Real Estate Investing Mastery Podcast

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Latest Episodes:

801 » Buying & Holding Assets For Long Term Wealth Building » With Josh Cantwell Oct 21, 2019

Show notes

Today’s guest is a private money pro. Josh Cantwell has moved seamlessly from single-family properties to managing $32 million in private capital to do commercial deals. Whether you’re just starting out or you’re ready to take the leap into commercial real estate, at some point you’ll want to know just what it takes to level up your investing game. First, Josh and I explore the ideal conditions to get started with commercial deals, including leveraging legislation that impacts private money and reading the ever-changing market. We also talk about why it’s worth making the switch and how to generate more cash flow so you’ve got a regular income. This level of investing involves more risks but also more rewards. And the risks are avoidable. Josh reveals the three key areas he focuses on to keep his business running smoothly—and the red flags that tell him when to walk away from a smoking deal. Lastly, Josh shares some insider tips to help you get into commercial deals while avoiding common pitfalls. If you’re ready for a change and more of a challenge, commercial investing opportunities are out there. So get ready for a fire hose of helpful advice from an investor who’s made it to the big leagues. Give this your full attention and you’re sure to walk away eager and equipped to do your own commercial deal. What’s inside: —Josh explains how he began building long-term wealth with commercial real estate. —Raising private capital is the key to long-term wealth building. —As your business grows, you’ll need some management strategies to keep it running smoothly. —Learn from an insider about how to protect yourself from the bigger risks of bigger deals.

799 » Be the Bank – Creative Deal Structuring with Nick Legamaro Oct 16, 2019

Show notes

My guest grew up in St. Louis on The Hill, the Italian neighborhood of the city. He now lives in the Dallas area and does some really creative deals. He started doing this in 2011 when the market was emerging from the big recession. Nick’s company buys, fixes and sells. No big deal, right? However, sales are not retail. They finance the home for the seller. They underwrite the buyers, which translates to them becoming the bank. There’s a big need for that because there are more self-employed workers now that have a hard time getting bank financing. Nick estimates that 50% of home buyers need seller financing at this time. That means that there’s a glut of houses listed by retail realtors because 50% of the market’s not even looking at those homes. Why look when you know you can’t get traditional financing? Nick rehabs houses to move-in-ready condition while keeping the homes affordable. A $100,000 house is his sweet spot with a cost basis of 75%. He asks for a down payment of 10% and 9.9% interest. That interest rate sounds high, but it’s allowable. At the $100,000 price point, the monthly payment is approximately the same as the owner would pay for rent. But homeownership gives the buyer tax benefits, the ability to sell the asset and pride of ownership. Nick holds the buyer’s note for a while and then sells them to investors. His personal note on this transaction is at 7 or 8% on $75,000, so there’s the profit. Nick once did a deal in which the seller insisted on getting $100,000 for the house, which was a retail price. Nick paid it, with $10,000 down and $800 a month… no interest. The seller got his asking price, and Nick wrapped the underlying debt into the 30-year note when he resold the house. The buyer paid $975 a month, which more than covered Nick’s $800 monthly note. So Nick paid off the note sooner than its due date. He owes no money on the house himself but is still receiving $975 a month on it. If the owner were to default (which he hasn’t), it’s less of a headache to Nick because he no longer owes on it. Nick’s notes do not vary much from the mortgage paper that a major bank writes. His Dodd-Frank requirement is to prove the buyer has the financial capacity to make the monthly payment. Nick’s willing to loan to people who have an ITIN (International Tax Identification Number) instead of a Social Security Number are self-employed or who don’t have a great credit score. Often a low credit score simply means the borrower operates in a cash economy. The key is to keep the mortgage payment and the rent payment the borrower is used to paying very close to the same amount. Nick finds his deals from sellers pretty easily because he can afford to pay more for the house since he’s financing the deal, which brings in the bulk of his earnings. He buys from the MLS and wholesalers.

What’s inside: —Nick’s model adds speed to the sales process, and he profits by that speed (not by gouging). —The model fully complies with Dodd-Frank based on disclosures and buyer qualifications. —In real estate, hitting lots of singles is more profitable and less stressful than searching for home runs. —In 2018, $26 billion dollars was used for seller financing; that’s retail, land, and commercial.

