Cash Flow Guys Podcast

This week we are going to have a conversation about how to make that first $100 in recurring revenue.  You might be wondering why I picked such a “low” number considering that for many, the magic number to escape the rat race seems to be $10k a month. As you can imagine, it takes lots of $100 bills to make $10,000, in fact, it takes one hundred of them every month to add up to $10,000.  That sure sounds like a bunch of work, doesn’t it?  Here’s the good news, you don’t need anywhere near 100 doors or properties to escape the rat race. Too much focus on “scaling” can be a recipe for disaster.  Instead, let’s get focused on a small win to gain proof of concept. First,  focus on learning what the realistic rent amount is for a property based on its current condition. Not in rentable condition?  Then you can’t pay a price that reflects it being in a rent-ready state. How to do the math on this?  Listen in to this episode to learn more on how to quickly break down the deal to determine a Go/NoGo

This week I will keep the show notes short because the episode was long but TOTALLY worth it!  In this episode, I speak with Andy Gurczak of All-City Adjusting which is a Public Adjuster firm I have worked with in the past regarding insurance claims on my apartment buildings and investment houses. Andy brings TRUCKLOADS of value (skip them nuggets, we’re talking TONS) to this episode in more ways than I could possibly mention.  The info in this episode applies to anyone who pays for insurance on anything at all. In true value loaded fashion, Andy has a free eBook for Cash Flow Guys Listeners that can be had on his website AllCityAdjusting.com  

Everyone wants to get deals and raise money, however, I am of the belief that few are willing to innovate in order to accomplish that.  By innovate I mean to take specific steps to stand out from the rest in your market.  We are surrounded by marketing messages everywhere we look, as the saying goes...Innovate or Die! In this episode, we will discuss the real estate investor’s biggest waste of money. “We Buy Houses” is dead..we ruined it by overusing it matching with a sketchy reputation of those who do use it.  To many sellers it says “I am about to get lowballed” or maybe those “We Buy Houses People Are Sketchy”, either way, its no longer a worthwhile message to put out to the universe. Building relationships is the key to get to the closing table and beyond.  To effectively build relationships, know, like and trust are the ingredients.  To build relationships we have to overcome any opportunity for a negative assessment of what we are offering and the simplest way to accomplish that is to avoid those situa

How do I know if you have a good deal or not?  This is one of the most popular questions I had when I was getting started as a real estate investor.  Looking back at the deals I have done (both good and bad); I now realize that the answer to the original question was staring me in the face. This week I discuss how I came to this realization and how I have used this realization to become a better investor.  Along the way, I added to my arsenal of tools by creating a deal review form in addition to my #1 method of knowing if a deal was worthwhile or not. I added this special bonus to my free Mailbox Money Deal Analyzer course that you can grab by visiting http://cashflowguys.com/mailboxmoney Remember, when it comes to getting great deals, we must begin with a motivated seller and a problem we can solve, otherwise we are just stabbing in the dark.  When we invest time, resources and capital into making deals to the unmotivated, we are guaranteeing ourselves future disappointment.

Shoulda, Coulda, Woulda is something I catch myself saying often.  I try not to live in the past, but I find myself using it to motivate me to have a better future. In 1992 could have bought a house on the water in Madeira Beach, FL, needed a dock, needed yard work, but the inside was ok (liveable). I was 22 years old and fresh out of the Army after 5 years of service Although as a Veteran I was entitled to a VA zero down VA home loan, I did not qualify for one due to my lousy credit at the time.  I passed on the opportunity all together because I figured the bank would simply say no. It never occurred to me to simply ask the seller if they would take payments for their equity..even if it had occurred to me I likely would have dismissed that notion by assuming the seller wouldn’t do that for me. I had the opportunity to buy that house for $75,000 (asking price) which would have meant a mortgage payment somewhere around $550 a month after factoring in taxes and insurance. I later learned that someone bought th

When I mention investor identity, some folks feel that investing any brain power on this topic is a colossal waste of time.  Many people try very hard to focus on everything that is for sale in hopes of not missing out on any possible opportunity that they may trip over. Even in a slow market there are usually plenty of things for sale to look at especially when you cross classes and property types.  In today’s distracted world this can often lead to overwhelm or information overload that almost always ends in the buyer shutting down in a state of confusion.  The next thing we usually hear is “there just isn’t any deals” which is rarely the case. In my Mailbox Money Program I teach to get this part decided first, before you do anything else.  Once you take the time to realize that the customer you are most prepared to serve is someone like you, things take a turn for the better.  You might reflect back on a time that you were a bit scattered, and by doing so you will quickly see how time could be wasted and e

