Matt Recore first started working in the tech industry but realized it wasn’t his calling. He then began inviting in the pre-foreclosure world, focusing on houses that were on the way to auction. Matt would negotiate deals with sellers just before they would bring their houses to foreclosure auctions. “It’s not a great way to get into buying houses because of how stressful and emotional it is for the seller,” Matt says, “but you have to really put a lot of trust and look out for people in those situations. It was challenging, but that’s how I learned.”
The market began really heating up in California in the early 2000’s. This made Matt nervous. He sold all of his rentals and stopped flipping to try and avoid the crash that he felt was coming up. Matt got back into tech and had gotten out of the real estate industry just before the deep decline in California. “The peak season for us was in 2005,” Matt says, “But I got back into real estate in 2012.”
Once Matt got back into full time investing when the market began to get back to a safe place, Matt started building a strategy that was safer for the future. He wrote a book titled “How to Purchase Real Estate at 0% Interest” (the link is in the link section below). This book was written before the housing market crash with a strategy that’s been working for him. Let’s talk about what the strategy is!
There are benefits on both ends. Buying at 0% interest means that every bit being paid is going toward the principal which means you’re building your net worth a lot faster than a normal 30-year mortgage loan. A 15-year loan is much better because you begin to see the principal paid out sooner. Basically, your net worth is going to be much better when you buy this way.
The benefits to the seller are avoiding capital gains taxes. In California, the capital gains tax includes a state tax. When you sell with an installment sale, you can completely avoid paying those taxes. “It’s amazing how many sellers don’t want to pay the IRS,” Matt remarks, “The 1031 strategy is great, but you have to find another property that way. With an installment sale you can skip all of that.”
There are a lot more details about the strategy that Matt’s been working on in his book. The link is in the link section below. Check it out so that you can start buying houses with a 0% interest rate too!
Brandon Turner is the janitor at BiggerPockets.com, stumbling around in the dark looking for stuff to clean up. He also writes books. And he's a slumlord. Jokes aside, this episode goes over the books that all real estate investors should be reading as well as Brandon’s adventures in mobile home park investing.
Today’s book is “High Performance Habits” by Brendon Burchard. Brandon has been devouring this book and talking about it every chance he gets. This book isn’t specifically a real estate investing book, however it covers topics that are applicable to real estate investors such as staying on track with your business.
“Most books tell you ‘hey you’re a moron, do these things’ but what I like about this book,” Brandon tells, “is that it tells you you’re already doing well, here’s how to make it work for the long haul.”
One of the biggest risks with real estate investing is how volatile the market can be. While it’s been a good 5 or 6 years for real estate so far, what would happen if there was another housing crisis? How would your business be able to handle that? That’s where the lessons in this book come in. Knowing how to build a long-term successful plan for your real estate investing business will keep you on top, even if the worst should happen again.
“When things are going good we tend to ease off the gas a little bit,” Brandon says, “That’s when people get burnt out and quit. This book shows those high performers who maintain that status for years and what they do differently.”
There are six things that Burchard identifies in the book that will keep your business successful; threes personal habits and three social habits. They are…
What books are you reading? What books do you suggest? Let us know in the comments! And don’t forget to check out the BiggerPockets Podcast and website to learn from more active real estate investors!
Seth Williams is a land investor and residential landlord, with nearly a decade of experience in the commercial real estate banking industry. He is also the Founder of REtipster.com - a real estate investing blog that offers real world guidance for part-time real estate investors.
Seth got started in land investing in 2005 while he was in college. He had first learned about real estate investing from the book Rich Dad Poor Dad. “I was fascinated by the book,” Seth tells, “It totally changed my perspective on a lot of things.”
The book wasn’t specific about how to get into real estate, though, so Seth dug into the MLS to find houses to flip or rent. He learned how to calculate the numbers to figure out what a good deal was, but then the housing market crisis hit. In 2007 he couldn’t find anything that made sense for him to make a profit with.
Because the market was so hostile and Seth was a beginning investor, he went into the work force after college. In 2008 he took a course in land investing where he got the information he was looking for. With that course Seth began finding motivated sellers by using delinquent tax lists. Land was a more simple type of real estate for him to get into with a much lower risk than house flipping. Seth found that you could buy land from people on the delinquent tax lists for pocket change.
