ownership to a guy and now he owns a home because you had the vision of offering Creative Financing to him.

Jay Redding (16:46):

Uh-huh. very much.

Joe Varnadore (16:47):

And Jay, here's the cool thing about it. You know we talk about this all the time. You became the bank.

Jay Redding (16:57):

I did.

Joe Varnadore (16:57):

You're the bank. You put cashflow, you borrowed at one, right. When you deposit your money in the bank and then they reloan it up and they're happy with that spread. Right. They call it arbitrage, right?

Jay Redding (17:07):

Arbitrage Yes. I'm happy with that arbitrage. Well then the other thing, the other thing is, you know, from the private lenders aspect, all right. He's really well secured in this. I mean, his loan to value is only 62%.

Eddie Speed (17:22):

Yeah.

Jay Redding (17:22):

Okay. And the end loan, the end buyer loan is at 84% and it's like, yeah, those are good all the way around, So.

Eddie Speed (17:31):

You know, people Jay all times will think that that kind of a down payment is kind of a fluke. You can't do that.

Jay Redding (17:39):

Well, we've done it multiple times now.

Eddie Speed (17:42):

You know, statistically last month, according there's a software that tracks all conventional mortgages that are made called Ellie Mae. They did a statistic. And the average down payment for a Fannie Mae Freddie Mac loan last month was 19% cash down. So it just starts showing us that when we believe it, then all of a sudden we can live it, right. The market is what the market is, but sometimes we don't believe the market, you know, and I was listening to the, of course, we got the firm joy of living your case study, you know, as you were developing it. And then of course you presented that to an internal audience here, not too long ago with NoteSchool. And we were excited to bring you on NoteSchoolTV today, because let me tell you something you, and I know that you may not do the most volume real estate investing or in your region of the country.

Jay Redding (18:44):

True.

Eddie Speed (18:46):

But I don't believe there's a lot of real estate investors knocking down $200,000 profit on a deal in your region very often, right?

Jay Redding (18:56):

Not at our price points. That's correct. We're not in the, you know, 250, $300,000 price points that are in other parts of the country,

Eddie Speed (19:07):

You made 200 grand on $120,000 house.

Jay Redding (19:12):

Yeah.

Eddie Speed (19:12):

Here's what I think's important. That we, I hear the people always like to say, he's a house buyer and he does so many deals a year. That's kind of like your intro, right? This guy's a house buyer and it does so many deals a year. And you can just smile and look back and say, I'm a house buyer. And I don't focus on volume. I focus on profit.

Jay Redding (19:34):

Exactly.

Joe Varnadore (19:36):

Amen.

Jay Redding (19:37):

I like to set it up and be done for the next 20 years.

Eddie Speed (19:41):

What, you heard of my father-in-law, you know, he was old southern gentleman from Hattiesburg, Mississippi. And when I first started with him this is 40 years ago, when he first started teaching me the business, he leaned over there and he had a pair of reading glasses on the end of his nose, there's like a million miles from the top of his head to those reading glasses. He looked down those reading glasses and he's talk in this real Southern accent. And he'd say, you'll get a check for forever.

Jay Redding (20:08):

And you know, the great thing is on this. You know, it fits right into what we're already doing. You know, we're doing three to five retail flips a year. We create three to five of these. I mean, it's not long too. That's a very sizable chunk that's passing through on a monthly basis. So yeah, it's pretty much our new model for our retail flips. Now let's put it that way.

Eddie Speed (20:29):

That's great. Jay, we are thrilled to have you thank you for coming on and sharing your story. You know, I tell our students all the time and I really do mean this. The power of your story helps somebody else get the vision that they can do this too.

Joe Varnadore (20:45):

Right.

Jay Redding (20:47):

Yeah. So, my pleasure. Thank you.

Joe Varnadore (20:49):

Good to see you, Jay.

Joe Varnadore (20:50):

Good to see you Jay, happy Thanksgiving to you and the family. Let your son-in-law know, we asked about him.

Joe Varnadore (20:56):

All right. Sounds good, certainly will.

Joe Varnadore (20:58):

Thank you,

Eddie Speed (20:58):

Thank you buddy.

Eddie Speed (21:00):

Well, let's bring Brian on. And what do you think of that, Brian?

Brian Lauchner (21:05):

You know, there was a couple of things that stood out to me that I think are kind of interesting. The first one is there's a lot of people out there in their market right now who feel like man, I'm in this competitive market. There's not a lot of deals. The deals that I see, there's just not much meat on the bone. And that was essentially the exact same situation. He was left in where man, I got this flip. There's not much meat on the bone. Am I stuck? Do I become, what's called what I call an accidental landlord where I just like, I guess I'm going to own it forever as a rental property, but by having this additional play, he now had access to more inventory. There's more, you know, marginal deals out there.

Brian Lauchner (21:42):

He could always go get if you wanted to, I guess, but it shows that inventory really may not be the problem just because you're in this super competitive marketplace. And there's these deals that seem marginal that by adding Creative Financing to it and buying something on terms or being able to resell it on terms, you create your own margin, you create your own profit. And so it just, it's a really eye-opening thing for me. And I think for a lot of other investors as well, it'd be like, well actually, maybe I do see deals like this. Right? And the other piece that I thought was really fascinating was, you know, the raising capital piece, I talked to so many investors, especially, especially when they're new, they say, well, man, I, where do you find private money? Who's going to loan me private money.