Business Funding... Business Credit... Business Lines of Credit... Whatever you choose to call it, It’s nothing more than a piece of cheese on a mousetrap! It will keep you in financial prison AND can land you in Real Prison.  In this episode, I discuss this very slippery slope and what happened to David Gaylord of Rochester, NY. (Spoiler alert: It’s not a pretty picture). As the economy continues to get life breathed into it by the smoke and mirrors of the Fed, one thing for certain is that irrational exuberance will lead many Americans into making financial commitments that they simply cannot afford. In this episode, I dive into America’s latest dumb thing to do in regard to borrowing money and abuse of credit.  Many claim they are doing this to “Build their business” while in reality, if they need a credit card for that they have no business to begin with.    

In this episode, I discuss the most recent deal we put together for one of our clients.  The seller was a tired landlord who did not like the small multi-family sector, in this case, an 8 unit apartment building.  We took on the task of selling this property for her only a year after she bought it. In any deal in which I am involved, I focus my energy on why the Seller is selling and more importantly, what they intend on doing with the money.  In this case, the Seller’s plans were to secure a more passive investment arrangement with the proceeds of the sale.  She wanted a return that was secure and would outpace inflation. What I heard right there was music to my ears, listen-in to hear how we broke this deal down and created a true win/win for the Buyer AND Seller.

Working a job is a fact of life for most Americans, yet I wonder what percentage of those workers understand the cost of them working?  You might be thinking I made a typo there, how could a job cost you money? This topic came up this past week when talking with friends.  One of my friends just celebrated a 15-year anniversary with the same employer. What she received as a “gift” for that 15 years of hard work was the ability to order a present (read trinket) from a catalog.  This episode isn’t about what her employer should or shouldn’t do to recognize her dedication in service, instead of its to help you see the lost opportunity cost that you suffer each and every day. How much do you really need to earn to leave your w-2 job?  Most people I ask this question to tell me the same answer…$10,000 a month will do the trick.  Will it though?  Could you escape the rat race for less?  The majority of American workers absolutely can! The average W2 American works from January till May every year just to pay taxes,

200 episodes ago I was sitting in a dingy office trying to figure out what this podcast would become.  Little did I know it would become a massive success and grow to become one of the top-rated podcasts in the real estate space. It would be an extreme understatement to simply say that the show has opened a couple of doors for me.  Instead, it has propelled my business beyond my wildest dreams. 200 episodes ago on December 11th, 2015 was the day I decided to help other people learn how to escape the rat race.  Since then I have had the pleasure of talking to hundreds of you over the phone and at events around the country. Many people have asked me what my big secret to success is… Here is what I realized today reflecting back on the last 200 episodes It begins with No Matter What, listen in to hear the story of what “No Matter What” means to me.    

In this episode, I announce the release of my new book “The Quick and Easy No Money Down Deal Secrets”.  I wrote this book to help investors by having a quick reading resource designed to help them negotiate better deals and more deals without having to invest their own cash into the deal. In this book, some of the ideas I assure you have never before been put into print by any Real Estate author.  The fastest way to grab a FREE copy is to visit NoMoneyDownBook.com today and download a copy.  You also have an opportunity to grab the audio version as well as a once in a lifetime amazing offer from me which is guaranteed to help you supercharge your investment property portfolio (if you apply what I teach).

In this episode, I cover the number one reason you will fail as a real estate investor.  Its the one thing that the majority of people trying to make a dollar as an investor overlook. I’ll give you a hint.. Today I was reading a great book written by legendary copywriter Ray Edwards.  The name of the book is “How To Write Copy That Sells”. In the book he shares a quote from an unknown author that read: “He who has a thing to sell... and goes and whispers in a well is not so apt to get the dollars.. as he who climbs a tree and hollers - Author Unknown Read it twice, or maybe even three times.  The question you have to ask yourself is what’s stopping you from overcoming the number one reason you will fail? In this episode, I provide not only the answer to this burning question but the solution to the problem.

