real estate – Page 16

Operating A Real Estate Business With Rob Fuller

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Are you one of those that have a real estate dream they want to realize but just don’t know how? Then this podcast is for you! Join us as Rob Fuller, a real estate developer, investor, and visionary, shares his journey on getting into the business of buying and selling homes and gives exclusive takeaways on operating a real estate business! — Watch the episode here Listen to the podcast here Operating A Real Estate Business With Rob Fuller Welcome back. Thank you so much for deciding to spend your time with me again. I am joined by my good friend Rob Fuller. Rob, thanks for coming down. I thought I was going to have to remind you of my name. We’re that good friends. Rob, tell everybody a little bit about yourself. In 2007, I was graduating from college, thinking I was going to med school. I applied and was accepted for five interviews. I went to the first and pulled all my applications out. The funny thing is when I was dating my now wife then, she said, “You’re not going to go to medical school.” I was great at the courses and I scored well. I did well in the MCAT enough to get interviews, but I didn’t have the passion for it. What I had a passion for was real estate. A couple of years later, in 2009, my wife and I together bought thirteen houses. As time progressed, by 2016, we were buying 30 to 40 homes per month at the peak of what we were doing. At the time, there were a lot more distressed homes than today. We may see some in the next few months, who knows? I certainly haven’t seen many for the last couple of years, especially with the forbearance. There was none to speak of. As time passed, we were buying so many homes. It actually became a burden to operate with that many homes that we were buying and selling, and so we started looking at other opportunities. We had some rentals. We had quite a lot of rentals. We tried to hold on to as many of them as we could. Time passed and we started moving into land acquisitions and building from the ground up. We still sold a number of those units that we built to institutional rent groups to the point that now we have a number of communities that are in some phase of annexation, rezone, entitlement, horizontal development, or home building, all across the span where we’ll hire site contractors to do the horizontal work. Right now, we have three developments in horizontal construction. There are a couple that is supposed to be coming into that within the next few months. We’ve got a few that are in vertical construction. We’re building homes. That’s what we do now. We try to buy early. We make our money by buying right. That’s what I talk to investors about. There’s the old adage of location, location, location, which is imperative. It’s the right location in the right city at the right time. Also, it’s buying it right. You don’t speculate that this house is going to be worth $1 million in twenty years or in six months. It’s more like that for a fixed and flip. “This house is going to be worth 200% of what it’s worth today in six months from now,” just based on value increasing if you’re going to actually build into the value by increasing the asset. Some of that is probably jumping the gun a little bit about what we want to cover here, but that’s my story with investing and how I got into it. I can’t wait to ask you more questions. I start every episode with the segment I call the bottom line up front, the bluff. In the Marine Corps, when I used to brief generals, they always said, “Don’t bury the lead. Tell the most important thing up front in case they have to get up and leave.” I would like you to tell the audience the most important thing they should be focused on today, what they should be doing, what they should be avoiding, or things they should be on the lookout for. Good to go? Yes. Go. I think this goes back to what we were talking about, which is buying right. Over the last couple of years, you can make a lot of mistakes. With the market appreciating and what it has done, those mistakes could be covered up. With the market in its current state of affairs, lending is more difficult. The declining home values are potentially more dramatic in some markets, depending on where you’re at. Buying right is more imperative than ever. People have a tendency to over-project their ability to get things done in time, in money, in dollars, and in the costs of rehab. Those numbers are tight. Whether you’re buying to hold or you’re buying to flip, you want to make sure you get the numbers right on. Take a step back and maybe even take it to a mentor, a friend, or somebody else who can look at those numbers and say, “I don’t think that you’re being realistic here, here and here.” Listen to those people. There’s a saying, “Haters will hate.” That sometimes is the case. Sometimes we need a dose of reality. To say we’re going to do $50,000 worth of renovation in a month is probably not realistic. We need to take a dose of reality and step back. The economy is changing. I don’t think anybody knows exactly where it’s changing, how it’s changing, how long it’s going to take to change entirely, and what the long-term effects are going to be. There’s a lot of speculation. After something happens, everybody will be able to look back and say, “I told you so,” but from this day forward, they don’t have solid answers

Investment Insurance: Do’s and Don’ts For Your Real Estate Business With Corey Maxwell

