JF1159: Scale Your Business After You Have Some Success As An Individual Investor #SituationSaturday with Jefferson Lilly

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Jefferson owns mobile home parks from coast to coast. He was having success individually and wanted to scale his business up to new levels. Now his company has its own fund, and is becoming more of a “small institution”. To hear how you can scale your company, make sure to tune in! If you enjoyed today’s episode remember to subscribe in iTunes and leave us a review!

 

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Jefferson Lilly Background:

  • Co-Founder of Park Street Partners, a private real estate investment firm
  • Owns 18 mobile home parks coast-to-coast totaling over $30mm in value
  • Self-made millionaire, mobile home park investment expert, educator, and industry consultant
  • Featured in The New York Times, Bloomberg Magazine, and on the ‘Real Money’ television show
  • Based in San Francisco, California
  • Say hi to him at http://parkstreetpartners.com/

 


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TRANSCRIPTION

Joe Fairless: Best Ever listeners, welcome to the best real estate investing advice ever show. I’m Joe Fairless, and this is the world’s longest-running daily real estate investing podcast. We only talk about the best advice ever, we don’t get into any of that fluff.

Welcoming back a previous Best Ever guest, episode JF 161 – holy cow, that was a long time ago! A lot has happened, and that is a perfect segue into the focus of today’s show, but first, let me introduce Jefferson Lilly. How are you doing, Jefferson?

Jefferson Lilly: Joe, it’s great to be back with you. Thanks for having me back on.

Joe Fairless: My pleasure. 10th February, 2015 is when your episode aired – How To Double The Value Of Mobile Home Parks. You’ve been busy since then, I imagine, right?

Jefferson Lilly: Yes. We have greatly improved the value of parks, we have scaled up now to have our own fund, and we’re about to launch our next fund a little bit later this year, just probably another two months. We’ve been hiring on people, we’ve basically grown from being successful individual real estate owners to beginning to be a successful small institution. We’ve been hiring people, putting in place systems and procedures… All sorts of things. It’s quite challenging when you’re a successful individual investor and all of a sudden there are no hours left in the day to do more deals, and the question is “What comes next?” We are into that next phase, and it’s exciting.

Joe Fairless: You know how to T it up, don’t you? That’s so perfect, it’s exactly what we’re gonna be talking about today… It is exactly what you said – as you have become successful individual investors, how do you scale your company? Your focus is on mobile home parks, and I guess first what type of assets, value (or however you quantify) do you have now, just to set the stage with where you’re at?

Jefferson Lilly: Yeah, we’ve got 18 parks, a total of about 1,540 pads. We have another 700 pads under contract, so knock on wood – I’m banging my head here, Joe, but not on wood – we’ll be at about 2,200 pads by the end of September of this year, 2017. That should make us one of America’s 50 largest mobile home park owners; we’ll get there in another couple months. And we are coast to coast – we have bought both in Spokane, Washington over the last year, and also in Raleigh-Durham, North Carolina. 15 minutes from Duke and 15 minutes from Chapel Hill – that’s a great market there. But 80-something percent of our stuff is still the Midwest – Wyoming, Kansas, Oklahoma, Illinois, Ohio, Wisconsin, Michigan… We’re mostly in the Midwest where the values are better, where cashflows are cheaper than on the coasts…But we’ve obviously bought opportunistically on the coasts when we’d come across deals priced more like they’re in the Midwest. Nothing better than getting a coastal deal at a Midwest price, but they’re not coming.

Joe Fairless: You’ve built your company and you’re the co-founder of Park Street Partners, so I guess there’s one other founder…?

Jefferson Lilly: Yeah, Brad Johnson, he’s my co-founder. His background was more fundraising; he had worked at Eastdil Secured, Wells Fargo’s real estate investment bank. He had worked at Advent and some other private equity real estate firms. He was a little more the finance guy, and then I had been in this business about seven years dedicated, operating my own two parks – which I still do – when we partnered up. So he’s more the finance guy and I’m more the operations guy, but I still do some of the fundraising and he does some of the operations. It’s not entirely black and white, but we have our general spheres of influence and expertise with our partnership.

Joe Fairless: Okay. Now, let’s talk about the challenges you were coming across as you are growing and what you’re doing about those challenges.

Jefferson Lilly: Yeah, so basically where we got I think by the end of 2015 going into 2016 – say a year after I was on your show last – was that there just weren’t enough hours in the day. We had both people calling us and saying “Hey, we wanna invest with Park Street Partners and co-own mobile home parks with you.” We also had brokers and even some park owners approaching us directly with parks for sale. Plus, of course, we had built up from starting at ground zero the partnership, and by roughly early ’16 I think we were up to eight or nine properties, and we probably had almost a thousand — let’s just say 700-800 pads at that point.

It depends in this business a little bit on what quality of parks you buy, but somewhere between getting to 500 and 1,000 pads you’re gonna max out; you’re gonna have too much to deal with with tenants, or rehab, or other asset management activities when you’re investing back into the properties. There just weren’t enough hours, so we partnered initially with a gentleman who actually brought us a deal and he helped us do some asset management, and then this year we’ve now hired on a full-time asset management person. We found that was really both value-add for the portfolio, and also where Brad and I were spending a lot of our time. So asset management in our world, the way we divide things up is basically as follows – managers deal with all three figure issues; that is, for instance, collecting $275 [unintelligible [00:06:41].06] rent, calling a plumber for $150 to come do a sewer on [unintelligible [00:06:45].20], calling somebody else for $200/week to come and mow lawns in the common area… Those kinds of three-figure things are all with the managers on-site at the property handle.

Four and five-figure stuff is like “Hey, we actually had somebody abandon a mobile home, and it needs $4,000 worth of rehab. It’s gonna need new floors, it needs a couple of new windows, it needs some new paint…” or “Hey, we’ve got a park with a lot of potential, but we need to repave it for $65,000.” So those sorts of four and five-figure investments back into existing properties is what we call asset management.

Brad and I were spending a lot of time doing that and trying to find a crew to come and rehab a house for $4,000. What Brad and I spend our time on now is six and really seven figure and up issues. That’s mostly raising money and buying parks. So again, we’ve hired somebody to handle the asset management stuff; we can go into that here in a minute.

We’ve also hired on a CFO, somebody who’s been in the business approximately 20 years doing nothing but real estate accounting and investing relations. That person makes sure that the numbers are right and that we’re getting reporting out to our 120-some-odd investors now we’re up to. And we’ve also just recently (a couple weeks ago) hired a gentleman who’s doing acquisitions for us. Unlike the other two, he has no previous experience in real estate. He’s a very bright guy, served our country abroad in Fallujah, and other places; he’s a marine with a Purple Heart and an Ivy League undergraduate degree, and likes to work hard. We’ve got him focused on outreaching both to brokers and to mobile home park owners to help generate deal flow.

So we’ve made three key hires this year. We thought that would make us less busy. When other people take things off your plate, you do get more busy, you get more deals and more capital and what not… But anyway, those are some three key hires that we’ve made to help us grow.

Joe Fairless: I’m gonna ask more high-level questions, but before I do, I have a very specific question about the last hire – he has no experience with real estate, but clearly, he’s a go-getter, for many reasons… How do you train him to find deals and how many deals are you all looking at on a weekly basis?

Jefferson Lilly: The latter question there is a great one, and we are literally building our database… I think we’re gonna do it in SalesForce.com or something like that, just to treat each deal effectively as a “customer.” You log it in there, how many points of contact have you had with it, is it a good prospect or not, when do you next make a follow-up phone call, what’s the next step… So I don’t have an exact number weekly, but I’m gonna guesstimate it’s a couple dozen deals per week, something like that. So let’s just say we’re probably clocking in at 400-500 deals that come across our desk a year, I would guess.

But putting in place systems and procedures – which we can talk about as well – helps us follow up with things… And I’m hoping in another couple weeks I’ll have a little bit better handle on exactly how many deals are coming in, and of course with the sources – how many are directly sourced from a park owner, versus what comes in from a broker, versus what comes in from our own podcast. We’ll see, but having him on board and building that system is a big win for us.

Joe Fairless: As far as the three hires, which one gives you the most comfort in terms of you not having to do it anymore?

Jefferson Lilly: Me personally, that’s probably the asset manager. Honestly, I wasn’t doing a huge amount of the accounting; my partner Brad was doing more of that. So he may say the CFO for him is his answer, but mine is gonna be asset management… Because I was still getting calls from tenants about “Hey, there seems to be flooding in the street. What can you do about that?”

Joe Fairless: Yeah, that’s tough.

Jefferson Lilly: Or “Hey, my neighbor’s making noise.” Or again, the manager would just say “Yeah, the guy in lot 17 just didn’t pay his rent and just kind of seems to have abandoned his house. What do I do about that?” Anyway, so having her on board is a big plus. I’ll touch a little here on system – we can do more later, but we use Asana; there are other similar packages out there, but basically it’s a very fancy online shared to-do list, so now if and when something like that makes it to me, that “Hey, in Cincinnati, Ohio park lot number 17 is vacant”, I can log that in, assign it out to our asset manager, and then we have weekly calls…

And we certainly communicate really throughout the week, more by text, some by e-mail, but we all have kind of an all hands on deck Monday morning call and we go through each of the properties, and now things aren’t falling through the cracks… Or at least we know if they haven’t yet been dealt with and we can say “Hey, what’s the status of getting that house renovated? Do we have a crew on board? When will this be back to revenue-producing?” Or again, “What’s the status of that $50,000-$60,000 paving bid for the other property and which one are we gonna accept and what are the payment terms? How quickly can they get going?” These are all things now that get logged in.

There’s an app through your phone, so we can watch all the progress on our phone. It helps us work better as a team, again, now that we’ve grown beyond just having three, four properties and 300-400 pads with far fewer headaches, to the scale that we’re at now with over 1,500 pads.

Joe Fairless: How do you spell Asana?

Jefferson Lilly: A-S-A-N-A.

Joe Fairless: Got it.

Jefferson Lilly: Slack is another somewhat similar tool, and probably if you just google “Asana competitor” or something, you’ll find  a bunch of other… We like Asana; it’s free for up to I think 8 or 10 users, and we don’t have that many yet on it, but we’ll certainly pay as we grow. But just having something like that in place to track everything… People can upload photos, you can upload the actual PDF, the bid for the paving job – boom, it goes right there in that task for that property. And when it’s done, the manager photographs the pavement in place; it’s a done deal, and he uploads those and you can verify that the work has been done – that kind of thing. That’s all a big help.

Joe Fairless: What’s the compensation range – you don’t have to tell us what each of your people are making, but what’s the range for each of those three positions?

Jefferson Lilly: I believe they’re all at least on target to be six figures. So there’s a bigger base and somewhat lower bonus, say 75% base, 25% variable bonus base for our asset manager. The guy that’s out hunting down deals is probably the inverse – he’s about 25% base compensation and 75% bonus based on what he finds… So that’s the range, but I think most of these folks are gonna be coming in around 100k, maybe even 150k, depending on how they perform. This is not quite startup stuff — when I started with 66 pads under management, I didn’t have three six-figure people on the payroll, but we do now.

Joe Fairless: What type of bonus or performance structure do you have with the CFO? And again, it doesn’t have to be the specific structure you have with him or her, but just for someone who wants to hire a CFO, how do we put performance incentives in there?

Jefferson Lilly: I think that’s more just sort of “Hey, [unintelligible [00:14:20].09] job description is, that for instance all the numbers for every month to get closed out and are accessible to the partners within the first week of the following month, and the K-1’s get done on time”, that kind of thing. And then that’s probably sort of a 20% bonus, I think. That job is more cranking through numbers, whereas at the extreme opposite end, the guy that’s doing acquisition for us is really just going out, finding stuff de novo – new deals, establish new relationships, so we want him motivated to do that.

And then he kind of like a broker gets paid a percentage of the value of all the parks that we buy from the leads that he brings in.

Joe Fairless: Okay. As far as the asset manager – is that hitting a certain income or NOI figures?

Jefferson Lilly: Yes, that’s it for the bonus. It’s basically “Hey, we need to take the parks here from X to X+20% over the next year. We’ll do that by in-filling and/or bumping rents – you figure it out, but you need to deliver this higher NOI over the next year.” That’s principally-driven, again, by NOI, as opposed to goal-based things, which is more common for CFO’s.

Joe Fairless: How do you know if you’re hiring too many people too quickly?

Jefferson Lilly: Good question. We felt it was pretty clear that we had the need for this and that these were all full-time positions. We went about finding people principally by putting the word out on LinkedIn; I signed up for a LinkedIn recruiter account, which costs $120/month, and was then able to do very specific searches, well beyond my existing network of contacts, and again, search for people at certain companies, people that had been there a certain minimum amount of time, people that had certain keywords in their job description… So we thought it was great. We also put out the word, word of mouth, listed and put out the word on our own podcast… Honestly, that didn’t go really well; it was really going out proactively and finding people and putting that ad up on LinkedIn.

Plus, LinkedIn has its own computer algorithm that then generates leads for you of people that it things matches your job description. I didn’t find that to be helpful. People were just too far off base, but whatever – that’s fine that LinkedIn gave me some “matches” that I didn’t think were great matches. I mostly went out and looked for people myself.

Joe Fairless: The asset manager – I suspect good asset managers don’t ever wanna listen to a mobile home park podcast because they wanna escape that whenever they’re not at work; they wanna escape the conversation of having the local person say “It’s a vacant mobile home. What do I do?” – they don’t wanna talk about that, they don’t wanna listen to that stuff.

Jefferson Lilly: Yeah, you’re probably right, Joe. Had I thought more clearly, the way you obviously do — I would have not even bothered advertising on our own podcast.

Joe Fairless: I just asked when do you know if you’re hiring too many too quickly – when do you know when you should hire your first person?

Jefferson Lilly: In this business – again, I’m just gonna guess it’s probably somewhere between 500 and 1,000 pads. Just be honest with yourself – when are things falling through the cracks? When are you sitting there saying “Oh yeah, I forgot; two weeks ago my manager told me that that mobile home on lot 17 got abandoned and I haven’t done anything now to get it back into the rental pool and generating cash because I’ve been too busy with this, that or the other. So Just be honest with yourself and think about what you’re spending your time on.

We’ve made full-time hires — we’re actually looking now (I’ll put an ad out here, on your show) to hire somebody to handle inside sales for us, who will be responsible for posting ads on Craigslist, also in local newspapers, and then handling the inbound phone call about mobile homes for rent. That’s not quite a full-time job for us, so for that we’re looking for somebody — the perfect example would be somebody with prior sales experience, probably real estate sales experience, but at least prior sales experience, who’s maybe a stay-at-home mom and is not looking for full-time, but part-time, third-time, half-time, something like that is probably what that job is right now. For that role, again, we’re not gonna hire full-time, but there are people out there who are comfortable working part-time, and then we’ll just see how we grow.

We hope to double to about 3,000 in a year and a half, probably by the end of 2018. So that person that we hope to hire over the next month or so to handle the inbound calls will either then scale up and can work full-time for us, or we may switch to someone else working full-time… Or who knows, there’s nothing wrong with having a couple of half-time people doing a job like that if we find two people who wanna work from home. We’re flexible in accommodating people’s schedules.

Joe Fairless: Primarily, before these hires, was Brad the one interacting with investors when they had questions?

Jefferson Lilly: Certainly if it was specifically accounting-related, like “Hey, I’ve received my dividend check; it’s for X amount of money. I thought it would be more.” Or “I’m surprised it’s so much; I thought it would be less.” We get that as well.

So Brad has handled more of the accounting and would answer those sorts of questions. I’ve done certainly I think my fair share of handling inbound inquiries from folks that just kind of wanna know more; they’re thinking of investing 50k or up to a million with us, and maybe they’ve heard my podcast – those sorts of calls tend to come into me, because I do more of the podcasting. It does vary, but once it’s really sort of an accounting question, Brad handles all that. And then again, Brad does handle his own fair share of incoming questions about “Hey, what it would be like to co-own parks [unintelligible [00:20:30].12]?”

Joe Fairless: I thought the CFO handles that now though.

Jefferson Lilly: The CFO will be producing the numbers, getting K-1’s out, and then handling questions, probably more at the year end, that are fairly detailed accounting stuff. So our CFO will be handling more of that.

