Ep.132 – Private Money with Susan Flanagan

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What you’ll learn in just 17 minutes from today’s episode:
  • Learn why not to proceed with a joint venture at the beginning and go for private money instead 
  • Find out about the pros and cons of different refinancing options 
  • Learn what private lenders are primarily used for, especially to real estate entrepreneurs and investors 

Resources/Links:

Summary: 

Susan Flanagan has been investing in real estate for well over 25 years, and has done everything from regular buy and holds to student rentals to rent-to-owns, as well as many flips. She started lending her own money for mortgages over 12 years ago, so it was a natural progression to eventually become a Mortgage Broker so that she could connect lenders with borrowers on a regular basis. She is still an active investor but mainly focused on private lending these days. Susan is known as the “go-to person” when it comes to Private Money Lending. 

In this episode, Susan shares what a ‘private money lender’ is and how useful these lenders are to real estate entrepreneurs especially when investors don’t qualify for a bank mortgage. With a private money lender it’s fast and not much of a hassle. 

Topics Covered: 

01:30 – What is private money lending 

02:09 – Is there any difference between private money lenders and hard money lenders 

05:28 – What are the advantages and disadvantages of using different refinancing options 

08:03 – What do they need private money for  

08:33 – How to qualify for a private money loan 

09:33 – When do people usually use private money for first mortgages 

11:35 – Why do people get on JV partners at the onset when they could go through private money lenders 

12:51 – A logical reason as to why go for private money lenders rather than JV right away 

Key Takeaways: 

“Another good example of why real estate investors use private money is and I just did this on my last project. I took a second mortgage on one of my rental properties. I use that money for my down payment and my rental costs. And then I also took out the first mortgage on the purchase. All were private money again. And this is very expensive when you really work it in there. However, when I looked at all my numbers at the end of the day, I’m still making a decent profit once I flip the property.” – Susan Flanagan 

Sometimes it makes sense that people are using private money. First of all, it’s probably a lot less onerous to qualify. Second of all is probably, it’s a lot faster than jumping through all getting it through a big bank. And third of all, it’s when your debt ratio and all that kind of jazz that the banks are looking at don’t line up.” – Susan Flanagan 

There are many other reasons why you need private money. It could be a bridge loan, it could be you’re in the middle of selling, but then you need it. And it’s fast.” – Susan Flanagan 

“The biggest thing you have to qualify for is to show that you can pay it back. 

We want to know the story, the property, the exit strategy. I don’t care about your debt ratios. We don’t say we don’t care about your credit report. But if it tells me a story about your character that we don’t like, then I do care about it.” – Susan Flanagan 

“What I do suggest to a lot of investors though, don’t try to figure this out on your own. I say give me a call. And let’s brainstorm before you purchase it. And sometimes, getting a couple of people’s input prior is better than making the decision going in, no conditions, the works and then finding out this one isn’t a great property to even do this strategy with.”  – Susan Flanagan 

“It’s just another option for people to explore without assuming the only way to do it is to bring in a JV partner who qualifies for the mortgage.” – Susan Flanagan 

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Ep.130 – Ultimate Virtual Online Real Estate Investing with Laura Alamery

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What you’ll learn in just 17 minutes from today’s episode:
  • Learn about the tools and systems to automate your transactions to become more efficient in getting your leads and finding undervalued properties 
  • Find out how to run your real estate business by removing the day-to-day operations off yourself 
  • Find out the essential steps on how to get deals every time

Summary: 

Laura Alamery began in real estate in 1987 while studying in Honolulu, Hawaii. Also where she joined Dolman and Associates as an agent. She moved to Missouri after graduating in 1991, receiving her real estate Broker license in 1993 when she started her own brokerage company, Midwest Realty Corp. Her core business was flipping properties, with a management division for clients who purchased properties from her.

In 2001 she started a real estate investment club with a group of cash investors, buying and selling foreclosure properties. She quickly became very active in this sector in St. Louis, with an average turnaround of 40 buildings per year.

In this episode, Laura, who has been in the industry for decades-long, talks about reinventing her real estate business from being manually-led to an efficiently automated one. She uses tools and systems to run the day-to-day operations, thus, creating a business around her lifestyle and not the other way around. 

Topics Covered: 

01:22 – Transitioning to ultimate virtual online real estate investing model 

03:30 – What is it about wholesaling that makes it her primary focus these days 

05:02 – Reinvention has been her thing  

06:16 – What is wholesaling or flipping the contract is  

07:55 – Which money does she use to buy her properties 

09:07 – What is a virtual online real estate investing 

13:11 – Her advice to those just starting in real estate 

Key Takeaways: 

“One of the reasons I have thrived as a real estate investor over the years is because I always reinvented myself. If you don’t adapt yourself to the times and see what’s going on in the industry and position yourself in a competitive market, you’re going to be squeezed out of the market. That’s why it brings me here to talk about how we’re developing our systems nowadays.” – Laura Alamery 

