The FIVE WAYS That Rental Properties Pay YOU - With Keith Weinhold from Get Rich Education

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Keith Weinhold

Keith is the host of one of the top investing talk shows in the United States, Get Rich Education. Check out his website here.

In this episode…

In this episode, Brian interviews Keith Weinhold of Get Rich Education! Keith is a very successful SFR and multifamily investor in multiple markets. He does all of his investing virtually and his business is 95% automated. He drops some SERIOUS value about the 5 ways real estate pays YOU (and how to get a 50% return on your money!). Don't miss this one!

Hey, Quick Question For You...

Hey guys!

So I’m putting the finishing touches on a course called the “12 House Masterclass” where I give you every single training, tool, resource, and coaching that you will need…

To get your first 12 HOUSES...

And make the equivalent of the average American income, (50K/year)...

I want to make sure I don’t leave ANYTHING out of the course.

So, do you mind to tell me…

What’s the ONE THING you feel is MOST holding you back from getting your first 12 rentals?

I read all the replies personally, so please, reply!

Thanks so much..

Brian

(Free Resource Inside) 6 Step Checklist To Conquer Your Contractors

Are contractors a pain in the @$$?

Do you have trouble finding them…

Managing them…

And getting them to friggin’ do what you want them to?

We had this same problem for a long time.

We lost lots of money…

And spent a lot of time just being pissed off at contractors.

After about 7 years of trial and error, we finally cracked the code…

We created a simple process for finding, hiring, and managing contractors…

To make SURE that your rehab gets done RIGHT…

After all, it’s your investment.

You need to protect it so that your #’s still work…

And you can cashflow and replace your income (the whole point in the first place!)

Click the link below and grab your FREE copy of this checklist we created.

It’s simple, but it could literally save you hundreds of thousands of dollars.

CLICK HERE TO DOWNLOAD THE CHECKLIST

Also, let us know...what tips have YOU learned for how to manage your contractors?

Brian

How To Replace Your Income With 12 Rental Properties (Part 9 of 9)

After coaching so many people through the process of buying cashflow properties and replacing their income…

I’ve arrived at a “framework” that I have my clients follow.

This 9 step process is the most logical and effective way to build your portfolio.

So far, we’ve covered:

Step #1 - Pick Your Market

Step #2 - Build Your Team

Step #3 - Getting Setup

Step #4 - Find The Money

Step #5 - Find The Deals

Step #6 - Analyze Deals & Make Offers

Step #7 - Due Diligence

Step #8 - Closing & Funding

In today’s post, I’m going to cover the FINAL step, Step #9:

Renovate, Rinse, & Repeat!

Let’s dive in!

**********************

So you own a house! Congrats! You’ve done the hard part. Now, it’s time to make that house clean and safe, ready for a tenant to move in and pay top-dollar rent.

Here are the keys to the “Renovate, Rinse, & Repeat” phase of buying a house:

  1. Meet With Your Project Manager - The first thing I do is schedule a call with my project manager to get things rolling. We determine budget, deadline, quality standards, etc. I set bonuses based upon him hitting those targets. We also set a schedule for our next calls, set expectations for what pictures/videos he will send and at what frequency.

  2. Continue To Hold Meetings - Meet at least once per week (on webcam or phone) with your project manager until the rehab is complete. Make sure to release payments in chunks, based upon completion. I.E., if the rehab is 15K, pay 5 payments of 3K or something like that, as you see proof of work getting done in the pictures and videos.

  3. Final Payment - Never allow your Project Manager to release the final payment to the contractor until the work is FULLY done, down to every little punch-list item. This motivates the contractor to push through and leave nothing undone.

  4. Hand Off To Property Manager - Once you have a renovated house, hand it off to the property manager to advertise and rent! Set the rent amount/deposit/pet rules/etc with them. Sign their contract after reviewing it. Get set up for them to pay you.

  5. Rinse & Repeat - Now you are ready to go back to step #5, Find The Deals, and find your next deal, and do this over and over until you get to 12 houses! The good news is you don’t have to do steps 1-4 anymore, they are one-time things. Plus, you’ve experienced the process first-hand so you have the confidence and mindset now, which is EVERYTHING to your success. Great job!