Joe Fairless: So here’s the question I’m getting at – I just wanna set the stage to understand the lay of the land. So it’s still in transition, basically, but my question was going to be if you’ve transitioned investor communication over to the CFO, what (if any) correspondence did you have with investors to let them know there’s a transition?

Jefferson Lilly: We haven’t fully transitioned that over yet, but what we’ll do is we’re ramping up now – now that we have more time to do quarterly reporting, it will probably be in the format of a recorded call. We’re obviously not a public company, but we will do basically an investor relations call, we’ll talk about what the numbers are, and then of course some other softer things – management discussion and analysis, like “Why did we make this acquisition, or how big is our pipeline now? What do we anticipate closing in the next quarter?” So we’ll do more of that, and then that’s a perfect time to introduce key hires and say “Hey, going forward, if you do have a specific accounting question, here’s our CFO’s contact information.”
I think all that will come into place probably for this next quarter we will have those calls and we will formally and officially introduce our CFO.

Joe Fairless: Cool. Anything that we haven’t discussed as it relates to scaling from successful individual investors to a successful larger company?

Jefferson Lilly: Yeah, I’ll talk a little bit about systems and then a little bit about financing. So also on the systems side of things we now use Rent Manager to collect all our rents and do all our rent accounting, and really beyond just rent accounting, it’s the whole P&L that’s in there. We like rent manager because it not only does the accounting, but it also interfaces with the check scanner. Joe, this is brilliant – it seemed brilliant to me, maybe it’s old hat for you, but we’ve given all of our park managers a check scanner. We never accept cash, but now when those checks or money orders come in, they can just swipe them through the check reader. It of course deposits the money AND it updates our rent accounting software in real time.

So there’s no question as to whether the guy in lot 44 has paid or not; we can see that at headquarters, we can see the delinquencies for each property… There’s no check in the mail story, it all just happens in real time and then we’re on the same page as our managers. So that’s a big thing for our accounting, and again, just to then control, really have systems around controlling any vacant lots or vacant homes – those all get flagged by the manager in that system and we can see it property-by-property.

Then we’re also using a solution called Avid Pay – all of our bills go in there, they get flagged up to the right person to be approved. Assuming a vendor has a bank account and they’ve input their information, we can just ACH them their money. Otherwise, we send them an old-fashioned check, but that just really helps with what was an otherwise unwieldy massive — receiving a fax from a manager, or an e-mail that “Hey, we owe $150 to this plumber” or we do now owe the $4,000 to that other rehab crew… Anyway, so we’ve got systems and procedures around our bill paying, as well. That’ huge.

And then also financing – we’ve now tapped into the CMBS market. That stands for Collateralized Mortgage-Backed Securities. It’s the fancy Wall-Street money; it’s no personal recourse, it’s fairly low interest rates… We’re borrowing ten-years fixed at about 4.6%, a year or two interest-only, on a 30-year amortization.

We don’t do all of our deals that way; you kind of need to have a 2 or 2,5 million dollar and up deal to really qualify for CMBS financing, but tapping into that fancy Wall-Street money has given us a cheaper source of capital, which helps us to make enhanced returns for our investors.

That’s something else we’ve done growing up beyond just being two guys and a couple of parks, to being a little bit of an organization now.

Joe Fairless: And just to clarify that – CMBS is for debt, right? Not equity.

Jefferson Lilly: Yes, sorry, that’s correct; yeah, it’s all for debt. We’re still putting down 25%, sometimes 35% equity and then borrowing – not always, but for our larger deals – 70% or 75% of the purchase price from these pools of debt that these firms put together and then sell off to institutional investors.

Joe Fairless: Any parting thoughts before we close this out, Jefferson?

Jefferson Lilly: That’s been a good and intense overview, Joe. [laughter]

Joe Fairless: I like peppering you with questions…

Jefferson Lilly: I’m giving a lot of information, I think…

Joe Fairless: Yeah, it’s been great stuff. How can the Best Ever listeners get in touch with you?

Jefferson Lilly: A couple things. First, our website is ParkStreetPartners.com. We’ve got information there for you if you’re thinking of co-owning parks with us, perhaps investing in our fund, or if you’re just thinking of buying a park on your own. Again, ParkStreetPartners.com.

Then we’ve got our own podcast, also our own LinkedIn group about now almost 3,700 people sharing tips and tricks and deal flow on LinkedIn, and we’ve got the industry’s first and only calendar of events, so that people can just suck that right into their iPhone or Android device or what have you, on your computer, and it just lists upcoming trade shows, conference calls, that kind of thing. Anyway, all that is at MobileHomeParkInvestors.com. You’ll get a link there to our podcast, to the LinkedIn group and to our calendar – MobileHomeParkInvestors.com.

Joe Fairless: And why did you choose to do a LinkedIn group versus a Facebook group?

Jefferson Lilly: Because this is more of a professional thing than a personal thing, and I personally find Facebook to be more annoying than useful, that’s why.

Joe Fairless: Got it. Fair enough. I ask because I’m in the process of creating a group for this show, and I’m debating between Facebook and LinkedIn, and I just wanted to hear your thoughts.

Jefferson Lilly: You let me know if I’ve made an epic mistake and you’re like “No, I get ten times more good leads off Facebook than LinkedIn. You’re such a goof, Jefferson, do it on Facebook!” You let me know, and then the next time I’m on your show I’ll tell you then about how wonderful Facebook is.

Joe Fairless: There you go. Well, you’ve got 3,700 people in your group, so I think you’re doing something right, that’s for sure.

Jefferson, thank you for being on the show. Thanks for talking about how you’ve scaled the business and specific ways for doing so. One is hiring the right people – you’ve hired an asset manager, a CFO and someone who’s heading up acquisitions. The compensation, the structure for that compensation, how you found them, and then the systems that you’re implementing, from Rent Manager, Avid Pay and getting the debt financing through CMBS markets.

Thanks for being on the show, thanks for sharing your advice again; I enjoyed talking to you, catching up, and I wish you the best. I hope you have a best ever day, and we’ll talk to you soon.

Jefferson Lilly: Okay, Joe. Bye-bye.

JF1132: 5 Steps To An Unstoppable Mindset #SkillSetSunday with Tina Greenbaum

Listen to the Episode Below (25:41)
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As it pertains to real estate investing, Tina gives us a little insight into how we can gain an unstoppable mindset. We have to be able to manage many parts of our bodies and mind to be truly unstoppable according to Tina. Listen to this episode for more in-depth insight on how you can be the best version of yourself in the middle of a tough negotiation, (or any other high-stress situation). If you enjoyed today’s episode remember to subscribe in iTunes and leave us a review!

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Tina Greenbaum Background:
-CEO at Mastery Under Pressure, Peak Performance Coaching, Executive Coaching
Licensed Clinical Social Worker, an Optimal Performance Specialist, and a dynamic workshop leader
-Works with business leaders, athletes, artists, speakers with over 30 years experience
-Based in San Francisco, California
-Say hi to her at www.tinagreenbaum.com/


Made Possible Because of Our Best Ever Sponsors:

Fund That Flip provides short-term fix and flip loans to experienced investors. If you’re looking for a reliable funding partner, their online platform makes the entire process super easy, and they can get you funded in as few as 7 days.

They’ve also partnered with best-selling author, J Scott to provide Bestever listeners a free chapter from his new book on negotiating real estate. If you’d like to improve your bestever negotiating skills, visit http://www.fundthatflip.com/bestever to download your free negotiating guide today.


 

Joe Fairless: Best Ever listeners, welcome to the best real estate investing advice ever show. I’m Joe Fairless, and this is the world’s longest-running daily real estate investing podcast. We only talk about the best advice ever, we don’t get into any of fluff. Because it is Sunday, first off, I hope you’re having a best ever weekend, and because it’s Sunday, we’ve got a special segment called Skillset Sunday where we talk about a specific skill that you can then go apply towards your real estate endeavors.

Today we’re gonna be talking about getting mastery under pressure, and being able to be at your peak performance so that you achieve an unstoppable mindset. And holy cow, guess what?! That’s the name of our best ever guest’s book, “Mastery Under Pressure: How To Achieve An Unstoppable Mindset.” How are you doing, Tina Greenbaum?

Tina Greenbaum: Well, how are you today, Joe?

Joe Fairless: I’m doing very well, and I’m looking forward to our conversation. A little bit about Tina – she is the CEO at Mastery Under Pressure, peak performance coaching. She’s an executive coach, she’s a licensed clinical social worker, an optimal performance specialist and a dynamic workshop leader. She works with business leaders, athletes, real estate investors, speakers for the last 30 years, and she’s based in San Francisco, California.

She just released her book, Mastery Under Pressure: How To Achieve An Unstoppable Mindset – you can go check that out on Amazon.

Today, that’s our focus of the conversation – it’s gonna be on how to be a master under pressure and achieve an unstoppable mindset. With that being said, Tina, do you wanna give the Best Ever listeners a little bit more about your background and your current focus?

Tina Greenbaum: Sure. I am a clinical social worker by training; I’ve lived in six different places, and mostly on the East Coast. I started over my business six times, so I know a lot about entrepreneurship, I know a lot about taking risks, and I am here in the Bay Area now, working with business professionals, real estate investors, salespeople… Anybody who is in business and wants to improve their performance. So it’s not like you’re just kind of weak and not doing so great; you’re actually doing okay, you just wanna do better.

The way that I look at this is every great performer would never go out and perform without knowing these mental skills. Many of us kind of studied our subject matter, but we don’t really look at what’s between the ears, which actually rules everything.

Joe Fairless: I completely agree. I read a quote last night on some fitness Facebook page and it said “Your mind will quit much sooner than your body.” It’s applied not only in fitness, but in everything else. How should we frame our conversation, knowing that we want to improve our performance and know the mental skills for doing so?

Tina Greenbaum: Okay, so you and I talked a little bit about the kind of mindset that you need to have to be a real estate investor, let’s just kind of start with that. Any kind of business that you’re going to invest money in, you take a risk. And in order to take a risk, we’re now in the unknown. We take what we call calculated risks, we kind of do our homework and put our money where we think that it’s going to make money for us, but the truth is we don’t know what’s actually gonna happen tomorrow, none of us do.

So when we get caught up in trying to control the future, we get into trouble. I have five pieces to my curriculum. Focus – what do I focus on? We kind of lose focus, we bring it back, we get distracted, we bring it back, so the question is really “What do we focus on and what happens to us when we lose focus and how do we even know if we’re not paying attention?”

Relaxation – I’m a mind/body person, and this is something that people maybe think is a little woo-woo, we don’t talk about it a lot, but the truth is thank goodness that the neuroscience now is starting to validate a lot of the things that seem to have been very mystical. What I mean by that is that there is a mind and a body connection. In traditional talk therapy they would start with the head, the mental part, and then go down into the body. Now they’re talking about it from the bottom up. What does that mean? It means that in order to manage our stress, we have to be able to manage our nervous system. And in order to manage the nervous system, we have to know how to do that.

Relaxation techniques – we talk about yoga and we talk about all these things, but we’re gonna bring it down to a very practical thing to think about, that if you can calm your nervous system down in an instant when you get nervous, if you have practiced how to do that. We’re going to use the breath – there’s a thing called the relaxation response, and it takes practice and repetition, practice and repetition, just like any new skill, but it will be your best friend.

Joe Fairless: Can you elaborate on it? Because that is a skill that would be very helpful to acquire, being able to calm our nervous system in an instant, knowing that the nervous system is directly related to the stress.

Tina Greenbaum: That’s right. And we know if our system is on overload, we can’t think clearly. So if you’re in a negotiation and you wanna have your best foot forward, you wanna be very grounded and you wanna know exactly what you’re taking in, and be conscious of what’s happening internally.

The breath – there’s a bunch of different ways that you can practice it; there’s things online, I actually have a relaxation tape that I’m creating… But it’s basically using the breath – if we think about the yoga breath, they call it the three-part breath. If you put your hands down on your belly, way down on your abdomen, and you breathe in through your nose and you just allow the belly to fill up, just like it was a [unintelligible [00:07:09].27] and it’s actually counterintuitive, because many of us breathe from way up in the upper chest, and when we do that — our mind is very spinny, so we wanna bring the breath… Just put your hands down on your belly, let the belly expand, and then let all the breath out before you take the next breath in.

Joe Fairless: Let it out through your nose or your mouth?

Tina Greenbaum: Through your nose. In and out through your nose. Because when you breathe through your nostrils, you get a much finer connection to the brain, and over time you will balance out both sides of the brain. So it’s actually a three-part breath – it starts in the belly, and then once you get that, then it’s the belly and the rib cage, and then once you get that, it’s the belly, the rib cage and then the upper chest. And when you let it go, you let the belly go first, and then the rib cage, and then the upper chest. All the breath out before you take the next breath in.

Joe Fairless: Where are your hands in this?

Tina Greenbaum: Okay, so we use our hands just so that you can feel that you’re actually opening up this part of the body. So we start out with putting your hands on your belly first, then your belly and then your rib cage, and then you take the bottom hand that’s on your belly and put it into your upper chest.

And I have to indicate that it’s not natural for us. Babies breathe like this, and if you actually have to lay on your belly, you’re gonna have to breathe like this. But we have all kinds of emotions that are in the body, and sometimes we get stuck and sometimes it’s harder to open up one part, then another part… It just takes patience and practice.

So you could be sitting in a meeting and nobody would ever know; if you’re starting to feel anxious and you’re not sure which way to go and what you wanna say, you just take a moment, nobody will see it; you don’t have to put your hands on your body, just take a nice deep breath, let it go, and all of a sudden now your mind is back.

Another little tip is to be aware of your feet. If you do that, you’re gonna be more grounded. There’s a wonderful little saying that says “Your mind is where your breath is.” If your breath is short and shallow, your mind is gonna be very spinny. Your energy is gonna leave your body and you’re not gonna be able to find yourself.

Joe Fairless: What should your feet be doing?

Tina Greenbaum: Just be aware of your feet on the floor… Which leads us into the next piece – it’s really about mindfulness. Again, mindfulness is being thrown around a lot today; it’s like “Oh my god, everything is mindfulness, mindfulness.” I’ve been doing this for over 30 years because you can’t change anything until you’re mindful of what you’re doing.

You would notice when you make a real estate deal without doing your homework. It’s the same thing – we operate, automatic, but there’s so much going on; there’s so much under the surface that if you become a student of really being curious about your own unconscious material, your own self, what’s driving you, what’s calling you, what are you scared of? How do I react in a certain situation? What kind of negotiator am I? What is my tolerance for risk? What happens when I feel I am over the line, I’m risking too much?

All these things – you get these amazing indicators once you become connected. A lot of times when I feel stressed and when I feel like somebody’s trying to control, there’s a situation I’m not happy with, it’ll go right to my shoulders and my neck. So if I’m feeling that tightness in my shoulders and my neck, I start to look around “Okay, where am I feeling out of control? Who’s pushing my buttons?” It’s like a shortcut. This stuff is so unbelievably powerful, and we don’t teach it.

Joe Fairless: So the first thing is focus (what we focus on), the second is relaxation of the mind,  being aware of the mind and the body connection, and you gave a very practical exercise for us to implement. What’s the third?

Tina Greenbaum: The third one was mindfulness.

Joe Fairless: Okay.

Tina Greenbaum: So becoming mindful. Let’s just say, again, somebody’s presenting something to you, they’re presenting a deal to you, and you’re interested, but you’re noticing that you’re really, really anxious, because you’re aware of what anxiety looks like for you. Not everybody experiences it the same way. When I do workshops and I go around and ask people to think of something that’s challenging, some people will say it’s in their belly, some people will say it’s in their chest, some people will say it’s in their neck. So it’s important for you to become aware of how your body speaks to you, and the only way we can do that is if we sit sometimes quietly, we just notice… “I notice this makes me really wanna jump out of my skin.” Or “This feels really good, I’m really excited.”

Again, it’s a practice. There’s mindfulness meditations where you just pay attention to everything that kind of comes into your awareness: the sounds from the outside, my breath… And then there’s just mindfulness of just like “I notice how I feel. I’m noticing the sensations that my body gives me”, because the body speaks in sensations. And then once I learn to identify what those sensations mean to me, then I’ve got now a new language. So mindfulness is really important. Does that make sense to you, Joe?

