Cash Flow Guys Podcast

For many, buying a property with non-paying tenants or squatters residing there would be a red flag. I see such a situation as a huge opportunity to negotiate a great deal. Landlords that have non paying tenants are most often in deep financial trouble if they have a loan payment to make every month.  This is because most landlords only see a few hundred dollars of profit per unit because the rest goes to the bank. Non-paying tenants mean that the owner needs to make those mortgage payments even though the tenant is not paying.  Although some landlords can handle this financial burden, most can’t for very long. Statistically speaking, 24% of multifamily tenants have not paid their rent in full as of Sept 6th, 2020 as compared to only 18.8% in September 2019 according to NMHC.org (National Multifamily Housing Council.  That tells me that there’s a good chance the landlord either has or will have non paying tenants in the near future.  Now is the time to get the attention of these landlords. How do you find the

Boy oh boy do I have news for YOU! This week the CDC (Center for Disease Control) issued a nationwide ban on evictions that is estimated to last until December 31st, 2020.  When I first heard about this I thought it was some sort of hoax because last time I checked, housing was not part of CDC’s focus. To go directly to the order to read it yourself go to: http://cashflowguys.com/cdc The CDC Eviction Ban order applies to ALL Landlords, regardless of what mortgages they have in place (previous orders applied to FHA Loans only).  The only exceptions available apply to hotels, motels and short term vacation rentals. You should know that in order for the ban to apply to your tenant, the new order requires that tenants supply a specific written declaration to the landlord for the new policy to apply.  Look at Attachment A on the CDC website link for details on that. According to the CDC, the intent of this new order is to help stop the spread of Covid-19 by discouraging people from moving during these times and to

In last week’s episode, we discussed the most common misconception believed by wholesalers. For those that missed it You Don’t Need a Cash Buyer to Wholesale Real Estate. This week, we will discuss another popular misconception that involves licensed Realtors. Some Realtors tend to believe that much of what investors do is somehow shady or illegal.  In my own experience, I have had at least two dozen Realtors tell me that they believe Seller Financing was illegal.  When pressed for more details on why they believe this, they often shut down. The real issue here is that fear can easily overcome someone’s emotions when they don’t understand something.  Also, when they realize that they should be better versed on a topic than the general public embarrassment kicks in.  If you keep pushing the issue the conversation can go downhill fast. Rest Assured, Regardless of what your Realtor says, Seller Financing is NOT illegal. In cases where you are shut down by a Realtor when trying to offer seller financing, you have

One of the most popular myths I hear in real estate is that wholesalers need cash buyers to complete a deal.  While I must admit, closing a transaction with all cash is undoubtedly quicker in most cases, the reality is that many super-profitable transactions get ignored simply because the buyer is not using cash. In most cases, it’s the disclosure of the wholesaler’s fee that brings forth this false belief.  When advised of something they don’t understand, Lenders, Realtors, and title companies sometimes stomp on the brakes halting the transaction progress.   The simplest way to avoid the drama of having a deal go sideways over your fee is begin with a stable relationship with your buyer.  When you invest time getting to know them and understand their needs, transactions will go much smoother for you.  Buyers work with wholesalers to simplify the acquisition process, saving them considerable amounts of time and marketing costs.  Therefore, when you build a mutually beneficial relationship with them, everyone

In this episode, I discuss the one secret to success in wholesaling.  You might think its some new shiny software widget, or perhaps some super-secret wording on a postcard, but it’s even simpler than that...  I see lots of wholesalers advertising properties for sale, in some states, they are asking for grief from the authorities.  You see, in most areas, only a Licensed Real Estate Salesperson may advertise real estate for sale that they do not own in exchange for a fee.  Trying to find the right buyer for a house is far more challenging than finding a house for a buyer.  As a wholesaler, imagine how much easier it would be if you could simply go shopping for a qualified buyer, knowing exactly what they want, how they intend to fund the purchase, and how much they are willing to pay.  This method makes wholesaling EASY so why not do things the easy way?  Finding qualified buyers can be challenging because there are lots of “tire-kickers” out there.  To make your life easier be sure to qualify any buye