If you are interested in a more comprehensive training on how to get your first 12 houses, check out our 12 House Masterclass which includes not only includes a module on this, but also:

  • A comprehensive 50+ video training course on how to get your first 12 houses

  • Bi-Weekly group coaching calls with me

  • Access to our private, closed Facebook Group where you can ask me questions to your heart’s delight

  • Access to my private money lenders

  • My 2018-2019 Best Markets Report

  • Coaching Call Recordings

  • A “Freedom Artist” T-Shirt

  • And much, much more!

LEARN MORE ABOUT THE 12 HOUSE MASTERCLASS HERE

Reply to this post if you have questions...peace!

Brian

How To Replace Your Income With 12 Rental Properties (Part 8 of 9)

After coaching so many people through the process of buying cashflow properties and replacing their income…

I’ve arrived at a “framework” that I have my clients follow.

This 9 step process is the most logical and effective way to build your portfolio.

So far, we’ve covered:

Step #1 - Pick Your Market

Step #2 - Build Your Team

Step #3 - Getting Setup

Step #4 - Find The Money

Step #5 - Find The Deals

Step #6 - Analyze Deals & Make Offers

Step #7 - Due Diligence

In today’s post, I’m going to cover Step #8:

Closing & Funding

**********************

OK! So you’ve made your final purchasing decision, and you want to buy the house. Congrats!

It’s now time to get the pieces lined up to close. This a really important step so please pay attention.

Here are the keys to the “Closing & Funding” phase of buying a house:

  1. Get Funding Lined Up - The most important part of buying a house is getting the money. As soon as you green light the property to buy, contact your lender (whether bank or private) and get the process started. Ask them about their timeline. Make sure you can close within the time stated on the contract. If not, ask for an extension from the wholesaler.

  2. Decide On Your Closing Day - After talking with your lender, decide with the wholesaler and title company when you will close. Again, create ample time to get the loan processed, and set expectations so everyone knows what’s coming.

  3. Schedule Insurance To Kick In - Contact your insurance agent and choose the best type of insurance with their help. Have your office manager fill out the paperwork and get the insurance set to kick in the day of the closing, so you are covered.

  4. Final Walkthrough - On the day of closing, have your project manager do a final walkthrough of the house. You don’t know what might have happened at the house between now and the last time someone from your team was there, so take one last glance at what you are about to buy to avoid any surprises.

  5. Attend Closing & Sign - Get your office manager POA for you so they can attend the closing and sign the docs for you. Make sure a copy of the HUD is gotten and sent to your accountant. Make sure the seller brings keys/any tenant leases/deposits/etc to closing as well.

  6. Set Up Lender Payments - I usually have my office manager set up payments to my lender right away after the closing, just to make sure we start off on the right foot with them and the first payment isn’t late.

Those are the basics of closing & funding. Nothing too complicated but you want to make sure you do it all!

If you are interested in a more comprehensive training on how to get your first 12 houses, check out our 12 House Masterclass which includes not only includes a module on this, but also:

  • A comprehensive 50+ video training course on how to get your first 12 houses

  • Bi-Weekly group coaching calls with me

  • Access to our private, closed Facebook Group where you can ask me questions to your heart’s delight

  • Access to my private money lenders

  • My 2018-2019 Best Markets Report

  • Coaching Call Recordings

  • A “Freedom Artist” T-Shirt

  • And much, much more!

LEARN MORE ABOUT THE 12 HOUSE MASTERCLASS HERE

In my next post, I’m going to cover the final step, Step #9, which is…

Renovate, Rinse, & Repeat

This is the step where you renovate the house, get it rent ready, hand off to your property manager, and repeat!

Look for that in my next post.

Talk soon!

Brian

Is Your Passive Income REALLY Passive? [With Seth Williams Of RE Tipster!]

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Seth Williams

Seth is the founder of REtipster. The lessons he learned on his journey to real estate investing success gave him a new mission: to empower others to their own create personal and financial freedom.

On this journey he didn’t stumble upon any secret shortcuts — he learned through trial and error. Now he’s sharing his knowledge and experience to make the internet a better place for real estate investors.

