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Dude, Where's My House? (Jimmy Vreeland) May 08, 2023

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Jimmy Vreeland went from being an active duty Army Ranger (thanks for your service Jimmy!), to concentrating on building passive income thanks to Robert Kiyosaki's little purple book. His first deal wasn't a home run at first, but the longer he held it the more he realized it was turning into a grand slam. And that's what he loves about real estate, as a long-term asset it's almost impossible to screw up. You just need to buy at a decent price and hold on to the property. And if you think that's exaggerating, Jimmy actually forgot he owned a house but held onto it long enough that he still made money on it. Resources Mentioned In The Video: ======================== Want to learn how to combine the VAULT life insurance strategy with Real Estate investing? https://reiclub.com/cashflowtactics Rich Dad Poor Dad - Robert Kiyosaki https://www.amazon.com/Rich-Dad-Poor-Teach-Middle/dp/1612681123 Rich Dad's Conspiracy of the Rich: The 8 New Rules of Money - Robert Kiyosaki https://www.amazon.com/Rich-Dads-Conspiracy-Rules-Money/dp/0446559806 ⏰ Key Moments in this Episode ⏰ ======================== 00:00 Jimmy Vreeland - Real estate investor 02:00 Secrets the Wealthy Use To Print Money 03:15 "Throwing Darts at the MLS" 04:28 Newbies Survive the Great Recession 06:30 2 Huge Mistakes in Real Estate 08:40 The 4 Ways to Win in Real Estate 10:36 Forgetting You Own a House 12:27 CashFlow Tactics & Turn-Key Rentals 14:36 The VAULT & Velocity of Money 16:10 How Politicians Create Wealth 18:34 Interest Rates Doubled, Asset Prices Tripled? Transcript Jimmy Vreeland: I forgot about a house I owned. I literally forgot about it. was still paying the mortgage, but didn't, was not, it wasn't in my property management software. I did. Wasn't in my mind that I owned this house. I drove by it like every day too. George Uno: Hey guys, this is George Uno from REIClub. Thank you so much for joining me again for another episode of First and Worst. Now today my guest is a guy who went off to West Point then he got deployed overseas, Iraq and Afghanistan serving our country. And he actually read the little purple book over there overseas and got into his mind, hey that passive income sounds really good compared to what I'm doing right now. So while he was still on active duty, he started building up that passive income, and from there things just snowballed and took off. And before he knew it he was, you know, had 60 doors of his own and was like, wow, this is amazing. but Jimmy, let's get to know you man. How are you doing over there in St. Louis? Jimmy Vreeland: Good , how you doing, man? George Uno: I'm doing great. So how many deals you guys have going on right now? Jimmy Vreeland: so, we'll, we'll do 120 turnkey, and we'll do around a hundred wholesale this year. So we got 20 to 25 deals going on at any given time. George Uno: That's crazy. All right, well so that's probably a lot to manage so I don't wanna keep you too long, but take us back. Take us back. So you're in Afghanistan, or sorry, Iraq. You read Rich Dad, poor Dad. And how does that change the way you're looking at life and, and planning for things? Jimmy Vreeland: Growing up, I thought the only way you could become wealthy was to be like to be famous. So, you know, maybe politician, I realized with my mouth and my time in the military politician was out. Actor I'm not pretty enough to do that. And then athlete, which is what I really wanted to be, but not talented enough for that. So I was just like, oh, you know, I'm just gonna live this like nice life, you know definitely not gonna be wealthy. But then Rich Dad, poor dad opened me up to the fact that hey, the wealthy don't work for money. The, you know, the wealthy create and think and buy assets. They don't trade their time, they buy assets and then their assets buy, essentially buy their time back. So that was like paradigm shifting for me. George Uno: Yeah, that's crazy. I mean it's just funny that that's, everybody kind of gets that mind shift out of that book and so many investors have read that book and was their catalyst. You read the book, you say, okay, assets are what it's all about. So how do you decide on real estate and what, where'd you go from there? Jimmy Vreeland: And then I, I think I went home for leave and so Kiyosaki, I don't know how my mom actually sent me the book. I don't know how my mom found the book. I'm assuming it was when he was on Oprah. I'd have to ask her. But, so she knew about Kiyosaki, she wanted to get in on this, and then my brother was in medical school at the same time. Then he read it and he is like, yeah, let's get in on this. And I'll never forget this. So you know, interest rates were like at six and I'll never forget my mom being like, interest rates will never be this low, we gotta buy now. And they were at like six and a half 🤣. So so, you know, we started doing what everybody does. We started looking on the mls, we started walking houses. (03:21) We