July 2022 – REI INK

Real Estate Strategies And Tips With Jawad Dashti Of TooDash CRE

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If you want to succeed in real estate, it’s not enough to sit on the sidelines and learn everything. If you don’t put all of that knowledge to work, you’re not going to be able to do anything. You have to take action. Jawad Dashti the owner of TooDash CRE, likens it to playing Monopoly without knowing the rules. In this episode of Uncontested Investing, Jawad sits down with Tim Herriage to tell us how exactly this works for him. He also talks about making the “safe bet” in real estate and why you don’t have to aim to beat the bigger players all the time. Tune in and get some real, actionable tips that will get you going on real estate even through these trying times! — Watch the episode here Listen to the podcast here Real Estate Is All About Taking Action: Real Estate Strategies And Tips WITH Jawad Dashti Of TooDash CRE I’m with my buddy, Jawad Dashti. Jawad, thanks for coming. Tell the audience a little bit about yourself. I’ve been in real estate for years. I don’t find myself to be that great at it but I figured that if you make as few mistakes as possible, that alone makes it work out pretty well. You started as a plumber, correct? Yeah. I was in construction working for all these home flippers right before the 2008 bust. Everybody was bragging about how much money they were making. I figured that if they could do it, I could because I knew all about construction. How’d that work out for you? I learned that knowing construction doesn’t do anything at all with real estate. It’s a numbers game. I had to get up and put in some work attitude. To me, that’s what’s paid off the best. You’ve always been one of those people I admire in the DFW area. Every episode, we start with the Bottom Line Up Front, the BLUF. When I was in the Marine Corps, we used to brief generals. They would always say, “Don’t bury the lead. Get the most important information out and share it in case a General has to get up and leave a mortar fire or something like that.” What I’m going to do is give you two minutes to share what you think people should be thinking about in the real estate market, maybe what you think they shouldn’t be doing, what they should be doing or what you’re doing to continue to grow and also protect yourself. The best advice that I could give is that we’re going through some different times, which seems to happen about every eight years in the economy. That’s when the most money is made and lost. The people that win the game are the ones that pay attention. I tell people to look at the economy, what’s going on and all the transitions because everything’s changing. If you can try to determine where things are going, you need to think about 3 to 5 years ahead of the game. As you’ve seen, the office is changing and a lot of places are converting into multifamily. A lot of multifamilies are converting into multi-use. If you notice which way neighborhoods are growing and how real estate is changing and you can be a little bit ahead of the game, it’ll pay off for you. It’s a good time. The inflation has taken off and assets are growing. I have no concern about being in the game. For the people that think that the real estate market is going to crash because of the interest rates, I still think that mortgage rates are low compared to the average. If the whole world went bust, we’re all screwed anyway. Keep playing the game. If you commit to it, put in the work and try to think a little bit ahead, you’re going to do well. One of the things that stuck out the most to me following you on social media the last couple of years is the way you play the tax game. Where did you learn that? I can’t give credit to any books because I don’t read books at all. It’s funny, I can read stuff on my phone all day but reading a book, I’m allergic to it. It’s going to investor meetups, watching shows like this and REI groups. Believe it or not, there’s a lot of content from shows like this. I overhear conversations. When I see people who are smarter than I talk, I try to eavesdrop on them. I won’t hear everything that I need to know to fully understand the game but I can hear enough to hear a word like 1031 exchange or some kind of phrase like accelerated depreciation. I go home, google it and research it non-stop until I feel like I’m a master at it. I always try to tell people it’s like trying to play Monopoly without reading the rules. How do you expect to win the game when you don’t know the rules? Many people do that. People talk trash about taxes all the time. I love taxes because I don’t have to pay them. The IRS and the government make these rules to manipulate the economy. They’re paving the way for what they want you to do and paying a tax as a penalty for not doing what they want. If you play the game, you can make a lot of money and not have to pay them anything. That’s the way to do it. Read the rules. You own Precision Plumbing and multifamily, commercial, chicken coop and a bunch of single-family. Let’s start at the beginning, maybe on a high-level cover of how you progress from venture to venture. With the single-family, the first deal that I got, I was winging it. Luckily, it went well for me on my first deal. I purchased a single-family deal. Luckily, it was a