Joe Fairless: That makes sense, yes. You know, I just read 10% Happier, by Dan Harris. Have you read that?

Tina Greenbaum: No, I haven’t, but there’s a lot of books on happiness these days, so yeah…

Joe Fairless: 10% Happier, something like that… He talks about his journey towards getting 10% happier, and it’s what you’re describing – being aware of your surroundings and being present in the moment. You’re being very practical, which I am very appreciative of, because we’re gonna be able to implement some of this stuff right after this interview.

So number three is mindfulness…

Tina Greenbaum: Then I look at belief systems and how we talk to ourselves. Negative self-talk. Let’s just say that the mind, by its nature, is always protective. We’re always looking for danger, that’s how we’re wired. So what happens a lot of times, we just react; somebody says something, we get annoyed and we respond back. The anger just sits underneath the surface and we have this tone of voice… So there’s a whole bunch of stuff that’s going on, and sometimes we get really annoyed with ourselves. “Ugh, I can’t believe I did that”, or “That was really stupid.” Or “I don’t really have anything to say here.” There’s a million different ways that we undo ourselves. So again, if we don’t even know how we’re talking to ourselves, then the mind just does what it does – you’ve heard the term “monkey mind”, it jumps all over the place. It’s not managed, it’s not controlled.

This is an energy thing – whatever we focus on, expands. That’s a really important concept. So if we’re kind of going down this road and sort of undoing ourselves, and self-sabotaging, not even being aware that we’re doing it, that’s what our experience of life is gonna be. So if I were to venture – I didn’t read that book on happiness, but it’s where we focus, where we put our attention.
It’s very important, number one, to put attention to how we’re thinking. Just kind of tune in during the day. As the day goes on, or you’re with your family, or you’re in a business meeting – just notice, “How am I talking to myself?”, because you’ve gotta be your own best friend. We’re working sort of against nature in how to do that.

I call it taking a negative statement, and then rather than saying “I put it into a positive statement”, I like to say “Do my thoughts produce something useful for me?”

I’ll give you an example – let’s just say I wanna take something to the post office. It’s a Saturday morning, I wrap my package, I go to the post office, and I get there and the post office is closed. I get pissy, I get annoyed with myself. Well, it could actually ruin your day. “I can’t believe that they closed. I had this thing, it was really important”, and so on. And then you’ll go down that downward spiral. Or you could say to yourself – and this is another important piece – that “I take responsibility for my own experience. I am in charge of what happens to me. I’m in charge of what I create.”

The truth is I didn’t look and see what time the post office was closed. Now I know, it’s 10 after 12 and they close at 12. Now I know something that I didn’t know before. Okay, so next time I’ll just get there earlier, and then we’re done. It’s a simple example, but if you think about it over and over again, how many times we get annoyed with situations or people, but if we just kind of flip it around – I’m responsible for my own behavior… How did I create this conversation that went South? What was my part? It’s just a masterful piece of self-acknowledgement that will change your life if you change — because people get into trouble because they’re very good at blaming other people. “If only he would do this” and “If only she would do that.” “I can’t believe they’re doing this”, “I can’t believe they’re late.” Where’s my part? Because that’s where your power is. If I can find my own part, I may not be happy with what I’ve done, but I’m the only one that can change it.

So do your thoughts produce something useful for you?

Joe Fairless: Yes, that’s a powerful one. Even as simple as when you ask someone “How are you doing?” and they say “Not too bad” – that drives me crazy, because it’s like “Well, you’re doing bad, but you’re just not doing too bad. Please elaborate, what’s going on in your life?” They say it and they don’t think about it, but in reality if they are doing well, then they should be saying “I’m doing well”, or “Hey, I’m having a great day”, or whatever. It’s just small things like that that might seem insignificant, but they pile on day after day, and they lead to other things. As you said, it could influence the rest of your day.

Tina Greenbaum: That’s right. And the rest of your life. Honestly, Joe, if people do not choose to do this work, they’ll go out this way. It’s work, it’s consciousness, it’s awareness, it’s taking the time, it’s being willing to change. Again, I’ve heard so many saying… “Expect something different while you keep doing the same thing – that’s really insanity”, and yet, we do. We just keep doing the same thing and get mad that it’s not working. Or “This deal didn’t work for me”, or “Somebody else didn’t tell me something”, and on and on and on…

This is the stuff that can change your life, your business, your relationships, the way you raise your children, how your children take on the next generation, and so on. That’s how important I think this stuff is.

Joe Fairless: Yeah, I agree. Number five?

Tina Greenbaum: There’s another little piece to the thinking — we have belief systems underneath our conscious mind, and they rule us. If you look at what’s going on in our country in terms of the polarity, in terms of the values that people are holding, if they don’t get examined, then we’re just robots; we just rinse and repeat. I have a whole thing about belief systems and values and “Whose are they? Are they mine? Are they my parents’?”

I use this silly example a lot of times about ketchup. My mother thought that Heinz ketchup was the best Ketchup in the world. I don’t really know if it is, but when I go to the store I just buy Heinz ketchup. So if I don’t examine it and really kind of look, then we’re just on automatic.

Again, if you’re not happy with other people, this is the part of being empathic with yourself and with somebody else. It’s like “Where do you come from? How do you think the way that you’re thinking?” If you can start to practice and really kind of get into people’s values and what they think is really important and what you think is important, we can make dramatic shifts. So that’s another part of my bully pulpit, so to speak.

And the last one is creating powerful visualizations. Let’s just imagine, again, that you have this dream about owning property and getting involved — I think you’re pretty big in multifamily investments and homes and so on… So let’s just imagine that I’m sitting here and this is my vision; I create a vision for myself about the way I want my life to be, where I wanna go. Now, I haven’t got a clue at this moment, let’s just say, of how to get there, but I have a vision. So I start to kind of move my life in that way, and ask myself “Is what I’m doing gonna take me to that end result? Even though I don’t know how to get there step by step by step”, and I start to visualize what my day looks like. “Am I moving in that direction, or am I way off? Am I just kind of getting lost in making agreements and decisions about things that don’t take me where I want.”

So we start with this powerful visualization of — people do vision boards and all kinds of things, but if you sit and you work and imagine what you wanna create, and then you walk towards that way, your life begins to start to take on some really interesting connections and things.

People talk about the law of attraction, and “Does that stuff really work?” Well, if our whole body and our minds are in alignment and we’re looking at what we wanna create, again, everything that we focus on expands, and we use the power of visualization, you can create a visualization and even if it hasn’t happened yet, your brain already has had that experience. So again, when we come back to athletes, and I live out in the Bay Area and the Golden State Warriors are so cool, and Steph Curry is a three-point shooter… And just kind of watching him, I just know what he has done in terms of his mind and his mental state and how he visualizes… People do fast shots, they have routines. “This one will bounce it two times, or this one will bend their knees”, and they do it over and over and over again, and that creates that neural pathway. So when they’re under pressure, they’re not thinking; their body is just taking over, they’re allowing the body to do what it does. They know how to focus, they know what their hand does… It’s a whole thing about the neuroscience and which side of the brain is operating, and how you quiet down one side and open the other.. But this is how visualization works – we create the vision, and then we walk into it

Every time I do a workshop, or I’m getting ready to do a talk, or a lecture, I sit down in the morning and I visualize, “What do I wanna create? What’s the environment that I wanna create? What do I wanna have happen?”, and I walk through it step by step. And then when I’m actually doing it, it’s like…

Joe Fairless: You’ve been there.

Tina Greenbaum: I’ve been there.

Joe Fairless: Yup.

Tina Greenbaum: So when we talk about preparing for a big meeting, or a sales negotiation, taking the time and really doing the preparation will have you just walk into something that you never even thought was possible before.

Joe Fairless: Tina, I have taken lots of notes, and I’m gonna summarize them here in a second, but first, before we do that, where can the Best Ever listeners get in touch with you?

Tina Greenbaum: I have a website, it’s called TinaGreenbaum.com.

Joe Fairless: How did you come up with that name? [laughs] Tina, this lesson – I’m titling it Five Practical Steps To An Unstoppable Mindset. You really over-delivered on this one, because we talked about how to manage stress and improve performance, but you went much deeper than that, and it’s not just about improving performance, it is really having an unstoppable mindset.

The first step is focus. Tony Robbins talks about “Where focus goes, energy flows.” You’re talking about what are we focusing on – being self-aware of that. That’s number one.

Number two – relaxation, the body and mind connection. You gave us the practical breathing exercise.

Number three – mindfulness. Be aware of the moment, be aware of how we’re feeling in that moment, and being aware of how our body speaks to us.

Number four is the belief systems – how we talk to ourselves. As you said, whatever we focus on, it expands. And I love the question that we should ask ourselves – “Do you thoughts produce something useful for me?” And take responsibility for our experiences, that’s a key thing, especially in these times.

And then number five – creating powerful visualizations.

Thanks for being on the show… Lots of great lessons in this five-step process.

Tina Greenbaum: If you go to my website, right to my homepage, there are those five things with five exercises.

Joe Fairless: Oh, beautiful. Even better. I will do that myself, and I’m sure a lot of Best Ever listeners will, as well. Have a best ever weekend, Tina, and we’ll talk to you soon!

Tina Greenbaum: Alright, Joe. Take care now. Bye-bye!

JF1122: Leveraging LinkedIn The Right Way with Italina Kirknis

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Italina was hunting for a job when she realized she had her own business just waiting for her to take action with. She was everywhere on social media and people were asking her how it was possible. That’s when she realized there was a need for professionals to increase their social media presence. She started rolling from there, and hasn’t looked back. If you enjoyed today’s episode remember to subscribe in iTunes and leave us a review!

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Italina Kirknis Background:
-Online Presence Expert & Speaker for Real Estate Businesses Helps Real Estate Community’s Top Realtors & Lenders upgrade their social media presence and Email Newsletters
-As a former attorney, she is now practicing her passion, Online Branding & Marketing
-Regular Inman.com contributor
-Based in San Francisco, California
-Say hi to her at italinaimage.com
-Best Ever Book: The Noticer

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Joe Fairless: Best Ever listeners, welcome to the best real estate investing advice ever show. I’m Joe Fairless, and this is the world’s longest-running daily real estate investing podcast. We only talk about the best advice ever, we don’t get into any of that fluffy stuff.

With us today, Italina Kirknis. How are you doing?

Italina Kirknis: Hi!

Joe Fairless: Hi, nice to have you on the show. A little bit about Italina – she has an online presence as an actor and a speaker in the real estate business. She helps real estate professionals and lenders upgrade their social media presence, and newsletters. She’s a former attorney and is now practicing her passion, which is online branding and marketing. Based in the San Francisco Bay Area… With that being said, do you wanna give the Best Ever listeners a little bit more about your background and your current focus?

Italina Kirknis: Sure, no problem. I began in the legal field; I had this lucrative career in law, and actually just hated all of it. So I delved into LinkedIn, looking for my next career path. I started really networking on LinkedIn, built my network from 40 to over 500 really quickly, and started being really active. Actually, my phone started ringing, and professionals asked me “Hey, Italina, I see you on LinkedIn, you’re everywhere – how are you doing it?” and that’s how I got the idea of the company, because I realized there are all these professionals on LinkedIn that don’t know how to use it.

Joe Fairless: What was your answer when they asked you how you were doing it?

Italina Kirknis: It was funny, because I would actually walk that person through what you do, how I’m posting, how I’m being active, how I’m networking… Literally networking online, bringing conversations from offline to the phone, possibly even meeting. And then I realized “Oh, my goodness… I was supposed to be looking for a job right now, and I am sitting all the time talking to you.” So I go back to my job search and then my phone would ring again, and then the same thing. So that’s when I realized – okay, clearly there’s a need.

Joe Fairless: So what are some things that people do wrong that you’ve seen?

Italina Kirknis: First of all, there’s the mistake of neglecting LinkedIn altogether – “I haven’t logged in in ages, I don’t even know my password…” It’s the number one professional social media site, however people are spending more focus as far as time and posting and networking on Facebook, they’re doing a good job there, and then completely forgetting about their LinkedIn, not realizing “Hey, that’s the number one professional site.” Nurture these contacts as well, talk to these contacts; they’re actually professionals who are income earners and those are the individuals that you want to be networking with.

Joe Fairless: How do we leverage LinkedIn so that we get the best return on our time?

Italina Kirknis: First of all, as you know, Joe, nothing can take place without a conversation happening first. There’s no transaction, no one’s going to invest with you or utilize your service unless you talk to them first. So first of all, when you’re building your network [unintelligible [00:04:11].01] connection request from people who reach out to you on LinkedIn. Start the conversation. “Hey, it’s great to connect with you here on LinkedIn. It’d be great to have at least a quick phone chat with you to see how we can be a resource to each other.”

So actually seeing this as networking … Just like you walk into a room and you’re networking, you exchange cards, you maybe follow up with a phone call or an e-mail – same thing online; you come across someone or someone comes across you – start that conversation, follow it up with a phone call. Once you see it’s of value, you can even have a meeting and you just. You just never know unless you start that conversation.

I know my clients and I – we are receiving what we call service inquiries on a monthly basis from people that say “Hey, I see that you’re in the area” or “I see that you are also connected to John Smith. Let’s see if we’d be a good fit.”

Joe Fairless: I love that advice and that approach, especially for people who are starting out. Once we’re more established, then what is the next level to that, because there’s no way I could follow up with someone on LinkedIn when they reach out to me and say “Let’s have a quick phone conversation”, because all I would be doing is talking to random people who come across me on LinkedIn. So now that we’ve established that foundation of community and connections within LinkedIn, then what’s the next step?

Italina Kirknis: The next step is providing them with valuable information. Whatever it is that you’re promoting or looking to advance and further… Let’s say you’re wanting to work primarily with a certain geographical area. Say you wanna target this particular area, particularly target a market – you can actually use the LinkedIn search feature to target… You can plug in a city, you can plug in  state, or a geographical so that you can penetrate this market. If there’s a certain market you wanna get into or a higher price point, you can use LinkedIn’s search filter, you can actually filter it down so that it’s really specific. A lot of people don’t even know or are aware that LinkedIn even has that feature.

Joe Fairless: Are you referring to searching to connect with people, or are you referring to only sharing information to only people within that city or state?

Italina Kirknis: Both.

Joe Fairless: Both, really?

Italina Kirknis: Yeah. Once you go ahead and you search people in a specific geographical area, then you can actually create groups on LinkedIn, so that you can say “Hey, this is for this city, or this is for this city.” You can have certain groups, and then once you are ready to send a message to the people in that group, you can do that; it’s all organized and laid out there for you.

Joe Fairless: Okay, I’m gonna use my example, because that’s the best way I can think of using an example off the top of my head… I have investors in markets across the U.S., but I’ve identified the top seven markets that my investors live in. Therefore, if I wanted to create content for just them in each of those markets – and let’s just use one, for example Los Angeles – then the approach… This is where I wanna make sure I’m thinking about this correctly based on what you’ve just said – the approach I could take is create Los Angeles-specific real estate investing articles that I think they would be interested in, and then create a Los Angeles group and then share it within that group after they’re in the group? Is that correct, or did I miss something?

Italina Kirknis: Exactly, you’ve got it. And that’s just one way. The other thing I would say, to answer your question, how do we make this more advanced, what do we do to make the most of LinkedIn – the other piece I would say is if you’re really good especially at sharing content on Facebook or some of these other sites, don’t forget to share this content on LinkedIn as well, because that’s another set of eyeballs, another audience to get in front.

Joe Fairless: What should be our focus when sharing content on LinkedIn versus Facebook? Do we approach it differently in any way?

Italina Kirknis: Absolutely. Now, we’re remembering that our audience on LinkedIn – they are professionals, they are higher income earners. They are professionals, so we need to make sure that whatever we’re saying does relate to professionals. We’re not sharing pictures of our nieces and nephews and things [unintelligible [00:08:47].15] at happy hour; we’re not sharing that kind of content. It’s common to see that on Facebook and it’s appropriate to see that on Facebook.

On LinkedIn, what we’re doing is being sure to tie it into being a professional, to being (in this case) and investor, being a business owner, that kind of thing. As long as it relates to that audience, they can relate to it. One thing people say – “I don’t know… Does that mean I’m only sharing articles? Does that mean I’m being super corporate?” Absolutely not.