In this episode…

In this episode, Brian welcomes Seth Williams, from the amazing blog RETipster. They talk about how to know whether your income is TRULY passive, and Seth shares a unique form of investing that you may have never even considered!

How To Replace Your Income With 12 Rental Properties (Part 7 of 9)

After coaching so many people through the process of buying cashflow properties and replacing their income…

I’ve arrived at a “framework” that I have my clients follow.

This 9 step process is the most logical and effective way to build your portfolio.

So far, we’ve covered:

Step #1 - Pick Your Market

Step #2 - Build Your Team

Step #3 - Getting Setup

Step #4 - Find The Money

Step #5 - Find The Deals

Step #6 - Analyze Deals & Make Offers

In today’s email, I’m going to cover Step #7:

Due Diligence

**********************

Once you get an offer accepted, it’s super important that you check that house out from top to bottom, and make ABSOLUTELY SURE it’s going to be a good investment.

I’ll go over how to do that below.

You ALSO want to make sure that the contract you are signing (and the one you are being “assigned”) give you time to make that happen…

WITHOUT forfeiting your earnest money.

Let’s dive in.

Here are the keys to the “Due Diligence” phase of buying a house:

  1. Review Original Contract, Ensure You Are OK W/ It - You’ll be signing the assignment contract, which is different from the original purchase contract (the one between the wholesaler and the seller), but you’ll be “assuming” the terms of the original contract, so ask to see it. Make sure the terms on both the assignment and the original contract are OK with you before signing.

  2. Negotiate Time To Do Inspections - Things to look for on those contracts is the contract expiration date, earnest money amount, any inspection/financing contingencies, and the date the earnest money goes hard. You want at least 10 days to get your contractor and inspector in the house BEFORE the earnest money goes non-refundable. This will allow you to thoroughly check it out, and if need be, back out of the contract without losing anything (as long as you do so within the 10 days).

  3. Schedule Contractor - Have your Project Manager schedule your contractor to get in the house and give you an estimate. Review the estimate with your PM. Did it come back as expected? Do the numbers still work on the deal, from a cashflow perspective? If they don’t, you’ll need to renegotiate the price. Show the contractor estimate to the wholesaler as your reason why. If you can’t renegotiate, back out and find a new deal. If you CAN get the numbers to work, then move on to step 4.

  4. Schedule Inspector - Have your Project Manager schedule your home inspector to get in the house and perform a certified home inspection. Review this when it comes back, and compare it to the contractor’s estimate. Are there any big discrepancies, things the contractor missed in his estimate and needs to include? If so ask him to do so, and get the new, updated estimate.

  5. Make Final Purchasing Decision - You now have a MUCH better understanding of what’s going on in the house, and what it’s going to take to get it renovated and rent-ready. It’s time to make your final decision (again, before the expiration of your inspection period and before your EM goes non-refundable). Do the #’s work? Will you be cashflowing at least $200/month, net-in-your-pocket? If not, you really need to renegotiate or back out of the deal. It sucks, but you don’t want to do deals with no cashflow, because the whole point is replacing your income/quitting your job, and you can’t do that without cashflow.

Those are the basics of doing due diligence on a rental property, once your offer has been accepted.

If you are interested in a more comprehensive training on how to do your due diligence, check out our 12 House Masterclass which includes not only includes a module on this, but also:

  • A comprehensive 50+ video training course on how to get your first 12 houses

  • Bi-Weekly group coaching calls with me

  • Access to our private, closed Facebook Group where you can ask me questions to your heart’s delight

  • Access to my private money lenders

  • My 2018-2019 Best Markets Report

  • Coaching Call Recordings

  • A “Freedom Artist” T-Shirt

  • And much, much more!

LEARN MORE ABOUT THE 12 HOUSE MASTERCLASS HERE

In my next post, I’m going to cover Step #8 to getting your first 12 houses, which is…

Closing & Funding

This is the step where you line up funding, insurance, go close on that sucker.

Look for that in my next post.

Talk soon!

Brian

How To Replace Your Income With 12 Rental Properties (Part 6 of 9)

After coaching so many people through the process of buying cashflow properties and replacing their income…

I’ve arrived at a “framework” that I have my clients follow.

