In this episode of House Flip Masters Holly McKhann talks with real estate investor and philanthropist Rod Khlief. Throughout his career Rod has personally owned 2,000 single-family homes and several apartment communities. He has built several multi-million dollar businesses and is dedicated to giving back to the community with his Tiny Hands Foundation, which has helped over 40,000 unprivileged children.
Rod emigrated from Holland at age 6 and moved to Denver where he bought several buy and hold deals as well as flipped houses. Rod saw that he was making money in flipping houses but wanted to increase his cash flow so he bought homes in Denver, Memphis, and Florida. With the amount of properties that he had purchased in 2006 Rod’s net worth increased by 17 million dollars overnight, but it was the crash of 2008 that caused Rod to learn a 50 million dollar lesson, or seminar as Rod calls them. Rod likes to view failures as seminars because there is something to be learned out of something that doesn’t go as planned.
As a way to generate cash flow Rod started with flipping single-family homes but tells us that if you want to increase cash flow you need to take the money from flipping and invest it in a cash flowing asset so that you do not have work anymore. Because with house flipping every January 1st you have to go back to work and with cash flowing assets that is not the case, your money works for you.
Rod advises listeners that if you want to be successful you need to do the things that other people do not want to do. Rod makes most of his money doing the things others do not want to do. He started this tactic in Denver by knocking on the doors of people that had homes going into foreclosure and talked to those people personally about helping them with their situation. When doing something like this Rod emphasizes that you must come from a place of love and caring and not from a place of money because people will sense that and not be open to your help. You need to look for a win-win situation and if you do this you will make a ton of money just by helping people out of bad situations.
When you are getting lists and mailing them Rod advises that you do what others don’t want to do and take the extra step to get the phone numbers of homes that you see have potential and actually pick up the phone and call on those homes. Do no be afraid of rejection because it will get in the way of your success. There is a ton of money to be made in flipping houses if you are willing to do what other people are not willing to do.
Rod reminds us that to be successful in multi-family homes you need to have knowledge and not necessarily money, you can be successful in multi-family homes without money as long as you educate yourself listen to podcasts, create relationships, evaluate properties, and learn in your backyard and that is where you will get your intuition about properties.
If you want to get into multi family houses you need to study. Start with a duplex and work up from there or whatever you feel comfortable with, study and evaluate deals so that you know what you are getting into, learn terminology and develop relationships
If you’re thinking about getting into this or any other business Rod urges listeners to write down your goals, write down your why and what you want to achieve. When writing down your goals you also need to look at the other side of the goals and write down what will happen if you do not reach your goal because people will do more to avoid pain and have a greater chance of reaching their goals. Rod advises using pictures of the things that you want – make a visual representation of the things you want to help drive you to your goals – visualize to manifest. Rod reminds us that you are going to get knocked down and off track but the visuals will get you back on track.
With goals and success you also need to keep in mind the area of fulfillment. Rod had everything that he wanted but he wasn’t fulfilled so he took a page from Tony Robbins and his Basket Brigade and started the Tiny Hands Foundation. With business success and fulfillment from helping others Rod can appreciate and be happy about how far he has come in his life and career because success is empty without fulfillment
If you are interested in learning more about cash flowing assets you can listen to Rod’s podcast on iTunes, The Lifetime Cash Flow, or on his website www.lifetimecashflowpodcast.com
Listeners can also learn more about how to build a multi-family home portfolio by getting a free copy of Rod’s upcoming book, Lifetime Cash Flow, by texting Rod to 414111 – you will be put on a list for when the book is finished, no strings attached.
You can also reach out to Rod by going directly to his website at www.RodKhleif.com