JF2133: Anti-Financial Plan With Chris Miles #SkillsetSunday

Chris is the founder of Money Ripples, also the host of the Chris Miles Money Show, and has been featured on CNN Money and US News. He has had experience coaching people in the stock market, owning rental properties, and financial advising. At age 28 he was financially independent due to affiliations, and rental properties. He shares how he went from financial independence to losing everything and going back into the rat race and working his way back out.

Chris Miles Real Estate Background:

  • Founder of Money Ripples
  • Author and Host of the Chris Miles Money Show
  • Has been featured in US News and CNN Money
  • Has helped his clients increase their cash flow by over $200 Million in the last 10 years
  • Based in Salt Lake City, Utah
  • Say hi to him at http://moneyripples.com 

Click here for more info on groundbreaker.co

Best Ever Tweet:

“Cash flow creates options if you have more cash flow that creates freedom” – Chris Miles


TRANSCRIPTION

Joe Fairless: Best Ever listeners, how are you doing? Welcome to the best real estate investing advice ever show. I’m Joe Fairless. This is the world’s longest-running daily real estate investing podcast where we only talk about the best advice ever; we don’t get into any of that fluffy stuff. With us today, Chris Miles. How you doing, Chris?

Chris Miles: I’m doing awesome, Joe. How you doing?

Joe Fairless: I’m doing well, and I’m glad you’re doing awesome. Looking forward to our conversation. A little bit about Chris – he’s the founder of Money Ripples, he’s the author and host of the Chris Miles Money Show, and he helps his clients increase their cash flow, has done so by a tune of over $200 million in the last ten years; based near Salt Lake City, Utah.

First off, Best Ever listeners, I hope you’re having a best ever weekend; because today is Sunday, we have a special segment like we usually do on Sundays, and it is Skillset Sunda. And because of that, we’re focusing our conversation with Chris on how to think differently about your financial plan, and as he calls it – prior to us having this recorded conversation, he would mention to me, he calls it the anti-financial plan. So we’re going to talk about his thought process and how to go against the grain, and why he believes in that, and what practical next steps we can take to act on it, should we embrace it as well. So first, Chris, do you want to give the Best Ever listeners a little bit more about your background, and then we’ll dive right into it?

Chris Miles: You bet. I started out in the business world. I was going to college, I was intending to become a business consultant, but I figured if I was gonna do that, I should have real-life experience. So I actually dropped out of college with one class to go for my bachelor’s, and I went into business, and the first business that became available was becoming a financial advisor. Little did I know at the time, I didn’t know that they would hire just about anybody. As long as you can pass a test and get a license, they’ll take anybody on, experienced or not. So I actually started doing that and I actually enjoyed it. I started doing that back in the early 2000s. So right after 9/11 is when I became a financial advisor, and did that for four years, but as time went on– I’m one of those people, I like to see evidence, I like to see that things work, and I don’t like to be out of integrity with anything. So I want to make sure I’m teaching truth and I’m doing things that are legit.

And as time went on, especially as I inherited old clients from advisors that had quit or moved on or whatever, I started to realize that people weren’t that well off financially; not the way I had envisioned and had been sold from everybody. Because if you look at all the financial advice that’s being taught to you out there, it all stems from financial institutions – banks, mutual fund companies, everything else, everything. Even the Suze Ormans, the Dave Ramseys of the world, they’re just little pawns in that little game of teaching you what they want you to do, which is save everything, spend nothing, save it forever, save it in crappy mutual funds, and then the last 30 years, the real rate of return of the S&P has only been 7.5%, and when you factor in fees and everything else coming out, you’re likely to get 6% or 6.5%, not 10% or 12% like I was teaching.

So when I started running real numbers as a financial advisor, I started to run, what if it’s like 6% or 7% instead, and what if inflation actually isn’t 2% or 3% like the government’s trying to tell us it is? What if it’s actually more like 4% or 5% or more? And then it got really depressing, and I realized I couldn’t tell anybody and give them any hope, because I’m like, well, even saving 10% or 20%, your income isn’t enough. In fact, in most cases, you want to have a 20-year retirement plan, for example, and you want to be able to live on a $60,000 a year lifestyle today, but do that 20 years, you’ve got to actually save up about $8,000 a month to live on $60,000 a year, on $5000 a month in 20 years. It’s frickin ridiculous.

So in 2006, I started to meet guys who were real estate investors and business owners guys that have become multimillionaires and even retired by the time they’re in their 20’s and 30’s, and I was like, “I want that.” So March of ’06, I quit being a financial adviser, vowed never to go back again. I was like, “I’ll never teach about money again. I’m just gonna be a mortgage broker and I’ll teach ballroom dancing,” because, a little known fact, I was one the nation’s top amateur ballroom dancers back in the early 2000s. That was my goal. But I started learning these things about creating real cash flow – acceleration, not accumulation – and I was actually able to become financially independent the first time when I was 28, back in 2006.

Joe Fairless: How did you define financial independence at 28?

Chris Miles: Same way that Robert Kiyosaki would – your passive residual investments and income is able to cover your expenses.

Joe Fairless: What were your expenses at the time?

Chris Miles: Oh, at that time, I only had two kids. So I have eight now with blended family. So only with two kids, it was only $4,000 a month, so it wasn’t that much.

Joe Fairless: On that 4k expenses at the time when you were 28, so you had $4,001 at least coming in on a monthly basis. Where was that money coming from?

Chris Miles: I had real estate. So rental real estate, things like that.

Joe Fairless: What did you have specifically?

Chris Miles: Just single-family homes.

Joe Fairless: Okay, how many do you have?

Chris Miles: Two.

Joe Fairless: Okay, two homes. what else do you have?

Chris Miles: And then I had residual income through business with affiliate and referral type stuff; not like the affiliate you see today, but it was very organic. For example– and this is something that actually one of those millionaire guys turned me on to. He said, “You’re doing mortgages, right?” I was doing mortgages actively and he said, “Well, Chris, if money were no issue, would you keep doing mortgages?” I said, “Well, no. I like teaching about it and I like helping them figure out the strategy, but I hate the paperwork.” So he said, “Well, why don’t you refer it to somebody who does like doing that?”

Joe Fairless: Oh, cool.

Chris Miles: In my mind, I never thought that was possible, because I was in that scarcity mentality before of just you try to earn everything and don’t farm out anything, don’t hire anybody, you take all the money you can; a do-it-yourselfer, which is do-it-crap. So I actually found a guy that actually was willing to the paperwork and I said, “Hey, what if we split it 50-50?” and he’s like, “Great, let’s do it.” And I’d spent a half an hour to hour on somebody and next thing I know, there’s about $1,000 or $1,500 bucks coming in from that one person I referred.

Joe Fairless: That’s a win-win for you and the business partner.

Chris Miles: Yeah, and it really became a win-win-win, because even for the client I referred then, I would tell them what to do with their mortgage so they could put in other investments so that those investments could then pay for their mortgage payment. This, of course, with real estate hard money and things like that. And when we were doing that, people say, “Cool, where would I get the mortgage?” I’m like, “Go talk to this guy,” and that was it. It was served up on a silver platter for him, so he loved it, and they loved it because they got serviced really well by him, because he was a good guy, full of integrity, did always what was best, which I really appreciated too, and it was great. It was one of those things I’d never fathom could work. Again, I didn’t have an official business. Remember, I quit being a financial advisor, I’ve vowed never to talk about money. The problem was there were still people asking me some questions, because they noticed that my life was changing from a financial standpoint as well, and I was just different. So it wasn’t the same person.

Joe Fairless: So when you were 28, you had the residual income from referrals with your clients that you sent to the person you were working with to actually fulfill the mortgages. On the single-family home, you had two of those. I don’t imagine those are spitting off a whole lot of income. How much per house were they?

Chris Miles: It was only about $1,000, total.

Joe Fairless: That’s still pretty good for a single-family house. $500 a month. Okay, and were any other income sources at the age of 28?

Chris Miles: That was it. I’m trying to remember if I had a hard money loan or not. I might have had something there but no, I mean, it was mostly just real estate, and then just those random referrals that I would send along… But it was like one referral a month, you’re adding up to a couple thousand bucks a month just there too, and so I was making $4,000 or $5,000 a month total between the two.

Joe Fairless: Wow. So you were making $3000 plus per month on just the referrals. Wow. Okay, alright. So that was 28; I know that’s not yesterday. So then what happened?

Chris Miles: Then, of course, I started partnering up with some guys that were also out of the rat race themselves. They said, “Hey, we want to start a company, teach people how to get out of the rat race.” This is the end of 2006. I was at that point– I was spending the last six months trying to find purpose, because most people don’t realize, when you actually get to the point where you’re financially independent, you start to ask yourself, “Well, now what? I got there, what’s the next thing for me?” I almost opened up some dance studios and stuff, but something didn’t feel quite right. My gut was telling me, “Don’t do that,” and then I had some guys say, “Hey–”

Joe Fairless: Just so I’m making sure I’m tracking right, if your expenses were about $4000, you’re bringing in about $4,000 to $5,000, it didn’t seem like you had much money to invest for dance studios or anything else… Or was there another chunk of money coming from somewhere else?

Chris Miles: When I got there, I was like, “Well, now what?” because I didn’t know what to do. At the time, I was also doing stock coaching, ironically, which I’m anti-stock market now… But I was teaching people about how to trade in the stock market at a hard time. So I was making $6,000 a month doing that.

Joe Fairless: Oh, there we go there. There’s that.

Chris Miles: So that’s where it became gravy. So that helped boost up money I can invest and use during that period of time. Yeah, I appreciate you saying that. I always forget that detail.

Joe Fairless: Maybe, you conveniently blocked it out because you don’t like stock investing.

Chris Miles: [laughs] Exactly. I’m grateful for because it gave me a lot of perspective, but it’s definitely not something like, “Oh yeah, I’m gonna totally do that again.” I was doing that because I didn’t know what to do next. So I just kept doing what I was doing before, but I was looking for something else, and that’s when that opportunity came up and they said, “Hey, why don’t you work with us? Leave your house, work with us in an actual office again.” I was like, “Ugh. Ugh, I’ve gotta work in an office? This sucks. Alright.” I see the mission, I see the vision, it sounds awesome, I love teaching; that, I feel like, is my calling overall, is to teach. So yeah, I did that, and funny enough, we were actually focused on people that were real estate investors, helping them get out of the rat race.