“I could buy these plots free and clear with the money I had in my pocket,” Seth says, “When I realized you could do that I was like ‘Whoa, this is a game changer’!”
Without needing to deal with loans or mortgages, Seth was able to build a safe foundation for his land flipping business. House flipping takes time to learn the safe way to invest. For someone who’s been in the industry for a while, it’s not as risky for them to invest in houses because they know what they’re doing. When Seth was was just starting out, he knew nothing about how to safely invest in houses, which is why land investing was so appealing to him.
“With land, I could set myself up with these deals,” Seth explains, “and no matter how the cards fell I would make money from it.”
For example, if you buy a plot of land that’s worth $5,000 and you’re only paying $500 for it, it’s a no-brainer that you’re going to make a profit when you sell it in return. Because this made so much sense to Seth, he started looking at counties that weren’t densely populated and buy land there.
There are three counties in Detroit that are very densely populated, which makes those plots not desirable. The problem with buying land “in the armpit of town”, the only use for it is to build another house. It has less market appeal. On the other hand, land near those densely populated counties has more potential, which is what makes that land a better investment.
Husband and father to a 4 month old baby. I started investing about a year and a half ago. Ended up with a loss of $700 for 2017 but the first half of 2018 we will gross over $125,000 with a goal of $250k for the year.
Kyle started out in real estate investing just like most investors do. He was unhappy at his desk job and wanted a way to achieve financial freedom. There were some learning curves he had to overcome, though. When he and his wife got married they used the money from the condo she sold to buy their first house to flip. Unfortunately Kyle ended up losing money in that investment.
One of the biggest learning moments in that first house was figuring out how to manage contractors the right way. Kyle found that the contractors weren’t showing up to the property frequently, they were taking other jobs while still working for him, and were spending too much money on supplies from hardware stores. “That was a learning experience,” Kyle says, “Now I check in with my contractors every day to make sure everything is going smoothly.”
Luckily for Kyle he had another property already being worked on by the time the first house was sold. This property went smoother, getting him a decent profit. “You have to stumble a few times before you get the hang of it,” Kyle admits. That’s so true. Starting your own real estate investing business is a learning experience.
Once the first two properties were done with Kyle started getting in the groove with his business. As far as marketing goes, Kyle has been doing direct mail and managing leads on his website. He has his phone number on the postcards he sends with a call to action to text him if they’re interested. “I haven’t gotten too many texts,” Kyle admits, “but a lot of people go to my website from the postcard.”
A mixture of direct mail marketing and having a websites for people to go to has been working really well for Kyle. “I think it’s from people not wanting to make a call, but feeling a lot more comfortable filling out a form online,” he tells. To be honest, that’s what we’ve found works best too. There are so many motivated sellers who get nervous about talking to someone asking to buy their house. The detachment of filling out a form online is more comforting for them.
So what made Kyle get into real estate investing? Well, the condo his wife sold when they got married gave the couple roughly $20k. Initially Kyle wasn’t planning on getting into real estate investing. In fact, it all started with a Google search for what to do to invest the money. “I knew I didn’t want to spend it or just put it in retirement,” he says, “Honestly I just Googled ’ways to invest’ or something like that and real estate kept coming up.”
Kyle knew he didn’t want to build a renting portfolio. “Flipping was more appealing to me. I didn’t like how long you have to commit to renting,” Kyle says, “I didn’t start with Rich Dad Poor Dad or anything. I just searched in Google and did research there.”
It just goes to show important it is to appear online. If you want to get in contact with Kyle you can reach him on his website or email him at email@example.com.
Jason Rios has spent about 30 years of his life in Las Vegas and entered the real estate industry there over a decade ago after graduating cum laude from Pepperdine University with a degree in Business Administration. He started out as a traditional Realtor before transitioning into the investing side several years back.
Mr. Rios is familiar with a wide array of investing strategies and enjoys utilizing his entrepreneurial skills along with Alex to help expand their investments. His goal by 2020 is $100,000/month in passive income. In his spare time, Jason enjoys time with his loved ones, attending sports games & concerts, traveling, thrill-seeking, playing softball and giving back as president of his local alumni chapter.
Alex Wentland was born and raised in Chicago,IL and has been living in Las Vegas for 3 years. Prior to getting into real estate he went to a community college and was planning to work in the medical imaging field. He was waiting tables for the last 7 years and finally decided to pursue an entrepreneurial path after reading an impactful book despite most people’s opposing opinions. He chose real estate as it seemed like the most traveled path to financial success.