This 9 step process is the most logical and effective way to build your portfolio.

So far, we’ve covered:

Step #1 - Pick Your Market

Step #2 - Build Your Team

Step #3 - Getting Setup

Step #4 - Find The Money

Step #5 - Find The Deals

In today’s email, I’m going to cover Step #6:

Analyze Deals & Make Offers!

**********************

One the wholesalers send you the deals you are asking for, it’s important that you take action on them. The last thing you want to do is ignore their emails.

That will destroy the relationship and your chances of getting future deals from them.

So, you need to take time to analyze the deal, and MAKE AN OFFER.

It doesn’t have to be your final offer, just give them what you think you could pay, contingent upon getting inside the house and doing your due diligence (with a contractor and inspector involved.)

Here’s the keys to analyzing deals and making offers:

1. Store Your Leads Somewhere - I like to keep my leads in Podio or Trello, versus just having them floating around in a bunch of emails everywhere. I have my office manager put all the current wholesale deals that meet my criteria into Trello, and only then do I go in and come up with those initial offer amounts. Keeps everything nice and organized. 


2. Find GOOD Comps - You need to be realistic here. This is YOU buying the property, so why would you be overly optimistic or inflate the numbers in any way? I know you’re excited to buy houses, but good investors are DISCIPLINED. Look for comps that are within ½ mile of the subject property, nearly the same square footage, same bed/bath combination, same curb appeal, same street quality, roughly the same lot size, and most importantly, in roughly the same CONDITION as your subject property. Check off all those boxes and you should have yourself an “apples-to-apples” comp. 


3. Check Rent Amounts With Property Manager - Property managers in the area are often a great source when it comes to knowing how much your future rental property will rent for. They sometimes lowball it just a bit, because that favors them (if they rent it for less, the tenant has an easier time paying, turnover and late payments are reduced, and it doesn’t subtract from their bottom line that much). I find that I can usually squeeze an extra $50-100 per month on top of what the property manager tells me it will rent for. 


4. Make Offers Based On CASHFLOW Above All Else - It’s nice to have equity, but cashflow is king. You’re never going to be able to quit your job unless you have mailbox money coming in to cover your bills, right? That’s why you make offers so that, if it gets accepted, you should have $200-300/month in NET rent that you can put in your pocket. 


5. Negotiate - It’s true what they say, that negotiation is the fastest and easiest money ever made. If your offer isn’t low enough to make you a little embarrassed to say it, then lower it. You can always raise your offer later, but you can never LOWER it. Remember that. I’ve made hundreds of thousands of dollars in equity over my career just by leaning into that uncomfortable feeling and offering the amount I REALLY want to get the house for, NOT the amount I think the wholesaler will be happy with. Stop being a people pleaser. 


6. Contingencies - Make your offers CONTINGENT on getting an inspection done. Make the earnest money set to go hard (meaning non-refundable) only AFTER the inspection period is over. For example, if you go under contract today and have to mail a check to the title company for 1K earnest money, negotiate 14 days to get your contractor and inspector in the house and get their reports back, BEFORE the earnest money goes hard. So within that 14 day window you can back out of the deal and not even lose your 1K. 


Alright, those are the basics. Now go out there and start putting this into practice. Make your first offer.

If you are interested in a more comprehensive training on how to analyze deals and make offers, check out our 12 House Masterclass which includes not only includes a module on this, but also:

• A comprehensive 50+ video training course on how to get your first 12 houses


• Bi-Weekly group coaching calls with me


• Access to our private, closed Facebook Group where you can ask questions to your heart’s delight


• Access to my private money lenders


• My 2018-2019 Best Markets Report


• Coaching Call Recordings


• A “Freedom Artist” T-Shirt


• And much, much more!


LEARN MORE ABOUT THE 12 HOUSE MASTERCLASS HERE

In my next post, I’m going to cover Step #7 to getting your first 12 houses, which is…

Due Diligence!

This is the step that happens AFTER your offer gets accepted and you go under contract.

Look for my next post.


Talk soon!