Well, 2007, especially when we hit about July, August, when everything starts tightening up in ’07, that’s when crap was hitting the fan. At the same time those partners said, “Hey Chris, we don’t like you making all these other residual streams of income. Can you focus just on this?” which was number one biggest mistake I could have made at that time… Because I should have said, “To heck with you guys. I’m gonna keep making my passive and residual income regardless,” but I didn’t, and so I cut those off, so and now I was  down to mostly just an active stream of income and some real estate. And of course, my real estate, because I wasn’t buying for cash flow as much, I was just hoping there’s more appreciation… I was cashing out all the equity I could. Well now, I’m upside down on some properties… I’m lucky I was able to get out from under them, but still it was painful.

At the same time, all those real estate investors couldn’t pay us either. So the active streams of income weren’t working because their money was locked up, my money was locked up, and I wasn’t tracking my money either. That was a big thing. Because there’s so much money coming in, it’s like, “Why track it, why even pay attention? I have an abundance of money coming in.” Well, now when I finally decided to look at my money, I realized I’m in the hole $16,000 a month, between my business and my personal expenses. So I went from out of the rat race to now deeply back in it and in the hole, and eventually ended up being over a million dollars in debt by 2008. So I had to dig out of that. I didn’t file for bankruptcy, but I had to claw my way back out without any savings or any credit.

Joe Fairless: What was the largest chunk of that million?

Chris Miles: Real estate. Mortgages on real estate was a big one. So getting upside down from that, having to sell those off; short sel or even foreclose on some of those, which was tough.

Joe Fairless: So you had a million dollars worth of loans, or the loans that you’re referring to within that million were upside down?

Chris Miles: Loans. Total in loans– I would say, because all assets I was able to sell off was maybe half a million. So I was still upside down about half a million or so.

Joe Fairless: Okay, got it. Because you could have a billion dollars worth of loans, but if it’s worth $10 billion then all good. But okay, so you were upside down by about half a million dollars on that.

Chris Miles: Yeah, so I had to turn in cars; I turned in my Mercedes. I was like, “Hey, you’re gonna take it from me anyways,” and they auctioned it off for $30,000 less than what I owed, and I had to pay that back, and everything else. [unintelligible [00:14:25].23] roughly about half a million of debt after everything was sold off. I had no assets left. Then I had to figure out how to get out of that hole, which–

Joe Fairless: What was the conversation like with your significant other?

Chris Miles: Oh, man, it sucked. It was hard for her, and this is my ex-wife, my wife at that time. It was really tough, because she felt helpless. She wasn’t working; she was at home with the kids. We had, at that time, four young children. So she was trying to take care of them while at the same time I’m trying to figure this out. So she felt helpless. There was even times she said things like, “Man, should I just take the kids and move in with my sister and you can figure stuff out?” I’m like, “That’s the worst thing you could do.” I’m already struggling mentally feeling like I was– I was out of integrity. I could no longer teach people how to get out of the rat race because I was now in it. So I stopped that; I had to start teaching people how to get resourceful, like I was being, which is what people wanted anyways, because most people didn’t feel like they had any money during the recession.

Joe Fairless: What tips would you give someone when speaking to their significant other if they’re in a similar situation?

Chris Miles: Definitely have a lot more empathy than I had… Because my ego was so butthurt. I was being defensive, which any guy naturally would do that. That’s a knee jerk reaction. That’s a natural thing, is that our egos want to feel like we can protect and provide for our families. But if I would have more empathy and say, “Hey, I know you feel helpless here. You feel like there’s nothing you can do. Honestly, the best thing you can do is just be there for me. I know it’s hard to support me, without losing faith, but that’s the best thing you can do, and just trust in me,” and that’s all I wanted to hear too. I wanted to hear that. Just saying that you trust in me that we’ll figure this out. “It doesn’t matter if we lose everything, we still have each other,” that kind of thing.

I had to take over the collection calls. I couldn’t let her handle the finances anymore because it was too hard on her, plus she felt she couldn’t have given them a good answer of when they’d get paid back. Cool thing is, when I started talking to them, I started to change my perspective around it. This is when things started to turn around; I stopped looking at it as a bad thing that collectors are calling, and instead I started calling them “I love you calls.”

Joe Fairless: [laughs] Okay, please elaborate.

Chris Miles: Because [unintelligible [00:16:26].18] they scattered. When they knew I was going through hard times, they weren’t there. I mean, there’s a few that stuck it out, that were true friends, but for the most part, everybody scattered when they realized I was in dire straits, but those–

Joe Fairless: How did they know that you’re in dire straits, your friends?

Chris Miles: Especially – if they’re friends, I would tell them; or they just knew, because for example, our house was one of those that foreclosed. I was able to sell off the investment properties and just walk away with a little bit in the hole, but I had to foreclose on my own house, which sucked… Partly because it was through Lehman Brothers. So [unintelligible [00:16:57].03] short sale offers, they wouldn’t accept them. So they end up foreclosing for $170,000 less than the short sale offers. So we had to move out of a big mansion, so to speak, move into a house that was less than half the size and a quarter of the payment. So they saw these lifestyle changes happening. I mean, I’m driving old cars versus a nice Mercedes. It was pretty obvious from the outside to see that I was selling things off quickly.

So from the outside, those people knew, and of course, the friends or family, especially in-laws, for example, they were saying, “Ugh [unintelligible [00:17:28].23] You should go back to school and get that bachelor’s because that’s the answer.” I’m like, “I have a friend right now, he’s got a Master’s. He can’t pay people for a job right now.” He wanted to become an accountant; accountants wouldn’t hire him even for free, because they’re saying, “Well, we have enough business. We don’t need you.” So he was two years unemployed with an MBA. It was just ridiculous. So yeah, there’s a lot of that going on.

Joe Fairless: How was it an I love you call?

Chris Miles: It was I love you call because the collectors, they call up regardless; they’re calling daily. Friends weren’t calling me daily. I needed friends, but they were calling me on a regular basis. So when they’d call, I would treat them like they’re a buddy. I was like, “Hey, how’s it going?” “Ugh, good. Just so you know, this call may be recorded. We’re here to collect a debt.” “Yeah, I know.” “Oh, great. You know when you’re gonna pay that debt?” “No.” “Alright. Well, when will you pay us?” “No clue, but you’ll get paid.” “Okay, well, we’re gonna call you again.” “That’s fine. Looking forward to it. See ya.” That went off for a couple of years, until I paid those guys off, one by one eventually. But that’s what helped turn it around, because instead of me being like, “Oh, send them to voicemail again.”

The worst was when I auctioned off the Mercedes – well, I didn’t, but the dealer did – and they were calling me to collect on that, the $30,000 bucks, and they would say things like, “Well, can you make payments of $1,200 bucks a month?” I said, “If I can make the $1,200 dollar a month payment, I would have made the $1,000 month payment on that Mercedes.” I remember one guy, he just said, “You know what? You’re the reason that we’re in such bad economic times right now. You’re the reason why we’re in this situation.” I said, “Are you kidding me? I’ve spent hundreds of thousands  of dollars hiring people like you to have a job, but now I can’t hire any more.” Well, I’m like, “I’m not the cause here, you jerk. I wanna smack you.”

So I mean, that was the stuff I was struggling with while trying to teach people about money and trying to financially prosper, and essentially try to prove that what I did the first time would work a second time. I struggled more with the mindset piece than I ever did with the strategy. Once I got over my ego and I just released all that expectation and just said, “You know what, however long it takes, it’s gonna work; I know it,” and I got to this place of not just hoping would work, to a place of knowingness. Once that happened, that’s when things started to turn around.

Joe Fairless: So what’s your approach now?

Chris Miles: My approach now – man, passive income, multiple streams of income is essential. Cash flow creates options and when you have more cash flow, that creates freedom. The worst thing you could do is be stuck with one stream of income, working a job or working your business or whatever it might look like; that’s the worst thing you could do. It’s good, I’m grateful you have it, and you should have it, but I will tell you from that experience, especially because I know everything ebb and flows. Eventually, we’ll have a recession at some point, there’ll be changing times, they’ll be hardships. Even if everybody’s prospering, you might have your own personal recession because you might lose a job or lose some income. What can you do to ensure that you have multiple streams of income coming in? I’ll tell you, financial advisors never talk about that. They’re always like, throw your money away from you, walk it up in someplace — you have to have essentially get your hand slapped with a 10% penalty for touching it before you’re 60. That’s horrible advice. Everything should be focused towards how do I develop multiple streams of income, whether it be residual, passive or both?

Joe Fairless: What are some of the main streams of income that you have now?

Chris Miles: Now, I actually go to more turnkey investments rather than trying to manage it myself like before. That was one thing I learned. I like to do turnkey, I like notes, syndications, things of that nature. For the most part, though, I’d say the bulk of my own personal assets, although I tell my clients do what resonates with them most and what feels right for them… I personally love owning real estate, whether it’s multifamily, single-family, whatever. I love owning and controlling it, because if there’s anything in the last recession I learned is that ownership and control is awesome. Syndications are cool too, and I like that. I like that there’s some downside risk protection, and those things can work out too when you have funds and syndications, but I personally love owning and controlling real estate, but have somebody else manage it for me.

Joe Fairless: So you do turnkey, notes, syndications… What is the most profitable within those streams, maybe a specific deal or a note that you invested in or syndication that you’re in?

Chris Miles: The most profitable have actually been my own turnkey properties, just because I’m taking all the depreciation — for one, I’m taking the appreciation. I can do that with syndications too, of course, with certain ones. But definitely with cash flow and growth potential, I’ve definitely seen the best with doing turnkey properties. Secondly, it would definitely be syndications.

I’ll give you an example, because you asked for an example. I had a Memphis property I bought a couple of years ago. I just had it reassessed to say, “Alright, let’s see how the return on equity is right now.” I bought it for $135,000 and now is worth $152,000. I don’t try to bank on appreciation; I learned that the hard way during the last recession, but it’s nice when you get it. Compared to the down payment I put on it, the cash flow that’s come in – the net cash flow, not gross, but the net after all costs are paid, plus the fact that the mortgage has been paid down… Already the property’s gained — out of the $32,000 I came out of pocket with closing costs, I’ve have already gained in the last two years about $26,000 bucks.

