Cash Flow Guys Podcast

In this episode, I’m going to tell you a true story about a situation that happened to me recently regarding one of my properties. We have owned this one since 2014 and currently operate all the apartments as short-term rentals.  In 2016 when we made the switch from long-term to short-term tenancy I met with my insurance agent at the time to be sure I had adequate coverage for the change of use. I figured that the property would be subjected to a bit more use and abuse due to the short-term nature of our tenant’s stays. My agent suggested that I simply purchase an additional liability policy that would cover any claims of damage or liability that stemmed from the short-term occupancy.  The cost of the plan was only $1200 a year which was well within my budget since the property consistently cashflows 10x that or more each month. In 2020, my insurance agent sold his practice to another agent and retired.  I did not find this out until 6 months after the sale which irked me a bit I must admit. After chasing dow

In this episode, I uncover a recent discovery I made (by accident) and how you can profit from it.  The iBuyer craze is taking America by storm until this week, Zillow jumped off the bandwagon, cut loose 25% of its staff, and is dumping inventory like mad.  I'll uncover how you can leverage this service to your advantage no matter if you are a seller, Realtor, Wholesaler or Rehabber.  Don't miss this one!

When I see a dangerous trend that impacts lots of people who listen to this podcast, I feel it’s my duty to create an episode to explain what I am seeing in hopes that you will take pause and dig a little deeper before you jump off that cliff.  I’ve done my best to keep you up to speed on trends I discover that end up trapping good people into difficult situations. When I first got started, I followed the herd-like most of us do.  I flipped houses first, then later wholesaled for a while.  While I made some serious cash doing these things, I also wound up paying far too much of my earnings to the IRS in the form of tax.  I also overpaid mailing houses, sign companies, call centers, software salesmen, and asset protection lawyers that said I needed a bunch of LLS’s, trust, and other nonsense. Recently I’ve been learning about investing in / trading cryptocurrency.  I’ve read books, watched YouTube videos, read forums and chat groups, and dabbled in it myself.   I still have lots to learn (tech analysis), disco

In this episode, I discuss how the current events happening in our daily lives eventually wind up holding us back from making forward progress.  I dive into the most important thing that you can do to protect yourself from the uncomfortable changes in your life from an economic standpoint. 

In this episode, I bring back my Real Estate Attorney Shawn Yesner to discuss HOA foreclosure issues that are rapidly becoming more commonplace.  This episode is packed with the info you need to avoid this common "gotcha" that catches many real estate investors off guard and can cost you hundreds of thousands of dollars. To connect with Shawn go to YesnerLaw.com

There's been a lot of chatter lately about the US Debt Limit "crisis" that was created by our elected officials.  I'm not suggesting its not a crisis, it certainly is, yet 100% of the blame is shared by our elected officials on both sides. The easiest way to understand it is to think of it as a credit card that has a credit limit.  Imagine if you paid all your bills using that card and suddenly decided you wanted (or needed) to buy more stuff. If the credit line is maxed out, simply call the bank and ask for a higher line of credit...what could go wrong?  LOTS, lots can go wrong. There is an unimaginable amount of bad information spewing from Washington DC on this topic which is why I made this episode.  It's time for you to take action to protect yourself from our elected criminals.  This episode will help explain what's really going on, how we arrived here, and then offer suggestions on how to prepare yourself to weather the storm. SHould you be nervous about the debt limit? No, but you should be taking ste

For every landlord, the day comes where we find the need to raise the rents.  For many, this is a routine that happens annually or semi-annually.   The event can bring with it a bunch of emotions from landlords and their tenants, some good, some bad, some indifferent.   Nonetheless, there is a "right way" to raise the rent such that the most desired outcome for you is probable and that's what I am discussing in this week's episode.

