JF1323: Real Estate Financing For Out-Of-Country Investors with Rob Blum

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Ron and his company help solve a big issue they noticed in the US, lending to foreigners. The only products they could find for foreign lending had incredibly high interest rates. They are seeing a lot of Canadian and Australian investors use their real estate financing programs. Along with their lending, Atlas is also a turnkey company that finds properties, provides lending, and manages the property for their investors. If you enjoyed today’s episode remember to subscribe in iTunes and leave us a review!

 

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Ron Blum Real Estate Background:

  • Principal at Atlas Capital and Asset Management
  • Involved in large scale home construction with the largest residential developer of custom (1mm+) homes in Western Canada
  • Spent 8 years in constructing residential real estate during the 80s boom years of large scale production
  • Consistently purchased and resold better than 1800 properties per calendar year in 2006, 2007, and 2008
  • Had 50+ active purchase offers in the 14 state rust belt region of the US on a daily basis
  • Background in economics and finance as well as real estate and foreign lending
  • Based in Sedalia, Missouri
  • Say hi to him at www.atlascamgroup.com
  • Best Ever Book: War and Remembrance

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TRANSCRIPTION

Joe Fairless: Best Ever listeners, how are you doing? 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, Ron Blum. How are you doing, Ron?

Ron Blum: I’m doing real good. Thanks, Joe.

Joe Fairless: Well, nice to hear that. A little bit about Ron – he is the principal at Atlas Capital and Asset Management. He’s been involved in large-scale home construction with the largest residential developer of custom, and it’s one million plus homes in Western Canada. His company is based in Sedalia, Missouri. He spent eight years constructing residential real estate during the ’80s boom years, and then had larger-scale production since then. He’s had 50+ active purchase offers in 14 states throughout the rust belt and the U.S. With that being said, Ron, do you wanna give the Best Ever listeners a little bit more about your background and your current focus?

Ron Blum: Sure. Our focus is very unique; I don’t know how many people are actually doing this… One of the biggest problems that I’ve heard people talk about here over the years – we try to be responsive to feedback that we’re getting from people that contact us, and for any foreign investors to purchase real estate in the U.S. it just hasn’t ever really been a non-predatory loan setup. Some of these people on here will finance for nationals, and they want 50% down into the hard money… And my background is actually not just in the development real estate, but actually in loan servicing, on the loan servicing platform.

I used to do all the whole loan and acquisitions for Continental Capital Corporation for a number of years, and that enabled us to be able to even further establish a lot of the proprietary contacts that we have, and that we have available for real estate investors.

We are able to go again and provide 30 year fixed rate loans for foreign nationals; however, I do have a lot of domestic buyers that use our services just because it’s a lot less tedious than a typical loan process would be, Joe. People are there on day number 29 trying to fax stuff in the middle of the night so they can get their loans to close…

And for us it’s just pretty standard. The only thing we require is two years of tax returns. I wanna see whatever cash reserves you have, and you run your own credit report, and based upon that information right there, that is all we require to move forward to do a loan.

The other people here in the U.S. that really like our program is that most banks, despite what kind of cash reserves you have, they’re gonna usually top you out at ten properties and not let you buy anymore, and that’s not the case here. We’ll still underwrite the loans, the loans are all underwritten internally right here on my desk, so we’re not really subject to strict underwriting guidelines. The loans will be 30-year fixed rate, 35% down payment; we go ahead and underwrite the rest on a 7,25% fixed rate loan. The only thing that we do ask, the only little hidden surprise in our loans – it’s not a balloon payment, but what we like is we ask that you not refinance out of the loan for the first year.

So we can help you to get in there, and then after the first year if you can find a better rate, a better term, a better loan, you have our blessing, because we want our investors to make money. If getting a better rate and terms enables their cashflow, then we’re happy to go ahead and assist, and give them our blessing.

Joe Fairless: Is there a pre-payment penalty after year one?

Ron Blum: No.

Joe Fairless: Okay, so you can get out scot-free, no fees involved?

Ron Blum: Yeah, day number 366 you’re welcome to go ahead and refinance wherever you wanna go.

Joe Fairless: I was born in the US, so I don’t have the perspective of being a foreign investor, so I will approach this question as though I am not born in the US. I’m living in Australia, I hear this podcast, and I hear you just need two years of tax returns; I run my own credit… And I think the third thing you said – you wanna make sure I have money in the bank; did I write that down?

Ron Blum: Yeah.

Joe Fairless: How much?

Ron Blum: We do wanna see a little bit of cash reserves. There’s a lot of people out in the world that are kind of — in my opinion may be a little bit misled that they’re not really generating a lot of revenue, and then [unintelligible [00:05:11].06] kicks the bucket and leaves them $10,000 and think they’re gonna be able to parlay it out and become the next real estate millionaire, and that’s not realistic.

Joe Fairless: Okay, how much specifically needs to be in cash reserves?

Ron Blum: We’d like to see 40k-50k.

Joe Fairless: Regardless of the loan size?

Ron Blum: Well, there’s lots of different ways that we can massage this, but primarily what we don’t want is we do not want to hold people’s feet to the fire. We wanna see it in an IRA or a 401k program, along those lines. So it doesn’t have to be money sitting in a brown paper bag right underneath their workstation.

Joe Fairless: Okay. So it’s not as liquid. Is that a benefit to you because they probably won’t be moving that any time soon? Or is that a disadvantage because if they need it, then they can’t really liquidate easily.

Ron Blum: No, it’s definitely an advantage for the investor. What we wanna make sure is — we are not brokers, number one – I’m not a loan broker… But the other thing that we don’t do is we don’t broker properties. We carry all of our own inventory, it’s all in very stable, low-risk kind of bedroom communities. We try to focus on big school districts, and that brings the kinds of tenants that we want. So we carry our own inventory, we have our own construction crews, we even do our own property management.

Joe Fairless: Okay, so this loan program is one rung in the ladder of your overall business, and it’s a way that you can help each aspect of your business, because if they get a loan from you, then maybe they’ll buy more properties, and you’ve got properties, and then you also manage it, so it’s a full-service thing, right?

Ron Blum: Correct. And I’ll tell you, Joe, probably our least-favorite aspect of this is property management, because it is an art, and there’s a skill to it… But again, listening and hearing what’s being related to me from other investors about property management [unintelligible [00:07:09].24] just typically seems to be the biggest hurdle for people. We started on the property management aspect about three years ago; we’re familiar with the properties, we did the original rehabs on the properties, we’re familiar with the communities, and the other thing that we’re very familiar with is the caliber of tenants that we want going in.

I know for a lot of investors Section 8 seems like a great model for people that are willing to assume that kind of inherent risk that goes with inner city investing in higher risk neighborhoods. So it’s just been a pretty much cookie-cutter program where we’re using our own capital to purchase, we’re using all of our own capital to do renovations and to fix them up… And prior to closing we’re gonna be providing an appraisal, a property inspection report and a finished walkthrough video so you can see what you’re getting prior to actually going into the close.

Joe Fairless: Got it. So it’s a turnkey company, from finding the deal, buying it with your own money, doing the renovations with your own money, then you sell it to an investor (domestic or foreign) and then you help them with a loan, and then you manage it… Turnkey stuff, right?