798 » “Unlocking the MLS” – How To Flip Properties From The MLS Oct 14, 2019

Show notes

I really believe your mind will be blown by this episode. We’re talking about flipping properties you find on the MLS. That may sound like a no-brainer, but I can just about guarantee you’ve never heard of this strategy before. I have 2 guests, Jack Sternberg and Stacy Kellams, and I have to thank Stacy for encouraging me to have Jack as a guest. Jack and Stacy have been working together for 20 years. They met at a Mastermind. Jack’s done a mind-boggling number of real estate deals. He taught Stacy his system for flipping MLS properties after Stacy signed a nondisclosure agreement. Now Jack’s sharing it with us. Jack’s [very successful] strategy for years was basically taking orders for houses. He did this by interviewing people who came to open houses for properties he’d rehabbed but weren’t interested in the house. Jack would find out what people didn’t like about that house and what they particularly wanted in a house they would buy. He’d then go to FSBOs, find a house that roughly met these descriptions and sell it with owner financing. Jack set up an enrollment-based program for buyers and sellers who agree to certain transaction parameters. Jack gets an agreement from the buyer to pay the appraised value of the house. Then he negotiates with the seller for a lower price than the current one, and, remember, the seller pays the appraised value. Jack owner finances sellers who don’t qualify for a standard loan. Lately, Jack has groomed some local realtors to work with buyers in his program to find a house on the MLS and place it with Jack to owner finance. These buyers, too, have agreed to pay the appraised value. If these people qualify for a standard loan, they get a standard loan. They are still buying the house at its appraised price. When dealing with a realtor, he offers 90¢ on the dollar, which is usually quickly rejected. He can go as high as 97¢ and still make money because his customer has already agreed to purchase the property at the appraised value. And if he carries the financing, he makes still more with the interest. The strategy will work anywhere or at any time, except in a seller’s market. The realtor has to show the houses and stick with the buyer through the closing, which is a standard real estate transaction. Even people with excellent credit scores and plenty of money in the bank come to Jack. Maybe they’re purchasing a 2nd or 3rd home and don’t want to go through a bank for that. Jack prefers working with a realtor on these deals simply because it’s less work for him. He’s going to teach workshops on his program soon. You have to learn the secret sauce from him to make it work.

What’s inside: —Guest Jack Sternberg tells about an ingenious program he’s developed for moving FSBOs or MLS homes. —Jack warns that it’s not the easiest transaction and it requires a lot of paperwork, but he loves it. —Jack shares the pitch he makes to realtors to get them and their clients involved. —There’s an Assisted Home Purchase program for people who don’t qualify because of credit.

797 » How Rob Made Over a Million on 3 Lease Option Deals with Rob Gaither Oct 11, 2019

Show notes

You may recall that I’ve had a few guests lately who responded to an email I sent asking people who are doing lease options if they would like to be on my podcast. Today’s guest is another investor who got back to me, and he’s done very well with lease options. Rob bought his own home via lease option a while back. He’s had several mega-dollar successes with lease options over time… one that yielded a gross cash flow of $12,000 a month! Rob lives in the mountains of northern Monterey County in California. He’s been doing real estate investing off and on for a while. He used to be a car dealer and worked in real estate on the side. He also had a store that sold wood-burning stoves, solar panels, and other energy-saving products during the Carter administration. The prime rate was 18% at the time, so no real estate opportunities then. He bought his 1st personal home with a 5-year lease option. The owner offered it; it was not something Rob was pursuing. When he bought, he got a 10% interest rate even though the prevailing rate was 12%. Rob was expected to take over renovations the seller had started, which was fine with him. The seller worked with Rob using creative financing and flexible terms. Rob later bought a commercial property with a lease option. It was a car dealership that had been on the market for 2 years, so the sellers were very motivated. He negotiated the deal with a realtor and got terms that were very advantageous to him. Rob leased it to another car dealer who stayed as long as he needed the building. Then Rob sold it for $1M gross to another commercial concern. He later bought a fourplex on lease option that he still owns. He did renovations to it legally without permits to make it match the plan on file with the county. He considers the rent from the fourplex to be his retirement fund. He bought a 5-bedroom home in Los Gatos and lease optioned it to a friend who now owns it. Rob has never been a full-time investor but has made some incredibly lucrative deals over the years. Rob’s advice to you is simple – just do it. You can structure lease options any way that works for you. If one seller doesn’t accept the terms, just look for another one. And there’s always another one. Lease options are the only risk-free, no money down, flexible-term investment Rob’s ever found. Sellers usually don’t even check your credit. So, get out there and just do it.

What’s inside: —Guest Rob Gaither has been the seller and the tenant-buyer of several lucrative lease option deals. —Rob doesn’t pursue real estate investing full time but keeps his eyes open for the right properties. —Rob’s advice to you is “just do it”… lease options require no money down and are flexible and risk-free. —Get Joe’s new book, REI Secrets – Daily Nuggets of Real Estate Investing Wisdom.