Relationships are the Key to Longevity in Real Estate Investing With Adonis Lockett

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Value every relationship that you make in real estate. It’s not about how much money you make. Real estate investing is a numbers game in a people business. You need to pay people what they are worth. You never know when you might need them again. Join Tim Herriage as he talks to the Director of Operations at LNH Capital and myRE360, Adonis Lockett about valuing the relationships you created in real estate investing. Learn more about myRE360 and why you need to use it for real estate investing just how you use Uber for getting a ride. Discover the importance of face-to-face meetings so that you can build that relationship. Start going out and meeting new people today! — Watch the episode here Listen to the podcast here Relationships Are The Key To Longevity In Real Estate Investing With Adonis Lockett One of my favorite people is with me, Adonis Lockett. How are you? Trying to make it, man. I’ve known Adonis for a while now. He was one of the first people we reached out to get on the show. Why don’t you take a minute, introduce yourself, and tell people who you are and what you do? I am the Principal of LNH Capital. I am the Director of Operations for myRE360. I own a real estate, brokerage mortgage, brokerage wholesale company, holding company, and property management company. I am everything real estate investing in 16 cities in 11 states. I remember when I first met you, my partner at the time was like, “There’s this guy from LA I want you to meet.” You are not from LA. You are from New York. One of the things we do that I like to do is it’s called the bottom line up front. When I used to brief generals in the Marine Corps, I was in the intelligence analyst field. One of the things they would always tell us was to say the most important thing up front because if we got a mortar attack or something, the general’s got to get up and leave the tent. You need them to know the most important thing. Imagine our readers are in their car, and we need to let them know the most important things that are happening now in real estate that they should be doing, thinking about, exploring, and not doing. I’m going to turn it over to you. Let’s bluff. The number one most important thing in real estate is not the amount of money you earn, save or spend. The number one, most important thing is relationships. Relationships are the key to longevity in real estate investing. The real estate investing world is small. Everyone and every source of truth are one phone call away. No matter what city or state you are in, you are going to meet someone who has done business with you. They are going to have 1 or 2 things to say about you, good or bad. The one thing that will sustain you in this business is relationships. No matter how much money you’ve made someone or personally, at some point, the resources in real estate investing is finite. The relationship is going to be the only thing that keeps you in business for a long time. In real estate, the only thing that’s long-lasting is your name. Your name is everything. No matter how many times you change your company name, everything that you do, every relationship that you create, and every relationship that you destroy will be tied to you personally. Ten companies over, there is a name that’s a quarterback in those companies. The relationships that you create and destroy will be the reason why your real estate business expands, scales to unmeasurable heights or be the reason why it stalls out and becomes stagnant. One thing I want everyone not to make the same mistake that I did was that a working relationship does not work out. That does not mean the relationship as a whole should be torpedoed. Transactions will come and go. Relationships can survive bad transactions if you know how to conduct yourself properly. It is a numbers game in a people business. In myRE360, what do you do there? MyRE360 is a void that exists in the real estate investing industry. Picture this, when you don’t have a car, and you need a ride up the road, what do you do? You call Uber. You call Lyft. When you need to get a house for the weekend, you go to Airbnb. When you need to find something online, you go to Google. When you need to insert some service, there are household names that you go to. If you need a painter that’s going to paint your living room, where do you go to find that painter? If you need a title company, if you need a gardener, name the one place that you go to find a title company, a painter, a gardener or a cabinet supply. Name one place that is the everything go-to place for real estate investing. Many investors go to Facebook. That’s my point. Facebook is not a real estate investing platform. Airbnb does one thing. Uber does one thing, offer transportation. MyRE360 is the void that exists in the real estate investing industry. One hub for everything real estate investing. Anything you want to learn in real estate investing, you come to 360. Any vendor you ever need, title company, insurance company, painter, carpet cleaners, and you need a cabinet supply, 360. Any vendor or deals you need, and if you are having a problem finding deals, come to 360. You need a project management system, and you come to 360. Anytime you think of real estate investing, you think 360. Why was that important to you to create? I have been in the business for several years. In year 7, I was 50 houses flipped. I’m five rental

