Ep.151 – Boring but Effective Profits in Real Estate with Lee Strauss

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What you’ll learn in just 17 minutes from today’s episode:
  • Learn what investment strategy has worked for him amidst every hit and miss that came along
  • Find out different strategies to raise capital
  • Find out about ideas from being an investor-focused realtor – to help in looking for good deals

Summary: 

Lee Strauss lives and breathes all things real estate. He purchased his first rental property in 2003 when he was 21 and has since acquired a personal portfolio, became a realtor, and has founded his own real estate investing company. He has a passion for working with and coaching, novice and experienced investors through the real estate investing world.

In this episode, Lee talks about the investment strategy that has worked effectively for him, weathering every downturn that comes with it.

Topics Covered:

01:00 – How he got his first real estate investment property

05:03 – What he did before real estate

06:57 – Where did he look for additional when he needed it

07:57 – How did he become a full-fledged real estate investor

09:08 – Why did he decide to become a realtor

13:59 – The strategy that worked best for him in the 20 years he is in real estate

Key Takeaways:

“In buying properties, I do refinancing; that seems to be the best way to go. I did get into joint ventures at some point, and I continue to do that.” – Lee Strauss

I have no issues putting in what people would say is insulting offers because if you don’t ask, you don’t get, and the majority time you don’t get that. But you can open the door, and maybe start the conversation.” – Lee Strauss

“It’s like, anything you do is going to help get your goals there, maybe one way that’s better or faster, but consistency and just doing the same thing is the big secret. There’s no magic sauce out there. There’s no manual. You can put in the time. Take the hits and keep going.”  – Lee Strauss

“I tell this to everybody, the most boring, least appealing, non-shiny object chasing strategy is, just buy a house, rent it out and just sit on and wait. Roll with the punches.”  – Lee Strauss

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Ep.150 – Using Terms to Buy and Sell Property with Zachary Beach

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What you’ll learn in just 17 minutes from today’s episode:
  • Learn how to buy and sell properties without using your own cash, credit, or investors money
  • Find out the three categories of buying and selling properties and get the most profit from them
  • Learn how to use additional terms in order to make deals beneficial for you and good terms for the seller

Summary: 

Zachary Beach is an Amazon Best-Selling Author of The New Rules of Real Estate Investing and co-host of The Smart Real Estate Coach Podcast. He is a Partner, COO, and Coach at Smart Real Estate Coach.

In this episode, Zach talks about buying and selling properties on terms with a variety of techniques and not using cash, credit, or other investors’ money.

Topics Covered:

00:50 – What his real estate business all about

02:22 – What is buying and selling of properties on terms

03:16 – Understanding the three main categories of the buy and sell strategy

05:53 – Overview of how these three categories work

07:54 – Typical price points of the properties he chooses

10:18 – How do they make money in the subject to deals

11:09 – Exit plans for the subject to deals

12:51 – Why do sellers who own free and clear properties sell without interest on it

Key Takeaways:

“Buying and selling terms to us means that we’re not using our own cash credit or investors’ money. We’re primarily buying properties via contract.” – Zachary Beach

“We can mess with different terms such as length of time, monthly payment, deposit, no deposit, I mean, most of our deals, there’s little to no money down.” – Zachary Beach

“Our mindset is always we’re looking to solve people’s problems. And most of the time, we’re able to solve people’s problems that the traditional market cannot.” – Zachary Beach

“All of our exits tend to be, let’s say, 90%, rent to own 10%, owner financing.” – Zachary Beach

“If you’re sitting there and you’re trying to decide which way you would go, I would say know your foreclosure laws versus your eviction laws, because that’s gonna really make the difference.”  – Zachary Beach

“A typical seller that we’ve crafted principal-only payments are somebody that is looking to net the most net profit on the house and doesn’t really want to deal with any type of like tax burden.” – Zachary Beach

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Ep.149 – Off Market Deals with Millionaire Mom, Susan White Livermore

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What you’ll learn in just 17 minutes from today’s episode:
  • Learn how to add more value to single-family homes to increase your cash flow returns
  • Find out helpful tips to get off-market deals every time
  • Find out how to raise capital in every manner possible

Summary: 

Susan White Livermore is a mom, real estate investor, JV partner, coach, and speaker. Her primary focus is legal suite conversions BRRR’s and the mindset necessary to succeed in real estate investing.