This week I discuss a few things to help you shift your mindset towards getting more deals done.  First, understand that everything is overpriced and always will be.  What someone “wants” when selling something simply does not matter, what matters is the buyer's perception of the value. PLEASE understand that there is no such thing as an advertised “good deal”, now that we have that out of the way, perhaps you can stop “looking for a deal” since we are clear that you will never “find” a deal.  Deals are created by buyers and sellers sitting down to have a great conversation. Stop searching “what’s for sale” aka the “low hanging fruit” expecting a deal to be sitting there ready for the taking.  Instead, focus on finding problems for which your offers can then provide a solution.  If you are trying to get a deal on a property or situation where there is no problem I have two words for you.. Good Luck Always be sure to first determine the Seller’s motivation.  Unmotivated sellers should not be entertained by spe

A popular line of questioning I get from people who are just getting started involves being cheated out of a deal by unscrupulous people.  In this case, the question was from someone getting stared as a wholesaler who had concerns about a potential buyer cutting them out of a deal to save from having to pay them an assignment fee. In the episode, I explain important steps you should follow which virtually eliminate any chance of this happening to you.  I’ll give you a hint, it all starts with WHO you choose to do business with. The second part of the episode involved answering the question of why a buyer or wholesaler needs to know what the seller plans to do with the proceeds.  For some, this can seem invasive yet how the question is perceived totally depends on how it is delivered.  What I mean is that when you frame the question by explaining how you as a buyer or wholesaler can solve problems, sellers are less likely to be offended by the question once they understand why you are asking it in the first pl

When wholesalers or investor buyers write an offer or enter into a purchase agreement or contract with a seller, they often build themselves “outs” or escape clauses into the contract.  These clauses allow them to break the contract without penalty, and often without having to provide a specific reason. Sellers on the other hand, usually are not afforded the same ability, nor are they aware that they too could ask for an out. In many real estate transactions, the sellers are not very experienced in the business of real estate buying or selling.  Sometimes they have inherited a property having never owned one before, or maybe depended on a spouse, family member or Realtor to handle all the details when they bought the property originally.  Also, those who choose to sell their property at a significant discount often have a compelling need to sell. There are occasions where a Seller changes his or her mind about the decision to sell, even after entering into a purchase and sale arrangement with a specific buyer

Who are You Really Working With?  This is a question I think anyone should ask before they write any checks to anyone. Lately, there has been quite a bit of rumbling in the background as some “deals” are not progressing as intended for some folks.  (Big Shocker) Some “popular” investment sponsors are being called to the carpet for investments gone wrong. Lots of operators feeling pressured to do deals, just to do a deal and get money working.  This is no one's fault but their own. It's not worth losing money to invest in a deal that cannot prove itself, by that I mean the deal must support itself.  You should understand all of the elements of the specific deal, most importantly, HOW it will produce revenue backed up by factual data to support the theory. You should know each potential failure point and the remedy the sponsor has in place for that.  If you are the sponsor you should have people on your team to help you arrive at a list of solutions based on the data you have in front of you. In value ad opport

In this week’s episode I respond to another listener question who had previously booked time on my calendar.  Here is what he said: (edited for privacy) Hi Tyler - We spoke a couple of months ago. I have some units in TX that aren't cash flowing that well and I have a 4plex in Ohio that wasn't going well. I wanted to let you know that your talk really helped - I have turned around the Ohio property - new tenants and will start cash flowing this month. I am also set to close on 7 more units in the area - this is a deal I created - talking the owner down from 280k to 205k and I can push some rents as well. I continue to struggle with the Texas properties. I looked into commercial loans from a few institutions and they all told me I am too small (about 1.1 million in total loans). I can't add storage units to 2 of the properties due to lack of space. On the bright side, it looks like my units are worth about 30% more than when I purchased them between 3 and 12 months ago. Pushing the rents is the only way I'll m

During this week’s episode I answer questions sent in by Lashonne from NYC.  She asked:   Hi Tyler, “I love listening to your podcast while I’m at work. I’m a newbie looking for advice on my first deal. I know that I want it to be a multi family and due to my location (NYC) it would have to be out of state for economic reasons. So, I’m currently looking into NJ. I know it has some of the nations highest taxes, but cash on cash return outweighs that concern.” My Response: I partially disagree, I believe that if your focus is on discovery of problems and solving of problems that opportunity can be found in any market or market cycle.   She went on to add: “Here is where I need your expertise. I see so many investors purchasing NJ duplexes/triplexes for about $250k +, putting about $50-75k (or more if it’s a complete gut) into it, then renting out each unit for about $1500. Refinance and repeat (BRRR). Is it wise to have 5 or more homes with such high mortgages? They told me that their end game is not to hold on