796 » Lease Options and Creative Financing with Blair Halver Oct 09, 2019

Show notes

Hey! You can sign up online to get my new book, REI Secrets–Daily Nuggets of Real Estate Investing Wisdom. It contains short, informative and inspirational articles pulled from some of my ‘In My Car’ podcasts. My guest is Blair Halver who’s known as an outstanding marketer. His favorite part of the process is finding leads, so he decided to start a business to generate leads for other investors. He called it Dealbot. It automated the lead generation process so investors could depend on having a reliable, steady flow of motivated leads. Dealbot has evolved from the original model that did everything for the investor. Now it shows the investor how to get leads and its users get the same or better results. Blair put all his energy into his business and stopped investing for 3 or 4 years. Then he realized the huge opportunity he was missing and jumped back in. His focus had been on wholesaling, but now he does lease options with creative financing. He calls it ‘pretty house’ investing. He does 3 or 4 deals a month working 2 hours a day. He’s automated and delegated his investment business as much as possible. Blair tends to make only one type of offer to each seller. He diagnoses the needs of the seller and fashions an offer to meet them. The answer may not be a lease option. Sometimes it’s a cash offer. When he makes a cash offer, he posts the property to his buyers list. Their reaction tells him whether or not he calculated the right price. If he gets no takers, he renegotiates or walks away. The same is true with tenant buyers on a lease option. Their interest is based on getting what they think is a fair price for a desirable house. Blair prefers to do subject to’s and get the deed, but I prefer sandwich lease options. To me, it’s better to have control of the property without taking ownership. Blair doesn’t want to make repairs on a house he doesn’t own… an ‘agree to disagree’ situation.

What’s inside: —Guest, Blair Halver, advises new investors to partner with someone who’s already successful at it. —Blair knows his numbers–he knows he gets 1 lease option deal per 24 leads. —Blair’s markets are Charlotte and Winston-Salem, and North Carolina has a law regarding lease options. —Automate and delegate your investing business as Blair does and the work hours are few.

795 » Once You Truly Understand Marketing, You Will Never Have To Worry About Money Again » REI In Your Car Oct 07, 2019

Show notes

Hey folks. I’m driving around in my neighborhood now. I’m opening the window because it’s such a beautiful day. I want to remind you that there’s a lot of opportunities out there for real estate investors. On social media, there’s been a lot of complaining lately that states just the opposite. Please be careful and limit your exposure to that kind of negativity. People who have time to be on social media like that aren’t doing the work to take advantage of the opportunity. Unfortunately, some people get stuck. They are students of real estate investing, but they’re not investors. You have to throw yourself at it and take massive, imperfect action. I was on someone else’s podcast the other day. The host reminded me that I’d made an impact on him several years ago by saying, “If you learn marketing… if you learn how to get leads, you will never have to worry about money again.” That message stayed with him. He started working and using what he’d learned about real estate investing and became a success at it. When I say there’s opportunity, I mean there will always be motivated sellers and buyers. Think of the market like fishing. Study the market. When is it best to use this tactic or that one? When are they biting? When are they not? Stick with it. Fishermen continue to go to the same lake. They may use different bait and lures at different times of day or in different weather conditions, but they continue to learn with each attempt.

What’s inside: —The main thing you should be doing is marketing to find leads and keeping your pipeline full. —Find out what Dave Ramsey calls the Momentum Theorem. —Learn what successful investors in your area are doing and copy them. —Motivated buyers and sellers are always out there; only the ratio of one to the other changes.

794 » There Is So Much Opportunity Out There Right Now… You’re Not Too Late. » REI In Your Car Oct 04, 2019

Show notes

Hey, glad you’re listening. I’m in my car driving around on this beautiful day. I just took my dog to a training session. The family gets trained after the dog completes the course, which should be fun. Some of you may be discouraged because you think you’re getting started in real estate investment too late. You think too many people are already doing it; there’s too much competition. But that’s not true. Just because people talk about real estate investing doesn’t mean they’re productive. They could just be blowing smoke. Or maybe you’re worried because the real estate market is expected to change. A dip is expected, but it doesn’t matter one bit… not at all. When the market goes down, it brings more money into the market because people who’ve been holding their money waiting for prices to move downward jump back in. It makes sense, doesn’t it? The primary thing is to find these new buyers and find out what kind of properties they’re interested in. I talked to a fellow over the weekend who recently got into real estate and is making real headway. This fellow is working with an investor he knows who had more leads and buyers than he could handle. He’s now cold calling these leads for sellers and talking to buyers about their preferences. He’s made 5 deals in 2 months. This is a guy who a year ago was telling me he thought the field was crowded and that he didn’t have contacts because he’d just relocated, etc. etc. People can always find reasons not to start something but look at him now. You should try the same. Go to REIAs and Meetups to meet investors. Ask them if they have any old or dead leads you can contact. You might be surprised, but it’s not unheard of for an investor to take you up on such an offer. You can start working on these leads right away. Make the calls yourself… no complicated systems needed. Just get started.

