Vacation Rentals & airbnb's can be a great way to exponentially increase the returns on your real estate investments. But there are also many pitfalls that investors must avoid and be aware of in order to be successful.
On February 23, 2018, the RPOA hosted an expert panel to discuss short-term vacation rentals - how they work, why they're such a great strategy for real estate investors, tips on being successful, and how to avoid the pitfalls that can cost you extra money.
Here are the four investors & experts you'll be hearing from:
Gary Hall is in the process of converting a low-income 11 unit into an airbnb. Gary is an entrepreneur, passive income strategist, and the operations manager of Westshore Property Management in Muskegon.
Gary was also a guest on the podcast – episode #89 and the Halloween episode
Frederick Kidd is a licensed realtor in Illinois, and has been managing and operating short-term rentals for the past eight years. He personally owns and operates five short-term rentals in the West Michigan area and the Chicago metro market. He also provides full-service management of short-term rentals and rental properties through his company, Silver Lakes Property Management – which is currently managing 20 short-term rentals for clients located in Benton Harbor, Grand Haven, Spring Lake and Manistee, Mi.
Kim Post has 10 Units in Cadillac Michigan that she’s in the process of converting to short-term vacation rentals. Kim’s been a real estate investor for over 30 years and is the owner of Post & Associates Appraisals and Next Door Properties, LLC
You can hear Kim on Episode #28 of the podcast.
Clay Powell is going to give us the perspective of someone who rents and stays in airbnb’s – so he’ll be representing the end-user – what they expect and what they respond to. Clay is also the Director of the RPOA.
Clay has been on the podcast several times, including Ep #6 & 72
Enjoy the show!
Raising Other People's Money to invest in real estate is a time honored tradition. But did you know that once you have more than two investors in an investment that you technically have a syndication? Are you also aware that the Security and Exchange Commission (The "SEC") has rules regulating how you go about raising that money and the types of investors you can allow in your deals, and that if you don't follow those rules you can get into serious trouble?
Now that I've made syndications sound scary, its a good time to make them more understandable and accessible with Amy Wan, the Founder & CEO of Bootstrap Legal. Amy is an attorney who specializes in real estate syndication and crowdfunding for entrepreneurs and real estate investors across the globe. Her mission is to democratize access to legal counsel and capital.
Amy will help us understand what we can, and can't, say to investors, the types of investors we can allow in our deal (accredited or sophisticated), SEC rules regarding Regulation D and exceptions 506B & 506C, the types of documents needed for syndicators, and how to avoid getting into trouble with the SEC.
We'll also discuss the pro's & con's of Regulation Crowdfunding and the ways it has changed raising money.
If you've ever considered using Other People's Money to accelerate your investment strategy, or you're already using OPM, you'll definitely want to listen to this episode.
Amy can be contacted at www.bootstraplegal.com
Joe Howard and Kevin Schultz were standing in the middle of a dumpster when they came up with a business idea that would change their lives. As real estate investors, they knew there was a huge need for getting rid of all the junk that accumulates in the houses they were looking at for flipping or rehabbing. So they became the owners of "Junk King of West Michigan".
Through this business they've been able to find opportunities that most investors never get to see. Today they tell us about those opportunities and share stories of the less-than-glamorous side of the junk removal business.
Joe and Kevin discuss the traits that make for a good partner both in real estate and business, the first rehab they did together and the challenges they faced, an abandoned house full of cat litter, and how they donate a lot of their time and items to Family Promise, a local non-profit serving homeless families in West Michigan.
You'll also learn tips on how to deal with bed bugs and fleas, and how to properly dispose of paint.
Joe and Kevin can be contacted through Junk King by phone or their website:
Enjoy the show!
With the recent passage of the Trump Administration's Tax Cuts and Jobs Act, there have been a lot of questions from real estate investors and rental property owners about how the new tax changes will affect their tax preparation for 2017 and beyond.