Brian Lauchner (22:25):

And the reality is money goes to good deals, of course. But what was really fascinating is he thought in terms of, what would, what would make the bank, the bank, the private lender, the burn-out landlord, give me his money. Well, I'm going to give him something that he gets a return on investment, right? In this case, it was, you know, under 8%, which is great. But more importantly, he said, how do I get it down? How do I get that number down to the 6%? Well, I'm going to lower his risk. The lower, his risk goes the lower my chance of getting a lower interest rate. Right? And so by moving the loan to value from 80% loan to value to 70% to 62%, I think he said it really started to incentivize the lender to say, okay, I know I'm going to get my money back. I feel pretty good about this. I'm okay with taking that 6% because you're not asking me to put it into a hard money deal to where yeah. I can get 10%, but who knows if this house is ever going to get flipped or ever gets sold. Right?

Joe Varnadore (23:20):

You know, you gotta go out and find somebody to reinvest to borrow money again from you in three months or six months or nine months, whatever it is.

Brian Lauchner (23:28):

Yeah, exactly.

Eddie Speed (23:28):

Well, and once again, he gave a burnout landlord, a chance to get their money deployed and earn an interest rate and, No, they're not going to get an invoice for the air conditioner or whatever. They already, they don't have a tolerance for that kind of investment anymore. Just making a loan Was great. I'm going to remind you guys, this case study, there was no Seller Financing when he bought it involved. A lot of our case studies will be involved where the seller carried all of the financing when you buy it. And in this case, the seller walked away with cash and it was a big rehab project. So there was a lot of things about this deal that are different than some other case studies where the seller carried a lot of the financing when he bought it. In this case, the seller got all cash and didn't carry any financing. Other thing about this is, is Jay had been investing in properties for years. And I think a lot of times, you know, Brian, you look at yourself, you were a full-time wholesaler for years and really were just sort of resisting. I'm going to this Creative Financing is not really what I need to do. And it's just funny. So I would, as an encouragement, I would say, if you've been doing this for years, and you're not where you want to be, then, then consider what Brian has figured out and consider what Jay has now figured out. And if you're young and you haven't been through all the pain and aggravation that Brian has, or Jay has, then why don't you figure out earlier than they did, how to add this to your business.

Brian Lauchner (25:03):

Yeah. And some of us don't, even when Eddie speed himself says, you shouldn't really be doing this, but it is kind of interesting because my fear and maybe your fear is that you have to give up your money today. Like, Oh, well, you know, Jay's going to make all this money in the long term, but I got bills to pay. I got, you know, and that was one of my fears. And if you'll go back and watch last week's episode of NoteSchoolTV, you'll see that you can make some money today and it's not a problem. Right. And so if you're interested in kind of what was created today by Jay, if you're trying to learn a little bit more about notes, or maybe you just want to understand the note piece of it. Right? and just understand, I don't really talk to sellers.

Brian Lauchner (25:44):

I just want to understand the note piece. Well, I would encourage you while you're on the YouTube channel, go to the playlist called Feeding Frenzy Friday, where we break down a note asset from Notes Direct each week, talking about the pros and the cons and some of the due diligence with that note to find out, Hey, is this a great note or is this a bad note? And what's kind of my exit strategy. As always, we'll be here every single Wednesday at 11:00 AM live central time to kind of talk a little bit more and try to bring some value to you and to your investment business and encourage you to, again, please like the video we'd really love for you to subscribe to the channel. It means a lot to us. We love to get the engagement, so make sure you're clicking that bell notification to get involved. And again, if you're like, this is cool. How do I learn more than just watching one video? Well, again, subscribe to the channel, but also you could go to www.NoteSchool.com/TV, and learn a little bit more about some of the content that we have and some other videos that we'll try to point you in the right direction. So we really appreciate you coming on this week. We will plan on seeing you next week. And again, we'll see you on NoteSchoolTV. See you next week.

10 - Why sell to an investor?

https://u109893.h.reiblackbook.com/seller6/effortless-home-buyers/10-why-sell-to-an-investor/

Why should you sell to an investor?

There are a lot of reasons for that. For example, investors such as us can move faster. We can close on a property within 15 to 30 days. The retail sale route can take so much more time.

Another reason is the fact that we buy as-is, where-is. We are taking it in the condition that it’s in; you don’t even have to clean it out!

And one more reason is we usually don’t have any type of contingency in our contract.

If you want to learn more about us you can visit https://www.effortlesshomebuyers.com/

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.

Find out more at
https://www.TheStorageStud.com
https://titanwealthgroup.com/

Listen to our Podcast:
https://thestoragestud.podbean.com/e/effortless-home-buyers-why-sell-to-an-investor/

-------------------------------------------------

So why sell to an investor as opposed to going with a realtor and selling to a homeowner?

Well, there's a lot of reasons for that. Usually investors like ourselves can move a lot faster, we can usually close on a property within 15 to 30 days from the day that you contact us. Whereas, when you're going the traditional route, going the retail sale route by getting an agent involved and putting it on the MLS and taking photos and doing repairs and staging the property and getting another agent to show these properties to their buyers, then getting it under contract, then dealing with, you know, a lender and a loan contingency. That process can take six months from beginning to end. Whereas if you go with an investor, we can usually short change all of that and close within 15 to 30 days.

Another reason for going with an investor over a retail buyer, is the fact that we usually buy as is where is, which means that you don't have to do any repairs to the property, you don't even have to clean out the property, we're going to take it in as is condition, where is. Another really good reason for selling to an investor is we usually don't have any type of contingencies in our contract. When you go with a retail sale through a real estate agent, usually you'll have to do repairs, you may have to give concessions based off of the inspection report. These are all things that if you don't have the capital to pay for these things that may not be feasible and you just wasted four to six months of your life. Whereas, when you go with an investor, you know the price that we give you on the contract is the price that you're going to get at closing.

Wednesday, December 2, 2020

9 - What is seller financing offer?

https://u109893.h.reiblackbook.com/seller6/effortless-home-buyers/9-what-is-seller-financing-offer/

What is the seller financing offer?

This is the fourth of the five offers we can make to sellers.