In this episode, I am going to cover a topic never before discussed on this podcast.  Before I go any farther I want to begin by stating that nothing contained in this episode should be considered investment advice.  I am NOT an expert in precious metal investing, therefore you should conduct your own independent research before considering any financial investment. There, with that said, let’s dive in, shall we? When I was young, my Grandpa used to tell me to always keep a silver coin in my pocket.  He gave me my first one.  His logic was that as long as a man had access to “God’s money” as he called it, he could weather just about any financial storm. I remember as a boy him grumbling about our elected officials of the time, Gerald Ford if memory serves me correctly.  Grandpa was complaining about Federal spending and devaluation of the dollar being a problem.  At the time I was clueless about what he was talking about because I just wanted to focus on my fishing. When I grew older, a friend told me to trad

What’s pig you might ask?    Great question! a P.I.G is an acronym that stands for Professional Information Gatherer.   It was way back in 2012 when I first heard the term and decided that I was going to learn more about getting good at getting information.  Wondering if a seller will say yes or no is indeed an uncomfortable feeling. The fear of being rejected is what keeps many buyers from ever making an offer.  How do we get any deals done without facing a bit of rejection?  Short answer...we don’t.  I wasted lots of time wondering what someone would say to my offers because I did not make them as often as I should due to fear of rejection.  By spinning my wheels, I watched lots of great buys happen without my name on the buyer’s line.  Sometimes it felt like the only way I could ever get a deal was to outbid all the other buyers.  Making offers should have a strategy attached to it.  Some teach to use fancy words or psychological tactics, others teach to blanket your local market with offers on everything

Chasing deals is common, everyone does it from time to time, some far more than others. Those that stick with a winning strategy win, those that don’t, won’t. 100% of the truly financially free people I know got there by using the resources of others to help them to the finish line. Banks won’t allow you to get there quickly because they are in the business of making money when you buy (institutional lending can be expensive on the origination side) Hard Money loans are expensive throughout the duration loan cycle by design which is usually because of the short term involved. The raising of relationship-based private capital is by far the most economical and viable method of achieving financial freedom by acquiring real estate. I have never met anyone who escaped the rat race by using 100% of their own money to do deals, the same applies to those who use banks to fund their purchases.  If you don’t learn how to raise private money you will likely never escape the rat race. Many people feel that raising privat

Prove it, Yep, it means what it says.  Before you close on any deal be 100% sure that the info you used to base your buy decision on is accurate.  I am willing to bet that the seller, broker, or wholesaler embellished on some of the info you believe to be true. Before you do any deal, prove the numbers by common sense due diligence. This does not mean trusting the Realtor or wholesaler that is presenting you the deal.  I am not saying they are lying however they tend to make things appear a bit more profitable than reality will prove. A wholesaler using the term ARV is the human version of Zillow and therefore is never accurate. The value of a property is what a buyer is willing to pay for it, period. When a seller tells you what a property will bring in for rent prove it before you believe it.  A great way of doing this is to look on craigslist for similar properties located in the same area and call them.  The MLS will often be a good resource of rental data for properties that have already been rented.  To

In this episode, I discuss the ten skills required to crush it in your marketplace.  These skills are well laid out in the famous book “Think and Grow Rich” from Napolean Hill.  When building a business, someone needs to assume the leadership role and real estate is no different.  In fact, not having a clearly defined, a qualified leader can bankrupt a company in short order.  As you might imagine, there’s a big difference between being a leader and being “in charge”.  It takes a ton of courage to assume the leadership role, in fact, Courage is the first of the ten I will discuss this week.  If leadership is not your thing, or you suffer from a lack of confidence, unwavering courage may be a challenge for you.  The good news is that you can bring in someone to lead the company who does possess these skills.  Being successful as an investor does not mean having all the answers, it means knowing the right people to join you who have those answers.  I believe that these people are around each one of us, and it’s