Brian

How To Replace Your Income With 12 Rental Properties (Part 5 of 9)

After coaching so many people through the process of buying cashflow properties and replacing their income…

I’ve arrived at a “framework” that I have my clients follow.

This 9 step process is the most logical and effective way to build your portfolio.

So far, we’ve covered:

Step #1 - Pick Your Market

Step #2 - Build Your Team

Step #3 - Getting Setup

Step #4 - Find The Money

In today’s post, I’m going to cover Step #5 - Find The Deals

**********************

Finding the deals is a crucial step. You want deals with cashflow and equity (although cashflow is most important).

You also don’t want to have to set up complicated marketing and sales systems to do this. It’s

not necessary (or affordable) when your goal is to acquire a handful of rentals each year.

Because of that, I recommend only ONE strategy for finding deals…

WHOLESALERS.

The people who are already spending money on marketing…

Talking to sellers…

Making offers…

Following up.

Develop relationships with the best wholesalers in your market and you’ll get all the deals you need as a buy-and-hold investor.

Here’s the keys to finding deals through wholesalers:

  1. Build Your List - Find wholesalers in local RE Facebook Groups, on Craigslist, and at REI meetings. Always be building up your list.

  2. Communicate Frequently - Shoot them an email once per week asking “hey, got anything? I’m looking to buy”. Stay top of mind.

  3. Make Offers/Be Serious - When they send you something, don’t ignore it. Tell them what you could pay. Make offers to let them know you are serious.

  4. Keep It Up - In the beginning, most of them won’t take you seriously, because you’ve never bought anything from them. The BEST way to solidify the relationship is to do some deals together. Eventually, they will come straight to you with their deals rather than blasting it out to their list, because it’s easier for them.

That’s basically it guys. I know you probably want something cooler and more complex but it’s not necessary. This is a simple, free system you build to get all the rentals you will ever need.

If you are interested in a more comprehensive training on how to get your business “set up” for success, check out our 12 House Masterclass which includes not only includes a module on this, but also:

  • A comprehensive 50+ video training course on how to get your first 12 houses

  • Bi-Weekly group coaching calls with me

  • Access to our private, closed Facebook Group where you can ask questions to your heart’s delight

  • Access to my private money lenders

  • My 2018-2019 Best Markets Report

  • Coaching Call Recordings

  • A “Freedom Artist” T-Shirt

  • And much, much more!

LEARN MORE ABOUT THE 12 HOUSE MASTERCLASS HERE

In my next post, I’m going to cover Step #6 to getting your first 12 houses, which is…

Analyze Deals & Make Offers!

Look for my next post.

Talk soon!

Brian

How To Replace Your Income With 12 Rental Properties (Part 4 of 9)

After coaching so many people through the process of buying cashflow properties and replacing their income…

I’ve arrived at a “framework” that I have my clients follow.

This 9 step process is the most logical and effective way to build your portfolio.

So far, we’ve covered:

Step #1 - Pick Your Market
Step #2 - Build Your Team
Step #3 - Getting Setup

In today’s post, I’m going to cover Step #4 - Find The Money

**********************

Finding the money is maybe the most important step.

Not because it’s hard.

Because it gives you the most CONFIDENCE to move forward.

(And mindset is everything)

Here’s an overview of your major options when it comes to financing rental properties:


Residential Lenders

  • This is your typical mortgage lender. They do 30 year fixed loans at the lowest interest rates. You can only get 10 maximum, you need 15-20% down, and there’s tons of paperwork. But if you can get approved for them, and you have the cash for the down payment, these are good loans because of the low interest rate and 30 year term. 

Commercial Lenders

  • This is similar to residential lenders, with a few key differences. Commercial lenders typically lend on commercial properties (5 units and up, and commercial buildings like strip malls, office buildings, etc.) but they can also do loans on single family. The loan products they offer are usually 5 to 10 year balloon loans, with comparable interest rates to conventional. Getting approved can be easier (less red tape) and there’s no limit to how many of these loans you can get, as long as your banker approves. 