In some cases, our previous offers may not make sense based on the timeline goals of the seller. But if the seller is willing to be our bank, then we will be able to make a higher offer because the interest rates we would normally pay to an investor is mitigated.

To learn more about this offer and if it fits your goals, visit https://www.effortlesshomebuyers.com/

Find out more at
https://www.TheStorageStud.com
https://titanwealthgroup.com/

Listen to our Podcast:
https://thestoragestud.podbean.com/e/effortless-home-buyers-what-is-seller-financing-offer/

---------------------------------------------

Now let's move on to the fourth of our five offers to a seller, which is a Seller Financing Offer.

Now, in some cases, our Cash, Cash Plus and our Price Lift Offer may not make sense either for the financial goals or the timeline goals needed for the seller. At that point, what we're able to do is if you're willing to be our bank, be our our financier, our seller financer, we're able to pay a higher amount to you because the interest rates that we would be paying to our investors to take the funds to do the project are mitigated. So say for example, we offer one of our investors 8% interest in order to lend us the funds to rehab the property and then resell, but if you are willing to offer us interest in the four, three, four, 5% range, then we're able to take that difference in what we would have paid to our investors, and actually put that into the offer to you, to then go ahead and push up your offer to have more cash in your pocket.

Now, The Seller Finance Offers are very creative offers, these are types of offers where you can, it can be a short term seller finance, maybe it's a small project that needs a lot of rehab, so we'll go in, we'll say, Hey, seller, we'd like you to be the bank on this, hold the note for us over the next six to nine months, we'll go ahead and go get the construction funds, we'll rehab the property, and then once we go and sell that property to a homeowner, we'll pay off that debt to you or that note and mortgage to you. So throughout the entire process, you're completely secured in your position, you're just like a bank, your attorney can set up all of the paperwork, and if you don't want to use an attorney, we can have one of our attorneys represent you and set up all that paperwork in your best interest. And then once the property sells, then we'll go ahead and pay off that note and mortgage, just like a traditional real estate sale where there's a bank involved.

Monaz Karkaria | Florida Mastermind

https://carolinahardmoney.com/monaz-karkaria-florida-mastermind/

Bill Fairman introduces a great guest in Monaz Karkaria. They discuss Monaz’s first presentation during CG.

It gives a glimpse of what to expect and how much can be learned during this event. Tune in to learn more about her experience during the event.

Carolina Capital is a hard money lender serving the needs of the “Real Estate Investor” and the “Small Builder” borrower who is striving to build wealth and generate income for themselves and their families. We offer “hard money rehab loans” and “Ground up Construction Loans” for investors only in NC, SC, GA, VA and TN (some areas of FL, as well).

As part of our business practices, we also serve as consultants for investors guiding them to network with other investors and educating them in locating and structuring transactions. Rarely, if ever, will you find a hard money lender willing to invest in your success like Carolina Capital Management.

Subscribe: http://thealternativeinvestor.libsyn.com/rss Visit our website: https://carolinahardmoney.com YouTube Channel: https://www.youtube.com/channel/UCYzCFOvEt2n9TchgECLwpww/ Facebook: https://www.facebook.com/CarolinaHardMoney/

Listen to our Podcast:

https://thealternativeinvestor.libsyn.com/monaz-karkaria-florida-mastermind #HardMoney #RealEstateInvesting #mortgage #privatelending #affordableHousingloans #realestatefinancing #northcarolinahardmoneylenders #southcarolinahardmoneylenders

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Bill Fairman (00:00):
I have a great guest, Monaz. I tried to pronounce it several times and I’m trying, let me try. Karkaria.

Monaz Karkaria (00:15):
That’s fine. Karkaria.

Bill Fairman (00:17):
Is it correct?

Monaz Karkaria (00:17):
Karkaria, yes.

Bill Fairman (00:19):
It was close though.

Monaz Karkaria (00:19):
You close.

Bill Fairman (00:20):
So Monaz is, this was her first meeting here at the CG. She had a great presentation, oh I’m sorry, the camera’s over there, I keep looking at the stupid computer.

Monaz Karkaria (00:30):
Right, sorry.

Bill Fairman (00:30):
It’s my own fault, I’m the one looking down there too. But Monaz is out of Dallas, as you can tell by her accent, she’s from Texas.

Monaz Karkaria (00:40):
Yeah.

Bill Fairman (00:42):
What’d you think at your first meeting?

Monaz Karkaria (00:45):
I loved it. It was very interesting. I got to learn a lot, lots of nice takeaways, nuggets as I call it and I’m definitely going to continue and be back for more. So right now, all I see is a great group of people, I’m hungry to learn and grow my business and take it to the next level.

Bill Fairman (01:06):
And some of the things we were talking about is how giving the group is here because I was just on with Leon and how the community is always here to give. Now, you still have to be able to share because when you’re, you’re in a mastermind, if you’re the smartest person in the room, you’re in the wrong room.

Monaz Karkaria (01:24):
You’re in the wrong room.

Bill Fairman (01:24):
And it’s one of the things about the culture here at CG is that we’re all trying to give back as much as possible and if you run out of good stuff to say, you better go study something so you’ll have something better next time. So let’s talk about your business. You got started and single family, buy and hold and your original goal was what?

Monaz Karkaria (01:50):
Four. Four houses.

Bill Fairman (01:50):
How many do you have now?

Monaz Karkaria (01:56):
So I have 71. Three out of those are commercial deals, actually and they’re paying very well and I have one multi-family. So I feel I’m blessed.

Bill Fairman (02:08):
I think you have exceeded your goal.

Monaz Karkaria (02:11):
Yes. My goal keeps changing every couple of years.