“Deal Shopping” tends to lend itself to the rose-colored glasses effect, everything is great, no worries here, this place is just under-rented, all ya gotta do is buy it and POOF double the rents and get rich right?  WRONG Before we go any further, let’s discuss the two types of vacancies. Physical vacancy applies to actually empty units (nobody living in them) Economic vacancy identifies the difference between the potential (proforma) rent and the actual rent. As a passive investor investing in someone else’s deal, it’s a good idea to perform your own independent market research.  Your findings should align with the finding of your deal sponsor.   If you are buying a property yourself as an active investor, the same is true.  You can’t count on the Wholesaler, Broker, or Seller to be accurate with the information they provide. It’s not that they are lying necessarily, instead, it’s more likely that they simply were not willing to do their homework if they are the Broker, Wholesaler, or Deal Sponsor.  If the

In this episode, I discuss recent headlines as they pertain to our current and future financial crisis.  Recently, Tax Attorney Mark Kohler put out a great video about proposed changes to tax law that could have a massive impact on those who use IRA's to invest.  You can watch this on youtube by following this link: HTTP://CashFlowGuys.com/IRAdrama This impacts house flippers, real estate syndicators, and the like across the board.  Should you sit on the sidelines and let this unfold before you invest again?  Does it make sense to buy now?  These are the topics I discuss in this episode.

Nobody enjoys making low ball offers - Let’s be honest….its painful! Brokers / Wholesalers / Sellers always “guess” at the asking price, that’s right, I said guess.  Why do I say this?  Because it’s true, let’s think about it for a minute.  The Realtor does a market analysis and /or the seller is super savvy and gets an appraisal to help them determine the fair market value of their home.  In almost every case, the seller will boost that valuation up a little to leave room for negotiation hence a “guess” when it comes to the asking price. I’d like to think that Key West Realtors are crazy in the pricing down here but they’re not.  Homes actually sell for more than the asking price in many cases which tells me that the buyers feel the homes are worth more than the sellers and brokers do!  That’s a great thing when you’re on the selling side of the transaction for sure! I’ve never met a seller, wholesaler or real estate agent who was happy to hear that you feel the property they are selling is “overpriced”, so,

In this, the 300TH episode of the Cash Flow Guys Podcast I sit down with J Massey of Cash Flow Diary to discuss the amazing possibilities that can be had by investing in Short Term Rentals.   As a student of J's Jill and I have built an incredible STR business that allows us the freedom to run it from anywhere in the world.   Recently, we relocated to Key West, Fl to begin buying up long and short-term rentals in this market. With the help of Mike Marino of LayoverMoney.com we plan to revolutionize the traditional methods of syndication investing by building a streamlined, highly optimized investing opportunity for our investors. If you want to learn how to grow your very own short term rental business, you can get started today by texting "blueprint" to 949-506-5255 As a student of CashFlowDiary myself I can tell you that learning this skills will prove to be absolutely life changing if you choose to do the work.

In this episode, I talk with my investment partner Mike Marino and our CPA John Hartung for the Cashflow Capital Investment Fund we have opened recently about the pros and cons as it pertains to investing in syndications of all kinds. We discuss the several ways a syndication or investment fund is taxed and also how the individual investors are taxed. Did you know it's possible to achieve a zero tax rate without being Jeff Bezos?  I didn't but it certainly is and John discusses how that is possible amongst many other juicy tax strategies in this episode that you're not going to want to miss!

Lately, I’m seeing signs of supply chain issues that could potentially impact the income I make from my rental properties and other real estate deals. In this episode, I break down what I am seeing as it pertains to labor and materials shortages and how that can impact all real estate investors worldwide. Don’t underestimate how the current and upcoming shortages can and will impact your business.  I am hearing more and more reports daily from friends and colleagues who are having trouble finding even the most basic supplies to maintain their rentals or finish flips.   Experts are saying the shortages will likely worsen before they get better so why not take a minute to access your position and take appropriate measures to protect yourself and your business.

The term equity multiple is used by syndicators/deal sponsors as a fancy way to discuss return on investment. Google Definition: Equity multiple is a metric that calculates the expected or achieved total return on an initial investment. It’s calculated through an equity multiple formula that divides the total dollars received by the total dollars invested. Equity Multiple = Total Distributions / Total Invested Capital Example 1:  An investor purchases a property for $100,000;  The property is sold for $200,000.    The deal produces a 2x equity multiple.  If the investor only receives $150,000 back, the deal delivers a 1.5x equity multiple. Example 2:  An investor purchases a property for $100,000;  The property pays $7,000 a year in net operating income;  The investor sells the property for $165,000 after six years In this case, the equity multiple calculations would be $207,000 divided by the initial purchase price of $100,000, or a 2.07x equity multiple. Example 3:  Leverage Example:  An investor purchases