Joe Fairless: Any refinance ideas out there, or do you wanna keep it with the current loan?

Chris Miles: That was with the current loan. I looked at refinancing just recently, but the rates weren’t quite low enough to make it worthwhile.

Joe Fairless: Okay.

Chris Miles: Buying them now is awesome, just because the rates are even lower than they were when I got mine, which was around 5.25%. Now they’re in the 4%, which is awesome.

Joe Fairless: Anything about the mindset of how you approach your finances now that you’ve learned some hard lessons and now you’ve got these multiple streams of income, anything else that we haven’t talked about that you think we should before we wrap up?

Chris Miles: Yeah, a few things. One is the one thing I wasn’t doing was tracking my money. When you track money, don’t track like a saver, because savers are in scarcity and scarcity drives away money. Scarcity can never create financial freedom. You can’t live in fear and be financially free, regardless what the numbers say. So you can’t just focus on expenses, like all the savers out there will teach you, like the Dave Ramseys. It’s important to look at that, but look at the income too. Look at both sides of the equation. Look at “How can I increase income, but also be most efficient with my expenses?” and create that big gap between the two, which is what I refer to as cash flow or profit. While doing that, the biggest thing is that I see most people when I talk to them is– because a lot of people say, “Chris, I need an actual game plan or strategy to retire early. Not to do the same old crap that everybody else is telling you to do with mutual funds and 401ks and what not.” Which, by the way, I even did an episode on my show recently, a couple of months ago, that even [unintelligible [00:24:03].29] have the crap kicked out of it with notes, syndications and turnkeys, easily. Even with a [unintelligible [00:24:10].10] which is supposed to be free money, a no-brainer, you can still beat a 401k, especially when it comes to cash flow. So I look at things like saying, “Hey, let’s look at the whole situation. Look at your own numbers and see where do you have equity.” You have equity in your own home, which a lot of people do. Should we cash out, refinance and use that to invest, especially if it’s in something that’s a good legitimate place? I actually have a client who has actually invested with you, Joe, and they’re like, “Yeah, that’s one of my favorite investments, what Joe Fairless has.” I’m like, “I gotta look that guy up.”

Joe Fairless: Yeah, there we go.

Chris Miles: But that stuff, like can we liquidate assets? Can we sell off stuff that’s not doing well? You might have some properties yourself that aren’t– return on equity is low. Maybe we could sell that and make more money. I have a client in California right now, down in San Diego, he had a property in California, which already everyone’s like, “Okay, you have a property California. That’s not worth keeping.” Low cash flow and probably high equity. Between his personal home, which had about $400,000 equity, and this rental property which had about $400,000 in equity after we sell it – even though he’ll lose about $1,500 a month of cash flow, that’s 800k he can use. Now, even if you did the 1% rule, that’s $8,000 a month. So he still nets $6,500 bucks a month or just about 80 grand a year with the same assets he already had in place, and that’s what you want to look at. It’s like, what do I have in savings or in equity and different places that could be used to be more productive than where it is right now?

Joe Fairless: Yeah, I have a friend, he’s local in Cincinnati, and he moved from California and he had a single-family house. He sold it and he bought in Cincinnati, I want to say, a 30 to 50-unit in Cincinnati, and I think he paid all cash. It was just incredible… And it’s not in as nice of an area of Cincinnati, and it was distressed, but the point is, he bought an apartment community. That was a couple years ago, maybe three years ago, and he’s now since, I believe, refinanced and got all that money out and is doing great with it.

Chris Miles: That’s why I always tell people, don’t buy into the whole accumulation mindset of saving and letting your money grow and compound slowly over the next billion years, which it won’t do very well… If you focus more on cash flow and acceleration and utilizing assets to create the biggest bang for your buck… So you’re not asset rich and cash poor.. .Because I’ll tell you, I get so many people that are like Dave Ramsey poster children. People say, “Alright, I just paid off all my debt, and now I have nothing to show for it. I’m now asset rich and cash flow poor.” I was like, “That’s why we’ve got to shift that around. You’ve got to essentially reject some of the stuff that Dave Ramsey taught you. Not everything; a bunch of stuff is great, but everything else that he taught you about wealth and creating retirement and cash flow, don’t buy into it. It’s stupid. You’ve got to shift to a higher level, you’ve got to shift to a higher gear, and that’s when the possibilities in the world opens up.” If I can leave any message with you guys as a last-minute message, I’ll just say that there’s probably a bigger hope than you realize. You probably have a better chance of creating financial independence or financial freedom than you realize is actually possible. You’ve just got to be able to see it with the right set of eyes.

Joe Fairless: Chris, how can the Best Ever listeners learn more about what you’re doing?

Chris Miles: Check out my podcast, The Chris Miles Money Show. You can find it on iTunes or whatever podcast app you use, and also you can check out my website, moneyripples.com.

Joe Fairless: Focusing on multiple streams of income, diversification of those streams of income, and then talking about and learning from your lessons that you learned during the hard times financially, and some tips for should we come across that, or perhaps when we come across it, if we haven’t already, how to navigate that based on your experiences and what you learned. So thank you so much for being on the show. Grateful that you were on the show. Hope you have a best ever weekend. Talk to you again soon.

Chris Miles: Thanks.

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This website, including the podcasts and other content herein, are made available by Joesta PF LLC solely for informational purposes. The information, statements, comments, views and opinions expressed in this website do not constitute and should not be construed as an offer to buy or sell any securities or to make or consider any investment or course of action. Neither Joe Fairless nor Joesta PF LLC are providing or undertaking to provide any financial, economic, legal, accounting, tax or other advice in or by virtue of this website. The information, statements, comments, views and opinions provided in this website are general in nature, and such information, statements, comments, views and opinions are not intended to be and should not be construed as the provision of investment advice by Joe Fairless or Joesta PF LLC to that listener or generally, and do not result in any listener being considered a client or customer of Joe Fairless or Joesta PF LLC.

The information, statements, comments, views, and opinions expressed or provided in this website (including by speakers who are not officers, employees, or agents of Joe Fairless or Joesta PF LLC) are not necessarily those of Joe Fairless or Joesta PF LLC, and may not be current. Neither Joe Fairless nor Joesta PF LLC make any representation or warranty as to the accuracy or completeness of any of the information, statements, comments, views or opinions contained in this website, and any liability therefor (including in respect of direct, indirect or consequential loss or damage of any kind whatsoever) is expressly disclaimed. Neither Joe Fairless nor Joesta PF LLC undertake any obligation whatsoever to provide any form of update, amendment, change or correction to any of the information, statements, comments, views or opinions set forth in this podcast.

No part of this podcast may, without Joesta PF LLC’s prior written consent, be reproduced, redistributed, published, copied or duplicated in any form, by any means.

Joe Fairless serves as director of investor relations with Ashcroft Capital, a real estate investment firm. Ashcroft Capital is not affiliated with Joesta PF LLC or this website, and is not responsible for any of the content herein.

Oral Disclaimer

The views and opinions expressed in this podcast are provided for informational purposes only, and should not be construed as an offer to buy or sell any securities or to make or consider any investment or course of action. For more information, go to www.bestevershow.com.

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JF2082: Four Decades of Raising Capital With Ken Holman

Ken has over 40 years of real estate investing experience and has done all types of real estate deals like self-storage, industrial properties, golf courses, retail lots, and apartments. Ken has had to raise money multiple times and during this episode, he shares some advice on how he raises capital and the insights he has learned over the years.

Ken Holman Real Estate Background:

  • President of Overland Group and National Association of Real Estate Advisors
  • 40 years experience in real estate
  • He has brokered, developed, constructed and owned over $500 million in real estate assets
  • Experienced in owning commercial, industrial properties, self-storage, golf courses, retail, and apartments
  • Based in Salt Lake City, UT
  • Say hi to him at: https://overlandgroupinc.com/ 

 

Click here for more info on groundbreaker.co

Best Ever Tweet:

“Make sure every deal you do is a good deal. Don’t settle for mediocre projects because you’re anxious to get started.” – Ken Holman


TRANSCRIPTION

Theo Hicks: Hello, Best Ever listeners, and welcome to the best real estate investing advice ever show. I’m Theo Hicks, and today we’ll be speaking with Ken Holman. Ken, how are you doing today?

Ken Holman: I’m great, how are you doing?

Theo Hicks: I’m doing great as well, thanks for asking and thanks for joining us. I’m looking forward to our conversation. A little bit about Ken – he is the president of Overland Group and National Association of Real Estate Advisors. He has 40 years of experience in real estate; he has brokered, developed, constructed and owned over 500 million dollars in real estate assets. Experienced in owning commercial and industrial properties, self-storage, golf courses, retail and apartments.

He’s based in Salt Lake City, Utah, and you can say hi to him at OverlandGroupInc.com. So Ken, do you mind telling us a little bit more about your background and what you’re focused on today?

Ken Holman: I’d be happy to. I guess the primary thing that I’ve been involved with over the years has been apartment development. I think I’ve done a dozen or more large apartment projects, ranging anywhere from probably 150 units up to 440 units. Along the way, that’s led to other opportunities. We’ve done several retail projects, mainly Dollar Store type investments… And built a golf course, done some other industrial and office properties. But the core business has been primarily apartments, and also self-storage projects.

What we’re doing today is we’re building an apartment project in St. George, Utah. 116 apartment units. We’re really excited about that. We raised about six million in investment capital on that real estate syndication… And we are doing a couple deals over in Mesa, Arizona. One’s a 580-unit self-storage project. We raised about 2,5 million on that project. It started construction this week, so we’re excited about that.

We’ve got a 240-unit apartment project we’re doing over there, and a 100-room hotel that we’re doing also in Mesa. We raised about 15 million, which has been fully-subscribed, on the 240-unit apartment development… And then the hotel – we haven’t started that raise yet, but… That’s what our company does.

We’re a fully-integrated real estate company. We do brokerage, construction development, capital raising through our syndication, and also property management. So we try to cover the whole gamut of real estate projects, from beginning to end.

Theo Hicks: Thank you for sharing that background. I think a lot of our listeners are gonna be interested in some of your money-raising tactics. You talked about a six-million-dollar raise, a 2.5-million-dollar raise, a 15-million-dollar raise… Do you mind giving us a few tips? Firstly focusing on someone who’s just wanting to get started raising money. And we’re gonna also talk about some tips on scaling to being able to raise over 15 million dollars for a deal.