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The market is about to shift, and you have to be ready. Investment insurance is one way to do that. In today’s episode, Tim Herriage chats with Corey Maxwell, Co-Managing Partner of Birmingham Insurance Group. With volatile market conditions, you must start thinking of ways to protect your business and assets. Corey is here to share his wisdom on how you can do just that. Plus, he gives valuable insights on what you should and shouldn’t be doing for your business to succeed. Don’t miss the golden nuggets from this episode, and tune in to get practical tips and mindset strategies that will position you for success. — Watch the episode here Listen to the podcast here Investment Insurance: Do’s and Don’ts For Your Real Estate Business With Corey Maxwell I have Corey Maxwell. Corey, welcome to the show. Thank you, Tim. I’m glad to be here. I’m so glad you’re here. I can’t wait to talk about fishing and college football but first, why don’t you tell our readers a little bit about yourself? I am one of the Cofounders and Managing Partners at Birmingham Insurance Group, BIG Insurance. We specialize in insurance for investors and property management companies. We take care of folks all across the country, 50 states. We’re also investors. We’re in the fight every day like everyone else is. We look forward to learning and growing along with everyone else here. Full disclosure, in December 2021, when we met, we entered into an agreement for me to sell REI Choice Insurance to you at BIG. You’re my partner, you and Jason Henderson as well. I like to get that out there. I wanted you to come here, Corey, because you and Jason are investors and have been involved in hard money and other businesses. We all operate the largest real estate investor-focused insurance agency in the nation. There are some others out there but I’m going to call us the largest. We’re the largest non-exclusive. Every episode, I start with the Bottom Line Up Front. Imagine when I was in the Marine Corps, I used to brief generals. They always said, “You don’t bury the lead. You have to lead with the bottom line up front.” If the general has to get up and leave the room or if there’s a mortar attack, you’ve got to get the most important thing. I’m going to give you two minutes to tell the readers the most important things that you see happening in the real estate market, industry and businesses and then some things that you think they should be doing and anything you think they should stay away from or not be doing. I appreciate the opportunity to share some ideas. In the marketplace, a lot is going on. Everybody’s paying attention to the midterm elections and inflation. Quite frankly, there are several things that I would recommend and focus on. First of all, being, “Don’t follow my path.” When it comes to achieving your goals, focus on your true self. Authenticity is key. You can’t fake it but you can fake it until you make it. Be yourself. Go all in. Many people have too many opportunities. I’m one of them. Instead of getting analysis paralysis, find something that’s working and stick with it. Be committed. When I say be committed, be fully committed. Focus your attention, accomplish your goal and then you can move on to the next task or opportunity. I also made a note to remind myself, as well as everyone else, to find a mentor. Learning it on your works but it’s one of the reasons why franchises like McDonald’s, Chick-fil-A and others that are well known make it a whole lot more often than mom-and-pop shops. Find a mentor, somebody that can show you the loopholes, opportunities and shortcuts. It saves you a lot of time, heartache and energy. The two number one things I would focus on are tied for first. Be ready because the market is about to shift as inflation continues to hover at highs and the mortgage business has slowed down at a pace faster than any other time in the last several years. Foreclosures are about to start back over again and people are going to lose their businesses. Be ready, have your money in order and go get them. There’s a lot to unpack there. Let’s dive into that. I’ll throw the hard part out there first. You said, “Don’t be like me.” What are we referencing there? Everybody has wins and losses. If you are going to be successful, you have to be willing to try but more importantly, to fail because failure is where the best lessons come from if you’re paying attention and you are willing to learn from the process. What I recommend is don’t follow my path but more importantly, find a mentor, somebody who has already been down this road, is familiar with the bumps and the turns and who can tell you to brake, accelerate, hang a left and right. You and I both have been in the ditch at some point in our lives. The last thing we want to do is get back in that ditch because, in the best scenario, we’re going to have to winch ourselves out. At the worst, we’re going to smack a tree and game over. Many people that are successful attempt to pretend as if they were never unsuccessful. They forget the challenges that we all make it through. It’s not the challenges we encounter. It’s the challenges we make it through. It’s those challenges that make us good business people, parents and spouses. It was interesting you said, “Fail but pay attention.” That’s a powerful combination of words to me because often we fail but rarely do we pay attention to why we failed. Corey, talk a little bit about some of the things you see going on in the marketplace. It could