didn't know what we were doing. but you know, this was like in retrospect, this is 2006. This was the worst time to be buying. Worst time to be buy flipping, not worst time to be buying. I think when you're buying a long term assets and all the time's a good time to be buying. But we can get into that later. So yeah, we bought a rental house and then my brother lived in there and was a tenant for us through med school. And then he got two other med school students. So we got like elevated rent. It was like a, it was like an Airbnb before they were invented. George Uno: Wow. Pioneering. Okay, so you got it. It was, it was a duplex then? Jimmy Vreeland: Single family. But we charge rent by the room. George Uno: Nice. Yeah, that's the way to do it. So obviously in a college town near the med school Jimmy Vreeland: In St. Louis. So they're St. Louis University, not exactly a college town. yeah, but like for these med students, they're a little older. They want a yard, they want stuff like that. They wanna be able to barbecue. They don't wanna live in a dorm. George Uno: Right. Yeah. The the days of Top Ramen are over for them. That's really cool. okay, so take us through it. It did, you bought it a good, a decent time. I mean, cuz it's a long-term asset, but how did things play out through the great recession with you guys? Jimmy Vreeland: No change no effect. Like the asset value might have died down, but we had a 30 year fixed loan on it, so is irrelevant. And then what has been awesome is the Fed has continued to create, print money and so we've continued to raise rents now for the last 13 years as inflation has taken its effect. George Uno: All right. What was your cash flow on that? I mean, that's what survived through the great recession for you. You guys didn't run outta liquidity or anything, right? Jimmy Vreeland: Yeah, we had two other partners on the deal. So, you know, that was the frustrating part in the beginning it was like 200 bucks, divided it by three. You're not exactly getting passive income equals your expensive like Kiyosaki says. George Uno: Right? Right. But but it worked out. And then what'd you guys end up doing with it? I, I know you have some, you guys said it kind of snowballed from that one rental. Jimmy Vreeland: We sold it and bought a lake condo for it, but then the last two years with the, we were getting offers we couldn't refuse and so we 1031 into a condo at in Branson and then we were getting offers we couldn't refuse. We made like a hundred grand and we 1031 it back to a nicer four family in St. Louis, like a, a straight up wealth builder for my family. George Uno: Wow. Now what's that? What's that fourplex look like? What's it worth now and what's it cash flowing? Jimmy Vreeland: I think it's worth three and some change. And I bet you we make 1500 bucks a month, George Uno: Man, that's, that's quite the snowball Jimmy Vreeland: There's one thing you have to do to look like a genius in real estate. George Uno: What's that? Jimmy Vreeland: Do it for 10 years. George Uno: Be patient. Huh? Jimmy Vreeland: If you do it for 10 years, you'll look like a genius. Doesn't matter what happens. Doesn't matter what tenants do to the house. Doesn't matter. George Uno: Huh? So it doesn't matter what happens with the house, why? I think you have some kind of story about a house that that kind of got maybe, maybe fell through the cracks or something Jimmy Vreeland: You know, I made a lot of mistakes in real estate. Do you wanna, so two huge mistakes I've made in real estate is one, buying assets based off the performer of the first year pro-forma, like buying and selling based off, that was a horrible mistake I've made in real estate. We can get into that too, but I mean, I have, I forgot about a house I owned, I literally forgot about it. was still paying the mortgage but didn't, was not, it wasn't in my property management software. I did, wasn't in my mind that I owned this house. I drove by it like every day too. George Uno: Well, okay, so take us back to that. Why, why is it a mistake to look at the pro-formas for the first year of a, of a house and then sell it based on that value? Jimmy Vreeland: It's, I call it like the cashflow paradox. Like when you really need it and you're white knuckling your cashflow, y you won't get it. Like something the tenant karma will come to you for your worrying. A tenant will smash something, something will break. But then the, the most chill people who don't need the cash flow, don't care about the cash flow, get it all the time. There's no scientific statement around that. It's just, it's what I've observed. George Uno: So basically like you look at the first year, that's not a good predictor of how that rental's gonna pencil out in three or five or 10 years. Jimmy Vreeland: Nope. George Uno: Okay. That's been your experience. Jimmy Vreeland: So I see a lot of people looking at pro-formas for like, I call 'em Excel millionaires. Like one of the, when I started doing this on my own, I bought a four family for like $80,000 and like each unit rented out at 500 bucks. Right? So I'm