The best thing I can do is just give you an example. One day I was really tired; it was about two o’clock in the afternoon, and what do most of us do at two o’clock in the afternoon?

Joe Fairless: Oh, we all take naps. [laughter] Oh, just me? Okay, never mind.

Italina Kirknis: We go get a nap in the cup – we go get a cup of coffee. Have you ever tried going to a coffee shop at 2 o’clock in the afternoon? No, because you’re taking a nap.

Joe Fairless: Yeah, right. [laughter]

Italina Kirknis: So you don’t know this, but yeah, everyone else is out in line, getting a coffee. And on this particular I said “Italina, you’re tired. You might as well just take a nap, instead of having a nap in a cup.” So I took my yoga mat from the trunk of my car, it was a beautiful day, I put it under a tree and I took a quick 10-15-minute nap. Then I woke up refreshed as ever, productive for the rest of the day. But I thought “Wow, this is really cool, what I just did, what just happened – I decided to take a nap instead of rushing for a cup of coffee… I bet a lot of professionals could relate to this”, so I shared it on LinkedIn, I found a picture of a yoga mat, I shared that story. It received a lot of engagement because all those professionals could absolutely relate to needing either a nap or a cup of coffee at two o’clock in the afternoon.

Joe Fairless: I remember listening to one of Tim Ferriss’ podcasts and he’s a proponent of that type of approach, taking 15-20-minute naps whenever you need to, just like the power thing. Okay, that’s great. So it was not an article that you were sharing, but rather it was an experience that was helping you as a professional, and it was also something that people were either envious of or enlightened by. Okay, cool.

Italina Kirknis: Right, absolutely. The thing is everything on LinkedIn doesn’t need to be super corporate, it doesn’t just have to be articles. Again, it’s adding value to the professionals in your network. If you are going to share articles, I highly suggest first of all to share your own article. And then number two, if you’re gonna share someone else’s article, read it and give your two cents on the article.

For example, frequently when I see articles being posted on LinkedIn, it’s just the article, and there’s nothing from you. You’re promoting the writer of that article, you’re not promoting yourself; you’re not showing your own expertise and how you’re so good at what you do and why people should work with you. So what I suggest if you are gonna share someone else’s article — the best post that I saw was “This article answers questions on what to do prior to investing.” A person gave their two cents on what the article was going to be addressing. So then we get to see your thought process, we can see “Oh, you are smart”, or we get to see some of your brilliance.

Joe Fairless: How do we judge the success of our LinkedIn approach?

Italina Kirknis: Sure. What’s great is just like Facebook, LinkedIn gives you analytics. So you can actually see — each individual post that you share, you receive analytics. It says right there, “This post reached X amount of people.” Of course, you can also see how many people liked and commented, but as we all know, people who look at your post and who enjoy it don’t always like or comment. So it does show you the stats on not only how many people saw it, but it even shows you the job titles of the individuals who looked.

For example, when I share a post, it will say “X amount of people who have the title ‘real estate broker’ saw your post, and X amount of people who have the title ‘salesperson’ or ‘financial advisor’…” and it even shows the company. [unintelligible [00:13:07].25] it gives you specifics on who’s viewing your content.

Joe Fairless: Is there a dashboard so can compare articles, or do you just have to look at each article individually?

Italina Kirknis: On your own profile, where it says — for example, on my profile where I see all of my activity, all of my posts, it’ll say “Italina’s activity”, and I can look at all my posts that I’ve shared, and for each individual one, yes, I would go to individually and look at the analytics for each.

Joe Fairless: Okay. What’s something else as it relates to LinkedIn that we haven’t talked about that we need to know about?

Italina Kirknis: I would say the basics is the profile. The profile itself, I think the average user thinks “Oh, this is just an online resume.” Well, if you’re in sales, if you’re an investor, if you’re in real estate, you want it to be more of a marketing piece than a resume. You’re not looking for a job, so you don’t need it to be a resume. So use it as an opportunity to actually share what you’re doing, what sets you apart, what sets you in the business, what sets you apart from all the other bazillion real estate professionals out there.

For example, a lot of people don’t even have their summary up there. Use your summary as an opportunity to share the niche market that you’re working in, what sets you apart from other real estate professionals, the kinds of things we can expect in working with you, and a call to action. So it’s more of a marketing piece than just a resume or just a list of companies, real estate brokerages that you’ve been moving around to.

Joe Fairless: Let’s switch gears if we can to e-mail newsletters.

Italina Kirknis: Sure.

Joe Fairless: What are some suggestions or best practices that you have to have an e-mail newsletter that your recipient then shares out with their friends because it’s so darn interesting.

Italina Kirknis: Right. Well, as you can imagine, I’m on a lot of real estate professionals’ lists, so I receive their newsletters and I get to see either how awesome or how lame they are. So I would say the ones that are not as inspiring are the ones where I’m only getting the market report, I’m only getting these stats and so forth. Yes, that’s all important, but again, also add your own two cents, share your brilliance. Based on these marketing stats that you’re sharing, what do I do with this information? Based on that, what are you seeing? So use it as an opportunity to share your accents, your brilliance.

Our e-mail newsletter – we’re addressing problems or questions that people have in the business. You wanna do the same thing, keeping your ear out there… What do you hear people complaining about? What are people asking? That’s what your next e-mail newsletter should be addressing.

Joe Fairless: And then any tips or suggestions or best practices for anything else as it relates to newsletters? I know it’s a large question, so take it whichever way you want to.

Italina Kirknis: Utilize video in your newsletter. Your newsletter shouldn’t be this huge thesis, this huge verbiage, this e-mail that someone definitely needs a cup of coffee just to get through the newsletter. One thing I would say is keep it short and concise, and obviously, use video. Video is huge. People are gonna be more willing to watch a quick few minute video than read paragraph after paragraph. So instead of writing, or as a way to mix it up, just writing what you’re gonna say, say what you’re gonna say on a video, and put that in your e-mail.

What’s so great about that is in your subject line you can put in “VIDEO” and we’ll know right away that’s a video; they look forward to it, and then whatever it is that you’re addressing. In my case I’ll do a video, and then three tips for making the most of LinkedIn. They know right away what they’re getting, and that it’s a video, and they’re gonna be more excited about that.

Joe Fairless: Based on your experience as an online branding and marketing expert, what is your best real estate investing advice ever for real estate investors?

Italina Kirknis: Well, as we know, it’s a saturated market, there’s lots of investors out there, brokerages out there, a lot of people and a lot of options, so how are you setting yourself apart? I would say one great thing is that social media, whether it be LinkedIn, or Facebook, or even promoting through our newsletter list gives us a way to set ourselves apart and show our personalities, and that’s what people fall in love with.

So what I would say is be careful about trying to be just so professional where your personality is not flat and one-dimensional. Yes, you can be yourself hopefully, while still maintaining a level of professionalism. But use the online world, treat it as if it’s your own true e-Hollywood story where you get to share yourself, your personality and who you are, so people will be more inclined to work with you.

Joe Fairless: Are you ready for the Best Ever Lightning Round?

Italina Kirknis: Okay… [laughs]

Joe Fairless: I love the laugh, and I’ll take that as a — oh, you did say okay too, so you’re laughing and saying okay. Double plus. Alright, first though, a quick word from our Best Ever partners.

Break: [[00:18:39].18] to [[00:19:42].16]

Joe Fairless: Okay, best ever book you’ve read?

Italina Kirknis: Oh, wow… That’s really hard, oh my God. The Noticer, we’ll go with that. The Noticer.

Joe Fairless: Noticer?

Italina Kirknis: Yes.

Joe Fairless: Okay. What’s the best ever way to get the most amount of e-mail subscribers in the shortest amount of time?

Italina Kirknis: [unintelligible [00:19:59].00] Promote the actual link to sign up, put the link directly in your social media outlets, [unintelligible [00:20:04].04] throughout your social media.

Joe Fairless: Best ever CRM or e-mail database software program that you recommend?

Italina Kirknis: [laughs] For simplicity, so people who are just like “Oh my God, I’m so scared of technology”, for simplicity I would just say using MailChimp for constant contact. But I love, I love, I love Contactually.

Joe Fairless: Contactually?

Italina Kirknis: Yes.

Joe Fairless: Why?

Italina Kirknis: Because it alerts you as to who needs to be contacted, and keeps that in front of you in case you’re not on top of it.

Joe Fairless: What’s the investment on a monthly basis or annual basis for Contactually?

Italina Kirknis: I don’t know…

Joe Fairless: That’s fine, I’m just curious. Best ever way you like to give back?

Italina Kirknis: I love giving back to my high school. I went to a really, really great high school and I feel like I wouldn’t be where I am today without them. I love that they give scholarships to people who ordinarily wouldn’t be able to afford to attend; it’s a private school. So I love giving back to my high school.

Joe Fairless: Best ever way the Best Ever listeners can get in touch with you?

Italina Kirknis: They can obviously call me at 501-712-1918 or text, and they can also connect with me on LinkedIn or Facebook. It’s just Italina Kirknis.

Joe Fairless: Thank you for being on the show, thanks for giving us many lessons on how to enhance our presence online and how to build a database in the most efficient way possible. Some of the things that stood out to me – clearly, LinkedIn is the platform of choice, and we can be ourselves while still maintaining a level of professionalism within LinkedIn, that way we still have our personality. But it should relate to professionals; it doesn’t have to be the articles that we write or share – and by the way, if we share, then we need to have some commentary about it. It could also be that yoga mat as the example. And then targeting locations, creating groups within those locations, and many other tips along the way.

Thanks for being on the show, I’m really grateful. I hope you have a best ever day, and we’ll talk to you soon.

Italina Kirknis: Thank you.

JF1043: Want to be a Top Producing Agent? Get With This Guy!

Listen to the Episode Below (21:41)
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Many agents complain about marketing costs and effectiveness.  What if there was a place that had sellers lined up searching for a realtor, instead of you searching for the sellers? That’s exactly what Simon created, and taking out the marketing is only part of what UpNest does for you.

Best Ever Tweet:

Simon Ru Real Estate Background:
-Founder and CEO of UpNest, a realtor marketplace where top local agents compete for home buyers and sellers’ business.
-Facilitated over $1B worth of home listings since launch and delivered over $10M in commission savings to sellers.
-Five thousand top realtors actively competing on the platform
-Many are celebrity realtors that are ranked on Wall Street Journal or featured in TV shows such as HouseHunter & Million Dollar Listings.
-Serial entrepreneur, ex-PayPal, sold business to PlaySpan/Visa.
-Based in San Francisco, California
-Say hi to him at www.upnest.com

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Joe Fairless: Best Ever listeners, welcome to the best real estate investing advice ever show. I’m Joe Fairless, and this is the world’s longest-running daily real estate investing podcast. We only talk about the best advice ever, we don’t get into any of that fluffy stuff. With us today, Simon Ru. How are you doing, my friend?

Simon Ru: Good.

Joe Fairless: That’s good to hear, and nice to have you on the show. A little bit about Simon – he is the founder and CEO of Upnest, which is a realtor marketplace where top local agents compete for home buyers and sellers business. He’s facilitated over one billion – yes, that’s with a “b” – dollars worth of home listings since launch, and delivered over ten million dollars in commission savings to sellers (that’s a whole bunch of money). He’s talked on all the major media outlets that you’ve heard of – Wall-Street Journal etc. He’s based in San Francisco, California. With that being said, Simon, do you wanna give the Best Ever listeners a little bit more about your background and your current focus?

Simon Ru: Sure. Upnest is a realtor marketplace where we bring  top local agents who compete for home buyers and sellers business; [unintelligible [00:03:19].22] personalized proposal that details your commission rates, rebates and service offerings and Q&A and a personalized pitch. Our value prop is to deliver consumers a selection of top agents. These are agents that you will hire in your neighborhoods and we bring them to compete for your business… Transparency when it comes to what services they’re gonna offer and how much they’re gonna charge, and because it’s a very competitive environment, you get savings. We have this far delivered over 10 million dollars in commission savings to home sellers.

Joe Fairless: This makes so much sense. You know it’s a good idea if the thought is “Why the heck didn’t this exist before?” I think about Uber all the time; I thank my lucky stars that Uber exists because of the whole atrocious taxi experience.

What are the terms that typically win a buyer or seller’s business?

Simon Ru: We’ve been around for almost four years and we have 5,000 top realtors actively compete on our platform now… Many a celebrity realtors, we’ve got [unintelligible [00:04:23].19] on the Wall-Street Journal, we were featured on TV shows such as House Hunters and Million Dollar Listings…

We obviously have a lot of success with top agents, and I think part of the reason is our revenue model is very similar to other marketplaces like Uber and Airbnb – that’s strictly performance-based. If the agent can’t win the listings or can’t sell the homes for the X amount and quick, we don’t make any money.
We spend a lot of time coaching our agents, and for a lot of the top producers – they know they own the neighborhoods, and if we can put them in front of the seller, they have no problem winning the listing.

Over time we weed out weak agents and the cream floats to the top. We’re really lucky to have some of the really top agents around the country to be actively participating on our platform. Some of them are actually your guests.

Joe Fairless: Oh, I’m sure, yeah. I’ve talked to over 1,000 people, so I’m sure there’s some of the guests who are on your platform. You said the top producers are the ones who win the listings; if you’re not a top producer, then how do you win listings?

Simon Ru: Basically, what we did was we leveled the playing field. We all know in real estate that 20% of the top producers win 80% of the business, and they are [unintelligible [00:05:44].07] the average age of a realtor is 55ish, but the agents that are very successful on our platforms are [unintelligible [00:05:51].29] technology, they have a really good web presence, they are hungry, they are up and comers. These agents in this industry are kind of moving into a team type of structure; they work in a team environment and they also have a fixed cause.

If you think traditionally how an agent gets their leads is they buy zip codes on Trulia and Zillow and then they get a bunch of phone numbers and e-mails which they have to spend a lot of time to nurture and scrub these leads…

When I was doing my research as I started this business, I’d do a lot of custom developments; when I’d come to these agents and ask them “I can bring an in-market seller who’s ready to list, but the only catch is that you may have to come down on your commission a little bit… Would you do it?” A lot of these agents were telling me like “Look, I’m spending a lot of money on these other marketing channels as it is, print marketing and all that”, and a lot of them are non-trackable. You don’t know whether these fliers that you mailed out were effective or not. Even with some of the online portals, it’s a huge time suck. You have to nurture these relationships and it’s six months out or nine months out before you see any deals signed.

So they were like, “Hey, if you have a seller that’s ready to list, I just need to go in and do a pitch. I’m all for it” – that’s the segment where we have a lot of success, because without platforms, the agent submits a proposal that basically lays out everything that they do. It’s like a manual – what fee they’re gonna charge, and we have a series of Q&A that’s tailor-made for the seller based on the information that they provide. By the time the seller wants to talk to an agent, wants to interview an agent, the seller will already like the agent. It’s like a slam dunk at that point.

We don’t talk that many things upfront, so effectively they ship their fixed cost into like a marginal cost, and they have no problem paying us when all is sorted out. So it’s win/win/win all around. We just basically make the process more efficient.

Joe Fairless: When the agents fill out the proposal, I’m sure that your team has identified the most important aspects that need to be included, and that’s how you came up with information that they fill in. Regardless of if it’s your platform or just in general, what are some of the aspects that your team has found are most relevant to people who choose an agent?

Simon Ru: Definitely the top of mind question is “How much are you gonna charge?” but our team does a good job in educating the consumer that the commission is not the biggest determining factor in selling your home successfully. There are a lot of aspects to look at. If a top agent can sell your home for 2%, 3% more, it kind of more than covers that differential in listing commissions.

You’re welcome to come to our website and there’s a screenshot of what a proposal looks like. We break down the commissions… There are also services. When negotiating with an agent, don’t just negotiate on the commission, but also pay attention on what type of service are you offering. Things like free stagings – the agent can offer that; or fliers, postcards that they’re gonna mail out, a landscaping service – if those are a part of the package…

In the Bay Area some of the expensive listings have drones that fly over and do an aerial shot. Those are pretty popular. 3D virtual tours… Those are expensive packages. If you can convince an agent to [unintelligible [00:09:20].08] in that platform, everything’s laid out. Those are part of the cost factor, and more than that, you have to look at the agent’s stats. We also have those laid out.