Making Connections And Recognizing Opportunities In The Real Estate Industry With Zach Coppinger

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The real estate industry is broad and is divided up into different specialties. With that, you have a lot to learn to see how it works and strategies you can execute to build your portfolio and succeed in the real estate world. Listen to this episode as our guest, Zach Coppinger, shares valuable insights into building your network and recognizing opportunities in the real estate world. In today’s market and economy, you should know which things you should focus on regarding investments, so Zach gives an overview of what you can do to keep your business moving forward. He also discusses how you can manage labor and material costs. Tune in to learn more about the marketplace and how to attract potential clients. — Watch the episode here Listen to the podcast here Making Connections And Recognizing Opportunities In The Real Estate Industry With Zach Coppinger I am joined by a good friend of mine, Zach Coppinger. Zach, thanks for coming in. I appreciate it. Thanks for having me. Zach, tell the audience a little bit about yourself. I got my start in real estate investing by buying houses for you back in September 2013. It was a while ago. I started buying single-family houses for you. I ended up going out and doing my own thing in 2014 and 2015. I have pretty much stayed in the single-family space since then. I focused on building up a rental portfolio early on. I pivoted in 2018 and 2019 to focus a little bit more on the owner finance and note origination business but still holding those. I simultaneously built the rental and the note business and still trying to stay pretty narrow with those two business strategies. I am proud of you. My wife is more proud of you. Zach, I like to start each week with something we call the Bottom Line Upfront. Just imagine someone riding around in their car. They queue up for the show, get out, get gas, and cannot find it when they get back in. In the Marine Corps, when we brief the generals, they always say, “Do not bury the lead. You lead with the most important thing up front in case you get mortar rounds.” I am going to have you talk to the readers and talk about the things in the market, the economy, and the real estate cycle nowadays that they need to be focused on, thinking about, they need to be doing and avoid. Take two minutes and give them the bottom line upfront. This marketplace now, over the past few years, has allowed investors to get pretty lazy with numbers. You could have overbought the house, over-rehabbed the house or gone over budget, and you are fine if you held it for five months. You ended up appreciating 10% and 15% in that time. It allows investors to get pretty lazy with numbers. You keep winning whenever you go into those scenarios long enough, and you start to feel pretty comfortable. You can just keep doing and repeating it. Getting a grasp on your numbers again, having real ARVs, real rehab budgets with updated pricing with material issues, in our personal business, we have seen materials go up. The contractors have tried not to put their labor up too much because they submit a bid. We push back a little bit and say, “It used to be 30%, 40% less. There is going to be a tail in labor pricing going up as well as the material pricing.” With this marketplace, we are starting to see a bit of a plateau with numbers in most asset classes, as far as pricing and single-family. I would say getting a good grasp on the real ARV, the real rehab, not assuming that the market is going to work you out of that. It is because the market is a little bit unknown. It seems very difficult to predict that it is going to keep moving up at the pace that it has been. Right in line with that, having a little bit of a cushion in case you missed it. There are a lot of sayings out there, “Cash is trash.” You are losing money if it is just sitting in your account. Inflation stated rate might be 7%, 8%. We feel like it is a little bit more. Losing value on that money is just sitting in your account but providing you the platform to not lose your business in case you miss a deal. How much liquidity is enough? It is personal for each person. What we try to do is about 10% of how much money we are borrowing. If we borrow $5 million, we try to keep $500,000 in cash reserves. It is a comfortable position that we found and allows us to float 6 to 8 months of paying out debt service without any money coming in. To sum it up, have a good grasp of your numbers. Do not think that the market is going to get you out of a sticky situation moving forward and maintain a comfortable amount of liquidity. Make sure that a comfortable amount is calculated. Try to have some basis for why you are doing it, whether it is just being able to service debt for a certain amount of time if you have no money coming in, being able to go over on your rehabs and still be able to pay your guys and get rid of the property. The property might sell for a little bit less than you anticipated. There is a lot to unpack. The first question is that you are not new in the business by any measure. Like you said earlier, you got into it around 2013. It has been up. Where do you get the information you need to plan for the unknown? I am a pretty conservative guy by nature. A backstory a little bit. I