Alex's goal by 2020 is also $100K/month in passive income and to become a millionaire by age 30 with the help and teamwork with his partner Jason. Alex loves spending time with his fiancée and 2 dogs, taking hikes, going to movies, sporting games and traveling.
Their dissimilar paths brought them to the same REI circles, leading to a partnership in 2016 that started as wholesaling and has evolved into a multi-faceted investing approach. Their first deal together closed in 2017 and has since led to over 100 completed transactions. Alex and Jason feel this is truly just the start of what they will accomplish together.
Danny was casually watching YouTube and found a video of the growth and collapse of civilizations in Europe. What he found especially interesting was the huge expanse of the Roman Empire and its eventual decline. Similarly, Dan Sullivan’s program called “Pure Genius” talks about self improvement and growth. In the last CD, Sullivan talked about how great civilizations started on top of the world but still fell apart. Why is that?
Sullivan puts it like this: take something like the Roman Empire and and scale it down to you and your business. When an individual is at the top of their game at some point, inevitably, something is going to happen that makes you take a tumble. Whether this tumble will cause a downward spiral or not is entirely up to how you manage the situation. Sullivan says, “Progress stops when people stop being grateful. People come to a point when there’s so much success that they start losing touch with what got them there.”
That’s such an important lesson for anyone, let alone a real estate investor. When you’re so used to looking far in the future and achieving huge goals that you’re not noticing what you’ve accomplished, you’re going to start getting overwhelmed and fall apart. Celebrate your wins more! After you close a deal, celebrate it. After you covert a lead, celebrate it! Take a second to see how hard you worked to get to this point. Look at all of the effort you put into a deal that you profited off of. See how far you’ve come and know that it took you time and effort to do it. You didn’t get where you are now overnight.
The most important thing to keep in mine is that you’re doing well. You have a successful business that you built. Don’t always look so far ahead that you lose sight of where you came from. You did it, and you’re going to keep on doing it.
What’s your best win? Let us know in the comments, or in the Flip Pilot group on Facebook! Join for free by following the link in the section below :)
Learn how to get unstuck. Move from dreams, ideas, hopes to fulfillment and action.
Melissa Johnson has been on the Flipping Junkie Podcast multiple times (she and Danny run the business together and are married, so it goes without saying she’s an important member of the REI community). She runs the house flipping side of their business and does a great job doing it!
After years of running their real estate investing business, Melissa made the decision to cut out direct mail marketing at the start of 2018. Their yearly goal was to stop direct mail marketing all together. But why?? Hasn’t direct mail been working for so many investors?
The truth is…direct mail is dead. Real estate investing direct mail marketing has been declining for years, so much so that Melissa said it’s time to stop. In it’s place, Danny and Melissa are going to be focusing on online lead generation.
Melissa didn’t make the decision to cut out direct mail overnight, though. At the beginning of 2017 she had noticed that their direct mail wasn’t consistent and wasn’t performing well. Instead of cutting it off then, she decided to go all in and get that marketing strategy back up and running.
“We started a bunch of mailing campaigns and the year went on, and we were getting some deals, but it wasn’t performing the way I hoped it would when I looked at what we were spending on it,” Melissa tells. “I started looking at the numbers half way through the year and was pretty disappointed.”
Melissa’s direct mail plan started by mailing to high equity for most of the year, then they started adding in unknown equity. The unknown equity didn’t produce any leads at all, so they quickly stopped that campaign.
“We had about 30k addresses in our mailing list, based on our criteria,” Melissa explains, “We were had them separated by zip codes so that it wouldn’t be so much at one time. Every mailing was between $2400 - $2500 per week.”
The criteria for the high equity lists was anything under $250k with more than 50% equity, at people over age 40. The criteria for the unknown equity lists was just not stated how much equity the homeowners had. The equity could be unknown, unstated, they could have some, they could have none; it just means that the equity field wasn’t filled in. This list did not produce leads, so Melissa stopped that campaign.
“About half way through the year I took a look at the numbers,” Melissa says, “In September I said ‘look we’ve been spending a lot of money on this and it’s not getting us leads. We need to stop what we’re doing and reevaluate all of it’.”
The mailing lists were the same addresses, but it was all sent in a cycle. Each address would get a piece of mail from them every 4 - 6 weeks. With 30,000 addresses, that adds up.