Ken Holman: Yeah, that’s a big deal actually, to be able to raise that much on a single project… But I started out with my first deal being a little family Dollar Store that we were gonna build in Thermopolis, Wyoming, of all places. I needed to raise $150,000, and I started thinking “Okay, how do I do this?” You get a little reluctant going to family and friends, and trying to beg money from them… So what got me started was I had a self-directed IRA company approach me and ask me if I would give a presentation to them on that particular little family Dollar deal.

So we went over to Boise, Idaho, of all places, and gave a presentation, and walked out of there with 150k in commitments… And I thought “Man, this is pretty fun.” That was a cool way to raise equity capital, so we started getting pretty familiar with how to do self-directed IRAs. Then that branched into self-directed 401K’s, then we developed our expertise in doing 1031 tax-deferred exchange deals.

Then we started getting a reputation for being able to raise discretionary income, and that’s how it all began… It just started evolving. In fact, I don’t know that there’s anybody else out there doing this, because it’s a pretty sophisticated model. But we can take people with discretionary investment capital, with 1031 exchanges and with IRAs and 401K’s, and marry them all into a single project. It gives us a capacity to raise a lot of investment capital that way.

And then we’ve tied in with a couple money-raising funds that really love our projects… And that’s just expanded our capacity to be able to raise equity capital. So it’s been kind of a fun ride, and you’ve gotta have some good people around you to be able to put those deals together… But I think we do, and we’ve developed a really nice product.

Theo Hicks: That was another question I was gonna ask you, it was about your team… But I do wanna ask one follow-up question. Well, I guess two. One will be quick. So we talked about how you’re able to take 1031 exchange investors, IRA investors, 401K investors and wrap them into a single project. You mentioned that is very sophisticated… Just very quickly, if someone wants to do something like that, where can they go to learn more about how to do that process, or is that something they should talk to their securities attorney about? What advice do you have for that kind of person?

Ken Holman: I’ve had to educate some securities attorneys and some 1031 intermediaries on how to do this… So I don’t know that you can go to one single source and get some guidance on how to do it. I’ll give you a quick overview of how it’s done, but that’s where the secret sauce is. That’s why I want everybody who come to our company to be able to do that.

LLCs have the ability to sell basically units, ownership interests in the LLC, and you can bring in investor capital that way. Self-directed IRAs and self-directed 401K’s – the same thing; they can buy units or ownership interest in LLCs. But 1031 tax-deferred exchanges don’t have the ability to do that. They have to do like-kind exchanges; so you’re selling one investment property and buying another investment property.

We see a lot of people with smaller single-family homes, duplexes, fourplexes, that are kind of tired of doing management themselves and would like to get into bigger projects that have more potential, and the possibility of higher returns… So often we see them sell their assets and 1031 into one of our deals. I usually limit the amount of 1031 capital to basically the value of the land. So they can 1031 into the land that we’re acquiring or have acquired, and then we marry that all into what’s called a tenant-in-common agreement, or some people call it a TIC agreement.

TIC agreements in the past have been a bit of a dirty word for 1031 investors, just simply because they’ve been mismanaged, or you get somebody in there that doesn’t know what they’re doing. In our case, it just becomes the mechanism that we use to blend the 1031’s with the LLC investors. So that – you’ve got more than I tell anybody else almost.

Theo Hicks: [laughs] I really appreciate you sharing that with us. Okay, so my other question is you mentioned that one of the reasons why you’re able to do a sophisticated process like this, able to raise so much money is the team. Let’s say I’ve got a business and I’m ready to bring on my first team member; who’s the first person I should bring on?

Ken Holman: That depends… You’ve gotta have a good acquisitions person. That usually is me. I like to handle the acquisition side of our business. And then the supporting cast… I’ve got a son who’s a CPA, and he runs our accounting and our investor relations department, and he and I team up on the development side… So you’ve gotta have somebody that understands acquisitions, somebody that understands development… Reporting is a big deal when you’re raising investment capital. And I didn’t understand that early on, and that’s probably one of the bigger mistakes that I made – I just raised the money and thought “Okay, we’ll do this deal and I will tell everybody when it’s done and we’ll get going, and we’ll make distributions as the project stabilizes.” And we did that, but I have found that investor communication is a real key.

You’ve gotta keep them informed and let them know what’s going on every step of the way. If you do that, they begin to trust you and you develop a relationship with them where they not only wanna do one deal with you, they wanna do several deals with you. So that’s been a side of the business my son Mike brought into the program.

And then because we also do construction, you’ve gotta have a good construction team. Our model is we don’t try to self-perform all of the scopes of work on a construction project; we just oversee the whole project. So we do project management, project engineering estimating and superintending. So we put our superintendent on a project, but we don’t try to self-perform all of the sub-trades. That’s made it so we can move around the country and work in almost any state, which is really good. We’ve been in probably seven or eight states now that we’re licensed in, which is good.

Then you need a securities attorney, and there are different types of securities attorneys, frankly. There are some that throw more roadblocks up than actually are helpful in getting  the private placement memorandum done. And/or they’ll make the private placement memorandum, which is called the PPM, so darn difficult, and with so much legalese in it that it scares away the investors.

So you’ve gotta be able to work with a securities attorney that understands investing and how to work with investors, so that you get all of the disclosure in there that you need to, but you’re not putting so much difficult language in there that it scares people away.

And then obviously you need to develop several sources of fundraising. That includes doing your own webinars, things like what we’re doing here today. Also, any other funds that like to invest with you… And they’re out there, but they’re also looking for really experienced people. So they generally won’t work with a newbie right out of the gate.

Theo Hicks: Perfect. Okay, Ken, so for someone who wants to  be in your position and have been involved in over 500 million dollars in real estate transactions, what is your best ever advice?

Ken Holman: Oh, my gosh… Best ever advice maybe is two or three-fold. One, make sure that every deal you do is a good deal. Don’t settle for mediocre projects because you’re anxious to get started. That would be number one. Number two, do what you say you’re gonna do. When you’re raising equity capital, do the very best you can to inform them on what they need to do and how they need to do it and what your timeframes are, and then work really hard to stick with those.

And then I guess the last piece of advice is communicate. Just keep them informed every step of the way; whether you’ve got good news for them or bad news for them, make sure you’re always there, telling them where you are and what you’re doing, and if it’s bad news, just be straightforward with them and let them know where you’re at. They’d rather hear that than not hear anything.

Theo Hicks: Okay, Ken, are you ready for the Best Ever Lightning Round?

Ken Holman: Oh, my gosh… I guess. Let’s try it and see what happens. I  may fail, but you never know.

Theo Hicks: Okay. First, a quick word from our Best Ever sponsor.

Break: [00:16:36].23] to [00:17:20].15]

Theo Hicks: Okay, what is the Best Ever book you’ve recently read?

Ken Holman: What did I really like right now that I’m reading, I’m kind of excited about is a book called “Start With Why” by a guy named Simon Sinek. He talks a little bit about how great leaders motivate and inspire other people, so that’s been kind of a fun book to read.

Theo Hicks: If your business were to collapse today, what would you do next?

Ken Holman: I’ve been in this business 40 years,  man… I’d retire. I’ve had some people already tell me I should retire, but I’m having too much fun, so I don’t see any reason to stop yet. But if my business were to collapse, I’d probably take a little time off, buy a new suit, and then I would probably get started again, doing exactly what I’m doing… Because I’ve learned how to do it, and frankly I’m pretty good at it, so… I think it’d be possible to do it again.

Theo Hicks: What deal did you lose the most money on? How much did you lose, and then what lessons did you learn moving forward?

Ken Holman: Well, I’ve been in the business enough years that I’ve been through more than one real estate cycle, and probably the hardest real estate cycle that we dealt with was back in the Resolution Trust Corporation days, when the 1986 tax reform act happened… And they didn’t even have what was called passive losses; they didn’t have those. But the losses that you generated in real estate through depreciation, you could write off against ordinary income. They disallowed all of that; it completely changed the business. 5,000 savings and loans went out of business, and we really struggled with properties. During that era, occupancies went from 90 down to 50, and we lost some properties back then, as did everybody else. Some of the big players went out of business… So that was just not a good era.

Today I see this Coronavirus and I see a few things happening, but what we’ve got going on right now in terms of its impact on the real estate business is just not that great compared to what some other downturns have had… So that’s my worst situation; it’s a long answer to a short question, sorry.

Theo Hicks: I didn’t know about that, so thanks for sharing that. So what is the best ever way you like to give back?

Ken Holman: I have two or three ways that I give back. I’ve been a member of Rotary International for a long time. I was one of the founding members of my club here that we formed, and they have a program called the Paul Harris Fellowship, which is with the Rotary Foundation, and you can contribute money to that, and then that goes into all sorts of humanitarian efforts.

I also contribute to a humanitarian program with our local church. And then I’ve helped organize several Blood Drives with the American Red Cross, which has been cool.

Theo Hicks: And then lastly, what is the best ever place to reach you?

Ken Holman: Probably the easiest place to reach me is on my email address, which is kholman [at] overlandcorp.com. You reach me there at any time and Natalie, my assistant, just keeps on top of that, so we’re pretty good at responding when we get emails.

Theo Hicks: Well, Ken, I really appreciate you coming on the show today and sharing your advice, and I also appreciate you sharing your email address. So Best Ever listeners, make sure you take advantage of that. It’s rare that a guest with this much experience gives away his personal email address… So make sure, again,  you take advantage of that.

Just to summarize some of the biggest takeaways that I had – you kind of gave away your secret sauce a little bit about raising capital…

Ken Holman: Don’t tell anybody, okay?

Theo Hicks: I promise I won’t tell anyone. So you wanna relisten and listen to that. You also gave us some advice on what to do to get to the point of being able to raise such large amount of capital, and sort of how you started with a small $150,000 raise, and obviously are up to 15+ million dollar raises… It sounds like it is just slowly stepping your way up and gaining reputation, and as you do more and more, you learn more, you know more, and you attract more and you attract more people to you, assuming you’ve been successful.

Ken Holman: Yeah.

Theo Hicks: And then also you  mentioned how you eventually were able to work with funds as well, so I’m sure that was also helpful.

Ken Holman: Yeah.

