On this episode of House Flip Masters Holly is joined by guest Greg Pinneo. Greg has over 40 years of experience in the business; he has been a full-time entrepreneur for that long. Greg has become a recognized expert in acquisition, finance, negotiation, property management, and the philosophical mindset that makes possibility a reality.
Greg shares with us the beginning of his real estate journey. When he was 8 years old he was looking forward to playing baseball because he had watched his older brother play baseball. When he was finally able to play ball, he went to the first game and instead of playing baseball the coach lectured Greg and his teammates on their financial responsibility to the team and sent them home with cans of Almond Roca to sell. He went home discouraged but after a pep talk from his parents he set out to sell that Almond Roca. He recounts that he skipped the first house because he knew the people that lived there were not nice and moved on to the second house. At the second house was Mr. Peterson, when Greg presented Mr. Peterson with the Almond Roca; Mr. Peterson invited Greg in to help him with his presentation. Mr. Peterson told Greg to never set a ceiling on what you are trying to sell, if someone wanted to buy several cans of Almond Roca don’t set your presentation up to limit them to one. He also told Greg that when he sets out to sell always bring references; it paves the road to your success. Greg reminds us to never set a ceiling to opportunity, be bold, and to bring references.
Greg got started in real estate investing due the way that his parents operated. Greg’s parents expected after high school for their children to become adults, to move out, and to fund their way through college and beyond. As a junior in high school Greg began to look at rental houses, he found one home that was a mess, a home that he would rather own than rent and put all the work into fixing it. At the time he was only 17 years old and the owner of the home offered to sell it to Greg. The owner drafted up a document for the sell of the house and Greg took it home to have his parents look at it, they agreed that it seemed decent enough so Greg decided to purchase the home. The moment that Greg was writing his first installment to his home he realized that he needed to buy more houses.
Holly asks Greg to share one of his more recent deals – Pinneo recalls that the basics of his very first deal can translate and develop as the deals get larger and as you become more experienced in real estate investing. When he looks at a real estate transaction he always divides up his transaction by finance and sticks, bricks, and dirt. Sometimes you don’t want the home but you want the finance package that the property brings. The current property that Greg is dealing with falls into that category where the financial package has a create return on investment.
Greg reminds us that real estate is the clothing that finance wears. Real estate is the reason for financing. Real estate is the excuse for a finance package. Every investor needs to major in financing and negotiating. You need to frame everything from the seller’s perspective; you need to learn to explain to the seller why this transaction is good for them.
Greg’s best advice for someone just venturing into the world of real estate investment is that the people you hang around, the book you read, the thoughts you think are absolutely critical; you need to control the input into your life. You cannot be a sponge to anything you need to control your influences and input. You need to define failure as not trying, you need to be fearless. And lastly, you have to study and learn every day of your life. Greg reminds us that personal growth will always translate to income and personal freedom.
If you are interested in learning more about what Greg is teaching or reaching out to him you can find him on his website at www.TheCoreCo.com
You can also reach out to Greg by phone or email
On this episode of House Flip Masters Holly is joined by guest Cody Hofhine. Cody is a wholesaler based out of Utah, who is having great success with only 2 years in the business.
Cody’s real estate investment journey started when he was working in insurance. After one year of work Cody brought home only $19,000. He realized that this wasn’t enough money and he needed to do something else, Cody attended some REA events where he learned about wholesaling and he fell in love. He started in May 2015 and in just 36 days he made more money on one deal than he did in a year of work. After seeing how good his first deal went he knew there was no turning back.
Cody finds all of his deals within five major counties in Utah. Cody and his team pride themselves on establishing relationships and trust with the sellers to let them know who they are and what they do. Cody feels that the face-to-face experience is one that produces more results and helps to build types of relationships that phone call conversations do not.
When hiring a team Cody says that you need to think of all the things that you hate and all the things that you love and hire out all of the things that you hate and eventually all of the things that you love so that your business becomes fully automated. Cody uses people in the Philippines to help out with the tasks that he does not want to do or have the time to do. Cody reminds us that there are people who love to do the things that we hate to do, he uses the people from the Philippines to help with his calendar, list scrubbing, and marketing. Holly asks Cody how he finds his help and he her that he uses a website www.UpWork.com - you create an account, make a job posting and interview by creating a task for them to complete.
Holly asks Cody how he gets his deals, he tells her that he started with direct mail and he continues to do direct mail doing 65,000 pieces every month! He also uses Pay per Click, Facebook marketing, bandit signs, door hangers, etc. Cody has his hands on several different ways to get out there so that he can get the maximum amount of deals a month. He says that he would not be willing to spend so much money on marketing if he the return on the investment wasn’t as great as it is.
Cody discusses Facebook marketing and how direct the advertising is. Facebook can be geared to specific individuals, zip codes, and audiences. Facebook will send your ad to the exact audience that you want your advertisement to go to.
Cody’s best advice for people that are new to real estate investing is that real estate is a phenomenal market to be in and that there is no bad time to get into real estate! Get involved today no matter the state of the market. He also advises that you do not reinvent the wheel, there are so many successful people in this business that you can use as a resource to get educated that can help you start your business at a higher level than if you tried to start from scratch.