Basically, what’s more important is how do they come up with a price, because price and marketing are the most important factors in determining whether a home gets sold or not. So what’s the thought process in coming up with a price and then what’s the pricing strategy? All those are laid out, and those are some of the questions that we ask our agents to answer in the proposal.

Joe Fairless: What’s a bad pricing strategy and what’s an exceptional pricing strategy?

Simon Ru: It kind of really depends on the neighborhoods and how hot the market is. We have agents that have a lot of success in pricing a home 15% markets and trying to [unintelligible [00:10:09].23] and also it depends on the season, too; it depends on whether it’s winter time or summer time. Especially in the winter time I know the property is gonna sit on the market for a while, so I’m gonna set a realistic price and this is it, I’m not gonna budge. When it’s summer time, we may adjust it later.

So it really depends on the market and how confident the agent is, given the market conditions.

Joe Fairless: What’s been the most challenging part that you didn’t expect when building Upnest?

Simon Ru: Because of the user demographic that we’re going after, we tend to attract of for-sale-by-owner folks, and being able to convince them that — my philosophy if you ask me to talk about the top three ways to save money when hiring a realtor, my philosophy has always been “You save money by making less mistakes. One common mistake that sellers make is trying to save that 6% commission and trying to sell the home by themselves. I’m sure that probably crossed your mind too, like “I’ve got this. Why should I pay the realtor 60k?”

In the beginning we kind of struggle with convincing these for-sale-by-owner guys that “Hey, what you don’t realize is you can really never save 6% because you still have to pay 2.5% or 2% to the buyer’s agent.” Otherwise, the buyer’s agent will just badmouth your house and steer the buyers away. For that reason, more than 90% of the homes in the United States are purchased with an agent.

So we’re really talking about a maximum saving if like 2.5%, and if you’re [unintelligible [00:11:47].15] you have to take on the liability of getting sued by the buyers, and we live in a very litigious society, and we’re talking about a really big purchase here. You have to understand there’s a lot of paperwork, and all it takes is missing one [unintelligible [00:12:02].00] Then you also have to negotiate with a professional who does this for a living. And keep in mind that the buyer doesn’t expect you to keep all that commission savings (the 2.5%, or whatever). When they see [unintelligible [00:12:18].21] listing they see distress, and they expect deals, and they want a piece of that 2.5% commission saving, if not all of it.

That’s why [unintelligible [00:12:29].10] they always get low-ball offers, and research after research has shown that. They sit on the market longer and they sell for significantly less if they’re not represented by a realtor.

We’ve honed our message for certain segments of our users and became really good at convincing these users to use our platform. One advice to the home seller is “Don’t be penny wise and pound foolish and try to sell the home by yourself.” Again, if a top agent can sell your home for just 2%, 3% more, you can make more money.

And after that, now that you decided to use an agent, how to get the best deal – I talk a little bit about that. Fundamentally, it’s just like selling a home, or everything in life, for that matter… It’s creating a bidding war for your listing; the old-school way is you call a few agents, get the excited about your property, then tell them like “Hey, John at ABC Brokers down the street is offering me 5%. Can you do better?” It’s just like a flea market.

You may rub the agent the wrong way [unintelligible [00:13:29].07] is a bad way to start a relationship with someone who’s gonna represent you, gonna know your family, your finances… It’s a very important transaction.

What we do at Upnest is we turn our table around. Instead of needing to haggle with the agents, the agents are coming to your with the proposal, talk a little bit about the proposal… If you’re a buyer, we get you all the rebates from [unintelligible [00:13:53].08]

Joe Fairless: Who’s your primary audience? Is it agents, or is it people who are looking to buy and sell?

Simon Ru: It’s a two-sided marketplace. Definitely, we need to be careful not to create like a race-to-bottom situations and attract a bunch of discount agents, because that may not serve the best interest of home buyers or sellers. We put a lot of focus on bringing in some really good agents that deliver a really good customer experience and sell the home successfully. On the consumer side, we first launched as a seller-focused marketplace. [unintelligible [00:14:31].13] was actually less than 6%, and then about a year and a half ago we decided to go after home buyers as well, and we rebranded to Upnest.

Right now we have a very vibrant buyer and seller demographic and agents are very active on our platform.

Joe Fairless: Do you have a marketing budget?

Simon Ru: We do.

Joe Fairless: Let me just ask a follow-up question. So you have a marketing budget. 100% of it is the whole pie, obviously. What percent goes to attracting agents, what percent goes to attracting sellers and what percent goes to attracting buyers?

Simon Ru: 100% of marketing budget goes to attracting sellers, because really a seller is the long pole, especially in the market that we are in. It’s still very much a seller’s market. Agents – there are a lot realtors in the United States and a lot of them are actually looking for a platform like ours. They definitely feel the pressure from [unintelligible [00:15:23].01], so when we come to them with our pricing, they like it and they give us a try and they’re like “Wow, actually this is real. I get to sit in front of the–

Joe Fairless: Right.

Simon Ru: …and close deals.”

Joe Fairless: So 100% of the marketing budget goes to attracting sellers… What do you spend your money on to attract those sellers?

Simon Ru: Just the whole gamut, kind [unintelligible [00:15:56].00] social network; we spend a lot of energy on organic marketing as well. On our sites we publish a lot of the commission data, so if you’re looking to sell a home, you can go on there and look at “Okay, for California what’s the average savings? For San Francisco what’s the average savings? How many open houses do San Francisco agents really offer?” – things like that. [unintelligible [00:16:21].16] they have a bell curve that shows what other people are paying for the car, and we aspire to offer that experience to home sellers who are in the process of making that decision.

Joe Fairless: What is your best advice ever for real estate investors?

Simon Ru: Create a bidding war in every situation that you can think of, and when negotiating with an agent don’t just think about that one transaction, because after you sell your property, you’re probably gonna take that money and buy some other property. If you submit a request on our website, put that in there and chances are that you will probably get a better offer.

Don’t forget the little things, as an agent to throw in: free postcard mailings, free stagings and things like that. [unintelligible [00:17:06].10] make that comparison easy.

Joe Fairless: And how do you get compensated and what’s that compensation look like?

Simon Ru: Our platform is free to consumers. As a buyer and a seller it should be a no-brainer; there’s no reason not to give us a try. We charge a platform fee – just like other portals like Uber or Airbnb – when the home is sold. That money come from the agent. Basically, they shift their upfront marketing into a backend platform – they pay us.

Joe Fairless: Okay. And what was that fee?

Simon Ru: It really varies, and it depends on markets… Anywhere between 20%-30%.

Joe Fairless: Of what they receive?

Simon Ru: Of whatever they make.

Joe Fairless: Are you ready for the Best Ever Lightning Round?

Simon Ru: Sure! I know some of your questions… Man, I’m so busy, I don’t really have that much time to read books.

Joe Fairless: Well, don’t start answering the questions before I ask them… So just a second. First, a quick word from our Best Ever partners.

Break: [[00:18:02].07] to [[00:18:58].12]

Joe Fairless: Alright, Simon, you don’t read books… I’m gonna skip that question. What is the best ever business idea that you haven’t pursued?

Simon Ru: Upnest – my brain is all about Upnest.

Joe Fairless: I said “that you haven’t pursued” – best ever business model you have not pursued yet?

Simon Ru: I’ve probably pursued it, so maybe next question… [laughs]

Joe Fairless: Okay, got it. Best ever way you like to give back?

Simon Ru: I’ve recently started a non-profit called 5000 Orphans. [unintelligible [00:19:27].04] talked about this and we’ve decided whatever proceeds that we get from any situation, we’re gonna set aside 20%-30% for that cause.

Joe Fairless: How can the Best Ever listeners either get in touch with you or your business?

Simon Ru: Check out Upnest.com. My e-mail is simon@upnest.com. Shoot me an e-mail. What I learned over the years is you just have to keep on iterating. [unintelligible [00:19:50].16] you just keep trying. We’ve been trying for the last four years. The first year was tough, the second year got better, and I think finally we’ve figured this out and hopefully we’ve built a marketplace that is just the way in the next couple years how people find realtors.

There’s a big shift in consumers’ mindset coming from like “Oh, I called the guy that sent me the postcard” to coming to a marketplace and have agents compete for your business. But I think this is really the most efficient way to do this, and they save money on both sides… And we pass on the savings to consumers.

Joe Fairless: Well, Simon, thank you for being on the show. This is a model that makes a whole lot of sense, and I’m glad that you’re spearheading it because it’s needed, that’s for sure. As you said, create a bidding war in any situation you can think of, and your business model is based on that… And some of the negotiation tips that you have (or points) would be putting in free stagings, fliers, postcards, landscaping service, commission, maybe even have a drone or something, do virtual tours… So what else in addition to the commission is the agent bringing to the table, and that’s something that we can all take away from, whether we use your platform or we don’t.
So I really appreciate the advice, thanks for being on the show… I hope you have a best ever day, Simon, and we’ll talk to you soon.

Simon Ru: Thank you, Joe. I appreciate it.

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JF995: Defer Your Taxes with the 1031 Exchange!

Listen to the Episode Below (25:29)
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You may have heard that you can defer your taxes that are due when you sell a property, also known as capital gains tax. That’s exactly what you are going to learn today! One of the difficult pieces of this would be finding an alternative property to defer the taxes. He’s definitely got the solution!

Best Ever Tweet:

Leonard Spoto Real Estate Background:

– Oversees sales and marketing operations for Asset Exchange Company
– Frequent keynote speaker and accredited course instructor on the subject of 1031 Tax Deferred Exchanges
– Presented his real estate and tax workshops to over 20,000 Realtors, lenders, title professionals & investors
– Based in San Francisco, California
– Say hi to him at www.ax1031.com
– Best Ever Book: Olivia the Pig

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Joe Fairless: Best Ever listeners, welcome to the best real estate investing advice ever show. I’m Joe Fairless and this is the world’s longest-running daily real estate investing podcast. We only talk about the best advice ever, we don’t get into any fluff.

With us today, Leonard Spoto. How are you doing, Leonard?

Leonard Spoto: I’m doing great, Joe. Thanks for having me on your show.

Joe Fairless: Yeah, nice to have you on the show, and looking forward to diving in. A little bit about Leonard – he oversees sales and marketing operations for Asset Exchange Company. He’s a frequent keynote speaker and accredited course instructor on the subject of 1031 tax deferred exchanges, and he’s based in San Francisco, California. With that being said, Leonard, do you wanna give the Best Ever listeners a little bit more about your background and your current focus?

Leonard Spoto: Absolutely. I’ve been doing this for about 15 years. We are a 1031 exchange accommodator. We work with real estate investors who are using section 1031 within the tax code to defer capital gains taxes. When you do an exchange, when you defer taxes on the sale of your investment property, you have to work with a neutral third party to facilitate the process, and that’s what my company does. We prepare all the legal documents that are required, we make sure that our clients are in compliance with the tax code, and we actually hold sale proceeds until the investor or our clients find a suitable replacement company to invest into. So we’re an accommodator.

Like I said, we’ve been doing it for about 15 years. We do all types of different exchanges, from really simple, standard delayed exchanges to more complex reverse and construction exchanges.

Joe Fairless: Let’s talk 1031 2.0, next level stuff. Let’s assume that our listeners know what a 1031 is and the main components to it… What can you tell us that you would tell more sophisticated people and educate them on topics as it pertains to 1031s?

Leonard Spoto: There’s a few things, kind of next-level 1031 exchange stuff… Like I said, either standard delayed exchanges, one of the things that we work with most of our clients on where they sell a property and then buy a replacement property in that order. But as you and your listeners probably, right now one of the biggest challenges in the real estate market is finding good, suitable replacement property. I don’t care what market you’re in, whether it’s here in the West Coast or where you’re sitting on the East Coast, Joe, there’s just not a lot of inventory and the good properties are getting gobbled up quickly. So one of the challenges that a lot of our investors have is if I’m gonna put my property up for sale and I’ve got a limited time to reinvest, I may not want to actually sell because I might not have enough time to find a suitable replacement property within that very tight timeframe. So a lot of our more sophisticated investors are asking us about what’s called the reverse exchange.

The reverse exchange allows an investor to buy a replacement property first. As the name implies, you’re doing an exchange, but in reverse. You’re buying a replacement property first, and then you have 180 days to sell; provided that property sells within 180 days, that sale will be tax deferred.

Now, these exchanges aren’t for the beginner investor, they’re not for the unsophisticated first-time investor because they are a lot more challenging. When you do a reverse 1031 exchange, you can’t actually own the new property that you plan on buying AND the old property at the same time. An exchange is going from one to another; you can’t just go out and buy something and call that a reverse.

With a reverse exchange, we actually become the buyer for you. We are signing your contract, we become the buyer for that property, and we warehouse the purchased property until you can get yours sold.

Joe Fairless: You become the buyer for the property that I’m going to buy?

Leonard Spoto: Yes.

Joe Fairless: Okay. Do you put up the funds to buy the property that I’m going to buy?

Leonard Spoto: Yeah, good question… We don’t. I’m not in the business of giving you money and buying property for you, so what happens is… Think about it – you haven’t sold anything, right? And you don’t necessarily have that big pile of cash that most exchangers have, because the building you wanted to sell hasn’t sold yet. We do not buy the property for you with our cash, you’ve gotta do it. And the challenging thing about reverse exchanges as well is, let’s say you do have enough for a down payment on the property you wanna buy. So you’ve got $200,000 in your piggy bank and you’re gonna go out and buy a million dollar property. You plan on getting a loan from a traditional lender like Wells Fargo or Bank of America, and then you tell the lender “Well, by the way, I’m gonna borrow $800,000 from you, but Asset Exchange Company, the 1031 exchange company, is gonna be the buyer.” You can imagine how that goes over like a lead balloon in the underwriting department at that bank.

So getting a loan on a reverse exchange is tough, so most of the reverse exchanges we do are with clients either paying all cash, clients using non-traditional lending sources like private money lenders, or if the seller of that property is willing to seller-finance the deal. If one of those things are available to a client, then the reverse exchange might be an option. And to be honest with you, 90% of the reverses that we facilitate are with clients who are just paying all cash. They’ve got a big, giant lump of cash maybe that they can use from the stock market or just a big piggy bank that they’re able to access, and they’re able to buy a replacement property without getting a lender involved. It’s an all-cash purchase, we become the buyer, we sit on that property as the owner until there’s sells. Once they get their property sold, then we transfer the new property to them.

Joe Fairless: That’s an interesting concept. What type of documents — I know you’ve got all the documents, so that’s why I’m curious… What type of documents do you have in place for your client and you? Because they’re putting up the money, but you’re the owner.

Leonard Spoto: Obviously, there’s a pretty lengthy agreement that we all sign, and we are the owner in exchange — as what’s called an exchange accommodating title holder, only it’s not in our interest to become the owner of that property for the long term. We’ve got a pretty iron-clad agreement that specifies that as the client completes the exchange by either selling their relinquished property or exceeding the exchange timeframe, which most of your listeners probably know is 180 days… When one of those two things occurs – either they complete the exchange by selling their property, or going beyond the 180 days, the property we are warehousing for them automatically transfers back to them.

So we’re not in the business of obviously owning property; we only go on title for the accommodation of the reverse exchange. In fact, when we are on title to that property, we also entered into a triple-net lease with the client who’s doing the reverse exchange, and that lease will give the investor (the exchanger) all the burdens and benefits of ownership. So even though I’m on title to facilitate the reverse exchange, if there’s tenants in that property that you were buying in the reverse, you are gonna deal with those tenants, you are gonna collect the rent from those tenants. If there’s leaky toilets, you’re gonna go out and fix them. I’m not in the business of managing those properties for you. We are only on title in name and only for that reverse exchange.

Joe Fairless: And only for 180 days, right?

Leonard Spoto: For only up to 180 days. Hopefully a lot less, because hopefully it takes you a lot less time to actually get your relinquished property sold.

Joe Fairless: So the reverse exchange would make the most sense if I have cash or access to cash via a private money lender or seller-financing, and I am concerned about finding a replacement property or I have identified my property, I need to buy it now, but I haven’t sold the property I’m exchanging it from.