Theo Hicks: You broke down the different team members that someone would need to do what you do, and then you gave your three-fold best ever advice for someone who wants to grow  up to doing 500 million dollars’ worth of transactions. Number one, make sure that every deal you do is a good deal, so don’t settle just because you’re anxious to get started into your first deal. Number two is to do what you say you’re going to do in raising capital; whatever you say that you’re gonna do to your investors – make sure you stick to that. And then number three was to communicate with your investors. Keep them informed every step of the way, with the good news and the bad news. They’re rather hear the bad news from you than not hear it until it starts affecting their money.

Ken, again, I really appreciate you coming on the show and joining us today. Best Ever listeners, as always, thank you for listening, have a best ever day, and we will talk to you tomorrow.

Website disclaimer

This website, including the podcasts and other content herein, are made available by Joesta PF LLC solely for informational purposes. The information, statements, comments, views and opinions expressed in this website do not constitute and should not be construed as an offer to buy or sell any securities or to make or consider any investment or course of action. Neither Joe Fairless nor Joesta PF LLC are providing or undertaking to provide any financial, economic, legal, accounting, tax or other advice in or by virtue of this website. The information, statements, comments, views and opinions provided in this website are general in nature, and such information, statements, comments, views and opinions are not intended to be and should not be construed as the provision of investment advice by Joe Fairless or Joesta PF LLC to that listener or generally, and do not result in any listener being considered a client or customer of Joe Fairless or Joesta PF LLC.

The information, statements, comments, views, and opinions expressed or provided in this website (including by speakers who are not officers, employees, or agents of Joe Fairless or Joesta PF LLC) are not necessarily those of Joe Fairless or Joesta PF LLC, and may not be current. Neither Joe Fairless nor Joesta PF LLC make any representation or warranty as to the accuracy or completeness of any of the information, statements, comments, views or opinions contained in this website, and any liability therefor (including in respect of direct, indirect or consequential loss or damage of any kind whatsoever) is expressly disclaimed. Neither Joe Fairless nor Joesta PF LLC undertake any obligation whatsoever to provide any form of update, amendment, change or correction to any of the information, statements, comments, views or opinions set forth in this podcast.

No part of this podcast may, without Joesta PF LLC’s prior written consent, be reproduced, redistributed, published, copied or duplicated in any form, by any means.

Joe Fairless serves as director of investor relations with Ashcroft Capital, a real estate investment firm. Ashcroft Capital is not affiliated with Joesta PF LLC or this website, and is not responsible for any of the content herein.

Oral Disclaimer

The views and opinions expressed in this podcast are provided for informational purposes only, and should not be construed as an offer to buy or sell any securities or to make or consider any investment or course of action. For more information, go to www.bestevershow.com.

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JF2004: 2000 Deals a Week With Zack Boothe

Zack Boothe owned a window cleaning business and use to listen to our show while working and now is on our show! Zack shares his marketing strategy to find deals that you can wholesale, flip, or hold for the long-term. He uses a unique system that helps him find 2,000 distressed property every week with just one 30 hr part-time driver who is driving for dollars. 

Zack Boothe Real Estate Background:

  • Left his window cleaning business in 2017 to become a real estate investor
  • On track to do over $1 Million in 2019, teaches others how to find properties for $.50 on the dollar
  • Based in Salt Lake City, Utah
  • Say hi to him at www.DFDmastery.com

Best Ever Tweet:

“The difference that I have with the systems and the software that we’re using is, you can go with one part time guy and find thousands of distressed properties every single week.” – Zack Boothe


TRANSCRIPTION

Theo Hicks: Hello Best Ever listeners, and welcome to the best real estate investing advice ever show. I’m Theo Hicks, I’ll be the host today, and today we’re speaking with Zack Boothe. Zach, how are you doing today?

Zack Boothe: I’m doing awesome. Super-awesome to be here.

Theo Hicks: Yep, I’m excited to have you and looking forward to finding a little bit more about you. So Zack left his window cleaning business in 2017 to become a real estate investor. He’s on track to do over $1 million in 2019, and he also teaches others how to find properties for 50 cents on the dollar. So you better believe we’re going to talk about how to do that. Zach is based in Salt Lake City, Utah, and you can say hi to him at dfdmastery.com. So Zack, before we get started, can you tell us a little bit more about your background and what you’re focused on now?

Zack Boothe: Yeah. So like you said, I was a window cleaner, and it’s actually surreal to be on this podcast because as a window cleaner, I would listen to this podcast all the time. So it’s pretty weird how life happens and it takes you in certain directions.

But like you said, I was on that window cleaning business, and I ran that for almost 10 years, and towards the end of it, that was 2016, I was just burnout in the industry; not something I aspire to do anymore, even though I had had a ton of success there. I had YouTube videos with over a million views. One of my YouTube videos got used on the History channel, so I ended up on the history channel because of window cleaning, and had a great business that I’d worked so many years on… But I wanted to be in real estate and I had dabbled in it, done a couple deals – some amazing, some I lost money, but I needed a change of pace. So I hired a coach who’s actually the second coach I had hired, but I really got traction with this coach back in 2017, the very beginning of it.

The coach is Tom Krol and Cody Hofhine, and they taught me about something known as wholesaling. I believe some of your people are familiar with the process, I’ve heard it on your podcast a few times… So for those that don’t know what it is, essentially you’re finding properties at a discount, people that want to sell for speed and convenience, you put those properties under contract, and those contracts are assignable, meaning I can sell that purchase agreement to a flipper or to another investor and they close on that contract and pay you a fee to sign the contract to them. So I started learning that strategy, and I actually sold my business. At the time I actually just told my partner, “I quit, you can buy me out, but I’m done. I have to move on.” And that was March 2017, I had just purchased their course…

I went as hard as I could and did my very first wholesale assignment fee in April of 2017. I made $10,000 on that first deal. So that was a mind-blowing proof of concept. From there, I worked really hard that year and did a little over $100,000 by the end of 2017. By the end of 2017 I knew I needed to do something different as far as marketing. I wanted to have a business that profit margins on $100,000 — I wasn’t netting, I wasn’t bringing in $100,000, not even half that. So I was making much less than the window cleaning, and I didn’t quite know where to take it or how to grow it, and I read a book called Multifamily Millions… Not sure if you’re familiar with that book, Theo. Have you seen that book before?

Theo Hicks: It sounds familiar, but I’ve not read it myself.

Zack Boothe: It’s a great one, and he said something in there that really caught my attention. So he’s talking about doing large syndications, a lot of what Joe talks about, and something that I aspire to do. He said that you are not in the business of real estate, your business is not real estate. You’re in the business of marketing and your product is real estate. It really got me thinking how important my marketing was and how I really needed to change things up a little bit.

So I started doing what’s called driving for dollars. It was a marketing strategy that I thought that I could make some big improvements and really scale a business around it. It was just a test, I wasn’t 100% sure if it would work. So what drive for dollars is, if you don’t know what it is, is you drive around neighborhoods looking for houses that have any physical signs of neglect, because the goal is to find someone that wants speed and convenience for their house. You want to be a pawnshop for people that want to just get rid of that house.

So I was trying to find physical signs in neglect, I was driving around neighborhoods, writing down addresses, looking it up on county records and reaching out to those people through a phone call or piece of mail… And I started getting results. I quickly learned that writing down the addresses — there’s a much better way, there’s apps out there that you can add properties quickly to an Excel spreadsheet with the data, and there’s data searching ability with third-party companies, and I really started to learn the system.

Towards the end of 2018 we did about $450,000 or so in sales, and that’s mainly assigning contracts. We did flip a few houses, but it was just turning over our inventory quickly. I was so excited about it; I was pulling a profit margin and my life was changed. I was making a certain amount of money at that point, my profit margins were much higher than my window cleaning business at that point, and I was able to go on vacations and have freedom that I had never had before, and it was pretty life-changing.

You might be thinking like, “How does this have anything to do with you listening? Why would you even care about this story?”, but that’s where everything changes. This is where I started focusing more on others and focusing on bringing more value to people, and the reason that I’m actually on the podcast today. So that was an awesome year for me, and towards the end of it, I had a goal and something that was silly from the time I was a little boy… My family – I grew up working hard, and I had a lawn mowing business, and I remember asking my dad — while I’m mowing lawns at this giant house, and I remember asking my dad how much money they made, and if they were a millionaire… And he said, “Yeah, I’m sure they’re millionaires, and they probably make $300,000, $400,000 a year.” I remember thinking to myself, “One day, I’ll make a million dollars in a year,” and that’s stuck with me ever since.

So I had this inner ambition to do a million dollars in a year, and I didn’t know how I could get my investment business bigger. I felt like I had tapped out my marketing channel and I wanted to get it to that next level. So I was racking my brain, and when you focus on something, when you truly write down a goal and focus on it, how opportunities come… I had a friend reach out to me that I met through a real estate meetup, and he invited me to join him and be an accountability partner on a self-help journal called Living Your Best Year Ever by Darren Hardy. So I did that, and one of my big goals was to generate a million dollars in revenue in 2019, and we’re October now, 2019, and we’re on track to hit that. But in there, when you create that goal, it talks about the importance to give away whatever you’re trying to receive. I definitely did not have a million dollars in my pocket to give away, and I wasn’t even sure how that was even possible to give away a million dollars before I had a million dollars… So I really started racking my brain, and in November 2017 I came to the conclusion that I needed to bring on some students, just a handful, teach them my marketing channel, and help them put a million dollars into their businesses by implementing my marketing system that I was using, and that’s where everything changed.

So many of these guys that I brought in — I made sure I brought in some very experienced investors, some very new investors, and I wanted it all across the country, because I wanted to make sure this worked everywhere; what apps, what systems didn’t work and did work. I’ve spent just about 12 months perfecting the system with my beta testing students, my guinea pigs that believed in me and trusted in me enough to do this. And with their intelligence and their intelligent questions, we were able to perfect a marketing system that changed my business. And that’s essentially what I’m doing now, is I’ve been able to build a team around this marketing system that’s servicing all of my contracts. I haven’t signed a contract myself in a little over 12 months now. All of it’s done by my team, and it’s allowed me to focus 100% on helping other people build out a marketing channel that they can build their business around.

So that’s really what I’m focused on, that’s really what I’m working towards, and it’s been so rewarding to see the success of my students. And it’s been awesome to hit my goal, and to be working towards my own goals, but it was really surprising to me how much more fulfilling it is to bless someone else’s life than really to focus on my own. So it’s been an incredible journey to this point.