What’s inside: —Find out what areas are selling best and what types of homes are being bought by investors. —When real estate prices go down, buyers who’ve been inactive start looking for deals again. —Get out of your own way and think positive thoughts of deals you will soon be making. —REI Secrets–Daily Nuggets of Real Estate Investing Wisdom, which is Joe’s new book, is coming soon.

793 » My New Book! REI Secrets » REI In Your Car Oct 02, 2019

Show notes

My new book is finally here: REI Secrets–Daily Nuggets of Real Estate Investing Wisdom. The book is a compilation of short pieces from Joe’s podcasts that are meant to be inspirational and educational. Joe is charging only shipping and handling and selling it only via his website. He wants the book to go to his friends that are his listeners… people like you.

792 » Talking Creative Lease Option Deals with Mr. Transaction Engineer » Eddie Raymond Sep 30, 2019

Show notes

The Transaction Engineer, Eddie Raymond, is my guest today. Listen and find out why he has that name. Eddie lives in Atlanta and has been working in real estate since 2005. He took a chance and quit his job before he made his first deal. Eddie had to decide whether to attend 5 days of real estate training or keep a job driving forklifts. Quitting was the right thing to do. He’s never looked back. Eddie lost big in the last recession. Afterward, he began pursuing the abundant short sales that were available. Now he’s working virtually exclusively on wholesale lease options. He can’t believe how much money people have to put down on a house even though they cannot qualify for a bank loan. Eddie uses that angle in his marketing with the phrase, ‘no bank needed.’ Eddie generally gets $10,000 to $15,000 for down payment. For tenant buyers who have less to put down, he may set the monthly rent a little higher. Home values are between $180,000 and $400,000. Homeowners are usually glad to hear from Eddie because they aren’t even aware that a lease option is possible. He skiptraces people advertising FSBOs and rentals and gets in touch using ringless text. Eddie always makes 3 types of offers on a property. He writes up a cash offer, lease option, and owner financing. That way the seller continues to feel in control of the sales process. With lease options, the tenant-buyer is in charge of maintenance and repairs. They have 7 days to get an inspection or otherwise assess the house’s condition. Once 7 days passes, it’s theirs to manage.

791 » How To Do Lease Options With Pre-foreclosures With Frans Calderon Sep 27, 2019

Show notes

I teach people interested in pre-foreclosures to go in and offer cash. Frans Calderon answered a call I put out on social media to find people doing lease options who might want to appear on my show. When I learned what Frans does in the pre-foreclosure space, I jumped at the opportunity to interview him. His approach is so totally contrary to my thinking that I had to have him explain. Frans is originally from Colombia, and now lives in Charleston, SC, which he loves. He was a police officer in his home country… a dangerous job. In 2003, he read Rich Dad, Poor Dad and got the message that it was time to make a change. The message was financial freedom. At one point, the book suggested making a list of assets. Frans made a list of his and realized he had no financial assets, only his belongings like clothes and furniture. He purchased his first property in 2009. The process was a bit strange, but you’ll hear how the strangeness benefited Frans. He rented the house out for 2 years; then moved into it himself. He got a HELOC on that house and used the proceeds to buy more. He also continued learning about real estate and started practicing new strategies like subject to, lease options and wholesaling. Frans spent 10 years working at Boeing in Charleston area while he continued to buy properties to rehab and rent. Two years ago, when his passive income equaled his salary, he quit his job. He estimates his strategy is 60% flips, some holds and some lease options. Frans has found that networking pays off… so much so that he is now president of a new Charleston REIA. Frans recently met a seller who was very near foreclosure. She was a single mother and sick; a woman that had hit a real rough patch. Frans wanted to keep her from ruining her credit. It took $20,000 to reinstate her loan. Frans had a retail buyer who wanted to buy from him, but had a credit issue because he was a self-employed house painter. This is the model tenant buyer for a sandwich lease option. That buyer met Frans to see the house. He wanted to buy the house before Frans put it on the market. Even though he had no credit, the buyer was able to put $40,000 down on the house. Since the buyer knows people in construction, the home has been remodeled and looks great. He and his family are very happy there. Frans made a good profit while doing good for the seller and the buyer.

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