Earnest money is defined by Google as “money paid to confirm a contract” and in my opinion, is one of the most important elements of putting a deal together. In Florida (and I believe in all US States) for a contract to be considered enforceable, there must be “consideration” which is most often meant to be some sort of cash deposit or earnest money Wholesalers are notorious for not using earnest money when they attempt to go under contract with a seller on their home, this is a great way to lose deals! Many folks will tell you that it’s not necessary to use earnest money which will come back to bite you the minute a seller decides not to sell to you or honor your contract. In this episode, I cover how to use earnest money to win a seller’s approval on your offer over others which is critical in this very competitive market

My oh my, what a week! There I was watching Uncle Joe on C-Span tell me that the eviction ban is over and that there have been legal challenges brought forth by the Supreme Court declaring the ban unconstitutional. He then said that it's unlikely the views of the Supreme Court would change. As a reasonable person with average logic skills, I took this to mean that the eviction ban was finally over...boy, was I wrong. As you might know, the CDC created another eviction ban even though they (and President Biden) acknowledge it's probably not going to hold up in court. So with that news, I reached out to my team of experts, and that's why Attorney Shawn Yesner of Yesner Law is my guest this week to help us unwind this situation. As usual, the #YesnerWins team does a great job helping us navigate these shark-infested waters. So listen in to learn what to do if you have a non-paying tenant this year.

When analyzing potential deals there are lots of different formulas you can use to see if a deal with worth pursuing. All of these formulas depend on accurate data to generate an accurate end result.   The 1% Rule - Defined as the expected monthly rent divided by the ARV or After Repaired Value of the home. This rule is what I nickname the "Bigger Pockets Rule" because if you use this you will often find more room in your empty pockets due to the money being removed from those pockets. The rule can be helpful as a loose guideline to measure a potential investment opportunity however much more diligence and details are required to make an informed decision.   Potential Problems:   Is the monthly rent figure actual or estimated? Estimates cause the end result to be inaccurate. Sellers, Realtors, and Wholesalers tend to estimate income and expenses more often than not, which means your end result will not be accurate and can only be viewed as a very loose estimate.   Valuation in ARV, who determined the ARV? A W

In this episode, I interview Kyle Rodgers of Botfox about how to leverage a little-known, under-the-radar method to find motivated seller leads and cash buyer leads. When Kyle got started wholesaling, he quickly discovered that generation can get expensive really quickly.  Also, he discovered that it takes a great deal of time to generate leads when you are going at it all alone.  He needed to figure out a way to generate high converting quality leads without breaking the bank and without working lots of hours to get them.  That’s when Botfox.net was born. Kyle cast aside all other forms of marketing and doubled down on teaching himself how to use Facebook groups to find cash buyers and motivated sellers.  He then wanted to scale his business but knew that was impossible by himself.  It was then that he developed his proprietary training system to teach others how to generate leads for him! Kyle has put in the work and sweat to develop the Botfox system which is what he uncovers in this episode you won’t want

There comes a time in every investor's lifespan when it just seems time to give up.  Although for most, I wouldn't agree, but for some, perhaps they are correct in arriving at this decision. Here's what I mean... We all know the riches and fame that can come from being a real estate investor, blah, blah...but it can also destroy people faster than it can make them a rockstar. Real estate investing is something that attracts people of all financial classes, rich and poor.  The problem is that many of the poor investors have yet to develop the personal financial discipline necessary to be successful in real estate. If you're having a tough time making ends meet month after month, real estate won't usually save you, in fact, it will likely make things worse.  This week I expand on this thinking and offer solutions to help get you on track in the future.

Recently I was attending YouTube University by watching a suggested video on my feed titled “Zillow is Manipulating The Real Estate Market, They Need To Stop”.  I’ll admit, the title was a great hook that sucked me into watching the video.  The host of the video spent the entire 18+ minutes whining about how unfair Zillow is being by buying up properties from the market and reselling them.  I suppose that’s one view on the situation… Frankly, I find Zillow’s project brilliant, they were able to secure funding capital for 3% give or take and are buying up these properties in great markets around the country and making a fortune on volume sales.  Instead of complaining about their methods, I’m going to watch and learn how they are doing this and replicate it. It’s easy to cry foul these days, there’s always someone in earshot that will commiserate with your pain and join you in victimhood, but imagine the possibilities if instead of complaining about it, we simply learned how to make those profits for ourselves