Theo Hicks: Thanks for sharing that. So do you mind just going over that marketing system that you were just mentioning? I’m assuming it’s for wholesaling, so marketing to find deals… You said that you teach others how to find properties for 50 cents of the dollar, so maybe you could walk us through what your process is to find a lot of these parameters, so if I have a large amount of deal flow coming in of properties, that you’re able to put under contract at 50 cents on the dollar.

Zack Boothe: Great question. This is for finding single-family homes and small multifamily is what this works for. It’s probably not the best strategy for finding large syndications or large apartment complexes, but it’s a great strategy for smaller investments.

It doesn’t matter if you’re wanting to flip the houses or if you’re wanting to wholesale them or assign the purchase agreements, or if you’re wanting to pick up rentals, small single-family or small multifamily. If you’re trying to pick up rentals, this marketing strategy is for that purpose. How you make money off these leads, that’s not something that I’m as focused on.

So driving for dollars is not new. It’s one of the most proven, most used over the course of real estate investing. It’s everywhere on YouTube, you can look it up; driving for dollars is everywhere. The biggest difference is the scale and the system that we’ve been able to put together. So traditionally, to go out and find 50 houses in a week that are distressed that you go then market to, that’s quite a bit. In the past, you’d have to pay quite a bit of money or a large percentage of the profits to what they would call bird dog, or to the person that would go out and find these properties. The difference that I have with the systems, the software that we’re using, is you can go with one part-time guy and find thousands of distressed properties every single week.

Our marketing – we have a goal of over 2000 properties that we add, that have physical signs of distress, to our marketing list every single week, and we do that, like I said, with one 30-hour part-time driver. So the ability to scale it at a profitable rate is the biggest difference in what we’re doing, and then our course talks about that – the importance of hiring the right person, managing that person; that’s a huge part of the course. But also, obviously the setup of how to use these apps and the software systems…

The app is a public app, you can buy it; it’s called DealMachine. I actually have a discount that I’ll make available to the Best Ever listeners out there. So if you want to try out the app, it’s called DealMachine, and the discount code is PIN. You’ll get some extra credits and so forth with that discount. But we’re using that, and then also the systems and part of the apps that we use, our marketing, as far as how often we reach out to those people, how we reach out to those people, we use a combination of mail and cold-calling. In the course, I break out exactly the timeframe and everything that’s there.

Theo Hicks: So you said you add 2,000 properties every single week with one 30-hour a week, part-time driver.

Zack Boothe: Exactly.

Theo Hicks: That’s a little bit over 60 properties an hour, so over one property a minute. So how are they doing that while they’re driving around their car?

Zack Boothe: Isn’t that incredible? So the data, as far as pins per hour, as we call it, or houses that get added per hour– yes – it is a lot. It’s 60 per hour. We’ve seen anywhere between 20 to 80 properties per man hour that can be added through this system. And the differences are [unintelligible [00:13:17].19] how many you add is your criteria (it’s a big one), but also the market that you live in.

So the beauty of Utah is we have a very gridded out system. The way the city has been developed and the neighborhoods have been developed, it is a very nice, organized grid system. So it’s very easy to go up one street, down the next, up the next and down the next. So we’re able to find properties much faster.

So one of my students said — let me give you an example [unintelligible [00:13:45].12] South Carolina – his streets aren’t as organized, there’s lots of hills, and he’s only pinning about 20 per hour because of that. The houses are a little more spread out. It’s a county that’s not as populated, the houses are a little bit more rural, there’s two, three-acre lots and things like that.

But the cool thing is it doesn’t matter the size of the market. A larger market – you’re gonna have more deals, but more competition, more investors, and then in a smaller market, you’ll have less investors and less deals, but it still makes sense. This marketing is working in every market.

Theo Hicks: Alright, Zack, what is your best real estate investing advice ever?

Zack Boothe: If you want to be an investor, focus on your marketing. I think that people don’t realize it, but you need to be a marketer if you want to do really well in this business.

Theo Hicks: Yep, and you said the advice you got from that book, Multifamily Millionaires, is that you’re not in the real estate business; you’re in the marketing business and real estate is your product. So it makes sense, and that is your best ever advice. All right, Zack, are you ready for the best ever lightning round?

Zack Boothe: I am ready.

Theo Hicks: Perfect.

Break: [00:14:42]:05] to [00:15:28]:08]

Theo Hicks: All right, Zack, what is the best ever book you’ve recently read?

Zack Boothe: Recently. 30Days.com, it’s been incredible.

Theo Hicks: If your business were to collapse today, what would you do next?

Zack Boothe: Real estate. [laughs] I’d get right back into it, it’s never going anywhere.

Theo Hicks: What deal did you lose the most money on and how much did you lose?

Zack Boothe: My very first flip. It’s been about six years now. I can’t remember the exact numbers, but I remember it was just shy of $20,000 is what I overall lost.

Theo Hicks: This is you unique to you. What is the highest window you ever cleaned?

Zack Boothe: The highest window? Man, I avoided high risers. Probably three stories, I didn’t do anything too crazy.

Theo Hicks: Those high rise cleaners – I don’t think I could do that. I’d be too afraid.

Zack Boothe: Yeah, and I never did the bosun chair, whatever they called it. I never did any of the high rise stuff. That’s scary, no.

Theo Hicks: Then lastly, what is the best ever place to reach you?

Zack Boothe: You can reach me through the online link, dfdmastery.com. There’s also a link for a live and replay webinar, where I talk about marketing and more about the course. So if you’re interested in that, you can go there. If you want to just reach out to me personally, I’m pretty active on Facebook, Zack, Boothe, so you can shoot me a private message that way too.

Theo Hicks: Thank you for sharing that, and Zack, thank you for coming on this show and sharing your story with us. To summarize, you went from window cleaner to a wholesaler, to coach, and you walked us through how that process evolved pretty quickly from 2016 to today, going from cleaning windows and running a window cleaning business to achieving your childhood goal of generating a million dollars in sales this year. So congratulations on that. Not many people can do that for the first few years, so that’s great to hear.

Then you also talked about your marketing system for finding single-family residences or small multifamilies for 50 cents on the dollar, and your strategy is driving for dollars, and in combination with various technologies and hiring the right part-time person, you’ll be able to find at 20 to 80 properties per man hour. You mentioned that in addition to obviously finding the right person and using the correct technology, is making sure you’ve got your criteria set and then the amount of property you’ll find is going to be based off of the setup of the markets. So there’s a very easily drivable market with a high concentration of houses; pretty easy if you drive streets. You can find a lot more than if houses are spread out and you can obviously drive a lot longer in between homes.

Then your best ever advice, which as you live by, is to focus on your marketing, and again, that great quote from Multifamily Millionaires is that you’re not in the business of real estate, you’re in the business of marketing, and your product is real estate. Thanks again, Zack, for coming on the show and sharing your advice with us. Best Ever listeners, thank you for listening. Have a best ever day and we will talk to you tomorrow.

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Best Real Estate Investing Advice Ever Show Podcast

JF1155: Biggest Secret For Financial Freedom with Colton Lindsay

Colton Lindsay is a top 1% sales agent in his market. Real estate sales are only part of his focus, Colton also focuses on helping others reach financial freedom. He has an entire course and training platform to teach people how to manage their cash flow, which he says is the biggest step in reaching financial freedom. If you enjoyed today’s episode remember to subscribe in iTunes and leave us a review!

 

Best Ever Tweet:

 

Colton Lindsay Real Estate Background:

  • Real Estate Agent with Keller Williams Success Realty
  • Closed over 120 transactions and over $20 Million in volume sales over the last two years
  • Became ranked in the Top 1% of the sales agents in his real estate market by the age of 28
  • Passive and residual income expert through real estate and online digital marketing
  • Based in Salt Lake City, Utah
  • Say hi to him at http://winningtheinnergame.com/
  • Best Ever Book: Ask and it is Given

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TRANSCRITPTION

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 fluff. With us today, Colton Lindsay. How are you doing, Colton?

Colton Lindsay: Great, I love my life! How are you doing?

Joe Fairless: I’m doing well, and looking forward to dive in. A little bit about Colton – he is a real estate agent with Keller Williams. He has closed over 120 transactions and over 20 million dollars in volume sales over the last two years. Became ranked in the top 1% of sales agents in the real estate market by the age of 28. He is based in Salt Lake City, Utah. You can say hi to him at his website, which is in the show notes.

With that being said, Colton, do you wanna give the Best Ever listeners a little bit more about your background and your current focus?

Colton Lindsay: Yeah, absolutely. We’re working right now to expand our sales team; we’ve got two senior sales agents, we’ve got three junior sales agents, a full-time admin and then myself. So that’s one part of our business, and obviously, I’ve been working a lot on growing our online presence. I have partnership in a company called Fearless Agent, coaching and training; it’s where we train real estate agents to [unintelligible [00:02:12].25] their schedules and their systems, and then what’s called Financial Freedom Nation as well. One of the things I learned where people are failing, whether it’s a small business owner, a real estate professional, an investor or whatever – they just don’t know how to manage their cashflow, and this is what is actually keeping people from becoming financially free.

I have a whole course and training program on how people can manage their cashflow so they can actually get money to invest and become financially free rather quickly.

Joe Fairless: And are you financially free?

Colton Lindsay: I am. I became financially free by the age of 31.

Joe Fairless: Sweet, congratulations. And how do you define “financially free”?

Colton Lindsay: Financial freedom in my definition is that your passive and residual income pays for your desired lifestyle. If you can wake up, fog the mirror and still get paid, you’re financially free. If you can’t do that, then you’ve still gotta go and work. Now, there’s nothing wrong with working and active income, but you don’t wanna have to be forced to work, in my opinion. You wanna be able to live life on your terms.

Joe Fairless: Yeah, I love that. So let’s focus on the Financial Freedom Nation, managing our cashflow so that we can optimize our finances; talk to us about some mistakes people make.

Colton Lindsay: Number one is they just don’t have a system at all. In my case studies I found out that 90% of entrepreneurs, small business owners, salespeople, even employees that work for corporations or the government – they don’t have any system to manage their money; that’s 90% of them. And of the 10% that have maybe a system, they look at it one time or less per month, so that tells me that it’s just a big old avoidance of the situation, and it stems back from growing up, whether it was your parents, your school, your religion, your community… You just learned a financial blueprint that didn’t teach you financial success, didn’t teach you to manage your cashflow. So that’s number one – there’s just no system to even manage the cashflow at all. They don’t know where to put the money, they don’t know where to start.