Ron Blum: Yeah, absolutely, and we’ve had very good success in the model. We first started the loan program here a few years back, so it wasn’t nearly as favorable as it can be right now. The typical lenders – they’re charging hard money rates, like 9%, 10%, 11%, 12%, and being in the servicing background, I caught the whole wave of subprime loans that went south here in 2006-2009, so I’m very familiar with what a predatory loan is. The only product that was really available out there for investors that was easy were ridiculously huge down payments. We respond to that need, and we have a lot of referral business… And I would say probably the bulk of our clients right now are coming out of Canada and Australia.

Joe Fairless: Okay. Is that because there’s just a lot of Australians and Canadians, or do you have a particular focus in those markets, or are there certain aspects about those countries that lend itself more towards buying here?

Ron Blum: Well, number one, there’s no language barriers, so…

Joe Fairless: Right, yeah. It’s easier.

Ron Blum: That’s a good thing, but we used to actually work with referral services that we’ve kind of eliminated from our business model now. I would say that probably 75%-80% everything that we’re doing now is repeat and/or referral business. So we’re not a very aggressive marketing company, and to be honest with you Joe, I don’t wanna sell 500 houses a year.

Joe Fairless: How many do you sell on average?

Ron Blum: We’re probably turning anywhere from five to ten a month, and we have the ability to scale up, but I also like to have a life.

Joe Fairless: Yeah, me too.

Ron Blum: So we’re able to scale up, and my kids are through college, and doing very well, and it’s another thing that kind of prompted our move just out of the big city itself, and out about an hour outside.

Joe Fairless: Is that the big city of Kansas City?

Ron Blum: Yeah, Kansas City.

Joe Fairless: Okay, the big city of Kansas City, alright.

Ron Blum: It’s a big city for us; now we’re in a little community of about 19,000 people, and we have our three-story turn of the century home right across from the park, and stock fishing lake, so… We’re able to handle more and we’re able to scale more, but we’ve got all the skin in the game.

Then there always seems to be this fine line of having either not enough buyers, or too much inventory, or too much inventory, or too many investors coming at us at one time… It’s a constant juggling program, but after being born and raised in California during that housing boom out there in the ’80s – not to date myself, but we just liked a little bit slower pace…

The one other thing that I always stress to people, Joe, is that we don’t wanna get so big so fast that we’re inaccessible to our clients or our customers. Usually, our customers can pick up the telephone and get us on the phone. It seems like I spend half my evening just texting people in Canada, people in Australia… When you get too big, then all of a sudden it always seems to be the first thing that suffers is client support services, and we don’t ever want that to happen. If somebody needs to talk to me, I wanna them to be able to pick up the phone and get me on the phone.

Joe Fairless: High-level let’s go over the categories of your business, or the departments of your business. One is finding the deals, two is the renovation of those deals, three is finding an investor for those deals, four is getting a loan for them if they go through you, and then five is managing them. Are those the main areas of your business?

Ron Blum: That is exactly my business model, all the way.

Joe Fairless: Okay. Within those areas, how many team members do you have? Because it sounds like you focus more on the quality of life aspect, because you moved outside of the big city, you [unintelligible [00:12:11].04] stock pond, hanging out by a park, but you’ve got these 5-10 houses a month… You said a year or a month? A month, right?

Ron Blum: 5-10 a month.

Joe Fairless: Yeah, that’s what I thought. I wrote down a year in my notes; I knew that was wrong.

Ron Blum: Right.

Joe Fairless: 5-10 a month… So how many people do you have?

Ron Blum: Well, that’s kind of an interesting question. I’ve had the same person doing acquisitions for me now for probably 8 or 10 years, so he knows what my quality controls are, what my procedures are… So I tell him how many houses I need and he goes out and finds them in the cities that I want them in.

Then I have three different construction managers, three active crews at all times, and then there’s me and my wife Debbie – we basically handle all the interaction with all the clients; I do all the underwriting for the loans, I stack files, and then Debbie is kind of your go-to [unintelligible [00:13:01].01] for contracts and property management within lease agreements, and things of that nature. So we run pretty lean, but I’ve been doing this in Kansas City now since I moved back from Canada and took the job over at Continental. We’ve just got a very strong team, and I don’t always have to [unintelligible [00:13:18].01] because they know what we expect.

Joe Fairless: You do have a very lean team… How many properties do you have under management right now?

Ron Blum: I don’t know… A few hundred.

Joe Fairless: A few hundred. So your wife Debbie is the point person for management of those?

Ron Blum: Correct.

Joe Fairless: How does she do that? A couple hundred properties.

Ron Blum: She had a stellar resume, I’ll say that, long before… She was very active and kind of a major player in corporate America for many years, and then she decided to follow me off into this crazy real estate thing, and we’ve been banging away at it for 17 years here I’m of Kansas City based alone.

Joe Fairless: 200 properties, one person… She’s not fishing with you, is she? She’s working while you’re fishing, huh?

Ron Blum: [laughs] Yeah, that’s probably a pretty good way to put it. And then she’s an artist, she has an arts degree, so she paints on the weekends. I’ll tell you, when you have reliable crews out there, and if there is a maintenance concern, the people that are going over there to fix that are the people that originally rehabbed the property… It’s a lot easier for the guy that went over there and put in the plumbing just to go over there and figure out when something’s going wrong.

The other thing too, as long as we’re turning over quality properties, with a complete inspection report and appraisal, then we can attract the kind of tenants we want. A lot of my tenants now, Joe, come from referrals from other tenants that I have.

Joe Fairless: When she’s spending time on, let’s just say, 200 properties, since you said a couple hundred… When she’s spending time on the 200 properties, managing it, what is the percent breakdown of her time where she’s spending it? Just if you had to guess…

Ron Blum: Oh, 75% of her day is property management… But again, we have good, responsible tenants, we screen them thoroughly…

Joe Fairless: But when you say 75% is property management, that’s a fairly broad term. What specifically — is it leasing, renewals, is it maintenance requests? How is she able to do this?

Ron Blum: Well, it’s usually maintenance requests, with all of the same personnel that we’ve been working with… One of my construction managers I’ve been with since 2001. That’s when I was just kind of tinkering around it, and not really making it into a business per se… And the property management aspect, I’ve gotta give it to Debbie – she is a champion, thoroughly screening these people… If you ever had an eviction on your record, you’re not going in. You’re debt-to-income ratio is not acceptable to us, you can’t go in.

And in a lot of these neighborhoods [unintelligible [00:15:46].07] These are not high-density rental areas. These are owner-occupant neighborhoods… So we want that owner-occupant type of mentality, and really the only thing that — ideal relationship is the [unintelligible [00:15:57].22] before the third, and we can leave the people alone, and that’s what people want.

Joe Fairless: Cool. Let’s see… The different aspects of your business that we talked about – where do you make the most money and where do you make the least money?

Ron Blum: We make the least amount of money on property management.

Joe Fairless: Is that all Debbie’s fault?

Ron Blum: No, no, no…

Joe Fairless: I’m kidding. [laughs]

Ron Blum: Debbie’s quite a trooper, but… No, the thing is, Joe, is that here in the Midwest region, or at least here in Kansas City, the standard property management fee is 10% of the rents that you’re collecting now. I would say that our average is somewhere between $900 and $1,200/month, and we have just a flat fee of $75… So that’s not even really a money-making apparatus for us. We just do that as a service for our clients, so that if they ever do have any maintenance issues, that we can use our own crews and kind of keep it minimal.