In this episode, Susan shares why she chose the BRRRR strategy to do a single-family home over many other options. As a mom of three children, she opted to find properties within her hometown, and the BRRRR strategy allows her to do just that. She shares the difference income-wise, by doing single-family homes turned into duplexes over single-family home rentals. And she’s got tips for her continuous deal flows and investment partners.

Topics Covered:

01:19 – Why the BRRRR strategy among all other options

02:18 – Price point of the properties she’s buying

03:18 – How does cash flow look like for a single-family home rental versus the duplex

04:14 – Her off-market deals strategies

07:13 – How many neighborhoods do she send her letters to

07:45 – What she does when she buys properties more than she can handle

08:18 – Is she sending different letters all the time or she does variation

10:37 – Getting creative with her letter presentation

11:30 – Other tips for continuous deal flow

12:50 – how does she raise capital

13:54 – Find out about the courses she offers

Key Takeaways:

“Building legalized suites from single-family home get me the profits that I’m looking for. I can force the appreciation, and I can do it in my own backyard.” – Susan White Livermore

As a single-family home, that would never cashflow you might get 1900 dollars plus utilities, whereas you’re looking at about 3200 for the duplex. If you add the third unit, you’re getting over 4,000. That fourth unit or the third unit could add a lot of value.” – Susan White Livermore

“When you’re doing off-market deals, you can think outside the box and offer more creativity to a seller that they wouldn’t even consider if they were just doing MLS.” – Susan White Livermore

“With off-market deals, it’s the letters that I get the most response. And that’s why I keep going after it. It’s working!” – Susan White Livermore

“I do joint venture partners, I do money partners, and I do mortgage qualifiers, It’s kind of whoever lands on my lap because the market is so hot, I’m getting inundated.” – Susan White Livermore

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Ep.148 – 20 Mobiles vs 20 Unit Apartment Showdown with Erica Muller

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What you’ll learn in just 17 minutes from today’s episode:
  • Learn how to operate a vacation rental property to maximize revenue
  • Discover about an investment strategy that doesn’t require much of a capital investment, with profitable cash flow returns
  • Learn the pros and cons of buying a mobile home instead of a regular home

Resources/Links:

Summary: 

Erica Muller is a vacation rental investment specialist. She has been in the real estate industry for the last 18 years and is also a mobile home park investor and portfolio owner.

In this episode, Erica shares how she got into a vacation rental when all of her other real estate investments collapsed. Left with no choice, she dabbled into it, and up to this day it continues to give her a steady amount of cash flow returns. As she evolved, she started investing in mobile home parks which has given her a good ROI.

Topics Covered:

00:58 – What is she working on right now

01:50 – What are the three main strategies she’s doing

02:29 – How did she get into vacation rentals, and how does she find clients for this type of strategy

03:38 – What you should need to understand when getting into vacation rentals

04:54 – Who gets to be the most successful in vacation rental strategy

06:04 – Average number of properties one can handle given only a 15-hour workweek

06:51 – The cash flow that’s coming in from these types of properties

07:59 – Evolving from vacation rentals to mobile home parks

09:10 – Where are there mobile home parks located

10:30 – What are the biggest advantage of a mobile home park versus any other investment class

11:48 – Difference between land lease parks versus park-owned homes

12:46 – Property management in mobile home parks

13:24 – How to maintain your mobile parks to keep the rental up

15:20 – How many units do her mobile home parks usually have

16:36 – Advantage of owning mobile home parks than a 20-unit apartment building

Key Takeaways:

“A lot of the mistakes they make are that they’re coming in with the wrong mindset. They think they’re buying a house; they think they’re buying a property. But they’re actually buying a business.” – Erica Muller

“There’s a whole business model behind it, and somebody who has a full-time job and doesn’t want to rely full time on management, they’re not going to cashflow very much, because management will eat up a lot of your expenses. So, there are certain strategies that they would have to follow actually to produce high income from these types of investments.” – Erica Muller