Once Melissa looked deeper into the process and the direct mail findings, she learned that direct mail just isn’t enough to keep a business at this scale going. There’s a huge difference between a high quality lead and just another throw-away lead.
Melissa sat down and took about 8 hours just looking over every single lead from 2017 to see which ones were high quality and which ones weren’t. She read all of the notes on every property to see where that lead went, how far it got, and if it turned into a deal or not. And if it did turn into a deal, how profitable was the deal?
Overall, Melissa found that the cost of direct mail wasn’t worth the kinds of leads that they were getting. Their higher quality leads were coming from online marketing strategies and their website. The leads that came in through direct mail either weren’t quality leads or weren’t leads that converted to deals.
So when the question is asked: is direct mail dead? Melissa’s answer is, “For us, direct mail died about a year ago. We dropped it and moved to online lead generation.”
Ryan Robson has been helping sellers sell their homes for the last 8 years. He has averaged 100 plus flips since that time. He has experienced a lot of ups and a lot more downs on his journey a long the way. From these experiences he has built a real restate empire flipping houses in 3 different markets.
Ryan didn’t start in real estate right away. Right out of college his father suggested he go into accounting and let the real estate knowledge come to him. So, he did that. Ryan quickly realized that sitting at a shared desk with 6 other people was not his idea of a perfect job, so he decided to get his feet wet in the real estate investing market.
First Ryan started working other real estate investors, using his experience and knowledge he had gained from his previous accounting job. All was going well for a while, but on his return from a trip to Europe the investor he was working for had to let him go because of the housing market crash. This devastated Ryan. He spent two weeks spending his time doing what he had thought was fun, watching TV, playing video games, and so on. Ryan quickly got restless and though, “This isn’t fun. I need to do something!”
That’s when Ryan started his solo real estate investing journey. With the housing market the way it was in the early 2000’s, Ryan had to buy and sell fast. “I had to be careful about what I bought the houses for,” he says, “because tomorrow it’s not going to be worth as much, you know?” As time progressed and Ryan started getting comfortable with short sales and flipping houses. As a result. Ryan began to grow his team. For a long time everything was working smoothly. “I had about 10 or so acquisitions managers, or sales reps,” Ryan remembers, “I had a good sized team.”
Things were running smoothly, that is, until one of his employees turned out to be a bad seed. Ryan describes it like this:
“Most people are trusting. I’m a trusting person. I want to believe that everyone is doing the right thing all the time, but that’s not always the case. This person…he ended up taking 6 of my people with him, then after I had to end up firing 2 more because I didn’t know where they stood on the issue. I’m not mad that it happened, I’m mad because I let it get to that point. I mean, we ended up shouting at each other in the office, right in front of everyone. It was a big blow out. It should never have gotten there. That was my mistake, but I learned from it.”
This caused Ryan to need to transition his business. Because of the way short sales were going at this point in the housing market, Ryan admits he was needing to let a few people go anyway. They had gone from closing about 100 deals a year to a slower decline. In the end this shift wasn’t all terrible.
“I really enjoy investing in people,” Ryan says, “I’m at that stage where I like to see them grow. It’s fulfilling.”
Now Ryan is a very successful real estate investor with a wife and three children. He has been able to keep his business alive despite getting it started in a very volatile time for buying and selling houses. In fact, Ryan has transitioned again to online marketing to make sure his real estate investing business is bringing in high quality leads.
“I use LeadPropeller PPC,” Ryan tells us, “I know I’m not on here to give you guys a plug, but it’s great and what you and Josh are doing is amazing. It was in 2016 that I made the dive into PPC and it’s been great!”
It’s awesome to hear from Ryan Robson and see the success of his real estate investing business!
Danny spoke at this year’s Flip Hacking Live event! His presentation covers lead generation for real estate investors and how the market is shifting. Are you staying on top of it? This is the audio from the presentation, but you can watch the video on Flipping Junkie’s YouTube channel, check it out in the link section of the show notes.
How many people are sending direct mail? When that potential seller gets your postcard or letter, what do they do? They go online. The next thing they know, they can’t find you online. If you’re not online, you’ve just missed a lead. If you are online, but not optimized, then they’re seeing you beside your competition. You competition has more reviews than you, and looks more accessible to the seller. If you were in the seller’s position, who would you pick? It’s pretty obvious you’d go with the one that has the better reviews.