How You Can Fix And Flip Around Market Shifts And Why Local Flippers Are Crucial To Solving The Inventory Crisis With Kurt Carlton

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The state of our economy today is an open book and we see the hit everywhere. But how has it been in the real estate space? Specifically, how has it been in the fix and flip niche? In this episode, Kurt Carlton, President and co-founder of New Western, talks about market shifts and the several factors affecting the real estate market. He also shares insights on what the current inventory crisis is really looking like. Tune in and learn more about initiatives for fix and flip developers and how you can battle inflation and hustle your way to the top. — Watch the episode here Listen to the podcast here How You Can Fix And Flip Around Market Shifts And Why Local Flippers Are Crucial To Solving The Inventory Crisis With Kurt Carlton Welcome back to the show. Thanks for coming back. I am joined by a good friend, Kurt Carlton. Kurt, thanks for stopping by. It is a pleasure. Kurt, take a minute, say hello, and tell a little bit about you and New Western. We operate a marketplace for investors to find houses to rehab. We do it in 20 states and we will be in probably 10 or 15 more. We are expanding rapidly. A lot has changed since 2008, but we have been doing this since 2009. I remember when you started and it seemed like bad timing to me, but I am very impressed with what you have done and the marketplace you have developed. I want to get straight into some content here. The first segment is Bottom Line Upfront. What I do is I give each guest two minutes. When I was in the Marine Corps, I used to brief generals. I always said, “You do not bury the lead. You give the general the most important information up front in case mortar shells come in.” What I am going to do is I am going to give you two minutes to talk to the readers and pontificate about what people should be thinking about, what they should be looking at, any data that is interesting to you that you are watching that you think people should watch. Things you think they should be doing or maybe some things that you have seen in the market that you think people should not do. Bottom Line Upfront, go. There a couple of big things. It is getting exciting again. Inflation is the big one. That is what everybody is looking at. Nobody seems to share the opinion on how to measure it, but it is here and it is big. Warren Buffett famously said in 2012, “The biggest hedge against inflation is the 30-year Fannie Mae mortgage.” It is a perfect defense against inflation. Even though rates are higher, you can reset your mortgage rate if rates go down through a refinance, as long as your financial condition stays the same. You cannot repurchase a home again later, if the price increases. I do not think that there is a future where home price appreciation starts to go backward rapidly. Inventory is at such an unhealthy low number. It would be unreasonable to think that you are going to lose home value. I think we will be just fine on homes. That is very much separate from a lot of the other concerns in the economy. I think what is different in this potential recession that we are going into now is, in the past, we did not have as much warning and the Fed did not do as well in giving us a warning ahead of time. They did not communicate as well. When a recession or these issues were nigh upon us, they had to react. What they are doing a really good job of is communicating so that the market can understand where we are heading and can slow down before they need to raise rates. I think that is already happening. We are narrowly looking at a soft landing as opposed to a hard landing, but we will see. I would continue to buy real estate. I would certainly leverage fixed-rate mortgages and debt whenever you can. That would be my advice, given the lack of inventory we have now. You brought up the dirty word, Fed. You said they are doing a good job. You may be the only person I have heard say that, but you are right. They have given us a heads up. Interest rates have doubled, but they have doubled from not even the bottom of the basement, like under the basement, under the foundation piers, down into the Earth’s crust. You brought the crystal ball segment of the show up earlier. Do you think that still rates could still go up? The idea is that they will continue to increase. If you saw it in 2018, we had the same issue. Rates went up and then they reversed it. Who knows if that is going to happen? The inflationary pressure is different than what it was in 2018. Nobody knows where we are going to go, soft landing, hard landing. Your teeth are on the edge. If you push too far, it is like a chain reaction. Everybody goes. I listened to Ben Bernanke in 2008 about how that was potentially avoidable, which I am not sure I believe. It was right before he handed us a signed book and all that. Maybe he was trying to save us. Everybody complained so much. They drove it to happen. Nobody knows, but what is different than it has been in the past is the Fed does a lot more forecasting about what they are going to do. That allows the market to react. It allows the slowdown that we need to slow down inflation and the labor costs that need to happen. I look at this more, real estate-wise, moving towards normalization and not moving towards a recession. It is inserting

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,