Bill Fairman (02:15):
That’s one of the, listen, that’s all part of life. Things change, you can’t set the goal. I mean, you can set the goal up here, but you can only fit it in smaller increments. We were just talking about that again with Leon it’s, you know, how do you eat an elephant? It’s one bite at a time.

Monaz Karkaria (02:34):
One bite at a time.

Bill Fairman (02:34):
That’s the only way you can do it. So, how many markets are you in now?

Monaz Karkaria (02:40):
Right now, I’m in three markets in the US and I still have my original properties back home in India. So Texas, Indiana, and Florida.

Monaz Karkaria (02:50):
So I want you to hear this again. She still has homes in India that she owns and is renting out and if you’re afraid to get outside of your market, it’s not like she can get in the car and go drive and see it. Now, Monaz has one flaw in her real estate investing and that is she gets emotionally attached to her property.

Monaz Karkaria (03:16):
Yes, I’m working on that. Trust me, I’m working on it. I’ve come a long way because before, if someone would even come and say, do you want to sell your property? That would make me so mad that I would say don’t ever call me again and I will sue you if you’re calling me again. So from there saying, no, I’m not interested right now or maybe if you offer me double of market price, I think I’ve come along. And I do sell a few now. So yeah,

Bill Fairman (03:50):
Well a good investor is always looking at their portfolio and seeing how they can adjust that portfolio. So they don’t have too much dead equity. I like to say, lazy money. Because if you have too much equity in one property, you could take that money and all right, so let’s say you sell that property, maybe you can now buy two or three and double your cashflow.

Monaz Karkaria (04:21):
That’s true.

Bill Fairman (04:21):
Or you can refinance them and do the same thing. And as we all know, rates are really low and you can get really long terms that, you know, the issue is when you and you own as many properties as you do, you’re not going to qualify for the Fannie Freddie type loans but rates are still extremely low right now and if we could find a commercial banks, and there are some out there that will still do this, that will allow you a 20 year loan. Not one with a balloon or one with a call option so you can keep those for long-term at really low rates and we talked about this the other day too, about paying. Excuse me. Our friend, Aaron Chapman who’s been on our show quite a few times, talks about this a lot. Bing able to pay in today’s dollars tomorrow and in the future because we all know that today’s dollar is not going to buy as much stuff 10 years from now.

Monaz Karkaria (05:20):
Yes. It’s time value from money.

Bill Fairman (05:22):
So, if you guys can hear the thunder in the background, I’m pretty sure it’s not going to come here. This is just a normal sound of Clearwater. So

Monaz Karkaria (05:36):
On here, the wind is crashing on the rocks, maybe

Bill Fairman (05:39):
We can hope so. So, what was I going to ask you? I am so sorry. All right. So quit laughing at me, Jonathan. If you don’t have anything nice to say, even to yourself.

Jonathan Davis (05:56):
Bill, no one could have anything to say. You don’t take a breath, even when you don’t remember what you want to say, no one can come in and cause you’re talking about what you forgot

Monaz Karkaria (06:08):
By the way, Monaz, meet Jonathan.

Monaz Karkaria (06:11):
Hi Jonathan, how are you?

Jonathan Davis (06:13):
I’m good. How are you doing?

Monaz Karkaria (06:14):
I’m glad I get to see you.

Jonathan Davis (06:16):
Yeah, I know Bill and Wendy were excited to meet you.

Bill Fairman (06:21):
Jonathan is on this back porch with his little fireplace behind him. It’s 68 degrees and raining but he still decided to take it outside.

Jonathan Davis (06:33):
I thought, Bill, if you were going to be poolside, I was going to be fireside.

Monaz Karkaria (06:38):
Awesome. Is the fireplace on the wood?

Jonathan Davis (06:42):
It’s a wood one. So yeah, I’ve got some logs in there and burning.

Monaz Karkaria (06:44):
Awesome. Cool.

Bill Fairman (06:45):
You can’t see because they have his name in front of it. Oh there it is.

Jonathan Davis (06:48):
There you go.

Monaz Karkaria (06:48):
There, I see it now. Yeah.

Bill Fairman (06:52):
Yeah. Now you’re going to have to clean it out. I’m always thinking ahead.

Jonathan Davis (06:58):
That’s why we have a kid for.

Bill Fairman (06:58):
That’s right. They’re not old enough yet. Oh,

Jonathan Davis (07:01):
They’ll learn young. Come on, now. You got to put them to work.

Bill Fairman (07:03):
All right. So about your cashflow, what is your goal for cashflow typically when you’re buying a property that is going to have a leverage on it.

Monaz Karkaria (07:16):
Okay. So my minimum cashflow that I want from the property, I do the perimeter so I buy it with hard money and then I put whatever I need to put down. And my goal is to try and refinance it in three to six months as quickly as possible and once I refinanced it, my goal is to make minimum $400 or door. I make more than that. But if it makes less than $400, I don’t buy it.

Bill Fairman (07:44):
That’s pretty interesting. There’s a lot of markets where the goal is $200.

Monaz Karkaria (07:49):
I know, but at 200, so I have a system that I’ve developed where I have red, yellow, and green. So all my green properties are the ones that are making more than $400 so I’m going.

Bill Fairman (08:01):
Good reason to have them green, green for go.

Monaz Karkaria (08:04):
So I like it, I love those properties, they’re there. Then anything between 200 and 400 goes into the yellow zone and anything that’s making less than $200 a door goes into the red zone and those are the ones that I have to sell.

Bill Fairman (08:20):
That makes sense.

Monaz Karkaria (08:20):
So once they got red, I have to figure out how I can make it yellow if I can, by raising the rents or reducing costs. Sure and if I cannot, then in six months, I have to sell those properties.

Bill Fairman (08:34):
That’s a good system. Now, do you have any that are red now? Yes. Well, now’s a great time to sell them because the prices are out.