That’s why you can’t just have a website anymore. You have to have a fully optimized, built out, lead generation machine. There’s no way you can compete with your competition if you get a website, set it up, and then do nothing with it. It’s an on-going thing.
You need a website online that’s credible, trustworthy, and that builds you recognition. Danny and Melissa have generated thousands of leads and deals through their website, but it didn’t happen over night. It was a long road to building their website and grow their ranking. Search engine optimization takes time and practice.
If you’re not at the top of page 1, you’re missing leads. But how can you get it to rank that high? Keyword research is the first step. As a real estate investor, it’s obvious you need to rank for keywords like “sell house fast”, or “sell my house for cash”. Those keywords are what all of your competitors are using as well. So how can you beat the competition when it comes to ranking?
You have to set realistic expectations for yourself. You’re not going to rank for these keywords in the first month. You’re just not. You have to constantly keep working on your website, you have to be adding content that’s going to keep helping you rank, and you have to be patient. SEO can take 6 months to a year to start showing progress in Google. That’s a long time, but it’s worth it. Why?
SEO is the cheapest was to generate leads. How much does it cost to optimize your website? Time. That’s it. You have to invest the time into building it right, but once it starts ranking you’re going to start getting in organic traffic that converts.
The next step, after you have your SEO set up to start getting you organic leads, is marketing. PPC, or Pay Per Click, is a pay to play marketing strategy but it works. Danny uses a combination of PPC platforms, but the one that performs the best is Google AdWords.
Google AdWords places your ad, website, or landing page as a search result that appears above organic results. So if a seller is searching the phrase “sell my house for cash in San Antonio” and your AdWords campaign matches that search, you’re going to appear as 1 of the top 3 results on page 1. Why? Because you paid for that spot.
Now, yes, PPC can get expensive. But the cost per deal is worth it. If you’re spending a few thousand running an ad and it gets you a deal that nets you tens of thousands, is it worth it? Yes! Because you put yourself above the competition who doesn’t have the time or the money to run ads.
Starting to get a taste for online marketing? We don’t blame you. It’s worked for Danny and Melissa, and it can work for you too. That’s why Danny hosts weekly webinars to teach you about the latest online marketing strategies that work. You can get your free seat by following the links in the section below!
Hillary and Marco got married and became pregnant in 2015. In an effort to build the future they both wanted their family, they both quit their jobs that same year. Since then, they have built their real estate portfolio and build a wholesaling company that closes numerous transactions each month. With a team of six people in Hilco Homes, they look to grow strong in the new year of 2018!
Marco and Hillary got their start like most investors do. They were looking for a way to generate an income for their growing family and needed something that worked. Having already known the business, they decided to go for it and start their real estate investing journey. Hillary started studying up on everything she could. She read all of the books she could find on real estate investing and dove in. Marco helped her with some concepts, and together their wholesaling team was born. Now the two are unstoppable!
“I’m learning the best that I can,” Hillary says, “But Marco has 10 years on me.”
They had two major focuses.
1 - Marco and Hillary wanted to generate cash flow, or a passive income. This consisted of getting houses to rent. Marco points out that, even though the rent is paying for the house, that’s not a huge passive income for a family to live off of.
2 - Marco and Hillary needed an active income. This came to them through wholesaling houses. While they were building up their rental properties business, the two focused on finding wholesale deals to keep their lifestyle afloat.
Their wholesaling houses team started when a gentleman named Juan contacted Marco and asked for guidance in the real estate investing market. He was let go of a previous position and was looking for a job in the real estate market. Marco taught him how to bring in wholesaling deals with the profits being split between the two 50/50. The rest is history! Juan became a part of their team, and everything grew from there.
“We refined all of our systems and processes,” Hillary says, “It’s all about finding the people who work best with us.”
Their wholesaling houses team is up to 7, including their virtual assistant, and is still looking to grow. “We’re bringing on an eighth next week,” Marco says, “It’s a constantly evolving thing. Some people work out, and some people don’t.”
What are some of the lessons learned from hiring and letting people go?
Marco and Hillary have the idea of not hiring good people, but hiring great people. “We don’t just want to hire to fill a seat,” says Hillary.