“The biggest mistake is just having the wrong mindset and not understanding that this is a business investment, not a property investment.” – Erica Muller

“The most successful people are the ones that either they have a spouse or partner or someone that they’re working with, that has the time to dedicate to running an operating model, in terms of responding to those that inquire on Airbnb in providing that unique guest experience.” – Erica Muller

“That investor is somebody that has an extra 15 hours, 10 to 15 hours in their week, to be involved on that level, they’re very successful that way. And also, because a lot of that revenue that comes in is going directly to you since you’re procuring those guests versus going to the property manager, that’s going to take a big commission slice off of that, your ROI goes up.” – Erica Muller

“The number of properties they can realistically manage depends on how they build their management system, and how much of it they outsource.”  – Erica Muller

“Analyzing the numbers and looking at the capital investment to get started to be where we wanted to be with cash flow returns on self-storage, it was a lot higher of a capital investment than it was to get into mobile homes for that same return we were looking for.”  – Erica Muller

“I think the entry point to get into it for one, you don’t need as much capital to get started with mobile home parks, you can get well-performing parks.” – Erica Muller

“I don’t ever want to deal with properties I don’t own or tenants I can’t qualify to come into the park because if you’re trying to run a high-end park, you need to make sure that the tenants are background checked, screened, you don’t want pedophiles moving in, you don’t want criminals moving in.”  – Erica Muller

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Ep.147 – 1700 Units in 5 Years with James Kandasamy

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What you’ll learn in just 17 minutes from today’s episode:
  • Find out what makes multi-family deals more scalable than single-family deals 
  • Learn how to raise capital and continue growing by just word of mouth 
  • Find out the essential considerations when transitioning from single-family to multi-family deals 

Resources/Links:

Summary: 

James Kandasamy is the principal Director of Acquisition and Investor Relations at Achieve Investment Group. He has over five years of experience in real estate with more than three years in multifamily acquisitions and asset management. His expertise is in finding value in Multifamily opportunities. He has identified, underwrote, and oversaw the acquisition process of over $130m of quality multifamily investments (9 Assets). He also ran each business plan’s execution in the portfolio with an average IRR in a portfolio of more than 20%. He earned a Bachelor of Science in Electrical Engineering (Hons) from the Science University of Malaysia and an MBA from the University of South Adelaide (Australia).  
 
In this episode, James talks about his transition from single-family homes to multi-family properties. As to him, single-family home is a good place to start, but multi-family has an advantage that you can’t find in single-family strategies – in terms of adding value to the property, more cash returns, refinancing terms, and increased ROI.

Topics Covered: 

01:31 – His first investment strategy when he started 

01:51 – What made him shift from single-family to multi-family 

02:32 – Doing BRRRR with multi-family properties 

03:01 – What his portfolio looks like 

03:21 – Why focus on particular market areas 

04:12 – A value proposition that differentiates you from the rest 

05:25 – On building credibility and track record 

07:24 – Important points to consider when transitioning from single-family home to multi-family deals 

09:32 – How many investor partners he had with his first multi-family venture 

11:11 – How to stay compliant with SEC 

11:56 – How did he get his 1700 units in five years 

13:00 – Why talk to people who have already done big things beforehand 

15:10 – How does he raise capital these days 

Key Takeaways: 

“The power in commercial real estate such as multifamily is, you just can’t find it in single-family, the power of where you can add value, you can increase the ROI and you can basically do cash-out refinance. And at the same time, my back-end upside is just so much just because you have built up that equity.” – James Kandasamy  

“That’s what we do in multifamily space, BRRRR, which is a big space and big money, as well.” – James Kandasamy  

“We focus on one market because we are vertically integrated company, which means we have asset management, property management, and it’s important that property management companies focus on one submarket because there’s so much of sharing and market knowledge that can be utilized.”- James Kandasamy 

“You need to find some kind of value proposition on why you are different from another buyer out there, otherwise you will just be another buyer? But if you know the local market and you are able to optimize your operation to squeeze all the juice out of an investment, you have a different value proposition. That’s important.” – James Kandasamy 