Monaz Karkaria (08:43):
Correct.

Bill Fairman (08:43):
Right?

Monaz Karkaria (08:44):
Correct.

Bill Fairman (08:45):
What markets are those in the United States?

Monaz Karkaria (08:46):
One in Miami, which is my retirement house. So I know it’s red but again, there’s an emotional to it. We bought it because we found it really cheap. We don’t know when we are going to retire but eventually we’ll retire. So even when I bought it, I knew it would be in the red and I’m fine with it being in the red because knowing, going in, I knew that we would have to pay something out of our pocket. The rent would not cover it because it’s a super expensive house so that’s fine. And then the second house that’s red is one that I bought for my daughter to go to college right by SMU, which is in Highland park, which is one of the most prestigious areas of Dallas. And again, I knew it’s going to be red. So there was no my red houses and next year I’ll be selling it cause she’ll be graduating and then I won’t need it anymore.

Bill Fairman (09:34):
Well, I can say the one in Miami, if you can look at trends in history, the Miami Fort Lauderdale market. There’s a lot of this. So if you can sell it now while everyone’s moving from New York, you can buy it back here fairly.

Monaz Karkaria (09:48):
I actually thought about it cause I’ve been talking to my real estate agent last week, we actually had this conversation. Should I just sell it now and buy something else in two years or three years when I’m actually ready to move and maybe we’ll actually do that.

Bill Fairman (10:06):
I just know from history, that’s not a bad play. The chances are it’s going to go down and then come back up again.

Monaz Karkaria (10:13):
Right. You’re right about that.

Bill Fairman (10:14):
Listen, thank you so much for joining me.

Monaz Karkaria (10:17):
My pleasure.

Bill Fairman (10:18):
It was wonderful meeting you this weekend. I look forward to having to come back again.

Monaz Karkaria (10:23):
Absolutely.

Bill Fairman (10:23):
Well, I say this weekend, we did it at the beginning of the week. It’s not the weekend yet.

Monaz Karkaria (10:28):
It feels like a weekend for us, right?

Bill Fairman (10:30):
I know you got a flight that you need to catch and I appreciate you taking the time to come up here.

Monaz Karkaria (10:34):
Thank you.

Bill Fairman (10:34):
In this terrible wind.

Monaz Karkaria (10:37):
Have a great day guys, thank you, bye bye.

Jonathan Davis (10:38):
Nice to meet you.

Bill Fairman (10:38):
Alright, Jonathan.

446 - Money Ripples Newest Coach - Craig Feldmeier

https://moneyripples.com/2020/12/02/446-money-ripples-newest-coach-craig-feldmeier/

In today’s episode, Chris Miles has a special guest in Craig Feldmeier.

About a year ago, Chris launched a financial program for people who are either financial advisors or looking to become more like anti-financial advisors, one of the participants that really stood out was Craig.

Craig is one of the few people that Chris knows who practices what he preaches. He is getting himself out of the rat race by doing investments.

In the beginning, Craig always tried to follow “the script” to become successful. Study hard, get good grades, find a job and open up a 401K. He then realized in his first month of having a 401K that he can’t even choose what he can invest in.

A couple of years in his job at Premier Investment Bank on Wall Street and working with ultra high net worth clients, (meaning people with 5 million dollar net worth and more), a light bulb moment hit Craig. He started to learn how his client’s portfolios are designed, he came to know that people with 5 million dollar net worth, are only able to generate cash flow on those assets about 10 to 15 thousand dollars a month pre-tax.

He came to a realization that he is nowhere near having a 5million dollar investment portfolio, then he started tracking his 401K and learned that it wasn’t growing as much as he thought it would be. This is a stressful moment for him because he knew he was doing everything right, what the “society” wants him to do.

With this he takes a grand shift by educating himself. He looks for great mentors and tries to do what they are doing because Craig knows that there are people who do not struggle in their retirement years. This way of thinking led him to Chris Miles and other people who are buying, investing in cash flow and producing assets.

Listen to our Podcast:

https://www.blogtalkradio.com/moneyripples/2020/10/23/446--money-ripples-newest-coach--craig-feldmeier

http://moneyripples.com/ https://www.blogtalkradio.com/moneyripples https://www.twitter.com/chriscmiles https://www.facebook.com/moneyripples #FinancialAdvice #RealEstateInvesting #Finance

—————————————————–

Chris Miles (00:08):
Hello! My fellow Ripplers. This is Chris Miles, your Cash Flow Expert and Anti-Financial Advisor. Guys, welcoming you out for a wonderful show that’s for you and it’s about you. Those you work so freaking hard for your money and you’re ready for your money to start working harder for you. Now! You want that freedom. You want that cash flow. You want that prosperity today, not 30 or 40 million years from now, right? For right now, so you can live that life that you love doing what you love and do it with whoever you want. And on top of that, guys, not just you’re here for your own financial prosperity, but you’re here to make a difference in life. You’re here to make a difference in other people’s lives. As a Rippler, you want to create that “Ripple Effect” by blessing more lives as you are blessed too. Guys, thank you so much for allowing me to do that through you.

Chris Miles (00:50):
Thank you for allowing me to teach and to guide and to inspire you guys to live and create something greater than the status quo. Here’s a reminder, check out our website, WWW.MONEYRIPPLES.COM There’s great stuff on there. There’s blogs and videos, and you can even go check out YouTube on our Money Ripples with Chris Miles page as well. So subscribe there and check it out. So today guys, I’ve got a special guest for you. Last week I kind of teased about him a little bit, mentioning that, you know, as you know why I’m here, why I’m doing what I’m doing, right? Like I really had to have kind of my own little come to Jesus talks over the last several months, you know, of what do I really want to do? Because I recognize that as Money Ripples grows and gets bigger and it’s just naturally getting bigger.