Hiring high quality team members will only strengthen your wholesaling houses team over the long run. In the past, they required that applicants submit a resume, but have recently changed that policy. Seeing the pen and paper resume as an “out-dated system”, Hillary has decided to do video resumes instead. Marco and Hillary ask that applicants answer 3 questions in their 2 - 3 minute video submissions.
“I feel we’re a pretty good judge of character,” she replies.
If an applicant makes it past the pre-screening questions and video application, then they move on to a full interview with Juan. At that point, if Juan thinks this person is qualified and a good fit for the company, then they get moved on to Hillary for the final interview. This process has taken Marco and Hillary a few years to work out, but they’ve found it’s the most successful for finding people to add to their wholesaling houses team.
After meeting his mentor Josh Rudin started buying and flipping houses 6 years ago when he was 19 years old. He went through a lot of negative experiences and learned from them and grew in the process. Now he’s making positive cash flow and doing flips. He primarily focuses his flips in 4 cities near Victorville, Ca. He hired a project manager double his age to handle all his deals and having the help has given him the time to focus his efforts on finding deals and even traveling the world.
My name is Josh Rudin, I am 25 years old, and I grew up in a small city called Agoura Hills, CA in the suburbs of Los Angeles. The way I got started in real estate is my dad introduced me to a mentor he had heard about through a friend. Every Tuesday my mentor was holding meetings at Red Robin. He would bring a board game every day called the millionaire maker by Laurel Langemeier. The point of the game was to grow your balance sheet. I learned about assets, liabilities, income, and expenses and how to account for every dollar. The game really opened my eyes to a whole new way of thinking. One day I told my mentor I want to start doing this in real life. He let me know I am ready and that I need to be up at 4 am Saturday because he is picking me up and taking me to an area he’s been intrigued with the growth. That Saturday morning after driving for 2 hours we had made it to the “High Desert”. We would drove around all day asking questions to locals and writing down addresses of vacant properties, so we can really understand the market and the area. After a few months of driving out there almost every weekend I decided I feel comfortable with the area enough to make my first offer. It was accepted and at age 19 I owned my first home. It was one of the best feelings I have ever felt. Ever since then, I have slowly grown my business to where I am now, buying over 10 houses a year for the past couple years.
Scott Smith is an Asset Protection attorney and real estate investor with experience in everything to flipping houses to buying notes. Scott specializes on how to make sure you never lose money from lawsuits.
Scott wanted to focus his business on giving people the top level of protection possible, without complicating anything or increasing taxes. “Is it possible to have the best of all worlds?” He asked himself. Turns out it is. And that’s how his business was formed. The types of protections offered, and the way people can scale infinitely with their help makes Scott’s law firm the most competitive in the country.
Scott has been a real estate investor for 8 years, which is why he exclusively works with real estate investors. Now you don’t have to hunt down a lawyer who might know some things about real estate investing. Because Scott’s law firm is so specialized, not only can he help with any of your real estate investing needs, but his team can help anyone in all 50 states. Don’t worry, we’ll have contact information further down in the show notes.
One of the biggest ways to lose money as a real estate investor is holding property in your personal name. Scott explains it like this:
“If you’re holding property in your personal name, what you’re really saying is that if anything goes wrong anywhere in your life, you’re ok with someone being able to attack anything and everything that you own.”
What Scott focuses on in his law firm is separating the assets from the operations. You should have 2 companies. One that holds your assets, cash, stocks, personal investments, etc. Then the second one is what Scott calls your “Operating Company”. That company handles the actual “business”. It’s the company that manages the hiring of new employees, dealing with contracts, handling your leases, etc.
“Lawsuits work because there has to be a connection,” Scott tells us, “between the thing people are complaining about, and the business people are complaining about.”
So if all of your operations are going through one company and someone has a problem with it, they can only sue that company. They wouldn’t be able to attack your assets because their relationship is only with the operating company you have. It’s a way to protect what you’ve worked so hard to get.
Let’s say you’re flipping in your personal name and you’re hiring all of the contractors yourself, basically acting as the GC. That means that if anyone has a complaint against you, or the property, or anything that extends to insurance liability, that whole property gets locked up if they decide to sue you. Once that property is locked like that, you won’t be able to do anything to it until the law suite is settled.
The way to get around that is by setting up your asset company as an LLC. the best place to set it up is in Texas, but there are about 10 other states that make it easy to set up. You can use that company anywhere in the US, just like any other LLC. This is your asset company. Then, from there, you would set up a local LLC for your operations company. This one has to be local because it’s where you’re doing your day to day operations of your real estate investing business.
