SECRETS TO REAL ESTATE INVESTING SHOW

Latest Episodes:

SREI 0036 Real Estate after Retirement with Dana Klaft Jan 20, 2017

Show notes

On this episode of House Flip Masters Holly is joined by guest Dana Klaft. Dana was a landscape entrepreneur until he retired at the age of 50. Since his retirement 10 years ago Dana has been practicing and teaching real estate.

After high school Dana started a landscape company and was a landscape contractor until he was 50. When his dad passed away he realized that he had no way to help his mother. He didn't know how to generate income so that he could help his mother but had been looking at real estate since about 1998. In December 2003, he pulled out a program that he bought on the internet years prior and decided to watch it. The video prompted Dana to write down his goal; which he did. His first goal was to own 3 house in 60 days - on day 58 he closed on 2 properties that had 3 houses.

Dana used the principle that he learned in the course which said to borrow a down payment from somebody and ask for owner financing and make three offers, so that is what Dana did. Dana got the properties that he wanted and after fixing and selling them Dana and his wife ended up walking away with $55,000. Dana and his wife decided to continue to use this technique to purchase more properties.

In his first 3 and a half years of real estate Dana and his wife purchased 50 properties. When asked how much of his own money was invested into these properties Dana tells Holly that he did not invest any of his own money on down payments into these properties. While he did not spend any money on the homes he did have to spend money on repairs during his process.

When asked what he attributes his success to Dana says writing down your goals is huge, the course that he purchased prompted him to do so before doing anything else. Dana also believes that educating yourself is important to be successful in real estate. Dana and his wife purchased training courses, and seminars to make sure that they knew everything that they could about real estate. Dana says that if he had known better he would have invested in coaching sooner than he actually did.

When asked to share the opportunities that he has found during his time in real estate Dana shares about a home that he purchased from foreclosure. The homeowner was an 80-year old man who moved out of state due to his wife's illness. Dana called the homeowner to talk to him about this foreclosure, they agreed that Dana would bail out the home so that his credit would not be ruined. After the home was obtained the homeowner's daughter called to thank him for taking the burden off of her father. After the home was completed and sold Dana and his wife made a trip to Oregon to visit Russell to give him $5,000 for the home that they had purchased from him. Dana prides himself in helping others on his real estate journey.

When asked how he gets his deals Dana says that he tells people all the time that they need to have signs on their vehicles. On Dana's car he has large signs on the back window and doors. He said the signs need to be large especially when you are driving at high speeds so that people can see them and that they grab their attention. Dana is constantly being approached by people who see the signs on his vehicle, while the signs are a large investment upfront they have paid themselves off numerous times over by the amount of business that they have generated for him.

Dana advises new investors to get knowledge about the business before you jump in, do not quit your job! Get all the knowledge that you can and make sure that you market yourself for success.

If you are interested in getting in touch with Dana and learning his tricks to make money out of nothing you can reach out to him by email or by text message.

Email: OutsideOfTheBoxCoaching@yahoo.com

Text: (805) 550-8502

SREI 0035 Amazing tax escape tricks with Bruce Jones Jan 13, 2017

Show notes

On this episode of House Flip Masters Holly is joined by guest Bruce Jones. Bruce is what he calls himself a tax strategist. Being a former CPA Holly is fascinated by what Bruce is doing and loves to meet people who know how to make taxes less dreadful for people who are successful in their investing ventures. Bruce entered the financial services industry in the 1970’s and has taught the subjects of tax management and financial strategy planning since 1974. He is president and CEO of Tax Wealth a tax analyst, solutions, and research company which identifies comprehensive tax planning solutions for real estate, privately owned businesses, and other appreciated assets. In addition to supporting his own clientele Tax Wealth also supports CPAs, attorneys, financial advisors, and real estate and business brokerage professionals in helping to solve their clients tax problems. Bruce is headquartered in Newport Beach, California.

Bruce has entered his 47th year in financial services which makes him pretty experienced in the field. Tax Wealth focuses on identifying planning opportunities that were overlooked by CPAs and by finding solutions to tax problems. Bruce was in the financial planning and services industries for 41 years before retiring 2 and a half years ago. Knowing the statistics of people who retire and wanting to live longer Bruce created Tax Wealth which has been existence for about 27 years. Tax Wealth is a passion of Bruce’s and he loves to show people what they aren’t aware of and how they can save money.