Why Vertical Integration is Crucial for Growing your Business with Josh Wilson

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What is it like to make a ton of money and grow companies that weren’t yours? Our guest, BRRRR method expert Josh Wilson, knows what that feels like, and it became the turning point for why he started figuring out ways to buy real estate. In this episode, Josh talks about how he started in property management. He shares how he discovered the BRRRR method and incorporated it into the vertical integration model. Over the years, Josh has turned $150,000 into over $15,000,000 using the BRRRR method. He now runs a BRRRR Bootcamp that helps other budding investors learn the ropes of the business. Join in and learn how he does it! — Watch the episode here Listen to the podcast here Why Vertical Integration is Crucial for Growing your Business with Josh Wilson I’m joined by Josh Wilson. Josh, thanks for being here. What’s going on, Tim? It’s just another beautiful day in Dallas, Texas. Why don’t you take a minute to say hello to everybody? Tell them who you are. I’m Josh Wilson with the BRRRR Bootcamp. We teach the BRRRR Method. In addition to that, I got started in real estate by learning how to do property management and how to be an operator when it came to real estate. I stumbled upon the BRRRR Method several years ago. That is where everything blew up for me. I was your traditional investor that was doing your 20%, 30% down payments, then found out about the BRRRR Method, and completely blew up my portfolio. My wife and I have been BRRRR-ing since before it was cool. I love that we get to talk about this because it’s one of those no money down things that people don’t understand. I like to start these episodes with what I call the BLUF, the Bottom Line Up Front. When I was in the Marine Corps, I would brief generals. One of the things they used to tell us was, “You’ve got to make sure you say the most important thing up front in case the general needs to leave.” What are the most important real estate trends we’ve faced now? Where do people need to be focused? One thing you’ll hear me say a lot is vertical integration. That is what I have founded and been able to build my companies on. When I say vertical integration, what I mean is I have a property management company. We have a rehab company. We also have a sales brokerage and an acquisitions department. We are vertically integrated within our companies. We are now able to essentially take the entire process and put it under one roof. From an efficiency standpoint and economy scale standpoint, it is massive to be able to scale a portfolio. Without that vertical integration, we would not be able to take a $150,000 loan that we started out with as our private money loan and BRRRR-ed it all the way into over a $15 million portfolio. It is higher than that now. We’re growing by the millions about every couple of months. It is massive. Vertical integration is huge. It’s one thing that I’m an advocate for. I teach a lot about it. I love the concept of vertical integration because whether you’re doing $1 billion a year in business or $1,000 a week in wholesales, the more of the transaction you can control and influence. Even more, you do not rely on someone else. One of the worst things about this business for me is that so much of your word depends on other people’s performance. Even down to my new details when it comes to maintenance or rehabs, we’re in an economy where contractors are not around, not available, or their prices are too high. When you have vertical integration, you are able to take that rehab piece. We have our own in-house team. We are in control of how fast our projects get done, on time, and under budget. That is huge for us. Let’s go back in time. Clearly, you are a Harvard-educated quantum engineer that has figured out how to create words like vertical integration. I would like to know more of your story, how you got here, how you ended up doing this, and where you think that you can help people that are reading. It all started back when I was a kid. There was a guy on the TV by the name of Brad Richdale. He sold these infomercials about all these yachts, jets, and everything on the TV. I was seven years old. I told my dad one day, “Dad, I want to do that. I want to own a yacht. I want to own a jet.” My dad was like, “Okay, son. Whatever, no big deal.” I told him, I was like, “I will work. I’ll cut grass. I’ll do whatever it is. Can you buy me the infomercial? Buy me his little cassette recordings.” He bought me the actual infomercial. I then took that and went to my mom’s office. She was a secretary at the time. I took it and I photocopied it. I put them into manila envelopes. I went door to door and sold them for $100 apiece. I took his information. I had no idea, but that was the entrepreneur in me. I was trying to take a product, go out, resell it, and make money. That started my spark. That flopped and only lasted for a week. My wife and I were sitting around fifteen years later. She was like, “HGTV, look at these people, flipping houses, and doing all this stuff.” I had a little bit of a bug. I had an itch. I wanted to get into real estate. The only way for me to get into real estate was to learn how to manage properties. I didn’t have any money. I was broke. I ended up working for a property management company. A year later,