Chris Miles (01:34):
You guys, I mean, that’s all because of you, right? Like the fact you guys are, you know, bingeing on these episodes, you’ve been sharing with other people. You’ve been having conversations. And this is even becoming not just nationwide, but even global too. And I realized that, you know, I have a choice I can either grow or I can shrink, right? I can either try to go back to what’s comfortable just focusing on what’s good for me, or I can really create that “ripple effect” I keep talking about with you guys and that “ripple effect” can go way beyond just a small even audience of what you guys are now. Although there’s thousands of you, I know it could be millions of you. And I know that I can’t do that alone. And that’s exactly why I brought on a special guest here.

Chris Miles (02:16):
So if you guys went back to the episodes about a year ago, I launched a financial program for people that were either Financial Advisors or looking to become more like Anti-Financial Advisors. Right? And that’s exactly what I did. And so there was about a dozen people that went through this training program. And one of them that really stood out was my guest here today, which is Craig Feldmeier here right? Now, I’ll tell you like a, you know, the one thing is I love people that practice what they preach, you know, and Craig’s doing that. Like, he’s the guy that’s getting himself out of the rat race already doing these investments. He’s a sharp guy. He’s been doing this a lot and I really just want to introduce you guys really introduce him to the world! You know, here to talk about that. Like no pressure, Craig, you know, but, really just to kind of introduce him to you guys. And so Craig welcome our show!

Craig Feldmeier (03:05):
Yeah. Thanks for that intro, Chris!

Chris Miles (03:07):
Yeah you bet. So, give everybody your background, like, you know, what leaving led you down this path to be where we are today right now?

Craig Feldmeier (03:14):
Yeah, sure. So I kind of we’ll start back from the beginning. And I think a lot of people, I think my story will resonate with a lot of people in terms of, you know, I was always trying to follow the script of what you’re supposed to do to become successful. You know, at least what, you know, your parents teach you what the media teaches you. And you know, even going back to my high school days, you know, I was a really good student. Tried really hard in school, got a good grades, you know, went to a good college when I was in college. My goal was to get a great job and make a lot of money. So I, you know, I got a job with, you know, a premier and investment bank on Wall streets, you know, and then when I started with working with them, I said, you know, man, I’ve you know, I’ve made it, I’m here, I’m 22 years old, making some good money.

Craig Feldmeier (04:05):
And then what did I do, which, you know, most first year analyst do, or most first year employees? You open up a 401k because that’s what you’re supposed to do. Right?

Chris Miles (04:15):
Right.

Craig Feldmeier (04:16):
So I remember, you know, the first month of work kind of opening the 401k and then the first, you know, the first big shock for me was, Oh, wow! I can’t even really pick what I can invest in. You know, I’ve got 10 different mutual funds and target date funds, where I can put my money. Doesn’t really know too much about the target date fund at the time. This is, you know, 2008, 2009. So I said, okay, you know, I’ll put in a certain percentage of my salary into this target date fund and just kind of let it ride. So, you know, over the years my job at that investment bank was working with ultra high net worth clients.

Craig Feldmeier (04:53):
So that typically means in the industry a $5 million liquid net worth. And so people who have significant amounts of wealth.

Chris Miles (05:01):
Yeah.

Craig Feldmeier (05:02):
And what really kind of the first light bulb moment I had, a couple of years into the job and I was really starting to dig into how our client’s portfolios are designed. And I came to realize that, you know, people with that $5 million net worth, they were only able to generate cash flow on those assets about 10 to $15,000 a month pre-tax. Now it’s a pretty good, I would take 10 to 15 grand a month. Don’t get me wrong, but it dawned on me. And I said, you know, I am nowhere near having a $5 million investment portfolio. And on top of that, will I ever have a $5 million investment portfolio? I don’t know, you know, so then I started tracking my 401k, seeing, you know, how that wasn’t growing nearly as much.

Craig Feldmeier (05:49):
As I thought it would be a start, you know, looking into more of, you know, the expenses of these mutual funds. I mean, even with the company match, wasn’t growing, you know, nearly as much as I thought, and I really kind of had, you know, a stressful moment thinking, you know, what am I going to do? I’m doing everything right. I did everything, you know, society told me to do, you know, maybe I’ll reach that magic $1 million number, you know, 30 or 40 years from when I started working, I took it a step further. And I said, okay, see you even get to the million dollar number. You know, the financial pundits say, you know, when you’ve accumulated assets, what can you withdraw? You know, 4%, even 4% now is I think a little generous. I think most of usual advisors are saying, you know, kind of the two to 3% range, you know, just for the purpose of this conversation, let’s say 4%.

Craig Feldmeier (06:37):
I said, if I have a million dollar net worth or a million dollars in my retirement account, and I’m withdrawing 4% a year, I’m only making or only taking $40,000 a year pre-tax so you still have to pay taxes on that money because the 401k taxes are deferred until you make your withdrawals.

Chris Miles (06:55):
Yeah.

Craig Feldmeier (06:56):
So that was a very jarring kind of light bulb moment that happened to me. And I said, wow! Even working all these years, working super hard, you know, I’m only able to take out $40,000 a year. You know, that’s just for me to live at that point. You know, I want to be able to help my family be able to put my kids through college, you know, how am I gonna do this? And so I really kind of went down the path of trying to educate myself. I said, you know, I know there are people who do not struggle in their retirement years.