Private Money

  • This is one of my personal favorites and one you hear me talk about a lot. Private money lenders could be anyone from your parents, to a friend, to a local investor in your market. Typically they do anywhere from 6 months to 5 year terms, although there’s exceptions. Interest rates are higher, but there’s not much paperwork, and they aren’t asking you about your credit score or income or any of that. They only want to know what the property is worth and then they give you a % of that. I love these loans because they’re less of a hassle. 

Hard Money

  • I wouldn’t recommend this for rental properties. Interest rates are very high and the terms are too short. Hard money is more used for short term flips and what not. It’s “hard” to deal with. 

Seller Financing

  • I haven’t done one of these, but I hope to soon. You basically have the SELLER be the bank and hold the note. So instead of doing a 5 year loan with a bank, you do it with the seller. A third party company receives the payments and forwards to the seller, keeping track of everything. Consult your attorney to get the paperwork drawn up correctly. This option is cool because you can negotiate things like the down payment, and even get into properties for $0 down sometimes. 

Cash Out Refinancing

  • This is an option you would use if you had a chunk of equity in a house and you wanted to use it to fund further purchases. Private money lenders, commercial, and residential will all do these for you. This is a great strategy to keep your money moving “forward” to future purchases. 

HELOC

  • Home equity line of credit. Another option if you have equity. Get the “line” established and it doesn’t cost you anything until you tap into it (use it). Interest rates are low, and it’s basically same as having cash. Refi out later into a 30 year loan and pay back your line of credit, freeing it up to use over and over. 

Those are the main ways to most investors finance houses. Which of them seems best for you?

I encourage you to talk to some lenders. Face your fears. Take some action. You might find that getting funding for your properties is easier than you think, and is truly realistic for you. 

If you are interested in a more comprehensive training on how to get your business “set up” for success, check out our 12 House Masterclass which includes not only includes a module on this, but also:

  • A comprehensive 50+ video training course on how to get your first 12 houses
  • Monthly group coaching calls with me
  • Access to our private, closed Facebook Group where you can ask questions to your heart’s delight
  • Access to my private money lenders
  • Coaching Call Recordings
  • A “Freedom Artist” T-Shirt
  • And much, much more!

LEARN MORE ABOUT THE 12 HOUSE MASTERCLASS HERE

In my next post, I’m going to cover Step #5 to getting your first 12 houses, which is…

Find the Deals!

This is a crucial step. Knowing how to find discounted deals is everything in this game.

I’ll show you how to do it, WITHOUT spending any money on marketing or EVER talking to a seller. 

Look for my next post. 

Talk soon!

Brian
 

How To Replace Your Income With 12 Rental Properties (Part 3 of 9)

After coaching so many people through the process of buying cashflow properties and replacing their income…

I’ve arrived at a “framework” that I have my clients follow.

This 9 step process is the most logical and effective way to build your portfolio.

So far, we’ve covered:

Step #1 - Pick Your Market
Step #2 - Build Your Team

In today’s post, I’m going to cover Step #3 - Getting Setup

**********************

Getting setup is a bit technical and boring, but it’s CRITICAL to having this whole thing automated, and to protecting yourself. 

Here are the steps:

Create Your LLC - Set this up so you can open a bank account under it afterwards. Consult with a RE attorney if you need help. I’ve set them up myself before, it’s not too difficult. You may need an operating agreement in some cases, too. The LLC is basically your insurance policy, it will protect you if you get sued or something. You will buy all your houses inside this LLC.

Open Your Bank Account - Open a business bank account under the name of your LLC. Get checks and a check card. Get access to your admin person and your bookkeeper. Run EVERYTHING through this account from now on, whether rent is coming in or expenses are going out. This keeps everything organized for tax time. 

Get Access To Property Data - You will need something more robust than Zillow to really know what’s going on with the properties you are buying. I use a service called “CRS” but it doesn’t exist in most areas. It’s a paid service but well worth it. Find out what realtors use and see if you can get “investor access”. 

Hire Accountant & Bookkeeper - These people are critical to have in place BEFORE you start doing things within your bank account. Have them ready to go, so as soon as you start doing business they can do the bookkeeping on your account, provide you with Profit and Loss statements, etc. It’s much easier to do it this way versus go back in time and “catch up” on all your bookkeeping. I’ve made this frustrating mistake many times before I finally learned. 