How Instant Gratification Affects The State Of The Market With Suzanne Andresen

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Most real estate investors find it difficult to source their assets for their portfolios and forget to make sure they do the appropriate due diligence. In this episode, Suzanne Andresen shares some advice for the investors and explains how important conducting your due diligence is. She also talks about your lifestyle choice and how it affects your property to be under equity. Listen to this episode and hear what tips Suzanne provides for investors. Plus, she explains what the REI Referral Network is all about! — Watch the episode here Listen to the podcast here How Instant Gratification Affects the State of the Market with Suzanne Andresen I’m here with my good friend Suzanne Andresen. Suzanne, Thanks for stopping by. Thanks for having me. I’m glad you are here and in the interest of time, why don’t you go ahead and tell everybody a little bit about yourself. I have been in real estate for many years, selling real estate from my dorm room at the University of South Carolina in 1986 as a Hall Adviser. For whatever reason, I kept going forward with that and worked at several publications in the space but certainly am happy to be part of the ownership at REI INK Magazine. We love the publication we have. It’s been around for several years. It’s a well-respected messaging platform for the real estate investor space. We have also developed our referral network REI Referral Network, which is an opportunity for investors to connect with real estate professionals to help source acquisition and disposition strategies for their portfolio solutions. From there, we launched our Highest-and-Best acquisition platform, which is a way for investors to connect with assets that are off the market. It’s designed to premiere the assets on Tuesdays and go on contract by noon on Friday Eastern. Truthfully, it goes to the highest and best offer that’s been submitted. It’s been very successful and it’s a great way for investors to source some of the assets that are difficult to find and we found a way to make it successful for them. I’m a big fan of REI INK and the publication. You and Bob are doing an amazing job. Having been a real estate investor for many years, I get a lot of things in the mail. I enjoy getting it in the mail, looking at and reading it. I find a lot of value in it so kudos to you. What I like to do is start with what I call the Bottom Line Up Front, the BLUF. When I was in the Marine Corps as an intelligence guy, I would brief generals. The first thing you have to learn is you never buried the lead because you could get mortar fire or the general could have something more important to do. He may have to get up and leave. You need him to know the most important thing that you had to tell. Suzanne, try to cover the most important trends that you see in real estate, things that you see that maybe investors should be doing or if there’s anything you see or hear that investors shouldn’t be doing. My best advice to give investors is as they are finding it very difficult for them to source assets for their portfolios, make sure they do the appropriate due diligence. There are so many assets coming out of forbearance and foreclosure properties that they can miss overlooking important elements that can negatively affect the profitability. Some of the things that we do in our newsletter every Monday and Thursday are to feature stories and assets somewhere in the country. We share how it’s performing on the local MLS, both from a listing and selling perspective. You get good local market metrics for the information but we also then show what the rental rates are. This helps give some of the buy and hold investors, the opportunity to evaluate what they are using for their rental analysis and what they are charging for it. A lot of times, it gives investors an idea that they are probably undercharging. You can’t automatically go up $200 a month but you can start preparing to increase your rent for your tenants and get them to what the market rates should be. We also share some of the foreclosure and REO asset analysis through that area. Perhaps you like the market but not the asset that we are sharing. We are teaching you to source an asset and work with an asset management company. We have got great connections for that. It gives you the ability to buy your assets properly. It’s okay if there’s a municipal lien against it, you want to know that up front. Knowing that there are two years of delinquent real estate taxes, that’s not a big deal. You put that into your evaluation and how you are going to make your bid. That’s part of going about it with the correct due diligence. We are in a market where valuation is off the map that has to stabilize over time. We can’t maintain a 20% overvalued asset. In the 2014 market, we saw the real estate mortgage debacle and all of these issues coming out of it caused by bad lending practices. The term that came out of that was underwater. All these assets were under water. We are now facing a new term in this market. It’s Under Equity. I’m guessing it’s going to happen between the March and May 2023 timeframe. We are going to transition the underwater market to under equity, which is unfortunate for all of the investors or homeowners in this market because they have purchased these assets at a higher percentage rate and not going to be able to afford that when they sell. What it leads to for the investor market is a need for more rental properties and that’s how we need to make sure we go

The Importance Of Establishing Systems And Processes In Real Estate With Casey Smith