“I think people judge you just by the knowledge that you bring to the table, and by your credibility and your track record, and you build that slowly. I mean, starting up was really, really difficult.” – James Kandasamy 

“When we started, we buy off-market deals where we went direct to the sellers, and we bought direct from the sellers without brokers involved. So, once I have one deal, then I’m known by a lot of brokers in the market,” – James Kandasamy 

“Set your mindset that I am going to go big. Once you go above five units, you go into the commercial space.” – James Kandasamy 

“If you do multifamily, you have to be able to do syndication, where you raise money from others for the down payment. You have to convince a group of passive investors to give you money so that you can go and buy these bigger deals.”  – James Kandasamy 

“You have to make that leap, to convince people to invest with you, tell them that what you’ve done in single-family because there’s a lot of people out there who want to go big and asks why they should be giving money. All that counts in to give them that confidence.”  – James Kandasamy 

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Ep.146 – Character BRRRs with Elizabeth Milder & Cole Skelly

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What you’ll learn in just 17 minutes from today’s episode:
  • Learn what character homes are, and how to go about the BRRRR strategy with these types of properties 
  • Find out what the approximate revenue you can earn, from renting out renovated units in character homes 
  • Learn about the essential points to consider when going for the BRRRR strategy with character homes 

Resources/Links:

Summary: 

Elizabeth Milder & Cole Skelly are experts in the application of the BRRRR method (Buy-Renovate-Rent-Refinance-Repeat) of real estate investing in the Victoria market. By identifying properties with the potential for adding square footage, Cole and Elizabeth add massive value to the properties they purchase, converting single-family homes to multi-unit rentals (2, 3, and 4 units). After many properties and lessons learned, and 2 spec houses under their belts, Expansion Properties was formed.  
 
In this episode, Elizabeth and Cole talk about the strategy they specialize in, the BRRRR, where they especially get character homes to renovate and turn into rental units for them to generate cash flows and revenues. 

Topics Covered: 

01:40 – What is a BRRRR strategy 

03:18 – What are character homes? How do they differ from historical homes? 

05:08 – Getting a look at how the BRRRR strategy works with character homes 

09:19 – Advantages of construction financing 

10:33 – How much cash flow do they generate from renting out the units 

11:46 – Approximate gross revenue per month for these kinds of properties and how much is a bank’s appraisal for them 

14:06 – Number of years they been doing BRRRR strategy 

15:18 – How do they get the work done with renovating the buildings and homes they acquire 

17:09 – Recommendation and advice to anyone interested in the same strategy they are into 

Key Takeaways: 

“Basically, what we’ve been able to do you using BRRRR is, we find these older homes that have tremendous opportunity to add value by way of adding square footage, typically, we’ll dig out the basement. With that lift that gives us the ability to refinance once we’ve gotten to the end of the project and rented it and allows us to pull the money out the capital investment that we’ve put into at the outset and then use that towards another property.” – Elizabeth Milder 

“The city of Victoria has a house conversion regulation where you can actually take these older 1900 houses and convert them into legal rental units without doing the rezoning process. So, it’s a character home, but we’re allowed to touch any part of the home. It’s not a heritage home.” – Cole Skelly 

“This is one thing that I’ll mention because people often are scared away from deals because the price point is too high. What we’ve learned through a few scenarios now is, don’t be afraid to lowball if you have to, because you never know, it’s always a no unless you ask.” – Elizabeth Milder 

“Whenever we’re analyzing a property at the outset, we’re always looking for four to $500 a month cash flow on each door. We found that that’s a really comfortable number to absorb potential vacancies.” – Elizabeth Milder 

“One thing that we definitely recommend to any new investor is being very realistic about what it is that you can manage, and having a good understanding of what your finances are because this is something that a lot of people aren’t really in tune with.” – Elizabeth Milder 

“I find that we find that a lot of people in talking about investing in property, they often have this kind of pie in the sky idea of what it is they want to do, but they’ve never actually thought about what it takes to see that come to fruition.” – Elizabeth Milder 

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