I’ll give you a little for instance… A few years back – this is kind of what really kind of prompted us to reassume the property management role, instead of having it farmed out to a third-party contractor or a company… Is we wouldn’t hear a whole lot once we finished up with the property and they had a tenant, but then as some months rolled by – and this has happened with two or three different companies; it’s so frustrating… One person – apparently the base in their toilet cracked, and they’re sending me a bill asking me if I can assist with this $345 repair. Well, I can go down to Home Depot right now and buy a toilet for $60, and my guys will have that in in 15-20 minutes. So the property management for property management companies – that’s a revenue stream for them. It’s not really a revenue stream for us, it’s a courtesy that we provide.

Joe Fairless: Yup. It’s almost a necessary evil that you have in your business.

Ron Blum: Yeah, it kind of is, with the fact that we’re underwriting a 30-year loan, the fact that we have all the skin in the game at the front side, and the fact that we’re managing it… We’re not here to sell a property and wash our hands and walk away and wish you the best of luck; we’re here as a support system for you, which when you’re an out of state, or particularly an out of country investor, you’d better be sure that whoever you’re working with has their act together and can provide all the services, because what you don’t want is you don’t want three or four different hands in the same pie from somebody over in Australia.

They have their own lender, they have their own property management company, they have a realtor looking for them, they’re trying to coordinate rehab crews… It’s too much.

Joe Fairless: Yeah. It’s a smart way of controlling the process as much as it can be controlled, and when you’re working with – I imagine – investors who are looking for a turnkey operation, if you can provide everything in one system, then it’s a much smoother conversation and so much easier than if you’ve got a lot of different vendors and groups.

Ron Blum: I mean, I do this for a living; I sometimes have probably 50-60 work weeks, and on weekends we’ll take emergency calls, but for the most part, I’ve been doing this a long time and I’ve got a cookie-cutter system, and sometimes I’m surprised that I don’t have more frustrations than some poor guy sitting over in New Zealand who’s trying to navigate the U.S. real estate market. [unintelligible [00:19:21].17] You’ve got too many people that are involved in the thing, you know?

So we do want that peace of mind for our clients, but the other thing too is we rarely have a client that buys one house from us and then they’re not back in another month or two or three, or referring moms and dads and co-workers… So that’s why I don’t have to really be aggressive with our marketing strategy; the clients find us.

Joe Fairless: Where do you make the most amount of money.

Ron Blum: Oh, when we turn the house.

Joe Fairless: Renovation to sale?

Ron Blum: Yeah. That is the revenue stream right there. Like I said, a lot of this other stuff – it’s more of a courtesy that we’re trying to provide help to people to keep expenses down and not go out there and get ripped off by property management companies or shady contractors.

Joe Fairless: The acquisitions person who’s been with you 8-10 years, how does he/she find the quality deals?

Ron Blum: Well, you’ve gotta kind of poke around. There’s still some good availability on MLS. We’re on Craigslist, we’re going to — what’s the new one? Facebook Marketplace. Just wherever we can find them.

Again, there’s certain cities that we like, there’s certain zip codes that we like, there’s a certain demographic of the renter that we want… Our ideal and/or typical renter is dad’s a cop and mom drives a school bus. That’s our target right there.

Joe Fairless: Based on your experience, what is your best real estate investing advice ever?

Ron Blum: Don’t get greedy and don’t play with the money.

Joe Fairless: Don’t get greedy and don’t play with the money? Did I hear that correctly?

Ron Blum: You heard exactly right.

Joe Fairless: What does that mean, don’t play with the money?

Ron Blum: Well, real estate is not really a complicated thing. I think a lot of people complicate it too much themselves, and they don’t realize where they’re going before they really embark upon it… And the next thing you know, they think they’re going into a deal, and the costs have increased 15%, 20%, 30% more than when you’ve originally started. We provide a good property with a certain return, and we don’t play with the numbers and we don’t try to geek out every dime of profit that we can get.

In fact, a lot of inventory right now — when people are looking at or considering our inventory, I don’t just send them a financial analysis of the property or proforma; we include recent MLS realtor comps, so people can say “Okay, listen, I’m buying a house for 100k, but look, the neighborhood is selling for 120k. So do I really wanna change pricing around?”

Our typical benchmark for cash on cash return is anywhere from 10% to 13%. And if you’re in a stable neighborhood, in a stable property that’s appreciating in value, then you’re in great shape. But too many people embark on a course of real estate and all the players that are involved are greedy, and they’re playing with the numbers. That’s the kiss of death for us. If I go down to a car lot and I ask “How much is this car gonna cost?” and they tell me “20k”, and I go back three days later and now it’s a $35,000 car – well, that’s playing with the numbers and playing with the money, and we just don’t do any of that.

Joe Fairless: We’re gonna do a lightning round. Are you ready for the Best Ever Lightning Round?

Ron Blum: Fire away!

Joe Fairless: Alright, I will. First, a quick word from our Best Ever partners.

Break: [[00:22:32].18] to [[00:23:36].25]

Joe Fairless: Best ever book you’ve read?

Ron Blum: I’ve spent a lot of time looking on your website, and I know you’re knowledgeable, but I really do like the fact that you cover a broad range of topics.

Joe Fairless: What’s a favorite book of yours?

Ron Blum: Oh, a financial book?

Joe Fairless: Yeah, any particular book.

Ron Blum: War and Remembrance, and The Winds of War. World War II fiction on a military guy; I come from a military family, and it’s probably some of the finest literature I’ve ever read.

Joe Fairless: Alright, noted. I got that written down. What’s the best ever deal you’ve done that wasn’t your first and wasn’t your last?

Ron Blum: Oh, probably the best ever deal I did – maybe three year ago we did financing for a mortgage investment corporation; we bought two streets of beautiful three and four-bedroom duplexes. That was a complicated and challenging deal. However, during the mortgage meltdown when all this inventory was becoming available, we came up with proprietary software that any house [unintelligible [00:24:31].08] rust belt region that was listed for $21,000 or below, our computers automatically generated the bid [unintelligible [00:24:37].03]

We averaged somewhere from 1,500 to 1,800 houses. They were not high-quality, they were all (in my opinion) junk properties in junk neighborhoods, but there was [unintelligible [00:24:46].09] That was pretty challenging, too.

Joe Fairless: When you get what you ask for and you buy those properties at $5,000 and you’ve got thousands of $5,000 property purchases – what do you do with that?

Ron Blum: Well, I’m finding an institutional guy – hence the background in loan servicing; I used to do all the loan acquisitions for Continental Capital Corporation, I ran the whole servicing division for it. That is not a product for the meek of heart. That’s the type of product that institutional investors will be buying, and they buy 20, 30, 40, 50, 60 of them at a time, but they also understand that it’s all very high risk and half that portfolio is gonna end up being throw away inventory anyway.

So if you have asset managers and you know what you’re doing from the institutional investment point of view, I would never advise anybody buy any high-risk cheap property. They always look good on paper, Joe, but they don’t always turn out that way.

Joe Fairless: What was the financial result of that acquisition process?