like, wow, that's two grand in gross rent and my mortgage is like 400 bucks and you know, I should be cash flowing a thousand bucks every month. And like, so the pro-forma looks awesome. The proforma didn't mention it was in the ghetto. The pro-forma didn't mention it was not a good long term asset. The pro-forma didn't mention any of that. It just said year one you're gonna crush. And we didn't crush because we were chasing rent the whole time. George Uno: Oh, okay. So there's more to it than just the numbers. You know, there's kind of that subjective aspect is that what you think is important? Jimmy Vreeland: Like in real estate you win in four ways. So it's really hard to lose. Like you when you, it doesn't, like we talked about my first deal, right? Essentially me, my brother and mom were throwing darts at the MLS, as as we didn't buy something that was massively overpriced. There's no way we would've lost, don't touch the stock market cuz it's so boring. It's like all you can do is buy low and sell high. Like, I don't play a game where I can only win one way. That's like, that's like football before the invention of the forward pass. I, I like playing games where you win multiple ways. Like I love it that a single family asset will keep up with the stock market with appreciation. Then I love that cashflow from a rental property. Like I buy rentals right now to lower my taxes. I love it that I get to collect assets and it lowers my tax liability and then the ability to use leverage. I love it that I borrow money from a bank and I borrow it for 30 years and on years 15 through 30 I'm because of inflation, I'm giving the bank back garbage dollars. George Uno: No, when you put it like that, I mean, you're totally right. We see that now, you're paying back inflated dollars on a fixed mortgage. Jimmy Vreeland: Right, like, but I am collecting more garbage dollars in rent and my cashflow is that ca that delta between a fixed cost of capital and increasing rents. Like that's, that's when the cashflow hits. It's not the first 12 months because I used to whiteknuckle it, I'd be like, oh, I just added the pro-forma said 200 bucks. So I'm 200 bucks closer to quitting my job. Like that's not, that's when the assets are leveraged. It's, it's just not gonna happen. George Uno: What's the fourth way to win Jimmy Vreeland: Taxes, Leverage, Cashflow and Appreciation. George Uno: Right? Okay. Yeah. So we touched those. Okay. so tell us about that house you forgot because obviously that's a giant mistake, huge oversight, but how did that end? Like what was the, what happened there? Jimmy Vreeland: So the reason it happened is we were moving offices and the, the leasing agent who took the deposit didn't get it into the software. And when we were moving. And turns out these were horrible tenants, these tenants spent like six, seven months there just tearing it in half. So I, the county called me was like, you own this derelict house. I'm like, no I don't. And they're like, yeah, you do. And I'm like, oh, I actually do, there's like $30,000 in damages here. Like I can't do this right now. So what did I do? I bet on this was probably, this is 2018, I bet on the market saving me. And I just sat on the house for two years and I eventually made, I think I made 20 grand off it. I gambled that I won. I would not recommend that to anyone George Uno: But it's nice. It's nice you bought a good asset at a good price and the market saved you, which you can't always count on. Jimmy Vreeland: Like, it, it's not, I could not buy a book about, hey, forget your houses and grow wealthy. George Uno: That that sounds too good to be true almost. Jimmy Vreeland: I mean I bought the, I mean I did buy the house for 30 grand with the covid kick up with the market going crazy. It eventually appreciated to 60k. George Uno: With no work... Jimmy Vreeland: With rehab. I bet you it's worth 180. George Uno: That's pretty good. That's pretty good for for a forgotten house. (12:21) So Jimmy, what do you guys got going on today? I heard you guys just crossed a big milestone with your students. Jimmy Vreeland: We got our education platform cashflow tactics where we talk about the four ways to win and we show people, you know, all the financial jiujitsu you can do when you're buying assets, where you win four ways. So we show people how to acquire turnkey assets and how to add it to their financial plan. And we have you know, our community's bought over 2000 houses, so we just crossed that they're getting a million. The community's collectively getting a million dollars in cashflow now. George Uno: That's crazy. And you guys are, you guys are buying these assets in the Midwest and flipping 'em and selling 'em his turnkey rentals. That just makes a lot of sense for people who don't, you know, I heard you were on a podcast and the guy was like, why didn't you get into wholesaling right away? And you were like, well I had, you know, I wasn't ready to make that full-time dive. I didn't wanna be actively investing. And for a lot of people that's kind of where they're at, right? They have a lot of incom…