I get these questions all the time, Joe, like “What’s my best way to invest? Should I borrow money and do a fix and flip? Should I buy a buy and hold real estate property? Should I put money in the stock market?” and  my first question is “Well, what’s your cashflow management system?”, and they’re like “I don’t have one.”

A better question is not “Where should I invest?”, but the better question is “How do I start to manage my cashflow?”, because if you can start managing your cashflow – and this is what I teach in Financial Freedom Nation, it’s seven different accounts, one of those being country donations… I call it “country donations”, but it’s really your taxes. If you can lower your tax bill, that means that there’s more money that you can keep to be able to operate your life. You’ve gotta operate your life like it’s a business, and the biggest, most important account is what I call your financial freedom account; that’s the bucket or the account that you pay yourself first. That’s [unintelligible [00:04:58].24] The Richest Man In Babylon; pay yourself first, so that you can make interest.

Just to give you an idea, if you took $1,000 every year for the next 25 years – just $1,000 a year – and you invested it to 10% return, which is very doable, just so you know… 10% after 25 years of only $25,000 total invested, you’ll have over $83,000. Now, imagine if you can do more than $1,000 a year, which realistically you can, if you just start the system. There’s two parts to this financial freedom. One is it’s actually the outer world technique, Joe – “Well, how much percentage do I put into my financial freedom account? How much do I put into my long-term savings? How much do I put into my necessities?” That’s the outer world techniques, but then there’s the other side, which is your inner world techniques – what’s keeping you stuck? What’s the limiting belief that keeps you from even identifying where you need to move to next? We help people break through those beliefs, get unstuck and take action, because now is the time to do it; tomorrow is too late.

Joe Fairless: So the first thing is not having a cashflow management system, the second would be limiting beliefs – did I capture that correctly?

Colton Lindsay: Yeah, absolutely. When a dollar comes in, how do you divide that up? Most people just put it into their bank account, and you’ve got a couple types of personalities – one is a saver, they’re a hoarder; they just want a big ol’ nest egg and they just keep it in their checking account and everything comes out of there, but they never grow it. It just kind of sits and maybe grows gradually.

The other is the avoider, the guy that just doesn’t pay attention to it at all. He’s just like “You know what? I’m not even gonna look at it. It’s too much stress, I don’t like it.” You’ve got your spenders, people that spend more money than they even make, and they just spend without regards to where it’s going. You’ve got money monks, people that are spiritually inclined to say “Hey, money can’t bring me spiritual salvation”, so they actually think money is evil, and that’s just not the case. And these are just a few of the personality types here. You’ve got the amasser – he just wants to amass a large fortune, because it helps his ego.

We all have a part of these personalities, but it’s identifying the good from them and the bad, and then just applying the good to your life.

Joe Fairless: That makes sense. As far as your investments with the passive and residual income, when you look at the whole pie of your investments, how does each slice of the pie break out in terms of where you’re bringing that in from?

Colton Lindsay: Great question. What I teach is a bulletproof investment portfolio, and I believe – and these are just recommendations – it’s in the stock market anywhere from 20% to 30% of your portfolio. Now, a lot of real estate people are saying “Well, I’m a real estate guy” etc., but the truth is in stocks you can get anywhere from 20%-40% return on your money per year if you do it the right way.

Real estate – I believe anywhere from 20% to 30% of your portfolio should be in real estate. I particularly believe in buy and hold. Don’t wait to buy; buy and wait. Not to say that fix and flips you can’t make some money there – you can, but that’s transactional, it’s not money pays you for waking up every morning. You’ve gotta operate a business with that, right?

Next is commodities like silver, gold, oil – things like that, things that hedge against inflation, those types of things. And I believe maybe about 10%-15% commodities is what we teach. Business is actually a very huge asset I think a lot of people miss in being able to create financial freedom – if you can create a business that operates without you, that creates a mass amount of cashflow, that one is very powerful, and I think that anywhere from 20%-35% of your portfolio should be there.

Then the final area is cash – I think that you’ve gotta keep about 25% of your portfolio in cash… Because what happens, Joe – remember 2008, the market shifted, and people started selling their assets just to pay for their liabilities. Then in 2011 when assets were really cheap, people didn’t have the cash to buy new assets for the most part, plus they’d lost all their assets, so when the market goes back up, towards 2015, 2016, 2017, they didn’t make money on their assets when because they sold them, they didn’t make money on the assets they purchased because they had no cash to buy it. So if you keep your cash there – it’s not about timing the market, it’s not like “When is the next crash going to happen?”, it’s not if, it’s when, but you can’t time when, so when it does happen, just have cash so you’re ready for it. And have cash so that you don’t have to sell assets to pay liabilities.

Joe Fairless: With your real estate portfolio bucket, the 20% to 30%, what properties have you purchased and that you have?

Colton Lindsay: I like to buy two-bedroom one-bath condos – those are my favorite, because I target lower working class. So if the market is hot, there’s renters for it. If the market is cold, there’s renters for it. So I try to get properties that are for the working class, so that there’s always high demand for those types of properties. That’s my goal.

Joe Fairless: Got it. And what was the last one you bought?

Colton Lindsay: The last one I bought just a couple weeks ago, and I think I paid like $49,000 for it. It’s a two-bedroom one-bath, 700 square feet, I put maybe 5k into it, and it’ll rent for about $750 here in the area.

Joe Fairless: And how many of those do you have?

Colton Lindsay: Of those ones I have five right now that I have free and clear.

Joe Fairless: Got it. So free and clear – how come you choose not to put debt on it?

Colton Lindsay: Great question… Because you can’t grow wealth quicker with leveraging it; when I first started buying these properties, I didn’t wanna have to lie awake at night and think “Okay, well if I don’t have a tenant in there” or “If I have a sewer line break” or “If I have some sort of issue… I just don’t wanna have to deal with coming out of my other business or my own pocket to fix it. I wanted that business to sustain itself. Actually, the newer properties we’re starting to leverage out through refinancing, through doing 15-year notes through a local bank here, so that we take that cash and we reinvest it to other properties. So we’ll take it from 5 to 10 probably in the next 12 months for sure, that part of the business.

Joe Fairless: Okay, so you are going to be putting debt on it, and taking that money and investing in other stuff.

Colton Lindsay: Yeah, absolutely. One of the other things too that I have with those — if I have a giant line of credit… So if I wanna do a short-term, three to six-month hard money loan, I can do that. Or if I come across a good deal to do a fix and flip, I’ll do that. So it’s not like I just set the money there, I leverage that money. But when we first started, I just didn’t want the headache.

Joe Fairless: What other properties do you have besides those condos? Or is that the portfolio?

Colton Lindsay: That’s what the portfolio is now; I’ve liquidated everything else. When I originally started, I started with single-families as well, I started with spec homes, which really was my worst idea ever; I won’t do that again.

Joe Fairless: Why?

Colton Lindsay: I did it in 2007, I built a house with 350k and sold it for 270k… And it’s speculation, it’s capital gains, and I prefer to do passive income. I don’t wanna invest for capital gains; capital gains to me is a bonus. It’s a way to build wealth, but it’s transactional and it’s a business; I think it falls more into the business category than it does real estate investing.

Joe Fairless: I love the buy and wait approach. The approach that I take  is similar, but I always wanna do a 1031 exchange. Is that in your arsenal?

Colton Lindsay: Yeah, that’s our long-term plan – to upsize to more apartment complexes. We will with time, when we have enough properties and we have enough areas there. But honestly, my real estate is one of my smaller focuses right now; we’re doing a lot with more of our business and online businesses, because there’s a lot of residual money made online right now. So that’s where a lot of our focus is.

Joe Fairless: And when you say “we”, who’s “we”?

Colton Lindsay: People I partner with. I’ve got several different partners. Bob Loeffler is one of my partners at Fearless Agent. I have a social media director, so she helps me market through all of our social media. I’ve got just some different coaching programs and partners there.

Joe Fairless: How did you find your social media director?

Colton Lindsay: I went through a recruiting process. I built my sales team out, I learned that hiring and recruiting is really a huge part as a business owner, and I mastered that process there. So I defined what I was looking for in that social media director, I put out a bunch of ads, took in about 50 different applicants, boiled it down to about 4 or 5, and then narrowed it down to two, hired them both, one failed pretty quickly and the other one succeeded.

Joe Fairless: For someone who is hiring a similar position – and that person would be me, so I’m selfishly asking this – what’s the compensation…? And you don’t have to tell me that person’s compensation, but just generally, what would that position be compensated?

Colton Lindsay: I think that really depends on what the job description is. Basically, for what we did is I have a good social media following and it was becoming a challenge for me in being busy with my life and not wanting to work 100 hours a week to keep up with social media… So I just defined, “Okay, here’s my platforms – YouTube, Instagram, Facebook, and then we’re gonna be shuttling all of our audios into iTunes and Stitcher for podcasts.” So I needed someone that could organize a message, versus me just randomly crapshoot.

I defined what I wanted that message in essence to look like, what our target was, and our goal is to 10x our subscribers and our engagements. So I set that as the parameters, and then I figured out “Okay, well how many hours a week do we need for this?” and then based on that I put out just what I thought I would be willing to work for on it, and then I just kind of negotiated from there.

Now, each market and each place is different, so it could be anywhere from a 20-hour a week job to a 40-hour a week job, and then you’re gonna be anywhere from 2k to 5k a month, just depending on where they’re at with things.

Joe Fairless: That is very helpful, thank you for that. Colton, what is your best real estate investing advice ever?

Colton Lindsay: Do it now. Don’t wait to get started. Start buying.

Joe Fairless: How old are you?

Colton Lindsay: I will turn 33 this Saturday, actually.

Joe Fairless: Alright, well happy early birthday. When did you buy your first place?

Colton Lindsay: My first property I bought – I think I was 23 years old, and that was actually a spec home… So my first one, a failed spec home.

Joe Fairless: Well, they hooked you early.

Colton Lindsay: Yeah, they did.

Joe Fairless: So you said your focus a lot now is on the business side of things. What are some tips you’d give a Best Ever listener who’s looking to start an online business that’s real estate related or has real estate components to it similar to what you’re doing?