If you are interested in getting in touch with Cody to learn more about wholesaling visit www.InvestorGrit.com - they deliver content and education about wholesaling, as well as offer the opportunity to chat with someone from the team.
Cody also has a podcast called Wholesaling Inc by Investor Grit
You can also subscribe to the Investor Grit YouTube channel
On this episode of House Flip Masters Holly is joined by guest J Massey. Unlike other episodes where Holly introduces the guests, she asks J to share his story with listeners. Before sharing his story J reminds us that no matter what our stories are not over and his story is just what happened to him to make him wake up and to get out there to do something.
Prior to real estate investing J was a financial planner and his wife was a recruiter by trade. J and his wife were experiencing a lot of great things in their life together and everything seemed to be going their way. J and his wife both experienced serious medical problems that left them squatting on bank owned property with a credit score of 398. A friend suggested that J should become a real estate investor; he agreed that he would take the leap into real estate investment as long as his friend would show him how to do it. From the days of having no money J and his wife have come a long way.
Holly asks J to share with listeners his first deal – J says that most investors when looking back at their first deal realize that they would never do any deal that same way again. First deals are crucial and they are the starting point to your investment success. J met the owner of his first deal at a networking event, the owner was behind on payments and needed additional money on top of payments being brought up to date. J had a deal but he had no idea what he needed to do to get his deal off the ground and running. He knew nothing about rehabbing a house, getting a contract, opening escrow, etc. J was able to go back and forth between his friends to get the answers to his questions and to get this deal closed. J and his wife had no money and were still living in bank owned property but they had the deed to a rental property. Holly reminds listeners that you don’t know what you don’t know, until you are in it. J knew nothing about real estate investing and relied on his friends to help him with this deal, he did what he was told to do regarding inspections and adding air conditioning and eventually this property was a success. Three weeks later J was doing 11 more properties.
Recently J has embarked on a new passion – short-term rentals. As an entrepreneur J had not thought about doing these short term rentals before but once he heard from one of his students about the return on investments and the breakdown of the these properties he decided to understand everything he could about these types of investments. In a 60-day period J went from zero to 7 of these units. J advises that you if you live in an overpriced market where the rent has not kept up with the price of the house this is an area that you might want to look at.
When looking at short-term rental properties you have to keep in mind that you need to outfit your property with furniture and everything that you would need in a home, the people that are using these properties are those who might be having medical procedures or visiting family and they do not want to stay at a hotel and prefer the comforts of home. Providing the comforts of home results in good reviews of the property and of the items you outfitted the homes with.
Holly asks J about reviews; how important are they? J says that reviews matter, he references shopping on Amazon; people want to know what other real people think about the products that they are buying, the same goes for the properties that are being rented. J makes sure to go over and above with his properties because those reviews are what help to promote future prospects renting.
Holly asks J to share how he has educated himself on this new area of real estate. Vacation rentals or short-term rentals are relatively new to the professional real estate investor, but not a new concept. There is a not a whole lot of information out there to guide you on what you should do, this market is changing so quickly that any information that is printed becomes obsolete very quickly. J has filters set up online to be alerted when anything comes out about short-term rentals so that he can stay on top of what is current.
While there is a lot going on in the short-term rental area, some people might be discouraged by some of the news coming out about owning a property for vacation rental use. J reminds listeners that this is a new area and when something is new most people meet that with fear and with that fear comes protection. People want to protect what they know. While there are still many unknowns in this area J feels that there are two things that are known and you should be prepared for: licensing and taxation. Once a city knows how to tax and license these properties it will begin to grow and they will begin to embrace it.
If you are interested in learning more about short-term rental properties and gaining more education on real estate investment check out J’s podcast Cash Flow Diary.
On this episode of House Flip Masters Holly is joined by guest Kristi Cirtwill. Kristi is a native of Canada who has come to Southern California to flip homes and invest in real estate.
Kristi moved from Canada 10 years ago and before her move and before real estate investing Kristi tried her hand in several fields of work, Government, corporate, non-profit, before she realized that she wanted to do something differently. After reading Rich Dad, Poor Dad she realized that she needed to figure out how to get into real estate investing and make it work. She knew that she could make a business of real estate investing in California and decided to make the move.
Kristi started out wholesaling and did not know a lot of people so she joined the Real Estate Investment Clubs, she also got on Craigslist to find hard money – she got out there to just meet as many people as she could so that she could get to know the business. Kristi went to open houses and networking events so that she could educate herself and make contacts in the business.
Holly and Kristi discuss hard money and what it takes to get that money, reminding us that as real estate investors you often times cannot get money for free without some of your own money in on the deals. Holly says that without hard money lenders real estate investors probably would not do as well without them. When asked about private moneylenders, Kristi says that she does use private money; often time money to cover what the hard moneylender did not cover. Kristi says that some of her private moneylenders are just regular people that she meets at the Real Estate Investing Clubs. Holly reminds us that when seeking a private moneylender it is helpful to use someone who knows you and someone who trusts you because without a track record in real estate people might not be so keen on lending private money. Kristi suggests starting with hard money first because this is their business and you have to treat their money like it is your own. With a private lender you want don’t want to take someone’s private money and not know what to do with it.