So let’s say you get a contractor and he makes some terrible cabinets for you and you tell him that they’re not good and you’re not going to pay for them. Of course he’s going to be upset, so he decides to sue you. Well, since you hired him through your local shell LLC, he’s not able to attack your personal name or your asset holding company. That means that while the lawsuit is going on, you can still work on that property and get it sold, and all of your assets are safe in the process. Again, this is a great way to protect yourself, your assets, and your business.
In your worst case scenario, you wind the LLC down that got sued and then open up another one to act as your operations company. In the end, you might be out court fees and a settlement, but your properties are all protected. Plus, you were still able to conduct business while the court case was happening, meaning you still made money. This is a really efficient way of getting rid of issues like that.
Hey Flip Pilots! You know that book Danny wrote a few years back called “Flipping Houses Exposed”? It’s been a free kindle e-book for the longest time, but now it’s finally coming into print! How cool, right?
A lot of investors have told Danny that this book has helped them with their real estate investing business. This isn’t just any book that tells you the basics of flipping houses. No. What Danny and Melissa did was document every single lead and deal that they had so that you can see what they did, what they planned, what worked, and what didn’t.
And when we say everything, we mean everything. See, Danny had taken some time off of the flipping business so he could get his private pilot’s license. When he came back he knew he would have to wear a lot of hats to get his real estate investing business back on track. Keeping documents of every aspect of their business helped him to be able to plan better in the future. When these documents became a book, Danny saw that they were helping other real estate investors grow their business too.
In no time it was obvious to everyone reading the book that the majority of Danny and Melissa’s leads came from their real estate investing website. If you’re struggling to get the deals in your area, it’s because you’re doing the same thing that every other investor in your area is doing.
Now it’s no secret that online leads are better leads. I mean, c’mon, it’s 2018. You have to be online so that when people go to search for someone to buy their house they find you instead of your competition.
Now, this isn’t to try and promote LeadPropeller websites (even though they are the best), this is to let you all know that Danny will be hosting coaching calls to answer any and all questions that you guys might have. So many investors see that it’s possible to get leads online, but have no idea how to do it. Having a website just isn’t enough anymore.
If you want to dominate your local market, come to Danny’s coaching call. He’s going to be going over the best strategy to get online motivated seller leads. Don’t get lost in direct mail, don’t let your competition beat you in Google searches. Come make your real estate investing business stronger with Danny’s help.
No one thought Mark Evans would graduate from high school. Even his teachers thought he should probably just try to pass and then get a minimum wage job.
But Mark had different plans for his life! He did his first two real estate deals before he turned 19… and that changed everything.
Whether he’s sipping an ice cold beer on a Caribbean beach or walking the famous Camino de Santiago or riding on the back of an elephant in India, he’s also doing real estate deals.
In today’s episode, I’m sharing my favorite 11 books that I read in 2017. I read more but, these are the books that ended up with tons of dog-eared pages. Melissa also shares a bonus book she wanted me to recommend for the ladies.
Learn a little about each book and why it is recommended. At the end of the episode you will learn a process for getting the most out of these books. Find out how to take notes you can later find easily based on author and topic. This is a great way to make sure you revisit the key points from each book you read.
The Advantage -
This book is awesome for organization. If you need to focus on organizational health, this is definitely one of those books for real estate investors that you need to add to your list. Stop struggling with managing everything and focusing on processes but not actually getting anything done. Get organized, get working, build your team, and become the Flip Pilot you know you can be.
The Obstacle is The Way -
This is a book that's based on the ideas of stoicism philosophy. If you're trying to achieve change in your life, you're going to face obstacles. When you face them, face them. Embrace the obstacle to be able to overcome it so that you can grow and become a better person.
Bigger, Leaner, Stronger -
This book is more for the health and fitness crowd. Why is this on the list of books for real estate investors, you might ask? Strong mental health starts with strong physical health. Now we're not saying to become a body builder, we're simply saying that you need to be healthy. What's the point in growing old as a successful real estate investor if you've got poor health? This book is awesome because it breaks everything down into the science of healthy living. Definitely a great read to get you motivated and off the couch!
I've already talked about this book in another podcast episode. If you haven't listened to it, the link will be in the link section of the show notes. This is a must read for real estate investors. The tips in this book will help you eliminate what you don't need to focus on so that only the essential parts of your business remain.