Holly asks Bruce what are some of the ways in selling real estate that he can solve the tax problem that comes with the sell of properties. Bruce says that when you are selling an appreciated piece of real estate or any other piece of appreciate capital asset there are very few choices to investigate. The first choice for those in real estate is the 1031 Exchange is the sell of an asset and then buying a property of equal or greater value. By following the rules that are under this exchange you will be able to defer your taxes as long as you follow the guidelines. Bruce explains that the 1031 Exchange is a well established law that a lot of people look at to defer their taxes. The second choice for those in real estate is through charitable tax planning - in this option the seller of the property gives the property to a trust or a charity (non-profit and tax free) in which they do not incur any taxes and escaping all capital gain taxes. The donor of this property then gets in return an added charitable tax deduction for the year of the gift and income for term of years or for lifetime but what they are not getting is a lump sum of cash to close escrow. The third choice is a Deferred Sales Trust with this structure the seller of the asset sets up a trust and they sell the property to that trust and then hire a third-party trustee to manage that trust and through this mechanism they defer their taxes. Bruce does not fully support this choice and says that if you are interested in going down this path that you need to listen with great caution and be sure that you fully understand before you make a decision. The next choice that Bruce mentions is the structured sell that allows you to defer the taxes. An important element of this choice is that the money goes off-shore for a portion of time before it comes back for the sale. A choice that Bruce mentions and favors is having to do with installment sales allowing you to pay capital gains taxes at the first and last installment of the note. Bruce calls this option a bandaid at best, but can be worked out better if structured differently which he discusses with us in great length and detail.

Holly asks Bruce to share with listeners how he has been able to help people save money. Bruce shares that he helped to defer $1.5 million in taxes for one man who had a property that was worth millions. Another example Bruce gives is about a family who inherit

SREI 0034 How Valerie Clark escaped the rat race with passive income Jan 06, 2017

Show notes

On this episode of House Flip Masters Holly is joined by guest Valerie Clark. Valerie has escaped the rat race through investing in real estate. Valerie is based in Southern California where she does most of her real estate deals.

Before Valerie got into real estate she worked in marketing for 20 years and when it was over she decided that she wanted to be self employed and knew she wanted to get into real estate - when she got into real estate she knew that she wanted to stay in and that’s where she finds herself today. Valerie says that real estate had always been a passion of hers and she’s glad she got out of the rat race and now employs herself.

When asked about her first deal Valerie says that she started very early by purchasing in her hometown of Hermosa Beach, California. Valerie recalls that this lot was a dump that it had an ocean view - she even recounts that she had buyers remorse after purchasing this home. Eventually when Valerie was done living there she split that lot on paper and hired an architect and made plans for 2 units and then she sold the plans.

Around 2000, Valerie was no longer working in marketing and was looking for real estate full time when she came across a building in Long Beach that she liked. When the property was in escrow Valerie again for buyers remorse and admits that she was nervous and scared of the deal and ended up giving away two-thirds of the deal. Valerie says that she doesn’t feel bad about giving any of it away because she knew that she was partnering up with two people who knew what they were doing. The three decided that if after a year things weren’t working out that they would sell the property and go their separate ways and that’s exactly what happened - Valerie walked away from that deal with a $100,000 check. When she inquired about the woman who cut her the check she learned that the person who bought the property from her and the two other partners was making much more money than her $100,00 check Valerie decided that’s what she wanted to get into condo investing. Valerie decided to start research condo investing so that she could start investing in them - after that she bought 2 properties that had 16 units each in Long Beach. After working with condos Valerie dabbled in house flipping until those deals disappeared from the market where she was flipping in. Valerie says that she became desperate for a deal because of the way that the market was going and she said she was bleeding to death looking for a piece of property that would help to pay her bills.