Here to explain the changes and their potential benefits to investors is Duane Culver, CPA and President of Culver CPA Group. Duane will give us the low-down on the following topics:
The Return of the Education Deduction, changes in 2017 regarding Depreciation & Bonus Depreciation, Section 179 and how it affects your ability to write off capital expenses, the drop in tax rates throughout the different tax brackets, changes to the Standard Deduction, ways in which congress is trying to simplify Tax Laws, how those tax laws affect LLCs, and ways in which Real Estate Investors save tax dollars from these changes.
If you're about to sit down & do your own taxes, or you have a professional prepare them, it pays to learn as much as possible about tax rules & how they apply to real estate investing. The more you understand, the more you'll be able to use tax law to your advantage, avoid mistakes, and prevent IRS audits.
Duane can be contacted by email, his website, or phone:
Enjoy the show, and please take a moment to go to itunes to subscribe, rate & review.
This is a Special Re-Broadcast of last year's episode with Jeremy Cole and Ramon Huerta. You can WATCH THEM This Saturday, March 3rd at 7 p.m. on the show "Gritty To Pretty" on the DIY Network. HGTV has shown a strong interest in taking their show to series, so the more people who watch, the more likely we'll get to see more!
Whether you love or hate those HGTV shows on Rehabbing and Flipping, you're going to really enjoy today's conversation.
Ramon Huerta and Jeremy Cole host a 'Property Krawl' every month in Kalamazoo, Michigan, where they invite all levels of investors to accompany them on a tour of properties that are ripe for rehabbing, flipping, and buy & hold investing.
Ramon is a realtor/investor, and he chooses the homes to view, while Jeremy uses his contractor skills to help others understand the costs involved in rehabbing the properties. Together, they strive to help beginning investors understand the complexities of acquiring, rehabbing, and owning rental property, while sharing creative strategies with the more experienced investors who also join in.
We also discuss the economic dynamics of Kalamazoo, a city where you can still buy houses for under $10,000.
I highly recommend visiting the facebook page for 'Property Krawl', where you can see videos and photos of the events. You should also take a moment to go to itunes where you can rate and review this podcast!
When it comes to raising Other People's Money, syndication is both a science and an art. There are specific and time-proven ways to do it right, and many ways to do it wrong.
Today David Toupin, a Detroit-area investor and syndicator, will share his top-ten tips on Successful Syndication. David's company, Borland and Toupin Holdings, owns and manages a $6 Million Dollar Portfolio of 120 units, as well as single-family fix & flips.
David will discuss the tools he uses as an investor, he'll explain 'Preferred Returns' and 'Annual Returns', and why its important to make your investment opportunity as easy as possible for your investors to understand.
This is a great episode to listen to if you're interested in Syndicating Multi-Family and Apartment investments, or if you're curious about raising Other People's Money.
You can contact David through his website or facebook page:
From the outside looking in, Shaun McCloskey was a successful real estate investor and making a ton of money doing short sales and pre-foreclosure investing. But deep down he know that he was working way too much and becoming consumed by his business. He needed a better balance, and a better vision for his business.
Today Shaun discusses the Lifeonaire strategy that he discovered, and how it helped him redefine his relationship with his family, with success, and with the debts he had taken on to build his business. He also explains how anyone can design their own vision for what you want your life to look like, and then reverse engineer your business to make sure it serves your vision
Shaun also tells us why the worst day of his life was the day he made $102,000 on a deal, and how he felt when he lost $87,000 on the first deal he ever did after losing his job. He's since gone on to do over 300 deals and only lost money three times.
Shaun is also a featured speaker at the RPOA's annual Real Estate Investor and Landlord Conference & Expo, which is happening February 22-24 in Grand Rapids, Michigan.
You'll definitely want to hear him speak live, and you can register for FREE at www.rpoaonline.org
For anyone who works too hard and wishes they had more time to spend with their family and friends, this episode is for you!
Is it possible to buy a house that no one else wants for $5,000 and then turn that house into a successful money maker?
My guest today, Larry Goins, says that not only is that possible, but you can earn more than the average investor makes on a house worth 10 to 20 times that amount. And he has real-life examples to back that up.
Larry has been investing in Real Estate for over twenty years, and has developed strategies that allow him to buy 10 to 15 properties per month without ever leaving his office.