We had a recent podcast episode where Steve Cook came on and talked about his book. Check it out in the link section of the show notes! This book is written as a story, so it's easier to process all of the lessons from it. I love this book because it helps you understand that the life that you want isn't always about getting the most money. As far as one of the books for real estate investors, this one is one of my favorites. This is an eye opening message about living the best life right now instead of always focusing on the future.
As a Man Thinketh -
This is a super short book (so it's easy to re-read). This is taken from some Biblical text and really helps you connect with yourself. A quote from the back reads: "As a man thinketh in his heart, so is he". This is a great book for keeping yourself motivated. If you think you're going to fail, you will. If you think you're going to succeed, then you will too. This book is all about keeping yourself in a positive train of though to accomplish your goals.
Leadership Axioms -
If you're struggling with leadership strategies then this is the book for you. In fact, Melissa has suggested this one to Danny and it really stuck. Every 3 or so pages of this book have an axiom on them so that you keep yourself going through the books. This is one of the great books for real estate investors because you can go back to it when you have a leadership problem that you need to address. Each axiom will help you accomplish your leadership goals and keep your team moving forward.
How to Win Friends and Influence People -
This is a classic. If you've heard of it, read it. If you've already read it, read it again! This book will help you to build relationships that are perfect for networking your real estate investing business. Definitely a must read.
How to Stop Worrying and Start Living -
Often times as real estate investors, we find ourselves worrying a lot. Didn't you become a real estate investor so that you could have the freedom your old job wasn't giving you? What good is that freedom if you're always worrying? Stop that! This is one of the great books for real estate investors because it will help you to take the stress out of your life so you can actually enjoy your financial freedom.
Mastery: The Keys to Success and Long-Term Fulfillment -
In the beginning of this book there's a passage that tells you to focus on practicing for the sake of practicing. That's such a great lesson for real estate investors to implement in their business, but also in their lives. Everything you do you need to practice at in order to become better. Beyond that, though, you need to practice for the sake of practicing because it will make you appreciate the work that goes into mastering something.
Seneca: Letters From a Stoic -
This book is included because a lot of the problems that people face these days are basically the same problems that people were facing hundreds and hundreds of years ago. Things at their core don't change that much. That's why Danny has been so in to stoicism, because that philosophy keeps everything in perspective. The letters in this book survived thousands of years that are jam packed with philosophy. It's an engaging read, which is why it's one of the books for real estate investors on this list.
(Bonus) You Are a Badass -
Melissa specifically wanted all of the ladies out there to read this book. This is a great book for identifying and eliminating the self sabotaging behavior that a lot of people tend to have these days. If you're keeping yourself down, definitely check out this book to give yourself a boost. You're a badass real estate investor. Go be a badass!
Paul Del Pozo is an ex competitive bodybuilder turned real estate investor and entrepreneur. The last 2 years for him have been about personal and business evolution. He has learned to use his unique ability, his gym mindset, to drive and push forward through business failures to success. Listen in to hear about his journey flipping houses.
When Paul got his first deal from knocking on doors, he realized that real estate investing was a great opportunity for him. He made his own luck by starting with knocking on preforeclosures and hunting them down. When he landed his first wholesale deal, Paul started going after the next steps to call himself a real estate investor.
"I always had this idea of a rich guy buying buildings," Paul says, "so it was difficult to picture myself as that guy."
This seems to be a struggle that a lot of investors have when they're first starting out. When is it ok to call yourself a real estate investor? When do you start introducing yourself as one in networking events, or to potential clients? After Paul's first deal, he had the confidence to go to local REIA meetings and call himself an investor.
Paul got into real estate investing out of a need to make money. Originally doing wholesaling deals, Paul has continued down that path with the types of properties he has in his inventory. Now that he's more stable in real estate investing, he is hungry to learn more and build his business.
"Staying excited is what drives you. If you're not excited then what are you doing?" Paul tells us, "No matter what I'm doing in the business, I find it all exciting."
Staying excited is great, but staying focused is better. Knowing where to go and what's important for building your business is key to making your real estate investing business a success. Everything you do when running your business is about being intentional with what you want to work toward.
It's just like in the book "Essentialism". If you haven't heard Danny's response to that book, definitely check out that podcast episodes further down in the link section.