Leonard Spoto: Yeah, that is correct. Sometimes people get forced into a reverse exchange. You did your homework, you got your property on the market to sell, you had a buyer that came in, the buyer looked great, so you went out and made an offer to purchase something. You got into contract to purchase, you’re gonna time it so that your sale closes today, your purchase closes tomorrow, but then all of a sudden, that buyer for the property that you are selling all of a sudden just disappears, they go away for whatever reason. Now you find yourself in contract to buy something, you thought you had a buyer for the property you’re selling, but that guy took off, so you’re forced into a reverse exchange – not an ideal scenario, but that is something that happens as well, where people find themselves in a reverse exchange.

Joe Fairless: Let’s talk about some stories that you’ve either experienced yourself or heard from others, where a 1031 didn’t go according to plan and it went sour. Can you tell us a couple stories of what you’ve come across?

Leonard Spoto: Within the last 3-4 years, the biggest reason why an exchange goes sour is because they simply can’t find a suitable replacement property in the timeframe. When you’re doing an exchange, if you sell a property you have 45 days to identify what you’re thinking about buying and a total of 180 days to purchase and close on that replacement property.

So the biggest challenge in today’s market is finding that property within those 45 days, because it has to be identified within 45 days. We’ve had clients who sold their property, went to Hawaii for 2-3 weeks to celebrate the sale, came back and said “Jesus, there’s nothing on the market. What am I gonna do?!” That’s just poor planning, and exchanges blow up all the time because people just fail to plan properly.

That’s one thing – you’ve gotta do your homework if you’re gonna get into the 1031 exchange. There’s a lot at stake. My clients routinely have tax liabilities of hundreds of thousands of dollars; occasionally, those tax liabilities can get into the millions of dollars for some of our big clients… So if you are not doing your homework, you’ve got a lot at stake if the exchange fails. The government’s gonna come in, and in high states like California where we operate out of, you’re looking at about a 33% effective tax rate between state and federal government. Like I said, it can be hundreds of thousands of dollars, sometimes millions of dollars for our clients. So the biggest mistake some of the clients make is just not planning properly.

Now, there are occasions where people plan properly, they know what they’re gonna buy, they go out, they get into contract on something within the first 45 days, but then of no fault to themselves are not able to purchase something… Whether the deal falls through, maybe the financing falls through… Those are somewhat unavoidable, but in those cases what we always counsel our clients to do is have a backup. You’ve got your first choice, you think it’s a slam-dunk, but it’s always smart to identify a backup property, do some research, find out what else is on the market that might be a suitable option if your number one choice does not come through. Have a backup.

I’ve seen clients who just don’t do that. They only nominate one property on day 45, they’re already in contract on it, they think it’s a slam dunk, and then something happens. So it’s always good to make sure you’ve got a backup there.

Joe Fairless: And just a point of clarification… Do the 45 days run concurrently with the 180 days?

Leonard Spoto: Yeah. Day 45 is within the 180 days. You close escrow on your sale – that’s day zero. The first 45 days are what’s called “the identification period.” On day 45, no later than midnight of day 45 you have to submit your identification letter, stating in an unambiguous manner the properties you’re considering acquiring, and then you’ve gotta purchase and close on at least one of those within the total 180-day period.

Joe Fairless: Obviously, once our property that we’re selling is under contract, and maybe even a little bit before if we put it on the market, then we should be identifying the property; that way we’re not tightening that window unnecessarily.

Leonard Spoto: Absolutely. One of the things that my clients do, especially on the bigger deals, is they will get into contract to sell – you’re gonna sell a five million dollar apartment building, you’re gonna close escrow, and that triggers the timeframe, the beginning of your exchange. Some of my more sophisticated clients, they will work with the buyer to have a flexible close of escrow date. So instead of closing in five days with the all-cash buyer from overseas who’s anxious to get ownership of this property, they say “Yeah, I’ll sell you this property, but I don’t wanna close in five days. In fact, I want to close in 30 days with the option to extend another 30 or even 60 days, so that I have time to find that replacement property for my exchange.”

Joe Fairless: Does your company get compensated more if it’s a higher price point for the property that is being exchanged?

Leonard Spoto: Good question. No, we don’t. We just charge – and most exchange companies throughout the country are like this – a flat fee on the sale side and a flat fee on the purchase side, and the exchange fees are really reasonable. Our company has $750 on the sale and then $250 on the purchase, so most of our clients are selling one, buying one, and they’ll simply pay a $950 fee.

Joe Fairless: Obviously, you all must make money another way. I”m guessing that it is by investing or making dividends on the money that’s sitting in the exchange account?

Leonard Spoto: We are not allowed to actively invest funds; the funds have to be held in a cash-equivalent account, so that is a money market account. We currently keep the float on those funds as part of our fee. In higher rate environments, 5-7 years ago when money market accounts were yielding 5%, that yield was split with the client, but right now it’s less than 1%, so the entirety of that yield is taken as part of our fee as well.

Joe Fairless: With the exchange, is there anything else that we haven’t talked about that’s 2.0 level that you wanna mention?

Leonard Spoto: With some of the more sophisticated investors, one of the biggest issues right now is what we call in our industry a “drop and swap.” Many times investors will pool resources to go out and buy a large property. Let’s say you’re gonna buy a ten million dollar apartment building… Very few individuals will just do that on their own; they’ll typically bring on partners. And when you bring on partners, if you form an entity to own that property, such as an LLC or a partnership, it’s very important when you sell that property that the taxpayer who’s on title is the taxpayer that does the exchange. So if you have a multi-member LLC, the LLC will become its own tax-paying entity. The LLC is actually the entity that’s selling the property and the entity that’s eligible to do the exchange. So LLC will sell the property, LLC does an exchange and LLC has to buy the replacement property to complete the exchange.

Now, that works well provided the members of the LLC all wanna go forward together. Now, 9 times out of 10 though, when a property sold after X number of years, a lot of the members will wanna take some cash, do their own thing… It’s very rare that all the members wanna go forward together after X number of years of owning a building together. But what happens is you can’t go out and just take your cash and do your own exchange if other people are gonna pay taxes, because you don’t have several taxpayers on the title, you only have one – an LLC.

So one of the big issues with our more sophisticated clients is planning for an exchange a year or two prior to the actual sale. You’ve gotta get that LLC off title, you’ve gotta get the individual members of the LLC on title as tenant in common owners, so that they are taxpayers on title to the property, so that when it comes time to sell it, they can take their proceeds and exchanges their own taxpayer, or pay taxes, if they so choose. So planning on an exchange a year or two in advance is gonna be very helpful, because what you don’t wanna do is get an escrow to sell a property and be ready to close in two weeks, and all of a sudden learn that some of the members wanna cash out and pay taxes and some of the other members wanna do an exchange, because then you’ve got a big problem.

Joe Fairless: That makes sense. The drop and swap is referring to the switch from the entity that was previously to tenants in common, correct?

Leonard Spoto: That’s correct.

Joe Fairless: Another way to do that – to simply buy out the members in the LLC’s ownership interest and then allocate accordingly for whatever they would pay in taxes…?

Leonard Spoto: Yeah, you could do that. So if you have an LLC that owns let’s say a five million dollar building and you’ve got one member who doesn’t wanna do an exchange and several who do, the people who do want to exchange could simply buy that guy’s shares of the LLC. That would be a taxable event, but it gets the non-exchanger out of the deal, and then the rest of the group can then go forward with the exchange… That is another way.

Now, a) you’ve gotta have the funds to be able to pay that guy out, so if liquidity is an issue, that might not work. But the other thing is that now you also still have an obligation to replace the full value of the exchanged property.

Joe Fairless: That LLC is still on the hook for 100% of the taxes, even though you bought someone out.

Leonard Spoto: Exactly. So the LLC eventually, if it does cash out, is still on the hook for 100% of the tax liability.

Joe Fairless: Based on your experience as a 1031 exchange expert, what is your best advice ever for real estate investors?

Leonard Spoto: Plan. Especially in today’s market, due diligence is important, doing your homework is very important; building the right team to support you during the process is very important, so planning, planning, planning. You only have a window of 180 days to get these deals done. And as I mentioned, inventory is tight all over the country, so the sooner you start planning for your exchange, the higher chance that it will be successful.

Joe Fairless: Are you ready for the Best Ever Lightning Round?

Leonard Spoto: I am.

Joe Fairless: Alright, let’s do it. First, a quick word from our Best Ever partners.

Break: [[00:21:49].15] to [[00:22:37].15]

Joe Fairless: Best ever book you’ve read?

Leonard Spoto: Best ever book I read? That’s a tough one… I’m gonna have to pass on that, I can’t think of anything off the top of my head. [laughs] I’m sorry, Joe… The only books I read right now – I’ve got a two-year-old and a five-year-old, and the only books I read are Olivia The Pig and Humpty Dumpty, so we’ll go with Olivia The Pig.

Joe Fairless: I’m going to include that in the notes… That’s probably the biggest smile that I’ve had on my face while typing the book that someone says. Olivia The Pig – alright,  done. Best ever way you like to give back?

Leonard Spoto: We donate to a couple of really good causes that are near and dear to our heart. Hydrocephalus Foundation is one of them, and the Ronald McDonald Fund.

Joe Fairless: What’s a mistake you’ve made on a business transaction or just in business in general?

Leonard Spoto: Not effectively communicating. You think everybody is on the same page, and this just happened to me the other day, where you think everybody is on the same page, but they’re not… So aligning everybody’s goals and making sure everybody understands the goals and making sure that you understand what you think your partners are gonna be doing.

Joe Fairless: Where can the Best Ever listeners get in touch with you?

Leonard Spoto: Two ways – telephone is 877 471 1031, and then we’re on the web at ax1031.com.

Joe Fairless: I’m a big fan of your phone number.

Leonard Spoto: It’s easy and it’s appropriate.

Joe Fairless: [laughs] Well, Leonard, thanks for being on the show. We went over a lot of information in a very short amount of time, and that’s exactly how I like to do it. You were really informative, from drop and swaps, which pertains to my business (multifamily syndication and large deals, as well as other syndications) and reverse exchanges, which is a potential solution to not finding the replacement property in time; do the reverse exchange… Gotta have access to cash, and you need to plan accordingly if you aren’t gonna be within that 180 days. And the plan-plan-plan advice that you have  – that’s pretty straightforward and it’s something that we need to pay attention to the business model in advance. That way something like a 1031 exchange where we don’t find a property – that doesn’t happen because we’re planning and preparing prior to that. So thanks for being on the show, I hope you have a best ever day, and we’ll talk to you soon!

Leonard Spoto: Thanks a lot, Joe. Thanks for having me.

 

 

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JF951: The Big Boy Passive Approach to Investing

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Best Real Estate Investing Crash Course Ever!

Accredited investor? This episode is for you! Our guest only works with accredited investors who want to inject capital into a passive machine that renders returns! Realty Shares executive will walk us through the types of opportunities they offer and who’s investing, so learn about debt raising an equity raising and turn up the volume!

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Amy Kirsch Real Estate Background:

– Director of Investor Relations at RealtyShares
– Over 10 year of financial services experience
– Worked in wealth management for Merrill Lynch, Dearborn Partners, and JP Morgan’s Private Bank
– Based in San Francisco, California
– Say hi to her at www.realtyshares.com
– Best Ever Book: Shantaram

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Joe Fairless: Best Ever listeners, welcome to the best real estate investing advice ever show. I’m Joe Fairless and this is the world’s longest-running daily real estate investing podcast. We only talk about the best advice ever, we don’t get into any fluff.

We’ve spoken to Barbara Corcoran from Shark Tank, Robert Kiyosaki, the author of Rich Dad, Poor Dad, a whole bunch of others… With us today – Amy Kirsch. How are you doing, Amy?

Amy Kirsch: I’m doing well.

Joe Fairless: Nice to have you on the show, and looking forward to getting to know you a little bit. Amy is the director of investor relations at Realty Shares. She has over 10 years of financial services experience. She worked in wealth management for Merrill Lynch, Dearborn Partners and J.P. Morgan’s private bank. Based in San Francisco… With that being said, Amy, do you wanna give the Best Ever listeners a little bit more about your background and what you’re focused on?

Amy Kirsch: Absolutely. Thank you so much for having me today, it’s great to be here with you. I had been working, as you mentioned, about a decade in wealth management, and I learned a bit more about real estate crowdfunding. I was very excited about the opportunity, got to know Realty Shares a bit more, and just was very excited about all they were offering to investors, the opportunity to invest in a whole new way, and that’s what brought me over here.

Joe Fairless: Cool! So what do you do? What’s investor relations mean?

Amy Kirsch: I work with investors pretty much all day long, answering their question, helping them to understand real estate better, helping them through both the sales and the relationship process as they go through in any investments that they have with us on the platforms.

Joe Fairless: Can you get a little bit more in detail as far as maybe what are your specific responsibilities, what are some challenges that you came across, things like that?

Amy Kirsch: We have a team of seven; as we’ve grown, our investor base has become several thousand, so as you can imagine, we have all realms of the spectrum of investors. We’re guiding them, and often times just introducing them to real estate investing, and helping them to understand what it might look like if they did purchase a piece of an investment, what the returns would look like, what the risks are inherent in this sort of investing… That would be the introductory part.

Then, over the life of the investment, keeping them updated, helping them to understand if things are going well, if they’re not going well, if they are payoffs, and keeping them informed over the life of it. So it’s really a combination of both a sales and relationship management role for me and my team, and we have probably a thousand inbound questions a week from various investors that we’re responding to, which really completely range from about the company to about a specific investment. Anything you can imagine, we’re answering it pretty much every day.

Joe Fairless: A thousand inbound questions a week.

Amy Kirsch: Oh yes, easily.

Joe Fairless: Seven people.

Amy Kirsch: Seven people, a thousand questions.

Joe Fairless: Sounds like a blog post title, right?

Amy Kirsch: [laughs] A little bit, yes.

Joe Fairless: Seven people, a thousand questions a week… Everything from guiding them as far as the pros and cons of real estate, and then also working with them and communicating with them throughout the investment. This is interesting stuff, because you basically do what I do, and I’d love to learn more because you’re doing it on a much higher volume than I’m doing.

Let’s talk about who you’re speaking to. Are they all accredited investors?

Amy Kirsch: They are. Everyone that’s on the Realty Shares platform right now is an accredited investor. We have non-accredited investors asking us questions, and we’re hoping that we’ll be able to show them an offering sometime in the near future, but for now we’re only working with accredited investors.

Joe Fairless: Okay, so they’re all accredited investors. It sounds like you’re at the front end of the deal before they sign up to fund a portion of the project or you guide them in real estate investing. Are you giving them input on the actual investment itself, or the pros and cons of investing in real estate?

Amy Kirsch: A bit of both. As I mentioned, we have people who have never invested in real estate before in the platform, so they often have more rudimentary questions… They haven’t seen a waterfall before – what will that mean for them? What does a preferred return look like? Those kinds of questions, trying to understand the sponsor a bit more and the ABCs of real estate… So we’re talking about the platform at large, and then also specific investments, helping them to understand… Honestly, we can get into “What is the difference between debt and equity?” We answer that question all the time.

Joe Fairless: So your role is both the particular investment, as well as just education in general, on real estate?

Amy Kirsch: Absolutely. It’s absolutely a combination of both, and we really take a lot of stock in making sure investors are educated. We want them to really understand what they’re investing in prior to getting into an offering.

Joe Fairless: You said one of the common questions that’s asked is “What is the difference between debt and equity?” What’s your response to that?

Amy Kirsch: Wow, you’re getting me on my toes here… [laughter] [unintelligible [00:07:03].19] like you’d see at a bank, where you’re receiving… You’re acting like the bank; you can expect an interest rate payment monthly. It looks like a balloon mortgage, where you can expect a principal after the life of the loan. So that’s how I explain debt.

On the equity side, you look more like a business owner. You’re participating in the upside or the downside participation of the property, and should things perform well, you’ll have unlimited upside. Should things go poorly, you will part-take in that as well. With that comes a lot more risk, but a lot more reward, whereas on the debt side you know exactly what the outcome is likely to be, because there is a stated interest rate and you’re not gonna earn any more than that.

Joe Fairless: Are they secured the same way with debt and equity?