Holly asks Valerie to share what happened when things were not working out for her in Long Beach and Orange County areas before she decided to move to Central California. While Valerie really liked the Long Beach area she had a friend who was a parole officer who mentioned to her that the parole office was looking for housing for parolees - this did not interest Valerie at all, but when her friend told her that the government would pay for this housing she started to think differently about the opportunity being presented to her. Valerie ended up buying a house in Long Beach that qualified for the parameters of the parolees where they could and could not live - she bought the home and fixed it up, as well as furnish it. She recounts that before she could even finish fixing up the home she had 6 people waiting with cash in hand wanting a place to stay. Valerie really got into this area of real estate and continued to buy houses to continue to house parolees, but eventually she ran out of money. When this happened she went to a hard money lender to refinance her house so that she could get another property. When Holly asks how Valerie felt about having parolees as tenants, Valerie says that the people staying at her homes were very respectful and she doesn’t regret doing these deals. After 7 years of housing felons Valerie mentions that she did sell one of her properties to Holly and Ho

SREI 0033 Hot opportunities in HUD homes with Larry Goins Dec 14, 2016

Show notes

On this episode of House Flip Masters Holly is joined by guest Larry Goins. Larry if from North Carolina and has been investing in real estate for over 30 years.

Larry first got started in real estate when he saw a seminar on TV, this seminar is what got Larry to catch the real estate bug. Larry has his real estate and general contracting licenses, he has done stoke brokerage. Larry has dabbled in all areas of real estate but really loves residential. Larry says that there two things that he hates in real estate which are: rehabs and tenants. Larry is currently doing 21 deals and says that the deals that he seems to lose money on are the rehabs. Larry also doesn’t prefer to deal with straight tenants because he prefers to do lease options or seller financing for tenants which he refers to as ‘Home Owners in Training.’

Holly asks Larry to share with listeners about HUD houses; which Larry is said to have wrote the book on. A HUD house is defined as Housing and Urban Development which FHA has insured a home loan on - FHA does not give the loan but they insure the loan. Part of your payment goes to HUD to insure that home, if the home loan goes into default HUD buys that home back.

When asked why he likes HUD homes so much Larry says because there is no marketing that goes into it he does not have to make any calls or put out any bandit signs the homes are already listed and they are generally listed below market value. He also likes HUD homes because they have a PCR, Property Condition Report. A PCR basically lists the major issues with the home - a PCR will not list cosmetic issues with the house it will tell you if the pipes need to be replaced or the roof needs to be replaces. He also likes that a HUD house will already be cleaned out before it’s sold, for example if there were animals in the home and the carpet had an odor HUD will remove the carpet. Larry also likes that there are no deed restrictions on a HUD home and he loves that there is a lot of data available on these types of homes.

Holly asks Larry to share with listeners where he finds his HUD homes. Larry says that all the HUD homes to be bought can be found at www.HUDHomeStore.com and each home that is listed on this website have an realtor already attached to them and the only people who can place a bid on these homes are licensed agents with a NAID, Name Address Identification Number, or a non-profit with an NAID number - HUD is a daily auction. When asked home the HUD home auctions work Larry tells Holly that all HUD homes go through this website, any agent that wants to place a bid on these homes has to be licensed in the state where the home is located as well.

Larry informs listeners that HUD homes for the first 15 days can only be purchased by an owner who intends to occupy the residence, investors cannot even bid on these homes within the first 15 days. Once those 15 days have passed investors can have their agent bid on the HUD homes if the investors agent submits a bid and does not hear back from HUD the next day the bid will automatically expire. When bidding on a HUD home Larry advises that it is vitally important to check the box that asks to keep the bid or to use the bid as a backup if the current offer falls through. If you place a bid HUD has the opportunity to counter your bid, when that happens you have 4 options: you can do nothing about the counter, you can counter back, you can submit a new bid, or you can accept their counter. Lastly, the third that can happen with a HUD home is that they accept your bid and now you own a HUD home.

Holly asks Larry how good the deals are on HUD homes; how much of a discount is he getting on these homes. Larry says that he has bought homes 20 to 103% a list. Homes are already listed very low which allows for a large profit margin. When asked how many of his 21 deals are HUD homes Larry says that of those 21 homes 16-18

SREI 0032 Mark Walker made 36% cash on cash return on his first deal and was hooked Dec 06, 2016

Show notes

On this episode of House Flip Masters Holly is joined by guest Mark Walker. Mark is founder of Luxmana Investments, which focuses on residential and multifamily investments. Mark was able to go from being a part-time investor with a full-time job in high tech, to someone who quit the corporate rat race in pursuit of his passion and now thrives as a multifamily investor.