Ron Blum: Well, we bought them at 5 and we sold them at 7, and back when this huge tsunami of properties was being dumped back on the market, there was a product out there called the quitclaim deed that a lot of people used to like to buy. The banks used to like to sell them by quitclaim deed, because all they were really doing is they were saying “I can’t ensure it, there’s probably still a loan against it…, you might owe $1,000 in water bills…”, but you can buy it for $5,000. So what we did is we incorporated this program where we were automatically submitting bids, and what would end up happening is we would buy them for five and we would sell them for seven.

I had probably a drastic cost in between there, so we weren’t making a million dollars on a deal, but if you make $1,000 for your company 1,800 times a year, it’s not a bad day at the office.

Joe Fairless: Yeah, because the closing costs and things on that $2,000 profit probably get eaten up with a thousand maybe, so you’re making maybe about a thousand.

Ron Blum: Yeah, probably. We figured anywhere from $800 to $1,200 typically. But [unintelligible [00:26:51].27] we were able to specifically find and meet a demand that was out there at that point in time, but be able to [unintelligible [00:27:05].08] and a warranty deed, and it was a gangbuster. It was nuts for three years. Just crazy.

Joe Fairless: What’s a mistake you’ve made on a transaction?

Ron Blum: Ugh…

Joe Fairless: I loved that sound from you after I asked that question…

Ron Blum: Underwriting. Underwriting can be [unintelligible [00:27:23].00] the Calyx mortgage files, and a lot of times I think that I’ll have everything that I need, all my ducks in a row, and I’ll have to call back a client or send an e-mail to a customer, like “Oops, guess what? You’re gonna have to refine it and resend it. I forgot this, I forgot that…” So it’s the attention to detail in underwriting.

We don’t service our own loans. This is just like a conventional loan when you go and you buy a house for your wife and your kids, you prepay one year in taxes and you prepay one year of insurance, and every month you’re [unintelligible [00:27:52].07] you’re paying principal interest taxes and insurance, [unintelligible [00:27:57].06] handles all of our loans, and they board all of our loans there… But for me to get in to board the loans, my underwriting, Joe, has to match theirs identically if they were the loan originator. So yeah, the hardest part of every deal is just all the details that go in all the mortgage software.

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

Ron Blum: I think that we’re providing good service, and a lot of people who find me tell me – and this happened a number of times, where I’ll be talking to somebody in Canada or I’ll be talking to somebody in Australia and they’ll say “Well, I just don’t like your rate terms. 7% is a lot.” And I say, “Well, you’re welcome to shop around”, but typically my phone ends up ringing again.

The other people that like our service is people that are very well off investors and have a good amount of real estate, and they own ten homes, or they own ten duplexes, whatever the case may be, and nobody’s willing to extend any additional credit to them if they’ve hit that magic cap of ten. So we just try to identify the challenges and push through them. If I’m your real estate guy and you’re looking to me to manage property, to loan on the property, to provide a good appraisal, to be able to give you plenty of due diligence, to know if you’re making an informed decision or not, then you’d better have a lot of confidence in that guy.

With the amount of repeat and referral business that we’ve got – it tells me that we’ve gotta be doing something right over all these years.

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

Ron Blum: A couple different ways. The easiest way is to go to our website, which is AtlasCamGroup.com, or just go ahead and google us at “atlas capital and asset management” and you’ll find us.

Joe Fairless: Ron, thank you for being on the show and talking about your business, the 360 approach that you take, certainly lessons for any investor/entrepreneur. One of them is there is benefit in controlling the entire customer experience, from start to finish. A lot of businesses in real estate are one particular aspect of the process, and not as many are 360, like yours is, and you’ve found success doing it this way. That’s the large takeaway I got from our conversation.

Then also some tactical things that you had mentioned, about not manipulating numbers when you’re running them to make them look better, so that you can go buy it, but in reality you’re gonna get burned in the end anyway, so you might as well not do that… As well as some tactical ways that you all are finding deals.

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

Ron Blum: You too. Thanks, Joe. Have a good day. Bye-bye.

Best Real Estate Investing Advice Ever Show Podcast

JF1007: How This Kid Used GOOGLE to Fund 11 Properties in a Year and a Half!

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Portfolio loans from small banks found using Google! That’s right, he searched for small credit unions and banks in his local market and kept calling until somebody said yes. It wasn’t all Google, there was perspiration involved and that’s what it takes to become successful in real estate.

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David Zheng Real Estate Background:

– Analytics Consultant at Wells Fargo & Real estate investor
– Currently owns 10 properties and rent out 9, with having been investing since December 2015
– Goals are to reach close to 50k in passive income and own a management company
– Based in St. Louis, Missouri
– Say hi to him at djzheng6 AT gmail.com
– Best Ever Book: Redwall Book Series

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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 don’t get into any of the fluffy stuff, we only talk about the best advice that moves your business forward.

With us today, David Zheng. How are you doing, David?

David Zheng: Good, thank you.

Joe Fairless: Nice to have you on the show. A little bit about David – he is an analytics consultant with Wells Fargo and he’s also a real estate investor. He currently owns ten property and rents out nine of them, having been a real estate investor since December 2015 — wow, that was quick out of the gate! Based in St. Louis, Missouri, and his goals are to reach close to $50,000 in passive income and own a management company… Good luck to you on that one, my friend! I don’t want any part of that second goal.

With that being said, David, do you want to give the Best Ever listeners a little bit more about your background and your focus?

David Zheng: Sure. Funny you mentioned that, I’m actually closing tomorrow on another apartment building, so I’ll be up to 11 properties now. But yeah, a little bit about myself – I’m actually pretty (I guess) young at this. I’ve started investing in December 2015, that’s when I picked up my first condo actually. Funny enough, it was a pretty hard kind of a deal – it was an unwarranted condo and there was a whole bunch of lending loopholes I have to jump through to get that actually financed.

Essentially, I started December 2015 and since then I’ve picked up those ten properties as you’ve already mentioned. I started off with a condo, and the first four that I picked up were all condos, and I moved into single-families. I picked up three throughout the summer of 2016, and then after that I got into multifamilies, so that’s kind of where I am right now – self-managing all my properties by myself, all the rehab… I’m kind of being the GC for it as well, it’s a whole other experience I could go on and on with.

It’s been an exciting adventure, things have been moving really fast for me, so I could talk days about this, but I’ll get to the important points.

Joe Fairless: Well, I’m sure “adventure” is a great way to describe it if you’ve grown this quickly in this short amount of time that you’ve been investing. December 2015, so what is that – two and a half years or so? You started out with condos, you had four of those, three single-family homes… When you say apartments and multi-family, I wanna make sure I know what you’re talking about…

David Zheng: When I talk to my friends sometimes I say apartment buildings because it sounds better, but all the multifamilies that I currently have are 3-4 units, so they’re just kind of multifamilies more so than commercial great 5+ units. I will get there at some point.

Joe Fairless: Okay, so you’ve got four condos, three single-families, and then what do you have on the multifamily front?

David Zheng: So multifamily I have a three-unit – that will be a part of my story later for one of my biggest purchases. I’m closing tomorrow on a four-unit, and then in about a week and a half I’ll be closing on a duplex.