Holly asks Kristi to share how she calculates her profit goal per deal. Kristi works with homes that are under $1 million, when calculating her profit she has a formula that runs her numbers. Kristi factors in the remodel costs and adjusts the purchase price so that the property gives a 10% return of the resale price per deal.
Holly asks Kristi what she likes most about house flipping. Kristi obviously likes being successful in real estate investing but she also prides herself in the jobs that her investments create; the teams and people that she needs to complete a flip. Knowing that she is creating jobs for those in her community is something that she really enjoys about house flipping.
Holly asks Kristi to share some tips that have helped her to be successful in real estate investing; Kristi says that she does not give up. It was helpful to het to find investors that were successful in this business so that she could learn from them and see that the end result would be there if she did not give up. She recommends focusing on the next deal and making sure that you are networking to obtain more resources. Work hard in the beginning so that as time progresses your work becomes more systematic and the job becomes easier and more manageable.
Kristi found her deals in the beginning by networking and 90% of her properties were coming of the MLS, now Kristi still uses networking to find her deals – about 50% come from realtors, the properties she gets now are ones where the seller wants discretion in their sell. The other half of her deals come from word of mouth and direct sellers.
Holly asks Kristi to share what it is like to be a woman in the business of real estate investing, Kristi says she did not let the male dominated business stop her, she feels that being a woman in this business has helped her because of her sensitive nature and her compassion. Both Holly and Kristi agree that being a woman in the real estate investment business is an advantage.
Kristi advises those that are just starting out in this business to be consistent and persistent, and to remember that sometimes you don’t know what you are good at until you start doing it. Real estate investing is a nice way to make a living and to make a full time business out of it. Kristi reminds listeners to make sure to get educated about the business.
On this episode of House Flip Masters Holly is joined by guest MC Laubsher. MC is president and chief wealth strategist of Valhalla Wealth Financial. MC also is the host of a podcast called, Cash Flow Ninja.
Originally from South Africa in 2001 after graduating from university he traveled where he ended up in the United States. He played rugby until 2007 during this time he started his journey into real estate investing. After reading Rich Dad, Poor Dad his view on wealth and money was changed. He purchased his first property and he grew from there. In 2014, he founded Valhalla Wealth Financial, where they help individuals, families, small business owners, entrepreneurs and investors create wealth outside of Wall Street.
Cash Flow Ninja looks at concepts and societal beliefs; the podcast questions concepts in popular mainstream media such as savings and investing as well as retirement. He has guests that discuss how they have created income through various ventures.
MC started in real estate at the bottom and worked for a wealthy real estate investor in Chicago and started working from the ground up by working on apartments. He then started leasing apartments, and soon became part of an acquisition team. After that he got his brokerage license and purchased his first property at 21 years old. MC purchased his first property while he was working on the operations side of property management and says that the biggest lesson an investor can learn is to know the operations side of you investment. You want to know how your cash flow statements and financial statements look and how they should flow, as well as areas that could use improvement.
Holly asks MC to share with listeners what knowing the operations side of your property really means. MC shares that when he bought his first property he handed it right over to a property manager because his property was overseas in South Africa while he was out of the country. While he was out of the country the tenants of that property realized he was not in the country and caused MC to realize that he needed to have screening and checklists together to know who is in your building and having strict guidelines to whom you will rent to, as well as consequences for guidelines that are not followed by the tenant. Performing your due diligence as a real estate investor is the most important aspect in your operations according to MC.
Holly asks MC to tell listeners what he specializes in and how he helps real estate investors maximize every dollar. MC teaches the infinite banking concept in his wealth management and education firm. This is a strategy that takes a specialized insurance as a vehicle. MC deals with dividend paying whole life insurance from a mutual insurance company; he uses this type of insurance as a vehicle because when you fund money into dividend paying life insurance it immediately becomes liquid, there is a guarantee on principal, and you earn a guaranteed interest rate on that amount, as well as being a shareholder in the company - If the company participates in dividends you are going to receive these. In addition to this product there are tax deferred accumulation, and the ability to withdrawal money tax-free. As a policyholder you can access the cash value that you have built up as a policy loan.
When using life insurance to take loans MC discusses interest rates – you will receive a fair market insurance rate depending on the insurance company. MC finds that the interest rate is usually between 4 and 5 percent. When you borrow money from the account you are borrowing from the side and not borrowing from the plan that you own. Utilizing insurance for loans help to fund your investments while still earning money.
If you are interested in learning more about MC Laubsher’s strategy go to his website www.CashFlowNinja.com
Send MC an email at firstname.lastname@example.org If you are interested and serious about learning more about this strategy MC will ship you a book from Nelson Nash, Becoming Your Own Banker – which will educate readers on this strategy and learning similar strategies to leverage your capital – Just mention that you heard him on this podcast.