Today Larry shares his "Filthy Rich" techniques using Seller Financing and Lease Options. Larry also gives examples of how he uses facebook, craigslist, and ebay to find leads and buyers.
You can also hear Larry speak live at the RPOA's Annual Real Estate Investor and Landlord Conference & Expo, which is happening in Grand Rapids, Michigan February 22-24, 2018.
This is an event you Don't Want to Miss!
You can register for FREE at www.rpoaonline.org
Chris McClatchey initially built his Real Estate Portfolio the Traditional Way - by using Bank Financing. But then it struck him; the majority of his cash flow was going back to the bank to pay off his mortgage. Not only that, but the first seven to fifteen years of mortgage payments were primarily paying off the interest on his loan rather than paying down the principal.
Chris knew that there had to be a better way, and that's when he came up with "The Power of Zero". By using seller financing with zero percent interest, Chris was able to outbid other investors by overpaying for the property, but he was still paying much less in interest over the duration of the loan.
Today, Chris shares "The Power of Zero" with us, and explains why its so important to listen to the seller to figure out what they really want, why the terms of the loan are much more important than the price you're willing to pay, the three elements to a great deal, and how to present an offer and understand the psychology of the seller.
And you don't want to miss Chris when he appears as a featured speaker at the 2018 Annual Real Estate Investor & Landlord FREE Conference & Expo, here in Grand Rapids, Michigan from February 22 thru 24.
You can go to www.rpoaonline.org to register for FREE!
Twenty years ago, Donna Bauer was making $1 an hour babysitting as a stay-at-home Mom. Then she learned about Buying Notes and made over $5,000 on her first deal. Since then, she's taught over 100,000 people how to profit from buying notes using her tried & true methods.
Today Donna shares with us why she prefers Seller-Financed Performing Notes, and how she profits from them without using any of her own money. We also compare the risks of buying Performing v.s. Non-Performing Notes and learn the best sources for finding Sellers.
Donna also discusses the Return On Investment she expects, and how you can accelerate and increase your profit by helping the buyer refinance the note.
Donna's experience and tactics can help you take your real estate investing to the next level. You can also be there when she speaks at the Michigan Landlord & Real Estate Investor FREE Conference, February 22-24 in Grand Rapids, Michigan.
Goto www.rpoaonline.org to register for FREE
Anytime we talk about Investing in Apartments and Multi-Family on this show, there is always a huge response from our listeners. So I know you're going to enjoy today's conversation with National Expert Anthony Chara, the President of Apartment Mentors out of the Greater Denver area.
Anthony has invested in over 1,700 units worth over $45 Million in value, and he's ready to share his experiences with our listeners. You're going to find out how his apartment investments weathered the great recession, how he finds and funds his opportunities, the types of due diligence he does on the property and the market, and why its so important to know whether the city & state is tenant or landlord friendly.
Anthony also shares the challenges he's faced when taking over a struggling property, the details of a completely vacant 96-unit he acquired for $311k, the seller who committed fraud by cooking his books, and his current market perspective and how its shaped by local cycles.
I know you're going to learn a lot from today's conversation. You'll also be able to see Anthony in person when he comes to Grand Rapids for the 2018 Michigan Landlord & Real Estate Investor FREE Conference and Expo, which is happening February 22-24, 2018.
You can register for FREE at www.rpoaonline.org
** My apologies to Jacques and Paul. When I uploaded their episode there was a technical issue that only allowed the first 20 minutes to be heard. Now that the issue has been fixed, you can enjoy the full episode! **
Not too long ago, Paul Leason and Jacques Cyr left the corporate world to become full-time real estate investors and real estate agents. Today they share their experiences with us, as well as the up's & down's they've encountered along the way.
We'll be talking about thieving contractors, renting to prostitutes, getting raided for corndogs (yes, we'll explain), red flags to look for when screening tenants, and watching your property go up in flames! Through all their challenges, Paul and Jacques have managed to find success by watching the numbers and following the data.