Joe Fairless: Wow, okay. We have to get to the bottom of how the heck are you able to close on all these properties in such a short amount of time – how are you financing them?

David Zheng: I’ve gone through a couple different ways… When I first started, I actually — because of the condo that I was in… The condo that I first bought was in a complex that essentially had like 80% rentals, so obviously lending on that, Freddie and Fannie didn’t like it, so I had to go through a portfolio loan on that one… That kind of already drove me into the deep end on the lending spectrum.

I have a whole bunch of portfolios – about 30% of them are portfolios, a couple just regular convenationals, throwing down 30%, and then the rest of them are all commercial loans, essentially.

Joe Fairless: Okay. When you say portfolios – will you elaborate?

David Zheng: Portfolio meaning I go through small local banks, and these are loans that the banks basically hold in their books, they don’t sell it on the secondary market or anything like that. It’s a little more lax in terms of what you need to qualify for them, and then the different kinds of properties — you have a broader range of properties that you’re allowed to buy. So again, usually those come with higher rates, balloon loans and higher down payments, but it gets the job done.

Joe Fairless: What portfolio lenders do you use?

David Zheng: One of them is actually the first community credit union; there’s another local bank here called the Central Bank of St. Louis. They’ve been really good to me, they’ve done three of my loans; all of them are the condos, so they’ve been good to me there. But yeah, most of them are just through local banks that I find googling it.

Joe Fairless: Wow. When you’re googling for the local banks, what are you searching for?

David Zheng: Google has been my best friend throughout this whole thing. I never grew up with a mentor or anything like that. Honestly, I googled “mortgage loan St. Louis” or “bank St. Louis.” I can’t really recall exactly what I put in, but you put in some very generic words and you just start searching. One of my biggest things that I did was sometimes on a deal I would have to call 30-40 people, even local banks outside of my area to lend on something. Again, it’s an umbrella search, and then after that I start digging down. Like I said, I just call a lot of people.

Joe Fairless: [laughter] I’m so glad that we have gotten to this part of the questioning in your story, because this is something that would likely get glossed over in the story, but it’s an important component, that you’re making 30-40 calls to lenders for one particular property. What were you seeking that you weren’t getting from the lenders?

David Zheng: Honestly, you can imagine the roadblocks I’m gonna hit, being a young guy who’s trying to invest in real estate.

Joe Fairless: How old are you?

David Zheng: I’m 26 right now.

Joe Fairless: Okay.

David Zheng: So you can imagine, a guy comes in calling your office, saying “Hey, I found a property I wanna buy. I’ve only been doing this for two months and I’ve already bought three more. My DTI looks absolutely horrible on paper because all they see are all these mortgages, they don’t see the rental income, because I haven’t filed my taxes for them. So you’re gonna hit all these lenders who say “We can’t do it. Our underwriting is not gonna approve this. Your DTI is too high. You don’t have a track record.”

The only reason why I kept calling people was because I was getting so many no’s, and the one thing I hate the most is being told no to.” So I was always on this track of just “I need to get this funded somehow; I will get a yes.” Thankfully, to this day, any property that I have put a contract on, I have not lost.

Joe Fairless: So you were just looking for a yes, it wasn’t necessarily that you were looking for specific terms… You were just looking for a lender to do a loan on the property. What were the terms and who was the lender after the 30-40 calls that you ended up going with?

David Zheng: I’ll speak to one specific deal – this was the hardest one that I had to get. First the condos, the single-families – again, they were pretty generic, kind of just calling around for conventional portfolio loans. It was this multifamily, the three-bedroom that I was talking about, I actually offered on it September, closed in October. That one was really hard, because 1) it was the first property that I was trying to go through just the listing agent. I was representing myself basically as a buyer and that was difficult enough. It was also a rundown place, it needed a lot of work, so I had to find funding for that. Someone I had to find the lender who would actually just purchase the property itself, minus the rehab costs. That was pretty difficult.

I called the banks that I’ve worked with previously, they didn’t help me. I called my portfolio banks, they never helped me out. I remember I called a local bank in Kansas City and even New York; I was like, “Hey, I’m in desperate need of lending for this, because this is a killer project for me. Can you help me out?” and they all rejected me.

Joe Fairless: And what was the reason…? For all those reasons you stated earlier, debt-to-income, no track record, distressed property?

David Zheng: All that and more because, again, this property needed so much work before I could even rent it out, so it wasn’t just like a turnkey where I could just flip it and then rent it out. All the other properties I had, I rented them out within a week, which is great, but this one, I needed to do a lot of work and the banks were hesitant. It was my first multifamily purchase as well, so that was hard.

In the end, I just fell back on what everyone else does – I went to a hard money lender, and even then I had to go through like five or six of them before I found one that had decent terms for me.

Joe Fairless: Yes, and you probably used in quotation marks for decent terms. What were the terms?

David Zheng: The terms on that – it was a 12-month interest-only loan. They basically funded — I think it was 80% LTV for the purchase price, plus up to 100% of the rehab costs as long as it was 65% of the ARV. So I’ll just speak on the numbers… I got this building for 230k, and then I actually fell extremely short on my rehab. My budget was actually around 110k, but I had to somehow smoosh it down into $86,000, because that was about how much they would be able to lend to me. I said, “You know what? I’m gonna make this happen, I don’t care if I have to do everything that doesn’t need a license-bonded contractor, I will do it myself”, and I basically told them that. And in the end I did a lot of that.

But 12-month interest-only payments, 10.75% was the interest rate, so that came out to be around $2,250/month in just pure interest, and then of course the lump sum, the loan was due at the end of the 12 months. Of course, refinancing as quick as possible was important. My down payment was — I don’t remember the upfront points, but it ended up being around $80,000 to fund the whole thing, upfront.

Joe Fairless: So how has the project turned out?

David Zheng: It was great. I was really worried about this thing originally, and it turned out to be my biggest success story. Like I said, it was in for $230,000, and then I spent another $110,000 to rehab it. At that point I’m $330,000 of value into this property, where I’ve put down $80,000 cash. That was in October when I closed. I finished in January because I pushed my contractors really hard; I pushed myself really hard to finish this as quick as possible.

I rented it out in January… $8,100 for the whole building, so essentially $2,700/unit. After that, I went straight into my little calling phase again. I was calling commercial lenders all over the place, most of them local, and finally one of them said, “Hey, we’ll do a cash-out refi without the six-month seasoning for you. It seems like you did a really good job.” I gave them the leases, I showed proof of all the work I’ve done. They brought an appraiser out there, they came back and they said “This thing appraised for $680,000.”

Joe Fairless: Bravo!

David Zheng: I’m not gonna lie, I basically sat an hour, I just looked at the appraisal… [laughter] And just like, “No, no…” And of course, at that moment I was like, “What if I get 80% of that in the cash-out refi? I’d be pulling near $300,000 out.” Of course, not everything turns out as good as it is, but they ended up giving me a loan, 66% LTV, so I was still able to pull $200,000 out of it after I paid the $250,000 I already owed to the hard money lender.

With that $200,000 I ended up buying the four-family, the duplex, and I’m also — since I’ve rented out my current condo that I’m living in next June, I’m using part of that down payment for another single-family for my house, essentially. So this deal was definitely a killer. Not only did I get a crazy cash-out refi, I got all my cash back, I’m also renting it out for a great cashflow.