Mark’s real estate journey started in 2004 when he bought his first property in South Denver where he earned 36.5% cash on cash return. After the sell of his first property Mark sat the business out for some time because he was having a hard time getting deals. Mark admits that had he known what he knows now he would have not sat out the 5 years that he did, because he says that there are always ways to find deals if you keep looking for them.

In 2010, Mark partnered with a general contractor and they scrapped a couple single family homes in a trendy part of Denver, they bought in an area that was getting a lot of investment and built a three story duplex in place of the original house. Before this first project was even done Mark and his partner started another project. In 2011, Mark started to reinvest the gains from his partnership projects into buying single-family homes.

Mark reminds us that as long as you have a formula for success you need to stick to it. Holly agrees that you need to create rules for yourself and live by them otherwise you will be all over the place.

Mark discusses how his journey has been much like the game that many entrepreneurs are inspired by, CASHFLOW. In the game you start off doing small deals and you graduate to doing larger deals. Mark says that is how he has structured his journey; in 2013 he purchased a small deal which was bought from him shortly after. He moved from his first property in Colorado to a complex in Texas.

In 2015, Mark had enough passive income built up that he was able to start focusing on his investments. During this transition Mark had a family member who allowed him the opportunity to job shadow in the market that he wanted to be in. He job shadowed for around 9 months until he started to venture out on his own.

Mark enjoys working with multifamily properties and shares with listeners how you can increase the value of your multifamily property. When you acquire multifamily property you want to increase the revenue and decrease the expenses, if you can do those two things the net operating income goes up and so does the value of the property. You can increase your income by utilizing the utility bill back. You can also reduce your expense by implementing a water conservation plan; in states like California where water conservation is crucial you can hire someone to come in to help you figure out how to reduce the amount of water being used – toilets can be changed out, faucets can be adjusted to reduce the flow of water coming out.

Mark shares advice for those who are interested in getting involved with multifamily investing; he advises that you get a sponsor or a mentor to help you get the education and knowledge to get into the business.

If you are interested in learning more about Mark and what he has to offer you can visit www.Luxmana.com If you are interested in learning about multifamily or maybe you already invest in multifamily and want to learn ways to boost your income, Mark is offering a free guide that he has written to our listeners.

Free Gift for Holly’s Listeners:

http://www.luxmana.com/holly

Luxmana Investments Company URLs:

Website: http://www.luxmana.com/

LinkedIn: https://www.linkedin.com/company/luxmana-investments-llc

SREI 0031 Real Estate is the clothing that Financing wears with Greg Pinneo Nov 29, 2016

Show notes

On this episode of House Flip Masters Holly is joined by guest Greg Pinneo. Greg has over 40 years of experience in the business; he has been a full-time entrepreneur for that long. Greg has become a recognized expert in acquisition, finance, negotiation, property management, and the philosophical mindset that makes possibility a reality.

Greg shares with us the beginning of his real estate journey. When he was 8 years old he was looking forward to playing baseball because he had watched his older brother play baseball. When he was finally able to play ball, he went to the first game and instead of playing baseball the coach lectured Greg and his teammates on their financial responsibility to the team and sent them home with cans of Almond Roca to sell. He went home discouraged but after a pep talk from his parents he set out to sell that Almond Roca. He recounts that he skipped the first house because he knew the people that lived there were not nice and moved on to the second house. At the second house was Mr. Peterson, when Greg presented Mr. Peterson with the Almond Roca; Mr. Peterson invited Greg in to help him with his presentation. Mr. Peterson told Greg to never set a ceiling on what you are trying to sell, if someone wanted to buy several cans of Almond Roca don’t set your presentation up to limit them to one. He also told Greg that when he sets out to sell always bring references; it paves the road to your success. Greg reminds us to never set a ceiling to opportunity, be bold, and to bring references.

Greg got started in real estate investing due the way that his parents operated. Greg’s parents expected after high school for their children to become adults, to move out, and to fund their way through college and beyond. As a junior in high school Greg began to look at rental houses, he found one home that was a mess, a home that he would rather own than rent and put all the work into fixing it. At the time he was only 17 years old and the owner of the home offered to sell it to Greg. The owner drafted up a document for the sell of the house and Greg took it home to have his parents look at it, they agreed that it seemed decent enough so Greg decided to purchase the home. The moment that Greg was writing his first installment to his home he realized that he needed to buy more houses.