Craig Feldmeier (07:23):
So let me try to do as much research as I can, really kind of find some mentors that are out there and see people that I kind of want to emulate my life after, I let me do what they’re doing. And through those kinds of thoughts and conversations that led me to, you know, introducing myself to you and similar people who think like us. So that’s kind of led me to to where I’m at right now. And I’ve had a huge shift in mentality in terms of I’d say the main shift is really going from being an asset gatherer, accumulating a pile of assets, which really is kind of the scarcity mindset that, you know, I know you’ve referred to in the past, it’s kind of humiliating a bunch of assets and then doing everything you can to making sure that, you know, your assets don’t go down and just kind of, you know, a few percent off the top every year to live on, as opposed to having a really shift to more of an abundant mindset.

Craig Feldmeier (08:24):
And that really has to do with buying, investing in cash flow producing assets, because if you can start building cash flow now, you know, 500 a month, a thousand a month, 2000 a month, you know, over time that can really accumulate to 10, 15, $20,000 a month given, you know, individual circumstances given how much runway you have. But it’s really become a very big passion of mine. And, you know, I’m gonna, you know, try to follow in your footsteps and really try to help people escape the rat race. You’re really helped that financial underdog get to financial freedom, take control of their finances and really kind of take control of their life.

Chris Miles (09:04):
Yeah. And the cool thing is, you know, you’re talking about doing this stuff all without having to build up five or $10 million. Right?

Craig Feldmeier (09:10):
Exactly. You really can get started. I mean, you can get started really with any amounts. I would say, you know, if you’re looking to invest in real estate and single family homes, multi-family properties, which is, I know a big part of my investment portfolio, I’d say at a minimum you need 15 to 20,000 to get started.

Chris Miles (09:31):
Yeah.

Craig Feldmeier (09:31):
In a good credit score. And, you know, really, you can kind of take it from there just to kind of get your passive cash flow rolling.

Chris Miles (09:38):
That’s right. Absolutely. Yeah. One thing we always thought about it’s like, you know, you even have a hundred thousand bucks, you know, and the a hundred thousand can easily turn it to at least 10,000 a year, which for some people I think that wait, that doesn’t seem like it’s possible. It’s like, actually we’re being conservative. We’re trying to go on the low end. So you don’t, we don’t over promise anything, you know? Cause it depends on where you decide to invest, but it’s not that difficult is it?

Craig Feldmeier (10:01):
It’s really not. And especially too, if anyone’s listening to this in 2020, you know, you still have a few months left to qualify for those Cares Act distributions, which I have taken advantage of myself. So just as a kind of a recap, you know, that’s allowing people to withdraw to a hundred thousand dollars from their retirement accounts. You don’t have to pay the 10% penalty and you can defer taxes on those investments over three years as opposed to paying taxes the whole lump sum next year. So a very powerful thing to do just to kind of get the ball rolling. And it was a very, you know, it was really tough. I’m not gonna lie when, you know, I stopped contributing to my 401k a couple of years ago. You know, when I took out that first, you know, lump sum of cash, from my retirement assets, you know, as I said, Oh my gosh! Am I doing the right thing?

Craig Feldmeier (10:53):
Is this a huge mistake? I’ll tell you what, it all disappeared. As soon as I got that first rental check, kind of hitting my account. I said, wow! You know, this is real. And a lot of people say real estate is risky. You know, I’ve done a lot of work getting myself up to speed and kind of becoming, you know, an experts and the real estate space, at least in terms of the single family home, the multi-family home, you know, there are, you don’t have to go out driving through your neighborhood right away and finding, you know, some duplex that you need to spend a bunch of money renovating, trying to find tenants yourself. You know, there are easier ways to go about investing in real estate. I know we’ve talked extensively about getting started with turnkey properties, which I think is a great first step for people.

Craig Feldmeier (11:45):
Basically, you know, you have these companies that really go into neighborhoods that they’re experts in, they purchase properties that you buy. And all you have to do is really kind of send in your down payment check. You talk to a property manager and you really just kind of collect that cash flow every month. And I think conservatively right now, kind of given where rates are. I mean, this is the best time to invest in real estate rates are so low, probably the lowest we’ll ever see in our lifetimes. You know, you can get 10, 12, 14%, I think cash on cash return in a very conservative investment.

Chris Miles (12:24):
Yeah, I totally agree. And that doesn’t even sound conservative to most people, they hear those numbers that’s high risk creates high returns. Right?

Craig Feldmeier (12:32):
Right,. Exactly.

Chris Miles (12:34):
It’s kind of flipping on its head.

Craig Feldmeier (12:36):
And I mean, the way, you know, different people have different ways. They think about how they want to invest their money. For me personally, my wife and I, you know, we came to the agreement that we wanted to cover our fixed expenses with passive cash flow. So passive cash flow is you don’t really have to do too much in order to get your money every month. And then, you know, once we have our fixed expenses covered, maybe we can take some more risks and look at some more active cash flow measures, really try to kind of follow our passions, do something where you can maybe make a little bit more return. But I think just, you know, just the freedom that being able to cover your fixed expenses through passive cash low, it provides you with just such certainty in life that you can really, you know, if you love your job, that’s great. You know, maybe you get a new boss that comes in. Maybe they want you to move to another city. It really gives you kind of the power to control your life in the way you want. And just, you know, educating people that you don’t have to be a slave to the corporate world. You don’t have to be a slave to a financial advisor or to these mutual funds, you know, is very empowering. And I think, you know, people can just start learning that way of thinking. It can really change someone’s life.

Chris Miles (13:52):
Yeah. I agree. So from your experience, you just left the corporate world, right? Like you’re now out of that, you’ve the shackles have been released from wall street, you know, invest how you want, you know, for those that are also in the corporate world right now, and they’re trying to do what you’re doing, right? They’re trying to get to that step where they’re able to free themselves from that. What are some recommendations you would give?