Joe Fairless: So that one deal helped you buy one other deal, right?

David Zheng: Two and a half other deals.

Joe Fairless: Two and a half other deals, because the money that you used from it allowed you to put in the down payment for two and a half other deals… That is three and a half deals, and you’ve done how many total deals?

David Zheng: I would have ten rentals at this point.

Joe Fairless: At this point, yeah. I know you’ve got some — you’re closing on a duplex a week from now, but let’s just do this point. So at this point that’s three and a half deals, and the money that you put into that deal originally came from working as an analytic consultant?

David Zheng: Yeah, so I was fortunate enough that when I was a kid — I’m not [unintelligible [00:14:11].16] I was kind of a loser… [laughs] I worked a lot, I was a busboy at a high-end restaurants. I worked 3-4 nights a week. I didn’t really do anything with my friends, because I was such a money hoarder, so I would just sock it away in a mutual fund since I was like 16 years old.

Then my parents had saved up a pretty hefty university fund for myself. I went and I did really well in school, I studied hard, I got a full ride to the university where I wanted to go, and essentially they said, “Well, you’re not using any of your money because you’ve got a full ride, so it’s yours.” Then I still didn’t do anything with it. I didn’t use it for vacations or anything, I just kept it in that account that they had set up for me.
Once I got into real estate investing I was like, “Huh…” You know, I started reading up on returns and things like that, on the stock market, in real estate, and I was like “I might as well give it a shot.”

So funding – a lot of it came from that university fund that I didn’t use because of that. A lot of it came from me saving up over years and years and years worth of internships or busboying or other side-jobs — which I also actually do have a nightlife company on the side as well that I own. I rent out a lot of audio and lighting production to local night clubs and venues and things like that. And then also, of course, analytics consultant… I don’t live too lavishly right now, so I socked away a lot of my earnings since I started working. My checking account – I just kind of left it there. Now I’m putting all of it to work, essentially.

Joe Fairless: Okay. So that was the money for that property. Then what about the other six and a half properties? Where did the money come from for those?

David Zheng: That was a combination…

Joe Fairless: …of everything you’ve just said?

David Zheng: I would say 80% of what I’ve invested was from myself, and then about 20% I’ve gained from friends and family. I’ll be honest – the way I did it, I kind of used their money to pay for my food, my personal living expenses, so I could sock my living expenses into the real estate. It’s kind of unconventional, but essentially in that regards… There’s a lot of lenders who are like “Well, you can’t use your family or friend’s money for it”, and I was like “Yeah, I get it.” So I was like “Well, in that case my parents could just help me pay my car insurance etc. out of their account”, and essentially all my earnings are still mine, so I’m free to use that.

I kind of played around with how I used my money, but like I said, 80% of it was my own that I’ve had forever, so I used it pretty heavily.

Joe Fairless: And you said as far as the financing goes – because that really is the key… Well, there’s a couple keys here, and I’ll summarize later, but the financing is a big part. Clearly, your fiscally-responsible approach is also a big part, and then finding these deals is another component to it. But the reason why I believe most people don’t go as quickly as you go is they don’t have the money or they haven’t exercised their resourcefulness to get the money. In your case it’s both – you were living fiscally responsible and also you were resourceful in a way that got more money to bring the deal.

What type of arrangement did you have with the 20% of the income that you did get from relatives? What arrangement did you have with them?

David Zheng: I actually used a rather unconventional method… It was relatives and friends. Believe it or not, it kind of stems from me being very outspoken about myself. I’m pretty active on social media, and when I do these deals I don’t post the exact everything, but I’ll say “Hey, I closed on another house and I’m getting great rents. I’m doing great, this is awesome, this is fun”, and I keep on doing this. Like I said, the first couple of deals all came from myself, my own money etc. Once I started posting success stories — I’m not like one of those gurus out there who are just like “Oh, you need to pay for my thing” or “You need to go to this free seminar”, I’m just posting my stories on Facebook as a status and I’m saying “Hey, I’m doing well.”

After my fourth and fifth deal one of my friends actually came and messaged me. He was like, “Hey, I was wondering if we could do a deal together, or something like that” and that’s when it hit me… I was like, “Wow, this is gaining attention.” I reached out to my family and friends who were interested, who constantly liked my posts, commented on it or said something or asked me questions. I’m like, “Hey, if you want to, you can be a loan shark with me for my deals.” Especially my parents, they trusted me; I told them all the numbers, so they know I’m doing well, but with my friends, especially when I was showing how well I was doing, they trusted me with their money and they said “Hey, let’s do it.”

So we worked out something like a hard money lender, essentially. It’d just be like “You loan me a certain amount, I’ll give you a percentage back. At the end of the 12 months or any time before that I will give you your lump sum back and you get to keep whatever interest you’ve accrued over these months. I’d actually just stick it to them at a 10%, because my rents generate a lot of cashflow. It’s not that I’m worried about not getting the money the later and returning, it’s like I just don’t have that money right then. I know that the rents are gonna come in, they’re gonna cover that interest and then I’ll be able to pay that lump sum within a couple months, so that was never a concern with me.

So these were the kinds of deals that I worked with, and the biggest thing is I tell them, “Hey, you know, your money is sitting in your checking account right now, or in a .01% or whatever it is in interest. You’re not doing anything. If you’re not gonna buy a house or a car or have a kid anytime soon, you might as well stick it with me and then get something back over the next couple months”, and 10% is still better than a lot of people are making in other investments.

Joe Fairless: Are you securing it with something?

David Zheng: A lot of it is trust. I’m not gonna lie, a lot of it is trust. Another thing is I tell my friends, I would rather work at some fast-food place 24/7 to pay you back than not pay you back. And lastly, of course, [unintelligible [00:19:59].23] I’m like “Well, if something ends up going wrong, I’ll sell one of my properties, grab the equity out of that or whatever I have down into it and I will pay you guys back. I will sell the properties that I first bought.” That already accrues into over $100,000 worth of equity, so… They felt very safe. Again, they very much trusted me and what I did. I had a couple things going for me to show that I was trustworthy, and I did write contracts with all of them that basically amortized the loan and showed them month-by-month what they would be getting. So I spelled it out pretty clearly to them.

Joe Fairless: How much across the board in rent is coming in?

David Zheng: A lot of my rentals are actually students. There’s high turnover, but it’s higher rents. Starting 1st August 2017, my maxed rents will be at $34,000/month. Right now I’m only hitting like $27,000, but of course, I still have three other properties I need to account for in terms of rents, and then another couple that I’m rehabbing to get higher ones. But yeah, $34,000 is what should be coming in 1st August. Those have the leases in, deposits and everything.

Joe Fairless: Do you still have some hard money loans out that you have to pay back?

David Zheng: I do not. The only hard money loan was the one I did back in October. The two multifamilies that I’m closing on tomorrow and then a couple weeks later it’s actually another local business bank; they’re doing commercial loans, only 20% down. It’s nice getting to a point where banks are like, “Hey, we trust you. You have a great track record… We’ll do 20% down. We won’t make you do 25% or 30%” and whatever. So it’s nice that lenders are willing to work with me now. But yeah, I have no other hard money loans outstanding right now.