Jacques also explains the meaning of BRRRR (Buy, Rehab, Rent, Refi, Repeat) and how he's applied those methods in order to force appreciation on his investment properties.
Paul shares his experiences with the Grand Rapids Rental Rehab and "Get the Lead Out" programs, and how he's used them to pay for his rehabs.
I know you'll enjoy this episode. Both Paul & Jacques are Berkshire Hathaway Real Estate Agents, and work with all types of investors, including out-of-town buyers, to find rental property. You can contact them through email or their websites:
Jacques phone # 617-775-9352
Many Successful Real Estate Investors tend to have one thing in common; They've developed systems and processes that have exponentially increased their deal flow and ability to get deals done.
Today we explore that topic with Brittany Calloway, a real estate investor, consultant, and CEO of Top Notch Property Solutions. Brittany describes how she accidentally became a real estate investor while helping a family sell their distressed property.
Brittany quickly realized that in order to increase her acquisitions and deals, she could use technology that's already available to investors. Brittany shares her experiences with Virtual Assistants and outsourcing her tasks.
Brittany has also systematized how she raises Private Money, and has utilized Linkedin to net over $500,000 in investor funds. We'll also learn her favorite software application, as well as how she's managed to duplicate her business and move into New Markets.
This episode is a "must listen" for all serious investors. Brittany will also be a featured speaker at the Michigan Landlord & Real Estate Investor FREE Conference & Expo, which is happening February 22-24, 2018 in Grand Rapids, Michigan.
You can register for FREE at www.rpoaonline.org
Many Real Estate Investors have heard that they can save big money on taxes and increase the value of their retirement funds by investing in real estate using a Self-Directed IRA, but they still haven't taken the steps necessary to make it happen.
On today's episode we talk with Edwin Kelly, one of the nation's top experts on Self-Directed Retirement accounts to learn why they're such a great tool & vehicle for building legacy wealth. Edwin also share's his Triple-D, three-step process: DECIDE that you want one and set it up properly, DEPOSIT the money you'll need to work with, and DIRECT that money into the investment vehicle of your choice.
Edwin does a great job of simplifying the process in a way that might finally get you to take action. He also shares stories of his clients who have used SDIRA's to eliminate their credit card debt, shield their wholesaling income from earned income tax, and created thousands of dollars in monthly retirement income off of an initial $4,000 investment.
We also bring the conversation to a higher level when Edwin answers my questions about investing in syndications through SDIRA's and the consequences of UBIT and UDFI taxation on leveraged investments.
I know you'll get a lot of great, action-able information from this conversation. Edwin will also be a featured speaker at the RPOA's Annual Real Estate Investors FREE Conference and Expo, which is taking place February 22 - 24, 2018 in Grand Rapids, Michigan.
You can go to rpoaonline.org to register for FREE!
Today we are taking a deep dive into buying properties at Huge Discounts through Sheriff Sales and Tax Auctions.
My guest today is Stephen Benedict, an investor in the West Michigan/Muskegon area with over 120 units in his portfolio. Stephen knows all the in's & out's of buying properties at Sheriff Sales and Tax Auctions, and he has agreed to walk us through the process.
Stephen talks about his first Sheriff Sale property, how the process works, why you should buy the first mortgage and not the second, the best & worst deals he's done, mistakes he sees other investors make, and understanding the TRUE costs of acquiring and rehabbing a property.
Stephen will also explain the differences between Sheriff Sales and Tax Auctions, and how Tax Auctions changed with the advent of the Land Bank and money laundering rules.
Stephen makes it clear that Sheriff's Sales and Tax Auctions are a high risk type of investment, but if you do your proper due diligence the rewards can be extraordinary.
Enjoy the show, and please take a moment to give us a review and rating on itunes.
If you'd like to contact Stephen, his email is:
For the 100th Episode we decided to shake things up a little. Charlie Kao is back in the studio and turning the table on host Brian Hamrick, making him answer the questions this time.
Charlie gets Brian to discuss the new asset classes he been investing in this past year, including office, self-storage, and notes. They also discuss the different members of Brian's team, and what he looks for in successful partnerships.