Amy Kirsch: That’s a great question. The debt is secured by a first lien loan, where should something go wrong, we’re able to foreclose on the property. If our assumptions are in line, then we should be able to fully recoup all investor money. On the equity side there is no lien on the property. Our measures are a bit different in what we could do should something go wrong. We would maybe able to kick out the partnership, we may be able to take over the property… It truly depends on what the underlying property is.

Joe Fairless: Okay, it makes sense. After I did my first deal, I was talking to some people and they were like, “Did you raise debt or equity?” I was like, “Um, I just raised money. I have no idea.” [laughs] I was so stupid at the time. I had already done one deal, that shows how green I was at the time… And people like you have educated me along the way, thankfully.

Amy Kirsch: Yeah… Like I said, it’s important for investors to understand the worst-case scenarios, just as it is the best-case scenario, when people are first participating in real estate, and we encounter a lot of people like you.

Joe Fairless: What are the most common risks? I mean, sure, there is about 20 pages in a PPM that outlines some obscure risks… But what’s the most practical couple risks that could come up in a real estate investment?

Amy Kirsch: I think the risks are a bit different for the different types of products, like I mentioned before for debt… And truly, our debt holders are often a little bit less experienced than our commercial, which can be great and bad, because we have that foreclosure opportunity should something go wrong. But what would happen there is that the sponsor (or the borrower, in this case) is not able to execute, and what happens then? They’re not able to sell it for the price that we thought, so they can’t pay off the loan in full. That would be the risk there, often times.

I think almost all of the time we have personal guarantees on our debt, so if they do not return money in full, then we can pursue them personally. So I think that’s a risk – the sponsor is not able to execute. A more likely risk is that the market turns around, so the market isn’t able to deliver what we had expected.

Joe Fairless: Let’s talk about equity, going into an equity example. I really think this applies to both debt or equity, it doesn’t really matter how it’s structured. Let’s just say the borrower isn’t able to execute and perform under business plan, and let’s just say – because I know you do different asset classes – it’s a single family house. What is a common reason, based on your experience, that they’re not able to execute the business plan? What do they overlook or not account for most of the time?

Amy Kirsch: I wanna start by saying that we have done – I believe the number now is 550 deals, and in that time we’ve had under ten where we’ve had significant issues with borrowers or sponsors on any side of the fence, debt or equity. So what we’re talking about now is very rare… But to your point, the reason I think sponsors most often don’t execute is simply from inexperience. They thought costs would be X, and they ended up being Y, and they were significantly more. I’d say that that’s what most often accounts for not being able to execute, and the way that we try to avoid those sorts of situations is by our due diligence process upfront, where we account for track records and look for the kind of experience that they have in the past, both with either their current company or in the past, as well as getting to understand what their business plan is.

Joe Fairless: Yeah, thanks for putting it into perspective. I was curious about why it wasn’t working, but thanks for giving some context as far as “Hey, this isn’t happening very often.” But as I know you know, that’s just a question that comes up for all of my deals – “Hey, what are the risks here?”, so I was just curious how you discuss those.
Now, on a different path, what’s the most common reason why an investor doesn’t decide to invest with you all?

Amy Kirsch: You know, I hadn’t thought about that too much. I’d say the most common reason is because the parameters of the offerings that we have in a marketplace at that time don’t meet their investment objectives. That’s most often what — the hurdles often find upfront that we’re often able to overcome are the inexperience of the investor… So getting them to understand (as we’ve talked about earlier), educating them properly. But I’d say that’s most common – they’re looking for a 12-month offering, and we’re showing something that’s 8 years; they’re only looking for debt, we have equity…

Mostly, what we find is people take a month or two to review the platform if they don’t have any real estate experience, and then they invest after, in 30-40 days.

Joe Fairless: One thing I’ve found with investors who don’t invest is they wanna be active and not passive. They want control, they want to have their hands in it, they wanna be more involved, and I’m just not set up that way. They are passive too when they invest in your stuff, right?

Amy Kirsch: Yeah. We have heard that from investors before, but I hadn’t really thought about that as a common objective. What we find more often is that people are tired of being actively involved in the investment process. They don’t wanna manage the property, they wanna do it, so that’s why they’re coming to us. But I could see it on both sides… If they do wanna have a heavier hand in the process, we don’t offer that as well.
For pretty much everything else, if you are looking for passive investment, you can come to us and get whatever kind of offering you’re looking for.

Joe Fairless: You’ve just hired employee number eight on your team, congratulations! What do you wanna make sure that they know?

Amy Kirsch: What’s very important to us is that we went through a broker-dealer, and compliance is extremely important to us. Making sure an investment is suitable for an investor is, from day one, what we’re talking about. The second thing is getting — some of the members of my team have real estate knowledge, some don’t, so getting them up to speed on what kinds of deals we’re offering… We work very closely with the investments team, so working together with them to get a really good understanding of what we’re offering to investors – those are both imperative to being successful on the team.

And of course, being able to be patient, getting the same question over and over again. That takes a lot of… You have to be steadfast for that.

Joe Fairless: Yes, especially if you’ve got a thousand coming in per week. As far as the compliance goes, maybe I’m not thinking of it properly, but isn’t that already set up through your software, so if they come to you and your team, then they’ve already been qualified through the software?

Amy Kirsch: To a certain extent they are qualified up front; a part of it is qualification, but the other part is suitability, so making sure they’re an accredited investor is just 50% of the equation. We have investors that make very substantial investments with us – half a million, a million dollars concentrated in a deal. With that comes a lot of risk, simply because of concentration risk. So if they’re making a million dollar investment but they have 50 million dollars, we’re less concerned about that than if they are making a single one million dollar investment and they have two million dollars.

We’re really just trying to understand the objectives of the investor, and that they are properly suited for that particular offerings. That’s what we’re focused on when we’re reviewing deals or reviewing investors. It’s very important.

Joe Fairless: What would be the pros and cons when comparing investing in a crowdfunding platform like your company, versus a syndicator who has his own company, like mine? So if an investor were to come to you and be like, “You know what, Amy? I’ve got 100k and I wanna invest in one thing. I’m trying to decide between the deal that Joe’s got, where I know I can go directly to him and he is a one-company thing, versus a crowdfunding platform like yours.” What are you saying that would be a pro over what I’m offering?

Amy Kirsch: The largest pro is that we’re gonna have a more diverse set of offerings, because we’re dealing with sponsors all over the country in diverse product sets. So while a syndicator may specialize in a particular asset class or a particular geography, we’re gonna see that same thing repeated over our offerings, 20-something million dollars worth of opportunities over the course of a month, with a very diverse background of sponsors, geographies, asset classes, product classes. I think that’s a major differentiation you’ll see, and we’re being a low-fee provider… So with some of that relationship where you know the syndicator probably a little bit better, maybe you’re willing to pay a bit of a premium for that. We offer pretty low fees to our investors across other crowdfunding platforms, or one of the lowest.

Joe Fairless: And what are your fees?

Amy Kirsch: We charge 1% asset management fee across the board, and that goes to investors. On the sponsor side we charge in origination fee between 3% and 4% on equity and 2%-3% for debt.

Joe Fairless: And you don’t take any cut of the deal?

Amy Kirsch: We don’t take any cut of the deal, we take no participation fees.

Joe Fairless: So 1% asset management fee, and 3%-4% on debt that’s paid by the sponsor.

Amy Kirsch: Right.

Joe Fairless: And did you say something else? Was there another fee? Or is that it.

Amy Kirsch: Just the 1% asset management fee that’s charged to investors annually, as we provide the services… For updating you, K1’s, managing the property after the fact, after you’ve invested.

Joe Fairless: Those are very good fees.

Amy Kirsch: Yes.

Joe Fairless: What’s the plan for your company from this point forward?

Amy Kirsch: The plan is to expand what we’re currently doing. We have a lot of opportunities to grow in the various marketplaces that we’re in; I think that’s very important to us. The other thing that we’re really focused on is automation and tech. We’re a financial technology company; a lot of what we bring to the table is breaking down a business that’s pretty archaic and bringing it to the future. I think both of those things are what we’re really focused on, and we’re really excited about some of the new expertise that we’re bringing into the marketplace in 2017. Those are our two major focuses.

Joe Fairless: What is your best real estate investing advice ever?

Amy Kirsch: I would say… Let me think about this for a second. My best real estate investing advice ever is to think about your investment objectives and diversify. If you execute in that regard, I think you really have a great shot at being very successful in real estate investing.

Joe Fairless: Are you ready for the Best Ever Lightning Round?

Amy Kirsch: Oh, sure! I guess so…

Joe Fairless: [laughs] Well, we’re doing it either way, so I’m glad that you guess so. First though, a quick word from our Best Ever partners.

Break: [[00:18:32].03] to [[00:19:13].14]

Joe Fairless: Best ever book you’re read?

Amy Kirsch: Shantaram.

Joe Fairless: What’s that about?

Amy Kirsch: It’s about a criminal who gets lost in India. I was just there, and it was so incredible to see what he had — just kind of hiding throughout the streets of Bombay. It’s the coolest book ever and it’s based on a true story.

Joe Fairless: Shantaram… Okay, cool. Best ever personal growth experience and what did you learn from it?

Amy Kirsch: That would be moving from traditional wealth management into the fintech space. It is kind of exciting to go from the most archaic business of all time into breakthrough measures of doing everything. I’ve learned so much in the last two years… More than I have in the previous ten in the same(ish) industry.

Joe Fairless: What’s one specific thing you’ve taken away from it?

Amy Kirsch: That you don’t have to think small; there doesn’t need to be so many levels of red tape, and if you’re working with the right people, you can get a lot accomplished in a short period of time. You don’t have to do things the way they always have been done just because that’s what people say needs to happen.

Joe Fairless: Are you an investor? Do you invest in real estate, too?

Amy Kirsch: I do… I own property, but we’re limited from doing it on the Realty Shares platform.

Joe Fairless: Oh, of course. [unintelligible [00:20:26].10] Well, best ever deal you’ve done personally on a real estate front?

Amy Kirsch: I have flipped out of apartments in Chicago, and I think that’s because that’s where I’ve lived, and I’ve been successful in that regard.

Joe Fairless: Best ever way you like to give back?

Amy Kirsch: Part of the reason that I was in India was that I’m involved with a national philanthropic organization that gives money all over the world to help people recognize that they can be successful. This particular group gave money to women in India to help them be independent, so that their kids could go to school. It’s called the Gabriel Project and I’m really happy to be associated with it. It’s just doing wonderful things for empowering women in a very impoverished area.

Joe Fairless: Thinking about some of the deals that you’ve personally done, what’s been a mistake you’ve made on a particular deal?

Amy Kirsch: I think one of the things I’ve learned is to not be too emotional. This goes to investing in general, but very particularly with real estate. You can get too involved, hold on too long… Something I’ve learned over time is to try to be less emotional when it comes to any kind of investing. I was investing in the markets in 2008 – not in real estate – and then found that some of my clients as well were making decisions because they couldn’t see through the trees… I think that’s good to overall investment advice.

Joe Fairless: Where can the Best Ever listeners learn more and get in touch with you?

Amy Kirsch: They can come to RealtyShares.com, or e-mail us at invest@realtyshares.com. We answer a thousand questions a week, so we’d be happy to answer a couple hundred more.

Joe Fairless: [laughs] Pile them on, baby! Well, Amy, thanks for spending some time with us talking about your role and the challenges you come across, as well as your responsibilities, from you and your team — what were you gonna say?

Amy Kirsch: I just wanna say thank you so much! It’s so exciting to talk to others in the similar space, and it’s just great to be here!

Joe Fairless: Yeah, especially with your particular role… It fascinates me, because I’m doing similar things to what you’re doing, but not on your volume – by no means am I doing the volume of a thousand inbound questions/week; that’s insanity. But because you’re doing the volume, it’s interesting to hear the varying degrees of questions, from what is a waterfall and preferred return, to the difference between debt and equity, all the way to the risk associated to it, and maybe more sophisticated things like “How is my money secured if this scenario does happen?” and you talk through all that… As well as your focus on compliance when you hire a new team member, and just getting them up to speed on the business model and the different opportunities.

Thanks for being on the show. I hope you have a best ever day, and we’ll talk to you soon!

Amy Kirsch: Thanks so much, Joe.

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JF 928: How He BOUNCED Back after Losing MILLIONS #SituationSaturday

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He lost over a million in cash, and it didn’t come back…at least not in that deal. Hear the son of previous CEO of Odesk share his account of losing money, transforming his mind, and bouncing back from loss to prosperity.

Best Ever Tweet:

Jeff Slayter Real Estate Background:

– Best Selling Author, Trainer, Speaker, Entrepreneur:
– The Next Wave of Human Potential & Business Psychology
– Built multimillion-dollar corporate training company Speaker to over three million people from twelve different countries – Shared the stage with other thought leaders like Sir Richard Branson, Robert Kiyosaki, and Tony Robbins
– Based in San Francisco, California
– Say hi to him at http://www.JeffreySlayter.com

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JF806: How He Adds $30,000 Equity to a Cheap Home by Doing This One Thing

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Adding value to a property can be extremely difficult, but our guest does it with one simple tactic. He uses many investing strategies including the famous BiggerPockets BRRR strategy. Here why he is anti-property manager and decides to make big cash as well as the passive income.

Best Ever Tweet:

David Greene Real Estate Background:

– Realtor at Keller Williams Realty and a successful real estate investor
– 8 years experience buying, selling, managing, and renovating properties
– Purchased first investment property at 25 years old
– Offers coaching for real estate investing
– David is also a full-time police officer
– Based in San Francisco, California
– Say hi to him at http://www.GreeneIncome.com
– Best Ever Book: The Richest Man in Babylon

Want an inbox full of online leads? Get a FREE strategy session with Dan Barrett who is the only certified Google partner that exclusively works with real estate investors like us.

Click here: http://www.adwordsnerds.com to schedule the appointment.

Subscribe to Joe’s YouTube Channel here to learn multifamily and raising money tips: https://www.youtube.com/channel/UCwTzctSEMu4L0tKN2b_esfg

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JF805: His SECRET to Finding and Closing 24 OFF MARKET Multi Million Dollar SYNDICATIONS After Only Having $7 in His Pocket

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After you pick up your jaw off the floor, just know that closing over 24 multi million dollar syndications was only possible through hard work, connections, consistency, and constant learning. Our guest has made it in the multi family syndication space, but there is a lot going on behind the scenes. Hear what he did to close a few and hear the secret behind him getting all off market deals.

Best Ever Tweet:

Vinney Chopra Real Estate Background:

– Founder & CEO OF MONEIL INVESTMENT GROUP
– Facilitated 24 successful syndication offerings controlling $125M in Multifamily
– Presently owns single family homes and multi-family units in Texas, California, Arizona and India
– M.B.A. degree from George Washington University after coming to USA with only $7 from India
– Based in San Francisco, California
– Say hi to him at vinney@moneilig.com
– Best Ever Book: Think and Grow Rich by Napoleon Hill

Want an inbox full of online leads? Get a FREE strategy session with Dan Barrett who is the only certified Google partner that exclusively works with real estate investors like us.

Click here: http://www.adwordsnerds.com to schedule the appointment.

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JF791: Why You Shouldn’t Always Trust Your Gut When Deal Making

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Yes, trusting your gut is a good piece of advice, but not when your eyes are bigger than your brain! Our guest was suckered into a deal without considering all due diligence, and wound up in a Ponzi scheme! Hear how she now evaluates every detail before completing the transaction!

Best Ever Tweet:

Gabrielle Dahms Real Estate Background:

– Real Estate Broker at Premier Properties
– Came to real estate from a marketing background
– Real estate license since 2001 and broker’s license since 2013
– Based in San Francisco, California
– Say hi to her at http://www.sanfranciscoresidentialhomes.com
– Best Ever Book: One Writer’s Beginnings by Eudora Welty

Want an inbox full of online leads?

Get a FREE strategy session with Dan Barrett who is the only certified Google partner that exclusively works with real estate investors like us.

Go to http://www.adwordsnerds.com strategy to schedule the appointment.

Subscribe to Joe’s YouTube Channel here to learn multifamily and raising money tips:
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JF733: How to Use Social Media to Build Relationships and CRUSH IT!