Full show notes at the publisher

$200k House Flipping Flop (Eric Brewer) Apr 27, 2023

Show notes

Like so many Real Estate moguls, Eric Brewer got his start in a completely different industry. After serving in the Army, he transitioned to civilian life quickly by taking an entry level job as a Lot Porter.

But his work ethic quickly earned him a promotion to Assistant Service Manager and eventually Service Manager. Then on June 17th he took a job as Salesman, and in just 13 days he sold 21 cars and was named Salesman of the Month. This quickly led to more promotions to Finance Manager, Sales Manager, and eventually General Manager.

But as he shifted through the gears in the automotive industry, Eric felt torn between being a good father and being a good car guy. The dealership was open on nights, weekends, and holidays which meant there wasn't a lot of time left for his family.

So he quit.

00:00 Transitioning out of the military to civilian life 06:00 Eric Brewer gets his start in Real Estate Investing 07:40 How to estimate repairs when flipping houses (NOT) 10:03 A trick for getting top dollar when selling your house yourself FSBO 14:20 Eric's house flip money pit 25:15 What are Novations and The Brewer Method?

For More Info or to Listed as a Podcast go to REIClub.com: https://reiclub.com/real-estate-podcasts/a-200k-lesson-in-real-estate-investing-eric-brewer/

For more about Eric and The Brewer Method go to https://reiclub.com/novations

Eric's Horror Story - 18 Elmwood Drive ( DO NOT GO HERE! YOUR MONEY WILL VANISH ) https://www.zillow.com/homedetails/18-Elmwood-Blvd-York-PA-17403/60472141_zpid/

Quitting a 6-Figure Salary Isn't Easy (Daniel Kong) Apr 13, 2023

Show notes

A lot of us get into real estate investing to build more wealth or achieve more financial freedom than a regular job can provide. But even when your real estate income is more than your W2 salary, it's hard to quit your job!

That's what Daniel Kong experienced as his real estate career took off. He was ready to quit his 6-figure Software Developer job, but the safety & stability of the guaranteed paycheck was hard to walk away from. Realize it or not, society pushes us to seek stability over success.

Luckily, Daniel was crushing it using the BRRRR strategy and eventually the math just didn't add up. So his wife told him to quit his job and go all-in on real estate just 3 years after starting.

Now he's moving from fixing & flipping homes into multi-family syndications. He's taking his cashflow to the next level and giving his investors the passive income and tax breaks they're after.

Chapters:

00:00 Daniel Kong's life before REI

02:30 Salary & Stability over Success

05:30 Daniel's 1st Real Estate Deal

08:45 Daniel's WORST Deal

11:16 Advice for Growing Real Estate Investors

ROI = Return On Integrity (Mike Singletary) Mar 02, 2023

Show notes

Mike Singletary is a rare type of person. First as a bald, straight hairdresser. Then as a real estate investor who would lose money to keep his word.

Mike was so excited to get his first wholesale deal under contract that he sold it to the first cash offer he got. And when the second offer was a 10X bigger assignment fee, he knew the COST of breaking his word was much higher than the PRICE of the bigger assignment fee.

So he honored the deal with the smaller fee and kept his reputation intact. His worst deal cost him over $100,000 which he took in stride because he knew the future value of his relationship with his lender was worth much more.

And he was right.