Brian shares his outlook on the market and whether or not he believes there will be another real estate bubble, and how he's positioning his real estate assets to protect his portfolio in a downturn.
This is a fun and informative conversation marking our 100th episode. If you've been enjoying our show over the past two years, please let us know by giving us a rating and review on itunes.
At the age of 44, Hunter Carlile lost his corporate job and had to figure out how he would support his wife and three kids. That was over four years ago, and in that time Hunter has bought/sold or rented over 200 houses! And he's done it primarily through tax lien investing.
Today Hunter shares his tax lien and investing strategies. We'll talk about how he finds distressed properties, fixes them up, and either sells or holds as rentals. We'll also discuss the in's & out's of tax lien investing and the pitfalls investors need to be aware of.
Hunter also talks about his experiences using direct mail to find motivated sellers of distressed properties, why you should always avoid lender escrows for taxes and insurance, and how he relates to & works with home owners who find themselves in foreclosure.
Hunter has also developed software that tax lien investors can use to simplify the process, and he's a coach and trainer as well. You can find out more by going to his website or contacting him through email:
Enjoy the show!
When many of us think of Smart Home Technology we picture Amazon Alexa or Google Home turning our lights on and off or telling us the temperature and time. These devices can be fun and addictive, but how useful are they to real estate investors and rental property owners, and can they improve our profits?
Sean Miller is the President of Point Central, a provider of Enterprise-Scale Home Automation Solutions, and today he's going to tell us how Smart Home Technology is revolutionizing the way Rental Property Owners and Managers do business.
We'll discuss the true meaning of "Smart Home Technology", and how the Analytics and Real Time Property Intelligence can help monitor your systems and utility usage, as well as identify potential problems before they happen.
We'll also discuss the day-to-day practical uses of this technology, such as remotely controlling vendor and tenant access to your units, eliminating the need for keys and re-keying when a tenant moves out, lowering your utility bills, and adding security and video surveillance.
Smart Homes can also benefit your tenants and Airbnb guests. Units with this technology command higher rents and increase tenant retention. And best of all, owners and investors can see a Return-On-Investment upwards of 25% of the cost of installing these systems.
I know you're going to enjoy this fascinating conversation. You can learn more about Enterprise-Scale Home Automation Solutions by visiting the Point Central website:
Tyler Sheff has figured out a way to build wealth by solving other people's problems, mainly by helping them invest in Buy & Hold Real Estate in order to realize tax benefits that will help them keep more of their income.
Today we discuss the difference between ordinary income and capital gains, how Flips and Rehabs are taxed differently from Buy & Holds, and things you need to consider before leaving your job and eliminating earned income.
Tyler also shares his experiences investing in Airbnbs and non-performing notes, working with the police department to improve his acquisitions, and how he doubled the value of his first Multi-Family Investment in two years.
Tyler is also the host of "Cashflow Guys Podcast" and you can learn more about him at www.cashflowguys.com
Charlie Kao negotiated a Commercial Land Lease for one of his father's properties when he was only 25 years old. But it wasn't until he had a medical scare that he began taking real estate investing seriously and created a mission statement that would guide him as a "Lifestyle Investor".
Today Charlie shares the many types of investments he's succeeded with, as well as the big loss he took on one of his flips. Charlie discusses the lessons he learned from his father, why he likes to live in his flips, his airbnb experiences, tools he uses to enhance his efficiency, returns he strives for, and why he under-prices his rentals.
You'll also learn Charlie's personal reasons for working with certain non-profit organizations as a way to give back to refugee youths, as well as his future plans to invest in self-storage, and the unique criteria he's using that will lead to bigger profits.
I know you'll find this episode to be highly informative. Please take a moment to leave a review & rating on itunes.
Charlie can be contacted by email or phone:
Pat Sandro is one of the original House Hack Babies. The duplex that he grew up in was owned by his father, and the rent from the other unit helped pay for his diapers. From an early age, Pat was paying attention to the way his father invested in real estate and self-managed the 36 units he'd acquired. But it wasn't until after Pat became a physical therapist that he realized the true benefits of Real Estate Investing.