Holly asks Greg to share one of his more recent deals – Pinneo recalls that the basics of his very first deal can translate and develop as the deals get larger and as you become more experienced in real estate investing. When he looks at a real estate transaction he always divides up his transaction by finance and sticks, bricks, and dirt. Sometimes you don’t want the home but you want the finance package that the property brings. The current property that Greg is dealing with falls into that category where the financial package has a create return on investment.

Greg reminds us that real estate is the clothing that finance wears. Real estate is the reason for financing. Real estate is the excuse for a finance package. Every investor needs to major in financing and negotiating. You need to frame everything from the seller’s perspective; you need to learn to explain to the seller why this transaction is good for them.

Greg’s best advice for someone just venturing into the world of real estate investment is that the people you hang around, the book you read, the thoughts you think are absolutely critical; you need to control the input into your life. You cannot be a sponge to anything you need to control your influences and input. You need to define failure as not trying, you need to be fearless. And lastly, you have to study and learn every day of your life. Greg reminds us that personal growth will always translate to income and personal freedom.

If you are interested in learning more about what Greg is teaching or reaching out to him you can find him o

SREI 0030 From barely scraping buy to financial freedom with Cody Hofhine Nov 22, 2016

Show notes

On this episode of House Flip Masters Holly is joined by guest Cody Hofhine. Cody is a wholesaler based out of Utah, who is having great success with only 2 years in the business.

Cody’s real estate investment journey started when he was working in insurance. After one year of work Cody brought home only $19,000. He realized that this wasn’t enough money and he needed to do something else, Cody attended some REA events where he learned about wholesaling and he fell in love. He started in May 2015 and in just 36 days he made more money on one deal than he did in a year of work. After seeing how good his first deal went he knew there was no turning back.

Cody finds all of his deals within five major counties in Utah. Cody and his team pride themselves on establishing relationships and trust with the sellers to let them know who they are and what they do. Cody feels that the face-to-face experience is one that produces more results and helps to build types of relationships that phone call conversations do not.

When hiring a team Cody says that you need to think of all the things that you hate and all the things that you love and hire out all of the things that you hate and eventually all of the things that you love so that your business becomes fully automated. Cody uses people in the Philippines to help out with the tasks that he does not want to do or have the time to do. Cody reminds us that there are people who love to do the things that we hate to do, he uses the people from the Philippines to help with his calendar, list scrubbing, and marketing. Holly asks Cody how he finds his help and he her that he uses a website www.UpWork.com - you create an account, make a job posting and interview by creating a task for them to complete.

Holly asks Cody how he gets his deals, he tells her that he started with direct mail and he continues to do direct mail doing 65,000 pieces every month! He also uses Pay per Click, Facebook marketing, bandit signs, door hangers, etc. Cody has his hands on several different ways to get out there so that he can get the maximum amount of deals a month. He says that he would not be willing to spend so much money on marketing if he the return on the investment wasn’t as great as it is.

Cody discusses Facebook marketing and how direct the advertising is. Facebook can be geared to specific individuals, zip codes, and audiences. Facebook will send your ad to the exact audience that you want your advertisement to go to.

Cody’s best advice for people that are new to real estate investing is that real estate is a phenomenal market to be in and that there is no bad time to get into real estate! Get involved today no matter the state of the market. He also advises that you do not reinvent the wheel, there are so many successful people in this business that you can use as a resource to get educated that can help you start your business at a higher level than if you tried to start from scratch.

If you are interested in getting in touch with Cody to learn more about wholesaling visit www.InvestorGrit.com - they deliver content and education about wholesaling, as well as offer the opportunity to chat with someone from the team.

Cody also has a podcast called Wholesaling Inc by Investor Grit

https://itunes.apple.com/us/podcast/wholesaling-inc-by-investor/id1051156990?mt=2

You can also subscribe to the Investor Grit YouTube channel

https://www.youtube.com/user/adambubble

SREI 0029 40% net profits from Vacation Rentals with J Massey Nov 15, 2016

Show notes

On this episode of House Flip Masters Holly is joined by guest J Massey. Unlike other episodes where Holly introduces the guests, she asks J to share his story with listeners. Before sharing his story J reminds us that no matter what our stories are not over and his story is just what happened to him to make him wake up and to get out there to do something.