Craig Feldmeier (14:13):
I would say the best thing to do is just to start small and don’t take any drastic moves right now. I would say number one, the thing that every investor has to do, and this is no matter kind of what type of investor you are. If you like stocks, if you like bonds, if you real estate. You have to get your personal financial statements in order. That’s number one, it’s really important to be organized. So what that means is you have to come up with your own personal balance sheet, come up with a list of what all your assets are and what all your liabilities are. I remember when my wife and I did this for the first time, she was shocked at how many assets we accumulated. Cause we never had really looked at them all together on paper between our, kind of our 401k accounts between our primary residence, between some other money we had.

Craig Feldmeier (15:05):
And she said, wow! I didn’t realize we had so much, but it doesn’t seem like it because none of our assets were producing any cash flow for us, which I think is a problem. You know, there’s so many people have. So first getting a sense of, you know, what are your assets? What are your liabilities? What are some high, if you’ve got some high interest credit card debt, how do you pay that off quickly? And then you also want to get a sense of what your income and expenses are. So in the business world, we call that a profit and loss statement. On a personal side, I would say, you know, list out what your income is, list out what your expenses are. And that’ll give you a really good sense of areas you can cut back on and it will give you a good sense of how much money you have every month to start, you know, your investment portfolio.

Craig Feldmeier (15:51):
And then I’d say once you kind of get a better understanding of how your, you know, your financial statements are set up, then you say, okay, what are my goals? What do I want to accomplish? Do you want to, you know, get out of the rat race in 10 years in 15 years in 20 years, you know, do you want to help your kids pay for college? You know, you had to really think about what those financial milestones are. And then it’s much easier to design a plan in order to produce cash flow to reach those goals. So maybe you could say, you know, if I can get 5,000 a month, 10,000 a month, that would really help me solve my financial goals, my financial problems, then you and I can come in and say, okay, this is what you need to do. This is how long you know, we think it’s going to take, and that gives you a sense of kind of how to structure your working life.

Craig Feldmeier (16:41):
How aggressive do you need to be to save? Are there any sacrifices you need to make? You know, right now my wife and I are debating, do we still need two cars? Now that we’re both, kind of working from home, you know, that could be a huge expense that somebody could get rid of that maybe seem, could be jarring at first, but you know, maybe once it’s gone, it’s like, ah! We didn’t, we don’t need two cars anymore. Just kind of getting a sense of what your goals are, how your assets can produce cash flow for you, I think is kind of just the best way to really get started.

Chris Miles (17:15):
Amen to that. That’s great. I love it, man. So last question for you, Craig, right?

Craig Feldmeier (17:19):
Yeah.

Chris Miles (17:20):
Why? Like, why you care so much about teaching and doing this? Cause you could just keep focusing on your portfolio and doing your thing just like I could do, right? Why are you doing this? Why are you wanting to teach people this stuff?

Craig Feldmeier (17:33):
You know, such a good question, Chris. You the, 2020 has been such a rough year in so many different ways, but a lot of people, myself included and you know, my wife and I, you know, kind of midway through the summer when COVID is really kind of, when it, when we realized it was going to be more of a long-term reality than, you know, than a short-term reality, we said, you know, what do we really want our life to look like? We never really sat down and kind of have that conversation. And I was pretty miserable in my current job. And you know, I said, I really, you know, what is it I really want to do? What really kind of lights my internal fire? And I told my wife, I said, I really want to help people that are really struggling and are really frustrated with their financial situation.

Craig Feldmeier (18:22):
I want to help them, you know, take control of their life, you know, help them build the steps to financial freedom. That really gives me a lot of fulfillment. And I think that’s kind of, you know, the light bulb moment I had when I said, you know, this is important. This is kind of what my mission is. This is the problem that I want to help people solve for.

Chris Miles (18:42):
Yeah.

Craig Feldmeier (18:42):
How am I going to do that? And so that’s kind of, you know, what led me to, you know, conversations with you going through your financial training course and you know, that’s just, that’s kind of what gets me out of bed every day. That’s kind of, you know, that connection with clients trying to help them, you know, just plan their financial future, in the Anti-Financial Advisor way is, you know, really kind of what my passion is and something I’m really looking forward to exploring.

Chris Miles (19:09):
I love it, man. Well, Craig, I gotta tell you, I’m excited to have you as part of the team, like, and

Craig Feldmeier (19:13):
Yeah. This is great, Chris. It’s going to be fun.

Chris Miles (19:16):
It’s going to be a fun ride that’s for sure. And so and then everybody else too, and I know a lot of people can relate to where you’re coming from and where you’ve been and where you’re, well, they hope to relate to where you now are. So I’m definitely excited to have you a part of the team, man, and everybody else, like if you’re saying, Hey, I think I need to do that same thing. Like, I feel discontented just like Craig was saying, like, I’m not feeling like, you know, I’m feeling frustrated my financial situation. I feel like I should be better off than I am right now. Or I feel like there’s pipe potential here. We don’t know how to tap into it or what to do with this money. We have, you know, shoot us an email, go to WWW.MONEYRIPPLES.COM Send us a contact email and just say, Hey! What do we do?

Chris Miles (19:51):
Like, you know, is this something that’s a good fit? Because you know, whether it’s me or Craig or it doesn’t matter, like the truth is we are here to serve you. We’re definitely been here to serve ourselves plenty. Now it’s time for us to give back and that’s what we’re here to do guys. So, you know, reach out to us, shoot us. You know, shoot us an email through the web page there. And Hey! Let’s see if we can serve you. Anyways, Craig, thank you so much for joining us today. It’s been such a valuable amount of information experience that you have here.

Craig Feldmeier (20:18):
Yeah. Thanks for having me, Chris. I appreciate it.

Chris Miles (20:20):
You bet, everybody else. I hope we make it a wonderful and prosperous week! Week that leads to a prosperous life that you don’t just stop by listening, but you become a doer as well. Everybody, you make it a great day! We’ll see you later.

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