On this episode of House Flip Masters Holly is joined by guest Mike Wolf. Mike has been investing for 27 years, Holly says that Mike is super laid back unlike most of the real estate investors who hop from one deal to the next. Mike is going to share with listeners his 27 year story.
Mike started in real estate entirely by mistake. Once upon a time Mike followed his mother’s dream of Mike becoming a lawyer - so Mike went to school and he racked up a lot of debt. Before going back to school he got a job at the phone company and that is when Mike bought his first property with no money down. Two years later Mike was still working at the phone company and paying off his student loans and the market started to take off and he found himself sitting on a good amount of equity. Mike admits that at that time he didn’t really love his job and figured that if he did this deal by mistake what would happen if he did it on purpose? Mike decided that he wasn’t going back to law school and also decided that he was going to qui his job at the phone company and continue to buy properties - so that is what he did. Mike didn’t want to take two years to get another property so he decided to fast track his property buying which ended up hurting him. Mike admits that at one point he thought he was a know-it-all and from mishaps with his fast track ideas he turned into a person who wanted to learn it all.
When Mike quit his job at the phone company working 8 hour days to working 16 hour days and was really starting to love his job until one day he started to not like the real estate business so much and was concerned that he didn’t think he could do it anymore and the passion started to disappear. It was at that point that Mike decided that he needed to figure out how to work smarter not harder so that he didn’t lose the passion that he had in real estate and so that he could get his life back. At that point he decided that he needed to hire people to help him manage his properties. At that time Mike was working in Canada doing everything but wanted to branch out in the United States which forced him to hire a property manager which he admits was hard to do because as an entrepreneur he wanted to do everything and entrepreneurs often have a hard time delegating work to other people. Mike found that by having a property manager they were able to do the job better than he would have been able to and in doing this he was able to get his life back. Now that Mike has all this time on his hands he enjoys traveling, spending time with his family, and volunteering. Mike says that he wants to help other entrepreneurs to get their lives back so that they can work smarter and not harder.
When Mike first started his real estate investing with a longterm approach and really purchased another property aside from the one he lived in as his retirement plan. Mike had quit his job and realized that he needed to get busy and find more deals so that he could make more money so that he could continue living his lifestyle and not have to go back to law school or go back to work at the phone company. Mike realized that he didn’t know what he didn’t know so he went out and networked so that he could educate himself and get those properties that he wanted and put his systems in place so that he could continue to make money.
Mike’s friends call him “The Homeless Millionaire” because he is always on the go staying in hotels and chasing the sunshine. Mike prides himself in not taking on any deals or projects that are stressful - he only does the deals that he wants to do. He enjoys teaching others about how to do what he is doing.
Holly asks Mike how his buy and hold deals work. Mike says that you need to have cash to do this but it doesn’t have to be your money. There are people who have liquid cash, or money in their retirement funds that are willing to loan you that money as long as you make the loan worth their while. Mike suggests offering 5% or 6% when using other people’s money.
Mike also advises that regardless of what you see on TV about house flipping it is not real and that very few people can do successful flips on a regular basis and there are a lot of things that can go wrong in any flip. He also advises that house flipping is generally not a sustainable business model for most people.
When you are borrowing money from other people you are creating a win-win situation for yourself and the person who is lending to you. You are building your portfolio and you are making that person more money on their retirement fund than that fund would make them normally.
When Mike is looking for a market he wants to check if the property is landlord friendly or tenant friendly. Mike advises if you get a bad tenant in your home they can live there for a year or more if they know how to work the system and you can’t get rid of them. Mike looks at that first and foremost. Secondly, Mike looks at is how does he get rich in real estate? Will the property appreciate? Are their jobs in the market, is the population growing? Mike also looks for a market that is diversified. Lastly, Mike looks at the 1% rule - how much money will you be able to generate? Mike says that if you don’t have the first two boxes checked off the third box will not matter and it will never happen.
Holly asks Mike to share his best advice for someone just getting into the real estate business and Mike says that he wants you to take a piece of paper to make 3 columns on it. In the first column header put ‘things you are good at’ and list all of those things, in the second column ‘things you are passionate about’ - even the things that you don’t get paid to do, and in the third column ‘things that are a good use of your time’ - even if these things do not generate income. Mike says that if what you write down is not in all three columns then it is not something you should be doing you should think you’re good at it, be passionate about it, and that it is a good use of your time. Do the things you love to do and should be doing and delegate everything else.
If you are interested in learning more from Mike the best way to do this is to attend his Master Class - you can text the word ‘LIFESTYLE’ to 7200 and you can attend this Master Class webinar for free.
You can also reach Mike by email at Mike@MikeWolfMastery.com he can send a link to his properties and you can get on a strategy call if you want to get involved - Mike is willing to help anyone with real estate and lifestyle all you have to do is ask.