In the famous book Think and Grow Rich by Napoleon Hill, “Organized Planning” is a chapter of which we will cover today.  I want to specifically address the subsection titled “Planning the Sale of Services. Believe it or not, as a real estate investor you earn based on the sale of ideas and services, not so much the buying, selling, or renting of real estate.  It’s not about the transaction, it’s about what you provide to the marketplace.  Anyone can complete a transaction if they have the opportunity and the means, but few know how to provide the service that brings forth the opportunity and the means. In the book, Mr Hill mentions the sale of ideas, which happens to be one of the ways I have achieved financial freedom. In order to master the sale of ideas or services, we must first learn how to become a leader worthy of being noticed or align ourselves with such a leader. When I was a freight broker, truck drivers came to me because they knew me as a person who had information on where they could find good-

In episode 235 I talked about the fact that the Great Escape was closer than you think.  If you have not yet listened to that episode please go listen to that episode before you listen to this one. A listener responded to that episode via a YouTube comment saying: “The flip side to your argument is that most of us don't want to just be "free". I don't make 10k a month now. But for me to be able to do all the things I want to be able to do, I need to make very close to that. I could live on half that, and pay all my bills but I would not be happy.” The commenter then deleted their comment so perhaps a lightbulb went off negating the need for the comment to begin with. In case they are still puzzled, or in the event, you feel the same way, I’d like to address this comment and revisit the core points of that episode from a different angle. Let’s break down the comment so we don’t miss anything:  “The flip side to your comment is that most of us don’t want to be just “free”   As compared to what? Staying in W2 pr

I bet for some of you the name of this episode caught your attention...after all, everyone wants to know when that magical day will happen. Sorry to disappoint you, but we will not know when the market reaches the bottom until after it is in recovery. The better question is, why does finding the bottom of a market cycle matter to you?  Do you honestly believe there are more “deals” in this magical place? Who lied to you by saying the best time to buy is at the bottom of the market? The best time to buy is when the numbers make sense because you are dealing with a motivated seller or one who does not see the potential in their own asset. For them, the “asset” may be a liability by being a drain on their wallets. It does not matter what market you may be in, there are deals to be had in every market. When we let the popular opinion drive how we do business, we convert what should be a business transaction into an emotional one. Instead of worrying about public opinion, perhaps we instead focus on finding opport

In this episode, I am going to discuss the power of leveraging a group to help you build your portfolio. The idea for this episode was born from seeing a long line of identical cars rolling down US-1 last weekend in the Florida Keys.  The cars were Nissan GTR’s that I later learned can cost upwards of $100,000 more to acquire, even if when used.  The sight of all those cars got me thinking...what if that group of 100 car owners got together and invested together into a cash-flowing asset?  Well, if they do, the next car could be paid for by that cash flowing asset.    Imagine being able to buy a $100k automobile without having to pay for it!  That’s one of the basic principles taught by Robert Kyosaki and the Rich Dad advisors.  When like-minded people get together, who share the desire to accomplish great things...they often wind up very successful!  You might be thinking that you wouldn’t be able to take part in the group because you lack the cash...but wait, do you have skills that could be extremely valua

What is your escape number?  What I mean is... what number will it take for you to be financially free.  For me, that means that you have enough coming in from non-employment income consistently to cover your monthly living expenses.  Everyone seems to think its $10k a month...that’s what most people tell me.  I am willing to bet your number is lower than you might think.  When Jill and I set a goal to escape the rat race, our number was $4000 a month.  It would take that amount every month to cover our expenses.    We were able to accomplish that with one small deal.  As we continued to do more deals, the profits from those deals became the insurance we needed to quit our jobs...forever.  Even when I flipped properties or put on my Realtor hat and made a commission, I would divide my payday by 12 to see how it impacted my monthly income.  As I pushed forth and did more deals, we started dividing by 24, then 36 and later 48 months.  We also saved up 2 years of expenses over and above that so we could sleep we