Prior to real estate investing J was a financial planner and his wife was a recruiter by trade. J and his wife were experiencing a lot of great things in their life together and everything seemed to be going their way. J and his wife both experienced serious medical problems that left them squatting on bank owned property with a credit score of 398. A friend suggested that J should become a real estate investor; he agreed that he would take the leap into real estate investment as long as his friend would show him how to do it. From the days of having no money J and his wife have come a long way.

Holly asks J to share with listeners his first deal – J says that most investors when looking back at their first deal realize that they would never do any deal that same way again. First deals are crucial and they are the starting point to your investment success. J met the owner of his first deal at a networking event, the owner was behind on payments and needed additional money on top of payments being brought up to date. J had a deal but he had no idea what he needed to do to get his deal off the ground and running. He knew nothing about rehabbing a house, getting a contract, opening escrow, etc. J was able to go back and forth between his friends to get the answers to his questions and to get this deal closed. J and his wife had no money and were still living in bank owned property but they had the deed to a rental property. Holly reminds listeners that you don’t know what you don’t know, until you are in it. J knew nothing about real estate investing and relied on his friends to help him with this deal, he did what he was told to do regarding inspections and adding air conditioning and eventually this property was a success. Three weeks later J was doing 11 more properties.

Recently J has embarked on a new passion – short-term rentals. As an entrepreneur J had not thought about doing these short term rentals before but once he heard from one of his students about the return on investments and the breakdown of the these properties he decided to understand everything he could about these types of investments. In a 60-day period J went from zero to 7 of these units. J advises that you if you live in an overpriced market where the rent has not kept up with the price of the house this is an area that you might want to look at.

When looking at short-term rental properties you have to keep in mind that you need to outfit your property with furniture and everything that you would need in a home, the people that are using these properties are those who might be having medical procedures or visiting family and they do not want to stay at a hotel and prefer the comforts of home. Providing the comforts of home results in good reviews of the property and of the items you outfitted the homes with.

Holly asks J about reviews; how important are they? J says that reviews matter, he references shopping on Amazon; people want to know what other real people think about the products that they are buying, the same goes for the properties that are being rented. J makes sure to go over and above with his properties because those reviews are what help to promote future prospects renting.

Holly asks J to share how he has educated himself on this new area of real estate. Vacation rentals or short-term rentals are relatively new to the professional real estate investor, but not a new concept. There is a not a whole lot of information out there to guide you on what you should do, this market is changing so quickly that

SREI 0028 From $28k/year employee to freedom in house flipping with Kristi Cirtwill Nov 08, 2016

Show notes

On this episode of House Flip Masters Holly is joined by guest Kristi Cirtwill. Kristi is a native of Canada who has come to Southern California to flip homes and invest in real estate.

Kristi moved from Canada 10 years ago and before her move and before real estate investing Kristi tried her hand in several fields of work, Government, corporate, non-profit, before she realized that she wanted to do something differently. After reading Rich Dad, Poor Dad she realized that she needed to figure out how to get into real estate investing and make it work. She knew that she could make a business of real estate investing in California and decided to make the move.

Kristi started out wholesaling and did not know a lot of people so she joined the Real Estate Investment Clubs, she also got on Craigslist to find hard money – she got out there to just meet as many people as she could so that she could get to know the business. Kristi went to open houses and networking events so that she could educate herself and make contacts in the business.

Holly and Kristi discuss hard money and what it takes to get that money, reminding us that as real estate investors you often times cannot get money for free without some of your own money in on the deals. Holly says that without hard money lenders real estate investors probably would not do as well without them. When asked about private moneylenders, Kristi says that she does use private money; often time money to cover what the hard moneylender did not cover. Kristi says that some of her private moneylenders are just regular people that she meets at the Real Estate Investing Clubs. Holly reminds us that when seeking a private moneylender it is helpful to use someone who knows you and someone who trusts you because without a track record in real estate people might not be so keen on lending private money. Kristi suggests starting with hard money first because this is their business and you have to treat their money like it is your own. With a private lender you want don’t want to take someone’s private money and not know what to do with it.