On today's episode, Pat shares the good times & the bad times. From the huge profits he made flipping condos in Florida before the crash, to the money he lost after 2009. Pat talks about the multi-family properties he's acquired, the land contracts that provide 'mailbox money', and the 'do-it-yourself' management style he learned from his father.
Pat also tells us about the vacant home he purchased and the horrific discovery in the basement. You'll also learn about Fair Housing Laws regarding Emotional Support Animals, and how Pat found himself in trouble when he unknowingly violated these rules.
This is an excellent conversation about the realities of owning and managing your own investment properties, and Pat doesn't hold back from sharing the good and the bad. Enjoy!
Get Ready to Get Scared by this Special Halloween Episode with Real Ghost Stories from the perspective of Rental Property Owners, Homeowners, and Tenants.
Whether you believe in Ghosts or not, sometimes strange and inexplicable things happen that make the hairs on the back of your neck stand up. Our guests today talk about the creaking doors, the footsteps, the feeling of being watched, and the sensation of seeing an apparition of someone long dead.
With stories from old and new guests: Ann Finkler, Gary Hall, Steve DeKoster, Brandon Krieg, John Potter, and Sue Dejonge.
I know you'll enjoy this episode and I'd appreciate it if you'd share that enjoyment by giving us a review and rating in itunes.
Sooner or later every investor must ask the question "Where can I get the money to do my next deal?" Today James Eerdmans from American Realty Property Management and Finance of America Mortgage will help answer that question.
James is a prolific investor who has bought and sold hundreds of properties in the past 20 years. He's also well versed in the different loan products available to home buyers and investors.
In this episode we'll discuss the standard types of loans available to home buyers such as FHA and VA, credit score requirements, Private Mortgage Insurance, and the amount of money you'll need to put down (anywhere from 0% to 25%).
We also discuss FHA 203k loans, which allow homeowners the opportunity to roll their rehab costs into the amount borrowed.
James also discusses the differences between Conventional, Commercial, and Private Lending, and how they apply to investors. You'll also learn how to protect yourself from having your loan 'called in' during the next downturn, the meaning of 'portfolio loan', the number of residential loans you can have, and the different ways banks value your property.
If you're unsure of the different loan options available for your investments, or are looking for updated information on the lending industry, I know you'll enjoy today's conversation. You can contact James by email or phone:
Todd Warstler learned he was losing his job while attending a Lou Brown Real Estate Seminar. The news couldn't have been better received, as Todd had already decided that he could make a better living using Lou's techniques.
Today Todd and I discuss the "Rent-to-Own" system that has helped him replace his job income, and how he's used this training to provide affordable housing to residents who were not able to acquire traditional financing. Todd took Lou Brown's lessons a step further by providing Credit Restoration Services that help his residents fix their credit report and improve their credit scores.
Todd also shares the returns he shoots for when working with investors, the contractor nightmare he encountered, ways to save money on rehabs, and his opinion on the 'Fix & Flip' Shows made popular on HGTV.
There's a lot of great information in this episode for every type of investor. If you'd like to get a hold of Todd, you can contact him by email, website or phone:
Ann Finkler describes herself as an Explorer, Entrepreneur, Investor, and High Risk Taker. Whether she's Buying an empty Industrial or Office Building, turning a Historic House into a Successful Bed & Breakfast, or Restoring Damaged Homes, she has learned to look at everything with a Creative Eye in order to find Profit and Cash Flow in areas other people would avoid.
Today on the show, Ann tells us how she looks for properties that she can fit businesses into, and how that led her to purchase an industrial building that was only 30% occupied. She also shares why she is cautious about taking on commercial debt and how she funds her deals using private money.
Ann also shares tips and advice on how to protect your home after a disaster, and why getting to know your insurance agent is so important. Ann also looks for strategic partnerships, and shares the qualities she likes to see in potential partners. You'll also learn how Ann was able to retire early, but changed her mind after the events of 9/11.
There's a lot of great experience and information packed into this conversation. Please take a moment to let us know how much you enjoy the show by going to itunes to subscribe, rate & review!