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Are you utilizing your social media the right way? Think you could improve it? Today’s show is for you, our guest is a pro and has helped big companies grow stronger relationships on Facebook, twitter, Instagram, and other social media platforms. Be sure you tune in and go to her webpage to get a free gift.

Best Ever Tweet:

Katie Lance Real Estate Background:

– CEO of Katie Lance Consulting
– Clients of hers are Remax, DocUSign, and others
– Say hi at katielance.com
– Based in San Francisco, California

Want an inbox full of online leads?

Get a FREE strategy session with Dan Barrett who is the only certified Google partner that exclusively works with real estate investors like us.

Go to http://www.adwordsnerds.com strategy to schedule the appointment.

Subscribe to Joe’s YouTube Channel here to learn multifamily and raising money tips:
https://www.youtube.com/channel/UCwTzctSEMu4L0tKN2b_esfg

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JF658: A High Level Investing Strategist Covers the MOST Important Market Indicators

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Today’s guest is scholar from Harvard, an author, a startup advocate, and investor. He has a track record in systems development in real estate business. Hear his take on extracting value in any market.

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Stephen Roulac Real Estate Background:

    – CEO of Roulac Global
– Writes textbooks for Harvard and other Ivy League schools
– Author of The Property Knowledge System http://www.thepropertyknowledgesystem.com
– Based in San Francisco, California
– Say hi to him at 415-451-4300

Listen to all episodes and get a FREE crash course on real estate investing at: http://www.joefairless.com

Made Possible Because of Our Best Ever Sponsors:

You find the deals. We’ll fund them. Yes, it’s that simple. Fund That Flip is an online lender that provides fast and affordable capital to real estate investors.

We make funding your projects easy so you can focus on what you do best…rehabilitating homes. Learn more at http://www.fundthatflip.com/bestever.

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JF607: “Keep Your Day Job!” Didn’t Stop Him from WINNING! #skillsetsunday

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Raising money can be tricky, and especially when an attorney
barks at you about wasting his time! Today’s guest is no stranger,
Nav is the co-founder and CEO of Realty Shares, and he is about to
share some humbling experiences in the beginning of the his journey
to success. Hear his words of persistence and begin implementing
these beliefs in your business…you’ll go further.

Best Ever Tweet:

Nav Athwal real estate background:

  • Co-founder and CEO of RealtyShares, an online marketplace for
    Accredited Investors to securely invest as little as $5,000 into
    private real estate investment properties
  • REaltyShares has done over 320 invsetments and raised over $160
    million through the platform
  • Guest Lecturer to UC Berkeley Law
  • Electrical engineer turned attorney turned real estate
    entrepreneur based in San Francisco, California
  • Say hi to him at realtyshares.com
  • His best ever advice can be heard here:
    http://joefairless.com/blog/podcast/jf121-crowdfunding-tips-from-a-crowdfunding-wizard/

Please Take 4 Min and Rate and Review the Best
Ever Show
 in iTunes. 

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Need financing?

Are you a buy-and-hold investor or doing fix and
flips?

I recommend talking to Lima One Capital. A Best Ever
Guest told me about them after I asked how he financed 10
properties in one year. They are an asset-based lender with unique
programs for long-term hold and fix and flippers.

Click to
learn
more or, better yet, reach out to Cortney Newmans at Lima
One Capital. His cell is 404.824.6121.

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multifamily and raising money tips:
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episode!

JF592: He Scrambled to Raise Capital for this Deal #situationsaturday

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Today’s guest needs no introduction, and he’s about to share with us a sticky situation that tight hugs m a most valuable lesson, always be raising private capital. Hear this episode and begin raising money for your next investment!

Best Ever Tweet:

Nav Athwal real estate background:

  • Co-founder and CEO of RealtyShares, an online marketplace for Accredited Investors to securely invest as little as $5,000 into private real estate investment properties
  • REaltyShares has done over 320 invsetments and raised over $160 million through the platform
  • Guest Lecturer to UC Berkeley Law
  • Electrical engineer turned attorney turned real estate entrepreneur based in San Francisco, California
  • Say hi to him at realtyshares.com
  • His best ever advice can be heard here: http://joefairless.com/blog/podcast/jf121-crowdfunding-tips-from-a-crowdfunding-wizard/

Please Take 4 Min and Rate and Review the Best Ever Show in iTunes. 

Listen to all episodes and get a FREE crash course on real estate investing at:http://www.joefairless.com

Need financing?

Are you a buy-and-hold investor or doing fix and flips?

I recommend talking to Lima One Capital. A Best Ever Guest told me about them after I asked how he financed 10 properties in one year. They are an asset-based lender with unique programs for long-term hold and fix and flippers.

Click to learn more or, better yet, reach out to Cortney Newmans at Lima One Capital. His cell is 404.824.6121.

Subscribe to Joe’s YouTube Channel here to learn multifamily and raising money tips:https://www.youtube.com/channel/UCwTzctSEMu4L0tKN2b_esfg

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JF579: How to Connect with VIP’s in Your Industry #skillsetsunday

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Ready to contact the big bosses of your niche? First you need to tell yourself that you can do it, and it’s all in your head. Remember, these are VIPs are human too… In fact only a human can reach out these individuals, you must build the relationship and be sincere. This episode covers many tactics and methods in which you can reach the top from adding value to interviewing hot shots. You can’t miss this episode!

Best Ever Tweet:

John Corcoran real estate background:

  • Smart Business Revolution and has interviewed Marie Forleo, Guy Kawasaki, Gary Vaynerchuk
  • How to Launch a Successful Webinar from Start to Finish
  • At 23 years old he landed a job as a writer in the Clinton White House
  • Say hi to him atsmartbusinessrevolution.com
  • Based in San Francisco, California

Please Take 4 Min and Rate and Review the Best Ever Show in iTunes. 

Listen to all episodes and get a FREE crash course on real estate investing at:http://www.joefairless.com

Are you committed to transforming your life through Real Estate this year? If so, then go to http://www.CoachWithTrevor.Com and claim your FREE Coaching Session.  Trevor is my personal real estate coach and I’ve been working with him for years. Spots are limited, so be sure to do it now before all the spots are gone.

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JF443: How to FOCUS On Off Market Deals for $1 MM a Year!

It’s safe to say that the best deals are found off the market. Wholesale deals are quick, easy, and clean, and our Best Ever guest has consistently earned over one million year over year through his niche wholesale, fix and flip, and double close business. He stresses the importance of finding deals that are organic and unheard of. He is a direct mail machine and just dropped 13,000 letters in the San Francisco Bay area. Hear this pro move homes!

Best Ever Tweet:

Jason Buzi’s real estate background:

  • Investor in the San Francisco Bay area
  • Specializes in wholesaling, rehabbing, double closing and new construction
  • Founder of Hidden Cash which was an online scavenger hunt
  • For the last three years his personal income exceeded $1M annually
  • Say hi to him at: https://www.facebook.com/groups/154694161390410/

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Made Possible Because of Our Best Ever Sponsors:

You find the deals. We’ll fund them. Yes, it’s that simple. Fund That Flip is an online lender that provides fast and affordable capital to real estate investors. We make funding your projects easy so you can focus on what you do best…rehabilitating homes. Learn more at http://www.fundthatflip.com/bestever.

What’s the Best Ever health plan for YOU?

Go to http://www.stridehealth.com/bestever and find a better health plan in 10 minutes or less. On average you’ll save $418 on coverage and care.

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JF436: How $$$ is CHEAP Right Now and Why You CANNOT Wait to Buy

What are you waiting for? MONEY IS CHEAP at record low interest rates and as an investor knows, it’s ALWAYS a good time to buy! Our Best Ever guest is a Residential Mortgage Loan Originator and hosts a well seasoned real estate radio show. He spills the beans by sharing his insights on the next interest rate rise…you gotta hear his vision for 2016!

Best Ever Tweet:

Joe Cucchiara’s real estate background:

•Mortgage planner with W.J. Bradley Mortgage Capital and been a residential mortgage loan officer for 15 years

•Radio host of the Real Estate Radio LIVE which broadcasts on 1220 KDOW AM from 3 – 4pm PST in the Bay Area

•www.Reradiolive.com

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Made Possible Because of Our Best Ever Sponsors:

You find the deals. We’ll fund them. Yes, it’s that simple. Fund That Flip is an online lender that provides fast and affordable capital to real estate investors. We make funding your projects easy so you can focus on what you do best…rehabilitating homes. Learn more at http://www.fundthatflip.com/bestever.

What’s the Best Ever health plan for YOU?

Go to http://www.stridehealth.com/bestever and find a better health plan in 10 minutes or less. On average you’ll save $418 on coverage and care.

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JF432: How to Make 5 FIGURES in One Webinar with John Corcoran #skillsetsunday

He has made 5 figures in ONE WEBINAR! Since his youth, our Best Ever guest found a purpose to inspire and elevate others. He sees an opportunity to instruct professionals abroad through the webinar, a seminar broadcasted over the internet. He covers the basic fundamentals of the complete and successful launch of a webinar and of course the best part…monetization! Hear how to get started!

Best Ever Tweet:

John Corcoran’s background:

  • Smart Business Revolution and has interviewed Marie Forleo, Guy Kawasaki, Gary Vaynerchuk
  • How to Launch a Successful Webinar from Start to Finish
  • At 23 years old he landed a job as a writer in the Clinton White House
  • He’s on track to do about 100 webinars in 2015 and made over 5 figures in one webinar
  • http://www.webinar1k.com and http://www.smartbusinessrevolution.com
  • Based in San Francisco, California

Subscribe in iTunes  and  Stitcher  so you don’t miss an episode!

Made Possible Because of Our Best Ever Sponsors:

You find the deals. We’ll fund them. Yes, it’s that simple. Fund That Flip is an online lender that provides fast and affordable capital to real estate investors. We make funding your projects easy so you can focus on what you do best…rehabilitating homes. Learn more at http://www.fundthatflip.com/bestever.

What’s the Best Ever health plan for YOU?

Go to http://www.stridehealth.com/bestever and find a better health plan in 10 minutes or less. On average you’ll save $418 on coverage and care.

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JF266: How to Analyze Real Estate Statistics…From the Guy Who Makes Them

Today’s Best Ever guest conducts ALL the research on real estate so that you don’t have to. Listen up, as he shares with us the reasoning and research behind all of the statistics YOU use to do your due diligence.

Best Ever Tweet:

Ralph McLaughlin’s real estate background:

–          Housing Economist at Trulia based in San Francisco, California

–          Say hi to him @housingnomix

–          Is an avid homebrewer, and one of his beers won a national award in the IPA category

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Made Possible Because of Our Best Ever Sponsor:

Patch of Land – Want to learn more about crowdfunding? Let the leading expert in the crowdfunding space, Patch of Land, give you all the info you need to get started. Grab your FREE copy of Top Ten Answers to the Top Ten Crowdfunding Questions athttp://www.PatchOfLand.com/bestever

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JF231: How to Ensure You and Your Investors get the MAXIMUM Return on Investment

Data, data and more data. Clearly defining his goals and being able to back up his company with data made investors want to buy in, and it can for you to! With today’s Best Ever guest, we discuss the THREE market trends you need to recognize to maximize your ROI and why data is SO important to starting your company.

Best Ever Tweet:

Anthemos Georgiades’s real estate background:

–          Co-founder and CEO of Zumper, an apartment search website for both landlords and      renters

–          Zumper has raised $8.2M in venture capital with about 1M people a month based in SF

–          Worked at Boston Consulting Group and was a speechwriter in British politics before moving to the US to get his MBA from Harvard, where he founded Zumper in 2012

–          Owns property in the UK and in California

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Made Possible Because of Our Best Ever Sponsors:

Norada Real Estate Investments – Having a hard time finding great investment properties?  Unfortunately, the best deals are rarely found locally. Norada Real Estate’s simple proven system provides you with the best deals across the U.S. to create wealth and cash-flow.  Get your FREE copy of The Ultimate Guide to Out-of-State Real Estate Investing

Patch of Land – Want to learn more about crowdfunding? Let the leading expert in the crowdfunding space, Patch of Land, give you all the info you need to get started. Grab your FREE copy of Top Ten Answers to the Top Ten Crowdfunding Questions athttp://www.PatchOfLand.com/bestever

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JF224: Some SURPRISING Things You May Not Know About Your IRA

Did you know that your IRA isn’t just for paying greens fees at the golf course when you retire? Today, our Best Ever guest shares with us some of the incredible tax benefits of using your IRA to fund your next deal and why using an IRA might be the Best Ever thing you can tell YOUR investors!

Best Ever Tweet:

Mike Howe’s real estate background:

–          Director of Institutional Products at PENSCO based in San Francisco, California

–          Works with clients to help them understand the tax benefits of investing using a self-directed IRA in real estate

–          Visit him at http://www.pensco.com

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JF200: Decrease Your Turnover with this FASCINATING Program

Yes we want to create a community with multifamily properties but how many of us…actually create…a…community?? I’m talking about a step-by-step program that builds community and decreases turnover? Today’s Best Ever guest does that and you’ve got to hear about it!

Best Ever Tweet:

Peter Slaugh’s real estate background:

–        Managing Director of OpenPath Investments based in San Francisco, California

–        He oversees acquisitions and asset management for $200M and growing portfolio of multifamily assets in the Western United States

–        OpenPath is transforming apartment complexes into thriving, healthy communities by making positive social and environmental impact just as important as financial returns

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Sponsored by Patch of Land – Could you do more deals if you had more money? Let the crowdfunding platform, Patch of Land, find investors for you and fund your next deal…and your next deal…and your next deal…and…well, just go find out more at http://www.PatchOfLand.com

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JF161: How to DOUBLE the Value of a Mobile Home Park

Buying mobile home parks can be a profitable business but, of course, you also need to know how to make it profitable. Today’s Best Ever guest shares with you how to the perks of mobile home investing and a success story of how he doubled the value of a park.

Best Ever Tweet:

Jefferson Lilly’s real estate background:

–        Co-founder of Park Street Partners based in San Francisco, California

–        Focused on the mobile home park investing in select markets in the US

–        Owns 5 mobile home parks with an aggregate value of $4,500,000

–        Say hi to him at http://www.parkstreetpartners.net/

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Sponsored by Patch of Land – Could you do more deals if you had more money? Let the crowdfunding platform, Patch of Land, find investors for you and fund your next deal…and your next deal…and your next deal…and…well, just go find out more at http://www.PatchOfLand.com

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JF121: Crowdfunding Tips from a Crowdfunding Wizard

Today’s Best Ever guest shares with you how to be successful at crowdfunding and the types of deals crowdfunding sites look for when picking which ones to offer to their investors.

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Tweetable quote:

 Nav Athwal’s real estate background:

–        Co-founder and CEO of RealtyShares, an online marketplace for Accredited Investors to securely invest as little as $5,000 into private real estate investment properties

–        Guest Lecturer to UC Berkeley Law

–        Electrical engineer turned attorney turned real estate entrepreneur based in San Francisco, California

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JF 89: How to Create a Powerhouse Real Estate Brand

Buckle up, partner. You’re about to get a dose of #bestever tips about branding yourself and how to use social media sites to build powerhouse company online.

Tweetable quote:

Herman Chan’s real estate background:

–        Klout’s Top 50 Most Influential in Real Estate Investing

–        Featured on HGTV, CNN Money, CBS, CNBC, USA Today and House Hunters

–        Author of LOOKING UP: Images to Uplift

–        Top producer at Sotheby’s in San Francisco, California

–        Say hi to Herman at http://www.habitatforhermanity.com/

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JF 05: Get Apt Investing Advice from the Guy Who Wrote the Book on It

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Peter Harris literally wrote the book on apartment investing (see below) and has learned from some very successful apartment investors. Learn what he has to say and hear some inspiring case studies.

Peter’s real estate background:

  • Owns over 1,000 apartment units
  • Purchased over $20,000,000 worth of apartment communities 
  • Co-author of Commercial Real Estate Investing for Dummies
  • Been in the business over 10 years and is based in San Francisco, California

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Listen to the show to hear his Best Real Estate Investing Advice Ever!

p.s. I made a rookie mistake when I didn’t mute my mic so you can hear some background noise towards the end of our call. So sorry! Lesson learned.

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