In this week’s episode, I am changing things up a bit by doing something we have never done before.  I will be sharing (with permission) a chapter from Russell Brunson’s new book Traffic Secrets. You can pickup a free copy (just pay shipping) here: CashFlowGuys.com/TrafficSecrets What do I mean by traffic?  Traffic means driving people’s attention to your sales funnel so that you can offer them your product or service.  You might be thinking, Dude, I don’t need a sales funnel, I am a real estate investor.  I’d have to disagree with you.  In fact, without a sales funnel the failure rate for a real estate investor is quite high! Why would I say that?  Time is why.  Here’s the thing, our time is limited, we are all busy doing as much as we can to find capital and deals right?  Sometimes we are focused on funding, other times we are trying to find properties to buy, flip, or wholesale all while burning the candle at both ends. By building a sales funnel, we can harness the power of digital marketing to attract qu

This week I am going to talk about the top 7 most popular mistakes we can make when buying an investment property.  Peer pressure often forces otherwise logical people to make illogical decisions that are quite common in the real estate space. Sellers, Wholesalers, and Realtors tend to paint an unrealistically rosy picture of how profitable the investment will be. Maybe you don’t want to disappoint those who are pitching you such an amazing deal so you pull the trigger. It might be that you are so excited about the opportunity to own real estate you skim over the deal without completing a full cashflow analysis. Sellers of investment real estate know that you as the newbie do not want to be considered a tire kicker, so you do the deal so as not to disappoint the “cool kids”. Shortly after closing, you find yourself short of cash over the next few months.  You find this odd because after all, you recently bought a rental property, and it’s rented so where are all those profits? I’ll tell you where… Most common

When buyers and sellers get nervous, believe it or not, properties get sold!   Here’s how…  Sellers are suddenly accepting lower offers in fear of getting caught short by a market shift.  They are seeing that in some circles, the belief is that fewer people are buying due to fear caused by the pandemic and the massive spike in unemployment.  The uncertainly can keep many potential buyers on the sidelines, waiting to see how things will play out.  On the other side, buyers are in fear of missing out on historically low-interest rates that we will not likely see again for decades, if ever.  FOMO is driving some buyers off the sidelines so they can buy before it gets too expensive for them to buy because of interest rate inflation.  What’s fascinating about this whole situation is that if you remember the 2008 housing crisis, buyers were not panicking, only sellers were.  Because of the imbalance, buyers were able to score great deals due to seller panic. Seller’s back then did not know if they would ev

This week I want to talk to you about what will most likely prove to be the most important topic of this year…. Let’s talk about you retiring someday...or not. This means we need to learn a little bit about Social Security and how the system works.  First, Social Security payments come mostly from two primary “trust funds”.  One is called the OASI which stands for Old Age and Survivors Insurance, the other is referred to as “DI” which stands for Disability Insurance.   According to a recent press release provided by the Social Security Administration on April 22nd 2020, both funds will be out of cash in the year 2035. That’s less than 15 years away...which basically means you will NOT be able to retire off social security at ANY age. But Wait...there’s MORE! In the 2020 Annual Report to Congress, the Social Security Fund Trustees announced: The asset reserves of the combined Trust Funds increased by $2.5 billion in 2019 to a total of $2.897 trillion. (that’s good) The total annual cost of the program is proje

This question is on all of our minds lately I bet. it certainly is on my mind.  Everyone keeps mentioning this supposed “New Normal” but what does that mean for real estate investors?  The true meaning depends on your own interpretation of what “normal” is. Let me explain…for me, it’s normal for a seller to accept payments for their equity because I believe it’s the smartest way to sell a property.  Because I believe so deeply in this method of selling real estate I am shocked when someone disagrees. Because I believe seller financing is a normal thing to do, I find it easy to obtain seller financing terms when I buy real estate.  When I sell real estate I always try to sell it on terms for three main reasons: Higher Sales Price because I make it “easy to buy" I receive a predictable stream of income I can reduce my tax liability and spread out what liability I have over time with a tax strategy. (Read Installment Sale IRS Publication 537) New Normal could mean it’s an accepted practice to no longer pay ren