Once you have done the above steps, plus steps  #1 and #2, you are getting very close to buying your first house!

If you are interested in a more comprehensive training on how to get your business “set up” for success, check out our 12 House Masterclass which includes not only includes a module on this, but also:

  • A comprehensive 50+ video training course on how to get your first 12 houses
  • Monthly group coaching calls with me
  • Access to our private, closed Facebook Group where you can ask questions to your heart’s delight
  • Access to my private money lenders
  • Coaching Call Recordings
  • A “Freedom Artist” T-Shirt
  • And much, much more!

LEARN MORE ABOUT THE 12 HOUSE MASTERCLASS HERE

In my next email, I’m going to cover Step #4 to getting your first 12 houses, which is…

Find the Money!

This is a crucial step. Knowing that you have access to funds is a HUGE confidence booster.

It’s also possible for ANYONE to do, no matter how much cash you have..

Or whether or not you have any experience. 

I’ll show you how in my next post. 

Talk soon!

Brian
 

How to Replace Your Income with 12 Rental Properties (Part 2 of 9)

After coaching so many people through the process of buying cashflow properties and replacing their income…

I’ve arrived at a “framework” that I have my clients follow.

This 9 step process is the most logical and effective way to build your portfolio.

In last week’s post, I covered step #1 “Pick Your Market”

In today’s email, I’m going to cover step #2 - Build Your Team

**********************

Having a team in place is the key to the whole thing. You’re both leveraging the knowledge of others…

And also delegating everything so that you can actually have passive income. 

Here’s the core “team” you need to get your first 12 houses:

  1. Project Manager - This is the person who oversees your rehabs and communicates with contractors and inspectors. You pay them roughly $1,500 per rehab, so this is an as-needed, very part-time hire. Look for someone local who has good management and organizational skills. 
  2. Admin Assistant - This is the person who does all the little stuff, like paying bills, dealing with your property managers, attending closings, working with lenders and accountants, etc. Makes a HUGE difference. 
  3. Contractor - Let your project manager pick your contractors, so they are more bought in. Choose someone with credentials. A good contractor is make or break. 
  4. Property Manager - I let my admin person choose the property manager if I don’t already have one in an area. Look for someone with fair terms and experience. 
  5. Title Company - The people who do all your closings for you. 
  6. Insurance Agent - Just a good company to provide you with no hassle insurance, quickly and whenever needed. 
  7. Realtor - Your realtor is a great source of expertise when it comes to comping properties or learning about new areas. 
  8. Inspector - This is a crucial part of your team member. You hire them to do a professional home inspection when you get close to buying a house. You may need a termite inspector as well. 

You’d be surprised at just how much of this team you can build simply by joining Facebook groups about RE Investing in your market, and then posting looking for referrals. 

That’s the high-level overview of the team you need. There’s a couple other key members (Wholesalers & Lenders) that I will cover as separate parts of this 9 part series. 

If you are interested in comprehensive training on how to build your team, check out our 12 House Masterclass which includes not only includes a module on this, but also:

  • A comprehensive 50+ video training course on how to get your first 12 houses
  • Monthly group coaching calls with me
  • Access to our private, closed Facebook Group where you can ask questions to your heart’s delight
  • Access to my private money lenders
  • Coaching Call Recordings
  • A “Freedom Artist” T-Shirt
  • And much, much more!

LEARN MORE ABOUT THE 12 HOUSE MASTERCLASS HERE

In my next email, I’m going to cover Step # 3 to getting your first 12 houses, which is…

Setting Up Your LLC/Bank Account/Access to Data/Bookkeeper & Accountant

That step sounds boring, but it’s KEY to pulling this whole thing off. 

Look for that post.

Talk soon!

Brian
 

How To Replace Your Income With 12 Rental Properties (Part 1 of 9)

After coaching so many people through the process of buying cashflow properties and replacing their income…

I’ve arrived at a “framework” that I have my clients follow.

This 9 step process is the most logical and effective way to build your portfolio.