Holly asks Kristi to share how she calculates her profit goal per deal. Kristi works with homes that are under $1 million, when calculating her profit she has a formula that runs her numbers. Kristi factors in the remodel costs and adjusts the purchase price so that the property gives a 10% return of the resale price per deal.

Holly asks Kristi what she likes most about house flipping. Kristi obviously likes being successful in real estate investing but she also prides herself in the jobs that her investments create; the teams and people that she needs to complete a flip. Knowing that she is creating jobs for those in her community is something that she really enjoys about house flipping.

Holly asks Kristi to share some tips that have helped her to be successful in real estate investing; Kristi says that she does not give up. It was helpful to het to find investors that were successful in this business so that she could learn from them and see that the end result would be there if she did not give up. She recommends focusing on the next deal and making sure that you are networking to obtain more resources. Work hard in the beginning so that as time progresses your work becomes more systematic and the job becomes easier and more manageable.

Kristi found her deals in the beginning by networking and 90% of her properties were coming of the MLS, now Kristi still uses networking to find her deals – about 50% come from realtors, the properties she gets now are ones where the seller wants discretion in their sell. The other half of her deals come from word of mouth and direct sellers.

Holly asks Kristi to share what it is like to be a woman in the business of real estate investing, Kristi says she did not let the male dominated business stop her, she feels that

SREI 0027 How to maximize every dollar of your personal economy with MC Laubsher Nov 05, 2016

Show notes

On this episode of House Flip Masters Holly is joined by guest MC Laubsher. MC is president and chief wealth strategist of Valhalla Wealth Financial. MC also is the host of a podcast called, Cash Flow Ninja.

Originally from South Africa in 2001 after graduating from university he traveled where he ended up in the United States. He played rugby until 2007 during this time he started his journey into real estate investing. After reading Rich Dad, Poor Dad his view on wealth and money was changed. He purchased his first property and he grew from there. In 2014, he founded Valhalla Wealth Financial, where they help individuals, families, small business owners, entrepreneurs and investors create wealth outside of Wall Street.

Cash Flow Ninja looks at concepts and societal beliefs; the podcast questions concepts in popular mainstream media such as savings and investing as well as retirement. He has guests that discuss how they have created income through various ventures.

MC started in real estate at the bottom and worked for a wealthy real estate investor in Chicago and started working from the ground up by working on apartments. He then started leasing apartments, and soon became part of an acquisition team. After that he got his brokerage license and purchased his first property at 21 years old. MC purchased his first property while he was working on the operations side of property management and says that the biggest lesson an investor can learn is to know the operations side of you investment. You want to know how your cash flow statements and financial statements look and how they should flow, as well as areas that could use improvement.

Holly asks MC to share with listeners what knowing the operations side of your property really means. MC shares that when he bought his first property he handed it right over to a property manager because his property was overseas in South Africa while he was out of the country. While he was out of the country the tenants of that property realized he was not in the country and caused MC to realize that he needed to have screening and checklists together to know who is in your building and having strict guidelines to whom you will rent to, as well as consequences for guidelines that are not followed by the tenant. Performing your due diligence as a real estate investor is the most important aspect in your operations according to MC.

Holly asks MC to tell listeners what he specializes in and how he helps real estate investors maximize every dollar. MC teaches the infinite banking concept in his wealth management and education firm. This is a strategy that takes a specialized insurance as a vehicle. MC deals with dividend paying whole life insurance from a mutual insurance company; he uses this type of insurance as a vehicle because when you fund money into dividend paying life insurance it immediately becomes liquid, there is a guarantee on principal, and you earn a guaranteed interest rate on that amount, as well as being a shareholder in the company - If the company participates in dividends you are going to receive these. In addition to this product there are tax deferred accumulation, and the ability to withdrawal money tax-free. As a policyholder you can access the cash value that you have built up as a policy loan.

When using life insurance to take loans MC discusses interest rates – you will receive a fair market insurance rate depending on the insurance company. MC finds that the interest rate is usually between 4 and 5 percent. When you borrow money from the account you are borrowing from the side and not borrowing from the plan that you own. Utilizing insurance for loans help to fund your investments while still earning money.

If you are interested in learning more about MC Laubsher’s strategy go to his website www.CashFlowNinja.com

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