Joe Fairless: What is your best real estate investing advice ever for someone who wants to replicate this model?

David Zheng: I would say “Sell, sell, sell.” What I mean by that is you need to be constantly on your game in terms of networking. For my example, I’m selling to tenants. The reason I can get higher-paying tenants is because I sell myself as a landlord. They love a young guy who’s flexible, who’s understanding, who can communicate at a second’s notice – which I do. It is tougher on me, but again, you’re there to serve your tenants, essentially.

So I’m selling myself to my tenants, I’m selling myself to the lenders… Like I said, I’m calling 40-50 people sometimes on a deal, saying “Hey, look at me. I might be young, I might be starting out, but I’m getting a track record, I’m doing well. Here are my leases, here are my expenses. Look at the spreadsheets I put together” and I’m throwing it at them and selling myself as a borrower, as someone who’s trustworthy. I’m selling myself to the agents. When I’m even offering on a property — there will be other investors who are in there who want a piece of that action, and I’m sitting there like “My offer may not be always the highest, but I can assure you I’m gonna close on it”, or “I can assure you I’m gonna take care of this place” to those who are more emotionally attached.” So I’m selling myself to them… To my investors as well – I’m selling myself as a person who’s gonna manage their money well and who’s gonna take care of it and give them the return that they deserve.

A lot of this is networking, a lot of this is talking. Some people say it’s having a silver tongue, essentially. So you’re always just trying to make people feel comfortable with you, make people trust you – which they should; I’m not saying I make them do it and screw them over, but you always want to bring up your own reputation and then sell yourself to whoever it is you’re talking to. In those regards, you’re going to get the best deals, the best tenants, the best investors.

So that’s a part of it, and then the other thing is don’t take no for an answer. You’re gonna get it, but you’re gonna find someone else who’s gonna say yes eventually. As long as you sell yourself, show that your reputation is good, show that you have a track record and you can do it. Of course, that comes with working hard all the time, especially doing the rehab project of the last building. I still have a full-time that I’m doing 40-45 hours a week on top of self-managing over 50 tenants and trying to do a rehab project while picking up other deals, and doing a nightlife business on the weekends at night.
Like I said, you’re doing 100-hour-weeks all the time, back to back to back. I don’t have a wife and kids, no pets or anything like that. You’re not gonna be seeing many vacation days… It’s funny, because for many months, actually, my vacation days were — because I would use my vacation hours to go to a closing, or because my contractor would be like “Something’s wrong” and I’d have to run over there.

I’m kind of going all over the place, speaking about all the kinds of things you should kind of take away from my experiences, but hard work is the generic answer. It really is that if you don’t put in the time and the work, you’re not gonna succeed in this business. Number two, you don’t give up. Perseverance is so important. Don’t take no for an answer and keep searching for that yes. Then finally, being able to sell yourself, know what you can do and what you can offer.

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

David Zheng: Yes, let’s go.

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

Break: [[00:24:50].00] to [[00:25:43].26]

Joe Fairless: Best ever book you’ve read?

David Zheng: Don’t laugh, Redwall series. I’m gonna give a little background. This is basically a children’s book; it’s not The 4-hour Workweek or Rich Dad, Poor Dad, it’s actually a children’s book. I grew up reading it. I love them so much because a lot of the characters inside, they persevere through a lot of hard times. They’re always striving for something and it inspired me. I took that all through my elementary, middle school, high school, college years, and I was like “If they can do it, I can do it.”

Joe Fairless: Best ever deal you’ve done?

David Zheng: It was that big cash-out refinance that we were talking about on that three-unit. Again, that thing really catapulted me into the multifamily business, so it was definitely the best deal.

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

David Zheng: Setting example. Like I said, I’m very active on social media and I like to post up inspirational things, whether it’s a deal I did or just a quote I found, or some kind of meme. And people come and ask me questions, or they come to me and say “Hey, you know what? That status just really picked me up one day.” I’m like, “I’m gonna keep doing it”, and hopefully I’ll inspire more people.

Joe Fairless: How about a mistake you’ve made on a particular deal that you can think of?

David Zheng: All roads lead back to that three-family, but essentially, with the rehab project, the most mistakes I’ve ever made was not looking up local laws, permits, occupancy, things like that. I almost got condemned on, I was almost sued… It was all over the place. I finally got it straightened up, but I had no idea about any of these things until push came to shove.

Joe Fairless: Who was gonna sue you?

David Zheng: The local government. They were saying I had tenants in there when they weren’t allowed in there, I had outstanding [unintelligible [00:27:16].25] my contractors were supposed to take care of, but they didn’t. Again, another story for another day, but the local government – they were trying to put all these things on me, essentially.

Joe Fairless: And how did you not get sued and navigate around it?

David Zheng: Basically saying, “Hey, I’m in the wrong, I’m sorry. I’m gonna pay a couple fees to you guys to get these things taken care of.” I called my contractors to clear it up… Essentially, anything that I could shove on to them because it was their fault, I did. Things that were my fault – again, I basically just ponied up, said “Hey, I’m sorry. I’ll pay the fees that I need to. I’m not gonna argue, and I’m gonna get these things taken care of right away.” Selling myself as a young real estate investor trying to make the area better – which I was, so they respected that. But it was still a lot of headache that I had to deal with, but we did get a result.

Joe Fairless: What’s the best place the Best Ever listeners can get in touch with you?

David Zheng: Most likely just e-mail. If you guys can end up finding me on Facebook, feel free to follow or add me as a friend. My e-mail is djzheng6@gmail.com. I’m very active, so I usually respond to the e-mails promptly.

Joe Fairless: And will you repeat that e-mail again?

David Zheng: Yeah, it’s djzheng6@gmail.com.

Joe Fairless: Alright, well this has been a power talk on how to scale quickly. Two and a half years, over ten properties, and you did a phenomenal job summarizing earlier… I’ll take a crack at it as well for your keys, and I’ve written down five of them that come to mind. One is your resourcefulness and persistence – you don’t take no and you find a way to get the job done. Two is being fiscally-responsible; you’re making money and you’re working hard at making the money and then you’re keeping the money, and then you’ve reinvested the money. Three is finding deals – we didn’t even touch on that, we didn’t have time, but you’ve been finding these deals that work. Four is you’re someone who people trust; that is something that might be talked about a lot – people do business with those who they know, like and trust, but it really isn’t something (I don’t think) that can be taught, it’s just something that if you’re either a good person with genuine interest to help others and grow your business or you’re not, and if you are a good person and you’re true to your word, then people trust you and they do more deals with you. And then five is what you mentioned – you said “Sell, sell, sell”, and I thought you were talking about selling properties, but then you didn’t talk about that at all, you talked about selling yourself. You’re always networking, you’re selling yourself, to the tenants, to the agents etc. Those are the five keys that I wrote down for your success, and thanks for going into the case study on how you got the loan, how you had to do 30-40 calls with lenders etc.

I hope you have a best ever day, David. This has been an inspirational conversation. We’ll talk to you soon.

David Zheng: I appreciate it, thank you for having me on.

 

 

 

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JF923: How He STARTED with a Condo AND a 20-Unit Apartment Complex

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Not many investors start how ours did. He began with a condo and 20-unit apartment acquisition and the rest is history! He even owns the majority of a street around one of his investment properties, turn up the volume and grab a pen!