Mike Singletary is the head of SkipForce and ISA Pros, two companies born out of his own investing business that he now shares with the world. See how SkipForce is much more than a skip tracing company https://reiclub.com/skipforce

Watch This Video on REIClub.com: https://reiclub.com/real-estate-podcasts/return-on-integrity-mike-singletary

From Wall Street to Arby's - Brad Gibb goes all-in on Real Estate Feb 20, 2023

Show notes

We all felt the effects of the Great Recession of 2008, but few of us had a front row seat to the chaos and the pain it caused. Brad Gibb is one of those people. In 2007 he had just landed his dream job at Goldman Sachs and felt like he was on his way to achieving the American Dream.

Then it all came crashing down on a crisp fall morning in 2008.

As Lehman Brothers collapsed, so did Brad's trust in Wall Street. All of a sudden, contributing to a 401k for 40+ years and hoping it all went well didn't seem so smart. So Brad left Wall Street and started flipping houses.

But after one too many nights eating Arby's 5 for $5 roast beef sandwiches and sleeping on the floor in his property, he realized fix & flipping wasn't all rainbows and unicorns either. So he set out to plot a better course to financial freedom through real estate.

With over 1,000 students who now own over 60 million dollars of real estate that is generating over 1 million dollars per month of passive income, it's safe to say Brad & his partners at Cash Flow Tactics have charted a pretty good course.

But you've got to listen to hear how they got there.

https://reiclub.com/cashflowtactics

Don't Quit Your Job Like This... (Wolff Couple) Feb 13, 2023

Show notes

Do you dread the sound of your alarm clock? Do you hate waking up and going to your job? Even if you're making 6-figures you can still be a multi-miserable-aire. That's what Brian & Lynette slowly realized, THEY HATED THEIR JOBS.

Deep inside Brian felt he was making good money, but had no freedom. Lynette was the top sales rep in the nation, but she felt like she was missing her childrens' childhood. Working late nights, weekends, and holidays took its toll on both of them.

But Brian wasn't working as a night security guard anymore. He was a very well paid manager at a mortgage company. He had a beautiful wife (Lynette) and kids, with a gorgeous house in Arizona. From the outside looking in The Wolffs WERE the Joneses, and they were successful by every measure. Except the most important one, happiness.

So Brian started studying real estate investing at nights, to see if it would actually deliver the income he needed to support his family with the freedom to actually be in their lives. Lynette wasn't convinced at first, mostly because they both had high-paying jobs and children to support. So how do you deal with a spouse who isn't fully on board with your new plan?

Brian thought he'd just surprise Lynette by making a huge life decision without her knowing!

Luckily Lynette was overjoyed that Brian was being so spontaneous, brave, and INSANE!

She was PISSED! 🤬

So Brian took up residence on the couch for a few nights, and dove headfirst into real estate.

Click here to watch or listen how this story ends… (Happily ever after?)

LINKS:

Learn more about the Wolffs @ REIClub.com

Free Fast-Start Guide & Audio Book

David Lecko on flipping houses with 0% credit cards Jan 22, 2023

Show notes

David Lecko the founder of DealMachine is here for today's episode of First & Worst. His First deal in real estate investing was not what you'd expect. But his Worst deal IS what you'd expect from a newbie flipper taking on a massive renovation and funding it with credit cards. Watch the video below or listen to the podcast, you'll enjoy how the story ends.

Creative Finance w/ Ron LeGrand Feb 02, 2022

Show notes

Ron LeGrand talks about how he prefers using creative financing terms on the purchase and sale to minimize risk and maximize profit. As a bonus, Ron teaches us how to deal with trespassers using only a 5 gallon bucket.

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The REIClub podcast is produced for real estate investors looking to get started or get better. We bring you interviews with the biggest names in the business, tips you can use, and answers to your questions. Send your questions to george@reiclub.com for a chance to be featured on an episode!

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Turning a Profit w/ David Richter Jan 31, 2022

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Inflation in 2022? Let's Ask Lou! Jan 26, 2022

Show notes

Lou Brown has some breaking news about material prices in 2022, straight from the manufacturers. But he's just the messenger so let's not be too hard on him. He's also giving us a free copy of his new book called "Buy, Hold, Sell" that will help you deal with inflation the street smart way.

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