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Systems and processes are essential because they are the veins that allow the flow of work to be efficient. Just like in any other business, real estate investors need to establish systems and processes, too. In this episode, Dallas real estate investor and the Owner/Operator at Atlas Transaction Coordinator Services, Casey Smith explains how systems and processes are essential to any business and how they have been very important to hers. She explains why you need to treat your investments like a business. She also shares why delegating tasks, doing a SWOT analysis, and learning continuously are vital to your survival as a business owner. Tune in and gain insights that will help you take your business to the next level! — Watch the episode here Listen to the podcast here The Importance Of Establishing Systems And Processes In Real Estate With Casey Smith In this episode, I’m joined by a local legend here in Dallas, Casey Smith. Casey, how are you? I’m wonderful. Thank you. Why don’t you tell the audience a little bit about yourself? I’ve been in Dallas and in Texas for many years. I have only been in real estate for a few years. However, I have an interesting background as a media analyst for a company out of Zurich. That’s a whole other life, but I do feel like I was groomed to be in real estate by my background. After getting a Master’s in Politics and Media Studies, I went into media analyst, eventually to sales, and tumbled into real estate. I’m a licensed realtor here in Dallas. I only work with investors and only people doing fix and flip or wholetails. I don’t deal with a lot of buyers. I’ve got that on the side. I own a company that does transaction coordinator services for investment companies nationwide. Most of the people reading this, basically handle the paperwork, the timelines, and communication. We do that and that covers my bases. I also do invest in properties myself. Casey, I start every week off with what we call the Bottom Line Up Front, the BLUF. When I was in the Marine Corps, they always said, “Never bury the lead.” When you go in to brief the general, make sure that he knows the most important thing up front in case he has to get up and leave, you take mortar fire or something like that. Bottom Line Up Front is the most important thing you see happening in the market now, things that you think investors should be doing, and things you think they shouldn’t be doing. On the BLUF, go. The bottom line is that a lot of things depend on a lot of things. I ascribed to Ray Dalio’s philosophy that if you’re worried, you have nothing to worry about. If you aren’t worried, you probably have something to worry about. You should be focusing on reality and what is happening in real-time because, at the end of the day, you can’t predict a lot. It’s important that you focus and treat investment decisions like you would a business. Even the stocks, you’re just purchasing tiny pieces of businesses. If you don’t have the mindset to understand the systems, the processes, and the supply and demand for whatever that business is, then probably you shouldn’t be investing in that. Most of the people that are probably reading this are either starting their own business, running their own business, or looking to invest. Those can be combined things. You can only really deal with identifying what’s important to your business and what you can know. If you’re making predictions, investments, or decisions based on fear or a prediction of what’s going to happen, you might find yourself in a little bit of trouble. I would highly recommend that you do that SWOT analysis that you would do on your own operation in any investment decision that you make. Lastly, I would say to focus on understanding that this is a long play. Investing in and of itself, money isn’t typically made on day one. You’re not looking for your cash returns up to 5, 10, or 15 years over that. If you start looking at your numbers that way, you’re not going to be as panicked about what’s happening in the first five. In keeping that overall perspective and looking at the microeconomics and things that are happening within your sphere, you will be able to identify certain patterns, pivot, move, and be agile. Bottom line is that you need to position yourself to be agile to be able to pivot when things shift and change and not be fearful. You got to buy right, pay attention, work in reality, and treat your investments like a business. Let me unpack that. Treat your business like a business. Are you telling me there are people out there that don’t treat their business like a business? It depends on what stage of business you’re in. I’ve got mentors that have helped me identify what stage I’m in and how to exit and enter the new one. Everyone has to understand where they are. Most of my clients with my transaction coordinating company are closing 5 to 10 deals, but we’ve got those guys doing the 1 to 4 that are in a different stage of business. They’re in the startup or perseverance phase where they’re surviving. They’re moving, transacting, and getting the money because they don’t know what’s going to shift. The companies that are in their viability stage are slowing down slightly. Maybe they’ve got some freedom where they’re not sitting in every seat and they can observe and watch what’s happening. Not everyone understands how to run their business or knows what to look at. Most of the mentorship that they’re getting in our sphere is from people in real estate, not necessarily people that have grown and successfully built or exited companies. Much of our businesses or businesses