In today’s email, I’m going to cover Step #1 - Pick Your Market

**********************

Some of you may think you don’t NEED this step. You may already be familiar with (or even live in) a market that is great for rental properties. 

Still, it’s critical that you test your assumptions against the data. 

Make sure the market you invest in meets the criteria below. 

**********************

Criteria #1: Rent/Price Ratio - Ever heard of the 1% rule? It’s where one month’s rent = 1% of the all-in price (purchase + rehab).

Example: $900/month in rent, $90,000 all in price. $900/$90,000= .01 (1%)

You need to do better than that. I like buying houses in the 1.3 to 1.6 range. 

There’s more cashflow at the end of each month.

So make sure that ratio is healthy.

Criteria #2: Strong Economy - Your market should have multiple “sectors” that support it, and NOT be just a “one-horse town”. 

So, a university, mining, tech, a handful of big companies in the area, an airport, etc.

This assures that, if one of those things were to go away, the whole economy would not collapse. It would be supported by the other sectors.

This keeps your properties in demand. Jobs = tenants. 

Criteria #3: Population Size/Growth - You need an area that has a population size of at least 100K or more.

It should also be GROWING, not dying. Never invest somewhere that the population is declining. 

Criteria #4: Job Growth/Income Growth - Are the amount of jobs in your market growing? Is the average income growing? 

These are two indicators of a strong economy. Analyze them before you make a decision. 

*********************

Those are the big ones. You can over analyze this like crazy if you wish, but if a market meets the above criteria, it’s probably safe to invest there and you will do well. 


If you are interested in learning the top 10 markets I have chosen for cashflow in 2018/2019, you can find that in my “2018-2019 Best Markets Report”...

Which can only be accessed through our 12 House Masterclass.

The Masterclass has not only the report, but also:

  • A comprehensive 50+ video training course on how to get your first 12 houses
  • Monthly group coaching calls with me
  • Access to our private, closed Facebook Group where you can ask questions to your heart’s delight
  • Access to my private money lenders
  • Coaching Call Recordings
  • A “Freedom Artist” T-Shirt
  • And much, much more!

LEARN MORE ABOUT THE 12 HOUSE MASTERCLASS HERE

In my next email, I’m going to cover the basics on Step #2 to getting your first 12 houses, which is…

Build Your Team!

Look for that email.

Talk soon!

Brian
 

So I was in Columbia, TN last week with my business partner Danny...

Last week I was in Columbia, TN visiting our amazing team…

And checking out a house we are currently renovating.
I did a video tour of the house, to show you guys the types of deals I buy…

That net me 3-4K every year.

It doesn’t take too many of these to pay the bills, guys.

Check this out:

CLICK HERE TO WATCH THE VIDEO

(You may have to join the FB group to see the video, but that’s a good thing! All videos are streamed live there as they are recorded)

Brian

Roadmap To Your First 12 Houses (The Continuation…)

So if you’ve been following along with the last few emails…

You can see that my mission is to get people into their first 12 rental properties..

(Which equals the average American income...but you don’t have to work!)

I’ve sent out the 12 Houses Spreadsheet, which shows you exactly how 12 houses can replace your income.

I’ve sent out the Roadmap To Your First 12 Houses, which outlines exactly the steps required to GET your first 12 houses. 

So what’s next???

Well, here’s the truth.

There’s a S#@$ load of other details that goes into doing this RIGHT.

That’s plain to see.

A mere spreadsheet and an outline aren’t going to get you 12 houses.

There’s many questions you’ll have along the way. 

That’s why I’ve designed a comprehensive, A to Z online course…

That literally walks you through EVERY STEP…

And includes personal contact with me and my team (coaching) for the questions that will inevitably come up. 

So that you can arrive at the finish line…

Having REPLACED your income with passive income…

So that you can take back control over your day….and your life. 

If you’d like to learn more about the program, you can do one of two things:

#1 - Register for our next live webclass, where I go over the product in much more detail, and show you where to join, or

#2 - Watch a replay of a past webclass, and see the product right away

The choice is yours. I just hope to see you inside of our program, so I can personally get your back and ensure that you achieve your goal.

I want you to have the freedom to live life on YOUR OWN TERMS.

See you inside!

Brian