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Himanshu Jain Real Estate Background:

– Founder & CEO of Invest with Himanshu & Om Haven Properties, LLC
– Specializing in single and multifamily properties, REO’s, Rehab and Flips
– He owns almost the whole street as part of his one of the multi Family Deals
– Goal is to own and manage around 200 units in next five years
– Based in Saint Louis, Missouri
– Say hi to him at http://www.investwithhimanshu.com
– Best Ever Book: Millionaire Real Estate Investor by Gary Keller

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JF911: Wholesaling HIGH VOLUME and How He Bought a $160,000 Home in 4 Days!

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He makes big cash yet doesn’t need to close on these properties… How is that possible? Wholesaling! He matches the buyer with the seller very well and does so with some partners who have been in the game for a while. Yes, he even closed a deal at $160,000 in four days… Very impressive! Hear how he did it!

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David Dodge Real Estate Background:

– Owner at House Sold Easy Properties & ‎Discount Property Investor
– Over 8 years of real estate expertise
– Works with investors looking for Flip, Rehab, Renovation, or Buy and hold Rental properties
– Based in St. Louis, Missouri
– Say hi to him at https://www.housesoldeasy.com
– Best Ever Book: Rich Dad, Poor Dad by Robert Kiyosaki

Click here for a summary of David’s Best Ever advice: http://bit.ly/2ldUEol

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.

Download your free copy at http://www.fundthatflip.com/bestever

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JF877: He Started with LITTLE and Now Creates >12% CR MONEY MAKERS!

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He started in an office and then later began to buy properties! He looks for the C class value add edifices and does just that, adds value! Hear how he gets it done and what he’s up to now.

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Sean Tarpenning Real Estate Background:

– Owner at US Real Estate Equity Builder (USREEB), a turnkey company
– Owns over 125 single family and multifamily units
– In 2016, his company sold over 250 properties and went from $5M in sales in 2015 to $13M in 2016
– His company provides over 300 jobs to Kansas City between the office staff to the construction crew
– Based in Kansas City, Missouri
– Say hi to him at http://www.usreeb.com
– Best Ever Book: Real Estate Developers Handbook

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.

Download your free copy at http://www.fundthatflip.com/bestever

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

https://www.youtube.com/channel/UCwTzctSEMu4L0tKN2b_esfg 

JF872: How to SCALE a Private Money Raising Empire #situationsaturday

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Can you real estate business, what is your reach? How are you producing content to grow a community of eventual customers, clients, and partners? Podcasts, YouTube, events, and other networking tools and content delivery methods will do just that!

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Other will want to learn more about you and your mission if you stay consistent.

Jimmy Vreeland & Bob Scott Real Estate Background:

– Principals at Joint Ops Properties LLC
– Currently has over 100 properties in portfolio under lease option
– Focuses on single-family homes and tenants seeking a lease to own option
– Graduates of United States Military Academy at West Point and Air Force Academy
– Based in St. Louis, Missouri
– Say hi to him at http://www.jointopsproperties.com/
– Visit their YouTube page to watch the videos we talked about: https://www.youtube.com/channel/UCJqt28JgVQmlhtlmMDQ93Ug

https://joefairless.com/podcast/jf786-over-100-properties-acquired-in-12-months-from-lease-option-masters/

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.

Download your free copy at http://www.fundthatflip.com/bestever

https://www.youtube.com/channel/UCwTzctSEMu4L0tKN2b_esfg

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Best Ever Show Real Estate Advice from experts

JF812: 25 WHOLESALE DEALS a Month is Possible Using this Trick

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25 deals a month is not impossible, in fact our guest simply does one thing and does it very well. He create partnerships all over his market and strategically places himself in first position on each deal. Hear what he does to market for these leads and how he closes each transaction.

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Phillip Vincent Real Estate Background:

– CEO of Rematch, a real estate solutions company and has done over 500 transactions
– Specialize in helping Seniors who want a stress free sale of their home
– Marketing and acquisitions for serious real estate investors
– Based in St. Louis, Missouri
– Say hi to him at phillip@rematch.com
– Best Ever Book: The Big Rich by Bryan Burrough

Click here for a summary of Phillip’s best ever advice: https://joefairless.com/wholesale-25-deals-month-spending-0-pocket-marketing/

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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Best Ever Show Real Estate Advice from experts

JF786: Over 100 Properties Acquired in 12 MONTHS from LEASE OPTION Masters!

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They hustled in the last 12 months to acquire over 100 lease-option properties, and now they are reaping the benefits! With a crew of private money lenders, assistants, and team huddles these to manage over 100 lease-option properties creatively acquired through the lease-option strategy. Hear how they did it and what it really takes to get it done!

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Jimmy Vreeland & Bob Scott Real Estate Background:

– Principals at Joint Ops Properties LLC
– Currently has over 100 properties in portfolio under lease option
– Focuses on single-family homes and tenants seeking a lease to own option
– Graduates of United States Military Academy at West Point and Air Force Academy
– Based in St. Louis, Missouri
– Say hi to him at http://www.jointopsproperties.com/
– Visit their YouTube page to watch the videos we talked about: https://www.youtube.com/channel/UCJqt28JgVQmlhtlmMDQ93Ug
– Best Ever Book: Atlas Shrugged by Ayn Rand

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

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

Best Ever Show Real Estate Advice from experts

JF756: Making QUICK Decisions, Prioritizing Activities, Company Building and Real Estate

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It’s hard to pick one thing that our guest is good at, but if you’re looking for someone who is dynamic, creative, and can build multiple brands and companies this is the show for you! Oh, by the way, he has also done real estate. This is an intriguing episode with insights as to how to prioritize time and make quick decisions. This is a must listen!

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Eddie Wilson Real Estate Background:

– President at Affinity Enterprise Group
– Pepsi was his client
– Based in Kansas City, Missouri
– Say hi at www.affinityenterprisegroup.com
– Best Ever Book: Outliers by Malcolm Gladwell

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

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

Best Ever Show Real Estate Advice from experts

JF715: MYTHS of Portfolio Property Insurance

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You probably think you are covered if your tenant trips and falls, think again! You will need to check your insurance policy, but our guest is here to share that not all are created equal. He is a national speaker and consultant for insurance on portfolios and all property types. Be sure to reach out to him to get a free consultation!

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Shawn Woedl Real Estate Background:

–   Senior VP National Real Estate Insurance Group
–   Speaker and Consultant
–   Based in Kansas City, Missouri
–   Say hi at Shawn@reiguard.com or www.nreinsurance.com
–   Get a FREE insurance consultation
–   Best Ever Book How The Mighty Fall by Jim Collins

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.

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

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

Best Ever Show Real Estate Advice

JF644: Ex Financial Planner Creates LONG TERM Retirement Program Backed by His Portfolio

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It’s complicated, but ingenious! He is currently working on a long term fund that allows others to invest in where dividends are paid and the whole thing is backed by real estate. Turn up the volume!

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Peter Mackercher Real Estate Background:

– Realtor and broker
– Investor with his own construction company
– Based in St Louis, Missouri
– You can reach him at stlmogul.com
– Read about his worst mistake here http://www.stlmogul.com/blog/my-biggest-mistake-in-real-estate/

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.

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

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