Colton Lindsay: I think you’ve gotta hire a coach and a trainer, because basically we’re living in an information age now, and your information must be relevant, and the information that you’re getting has to come off of the back of people that have walked the path before you. Everything I teach and I train is not something I invented, I learned it from someone else. So to get to where I’m at, I’ve spent a couple hundred grand in just education over the last eight years. So invest in yourself very first and learn the process, and then just start.

The key is start, do it right now. That’s the answer to all your life’s questions – do it now, because you might be dead tomorrow.

Joe Fairless: Who did you hire when you got started and how much did you pay?

Colton Lindsay: I’ve done several areas. I’ve started [unintelligible [00:15:51].06] in early 20’s with Garret Gunderson, the Financial Freedom Fast Track; I think that my first investment was about $7,500 there. I’ve learned from Adam Markel, Tony Robbins, Thomas Tadlock, and these are just a couple of them. One of them is called Success Resources America, an awesome company; I’ve probably invested 30k or 40k with that company alone in the last few years. I’ve done a lot with the Tony Robbins programs, I’ve spent a pretty penny with them; I have one-on-one coaches, business coaches… It’s just all over the place, a lot of different places.

Joe Fairless: For someone who hears those numbers – I’m not one of them, by the way, because I have a business coach through the Tony Robbins program and I embrace bringing on consultants and mentors, but for someone who hears those numbers and doesn’t have the same mindset that I have, where it is an investment and it is worth it, what would you say to that?

Colton Lindsay: Well, I’d say you can choose to be right or you can choose to be rich. You choose. So you can stick with your idea that “Hey, I don’t need that” and be where you’re at, or you can say “You know what, I prefer to be rich, I prefer to learn from someone that’s done it and produces at a higher level than me.”

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

Colton Lindsay: Yeah.

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

Break: [00:17:03].24] to [00:18:04].12]

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

Colton Lindsay: Best ever book I’ve read is “Ask And It Is Given” by Abraham Hicks.

Joe Fairless: Best ever deal you’ve done?

Colton Lindsay: The best ever deal I did was a 1.2 million dollar commercial property, which was pretty awesome. I loved that one.

Joe Fairless: Will you elaborate on it?

Colton Lindsay: It used to be a bar and a restaurant, and some of my past customers wanted to start a wedding venue or event venue, so we found it, purchased it; it was just a fantastic idea. We turned it from just being a place that was run down  — it was actually remodeled really nice, but it was dead, the business was dead. It was located in a spot that didn’t make sense for a bar, so we reposition the venue to be a great place for a wedding and an event center, so that’s it in a nutshell.

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

Colton Lindsay: Oh, man… I’ve made a lot of mistakes on transactions. I think one time I accidentally included some of my clients’ washer and dryer, so that sucked, having to write a check for that.

Joe Fairless: [laughs] I was just on a call with someone, the last call I had, the last interview I had, and he missed the home inspection deadline, so he had to pay for like chimney sweep and chimney line, or something.

Colton Lindsay: Oh yeah, that can suck. We missed closing costs once; that was a $5,000 mistake, so… Shit happens; you just deal with it and move forward.

Joe Fairless: And how can the Best Ever listeners get in touch with you

Colton Lindsay: Facebook.com/ColtonJLindsay. Check me out on YouTube, just google “Colton Lindsay”, or check out my website, ColtonLindsay.com.

Joe Fairless: Excellent. Well, Colton, thank you for being on the show, thanks for talking about your approach. You got into your portfolio allocation – stocks, real estate, commodities, business and cash, and the logic behind each of those, the percentages, as well as mistakes… Having a cashflow management system… I should have asked this – what system do you use? Is it a software, or an Excel spreadsheet, or something?

Colton Lindsay: We actually designed our own program. It’s a cashflow management program called The Financial Freedom Budget Tracker, and it’s all done through Excel. You guys can reach out to me if you want a copy of it.

Joe Fairless: Sweet. Well, thanks a lot for being on the show. I hope you have a best ever day, Colton, and we’ll talk to you soon.

Colton Lindsay: Okay, thanks. See ya!

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real estate pro advice

JF851: What to Do at the LAST Second to Punch Through the Deal #SituationSaturday

He was moving into another home while selling his and the buyer for his house made a frustrating decision… Hear what she said to our guest and how our guest overcame the struggle.

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Cameron D. Hall Real Estate Background:

– Founder at Virtue Boxx, LLC & Real Estate Investor
– Most recent real estate deal: new personal residence-Sep 2016
– Based in Salt Lake City, Utah
– Say hi to him at www.virtueboxx.org

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Best Ever Show Real Estate Advice from experts

JF807: How to Make $250,000 PROFIT in Your First Year of Wholesaling

Only making $19,000 won’t cut it in any business, and before wholesaling that was his reality. Cody jumped into the flipping business by surrounding himself with mentors, extremely successful connections, and systems and was able to profit over $250,000 in his first year!

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Cody Hofhine Real Estate Background:

– Founder of Investor Grit and Utah Sell Now, LLC.
– Introduced to Wholesaling and now collaborates with Tom Krol
– In first year of wholesaling real estate, did over $500,000 in assignments
– This year on track to break a million
– Based in Salt Lake City, Utah
– Say hi to him at http://investorgrit.com/
– Best Ever Book:The Compound Effect by Darren Hardy

Click here for a summary of Cody’s Best Ever Advice: https://joefairless.com/wholesale-way-250000-profit-one-year/

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.

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JF732: When You Want it Bad Enough, You Do This

Many problems took place when our friend was involved in the purchase in Utah. Hear how the deal dragged out and how our guest was put through the ringer!

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Aaron Marshall Real Estate Background:

– CEO at Keyrenter Franchise, LLC, the ultimate business model in residential property management
– Sold over 1,500 homes
– Successfully franchised a property management business
– Based in Salt Lake City, Utah
– You can reach him at keyrenter.com

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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JF639: How You Could Own a Property Management Franchise

Franchise? Yes, that’s right. Today’s guest has sold and bought over 1500 homes and has decided to create a property management franchise in which others can build their own business upon. Hear how he set it up, the rules and regulations he follows, the pros and cons, and what he’s up to next!

Best Ever Tweet:

Aaron Marshall Real Estate Background:

– Sold over 1,500 homes
– Successfully franchised a property management business
– Based in Salt Lake City, Utah
– You can reach him at aaron@keyrenter.com

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

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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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JF560: Why You Need to Consider a Turn-Key Business Model

Think everybody has time to prospect for leads? Wrong! There are millions of people ready to purchase an investment property that rely on professionals to have established cash flowing properties. We call this turn-key. Hear how our guest gets these leads and find buyers for these ready out-of-the-box cash flow homes!

Best Ever Tweet:

Chris Erwin real estate background:

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.

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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JF389: Watch Out for These Common Hard Money Mistakes

Hola! Our Best Ever guest is a private money lender from Salt Lake City, Utah and is fluent in Spanish because she lived in Costa Rica! From business startups to diversified investing, she is now focused on commercial capital lending for investors using refinance methods, and still lends to fix and flip projects. She shares the red flags in the hard money lending field…and how to find the right lender. Watch yourself when seeking capital, and be sure to ask the right questions!

 

Best Ever Tweet:

 

 

Corey Dutton’s real estate background:

  • Private money lender based in Salt Lake City, Utah
  • Fluent Spanish speaker
  • Founder of Private Money Utah
  • 50 Elite Women in the Mortgage Industry by Mortgage Professional America magazine
  • Say hi to her at http://www.privatemoneyutah.com 

 

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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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JF191: Beware of the CapEx Shadow

With 2008 in our rear view mirror(ish), today’s Best Ever guest shares with you the ramifications on the multifamily industry as a result of it. And, what to look for now because of what happened. Plus, he shares with you his personal story of losing everything in 2008 and coming back much stronger afterwards.

Best Ever Tweet:

Mark Jensen’s real estate background:

–        Senior VP of Investment Sales with Newmark Grubb Knight Frank based in Salt Lake City, Utah

–        Closed over $500,000,000 worth of investment sales

–        Recently nominated for CCIM Multifamily Broker of the Year

–        Say hi to him at http://www.markjensencre.com

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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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JF171: Introducing…The 80k Wholesale Deal

Half sale? Nope, WHOLESALE! Today’s Best Ever guest shares with you how to create your A-team as a wholesaler AND he shares with you his Best Ever deal that netted $80,000 buckeroos.

Best Ever Tweet:

Andy McFarland’s real estate background:

–        Owner of Quality Property Renovations which flips 10 – 12 houses a year based in Salt Lake City, Utah

–        Owner of Treehouse Investments which wholesales over 100 properties a year in three different states

–        Active investor since 2002 when he purchased his first property (“the Treehouse”)

–        Since then has purchased hundreds of properties and does hard money loans

–        Say hi to him at http://www.iloverealestatestories.com/

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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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JF135: Don’t Diversify. What?!?! Yep, Here’s Why…

Your world is about to be turned upside down. Today’s Best Ever guest is blowing up myths that we have about investing and replacing them with sound advice that makes a whole lotta sense. Get ready, Best Ever Listeners, you’re in for a treat.

Best Ever Tweet:

Garrett Gunderson’s real estate background:

–        NY Times Best-Selling Author of Killing Sacred Cows a book on bustin’ traditional financial myths and providing refreshing alternatives

–        Founder of Freedom FastTrack which is a results-based financial services and personal development company

–        Check out Wealth Factory at: https://wealthfactory.com/

–        Real estate investor who owns 5 properties and he is based in Salt Lake City, Utah

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Sponsored by Cozy – Simple, free online rent payments, tenant screening and credit checks. Get Cozy for free at cozy.co

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JF79: How to Meet Mark Cuban’s Boss (and other unreachables)

How do you reach the unreachable? Become a power connector. Today’s Best Ever guest shares with you practical tips for how to grow your influence through quality and strategic relationships with her 5 + 50 + 100 rule.  She’s directly connected to Warren Buffet and got Mark Burnett endorse to her book – let’s go!

 Tweetable quote:

 Judy Robinett’s background:

–        Author of How to Be a Power Connector: The 5 + 50 + 100 Rule

–        She is the coauthor of a chapter in Crowdfunding for Dummies

–        More than 30 years of experience as an entrepreneur and corporate leader

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