“Wholesaling is really where heavily my market is because wholesaling can be done virtually very easily. It can be automated very easily. And then from that you can still pick property if you do want to buy and hold, or fix and flip.” – Laura Alamery 

“But it’s really about creating the business around your lifestyle, not the other way around. I see a lot of real estate investors struggling with this.” – Laura Alamery 

“Virtual online real estate investing is about using systems and things in place where you remove the day to day operations off yourself, meaning you don’t have to text or call or send letters physically.” – Laura Alamery 

“A successful real estate investor doesn’t go hunt for deals; the deals come to them. And so then I sat down and thought about my own experience. And I was like, ‘You know what, that’s right.” – Laura Alamery 

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Ep.129 – Student Rentals during COVID with Jared Henderson

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What you’ll learn in just 17 minutes from today’s episode:
  • Learn how Jared’s investment strategy is keeping a steady cash flow going 
  • Find out about an exit strategy, just in case the student population dries up 
  • Find out where the sweet spot is, in single-family homes, so that it brings in steady cash flow and has manageable results

Resources/Links:

Summary: 

Jared Henderson lives in Montreal and started investing in real estate in 2012. He now focuses on cash-flowing student rentals in Peterborough and only invests in Ontario.

In this episode, Jared shares about the cash flow opportunities in student rentals versus single-family rentals. The odds of a vacancy in student rental property are slim compared to a single-family rental property. 

Topics Covered: 

01:06 – What his primary investment strategy 

01:41 – Why choose a small city in Ontario for his investments and not in his own city 

04:50 – Why he continues to invest in Peterborough and not in Montreal 

07:13 – Are his properties pre-existing student rentals or single-family homes converted as student rentals 

09:04 – What is a sweet spot in terms of the number of rooms for cashflows 

09:53 – How is his student rental set-up – co-ed or all-male or all-female 

10:32 – What good property management can do with cleanliness and orderliness 

11:41 – How long is the tenancy for student rentals 

13:11 – Is he catering to international students and how advantageous is it in having them over local students 

14:32 – How does he raise capital to buy properties 

15:20 – How much does he get having the place as student rental versus renting it as a family home 

16:43 – The advantage of having student rentals versus renting out the place as a family home 

Key Takeaways: 

What really attracted me to the student rental model is that I have multiple leases in these houses. I would never be without any revenue altogether. Worst case scenario is these days I’m perhaps half full or four out of six students are there. I’m always receiving a steady flow of cash which provides my business stability.” – Jared Henderson 

“The reason why I continued investing in southern Ontario instead of Montreal is because of the strong fundamentals in the GTA, through transportation development, job formation, and migration.” – Jared Henderson 

“If the student population dries up. And there’s too much competition with investors like myself or concentrating on cash flow and filling up all these rooms, I can either do a single-family by just converting it to a nice new home, or I can duplex the building.” – Jared Henderson 

“Six-beds is a sweet spot in terms of good cash flow and manageable results.” – Jared Henderson 

“I aim for a year-long lease. Most of my students are at Fleming College where you’re having certain terms to be 1, 2, 3 years versus typical University, which would be four years. So, with these shorter periods of time, I do have a little bit more turnover.”  – Jared Henderson 

“I’ve had success filling out my homes in the summer they would be slightly less occupied. But we’re talking four to five rooms complete versus six over the summer.” – Jared Henderson 

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Ep.128 – Real Estate Allowing for Life After Tragedy with Jay Gabrani

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What you’ll learn in just 17 minutes from today’s episode:
  • Learn about the simple strategy that has served Jay well in his real estate career 
  • Discover the tragic story that inspired him to create a business called Prepared Fathers focusing on how to build a real estate portfolio 
  • Learn about a new project he is venturing into called Teen Finance Accelerator 

Summary: 

After his first child was born in 2005, Jay Gabrani jumped into the world of real estate investing. Despite several challenges along the way, he built a seven-figure real estate portfolio that helped him take a multi-year sabbatical to deal with the heartbreaking tragedy when his wife passed away in 2014. Today, Jay makes an impact in raising three children and empowering families to secure their Family’s Financial Future as the founder of Prepared Fathers. 

In this episode, Jay shares how his income from real estate provided him the financial cushion when he needed it the most. And in his quest to find out how millionaires become millionaires, he found that real estate was the way to go. 

Topics Covered: 

01:15 – The primary investment strategy that has served him well  

01:58 – What does he buy and hold and why does he advocate one’s focus 

03:14 – What does he do with the properties with bungalows on it that he bought 

04:22 – Are they bungalows with secondary suites or are they just single-family homes 

05:51 – A backstory of what his career was before real estate and what made him shift to the latter 

07:15 – How his first real estate investment in Edmonton started 

08:17 – What’s his name of the game when in trouble 

09:53 – Making the most of joint venture when looking for capital  

11:39 – Number of properties he builds with his partners and how did the investment go 

12:14 – What is his business called Prepared Fathers all about 

13:08 – The tragic story behind what made him start Prepared Fathers 

17:51 – What this tragic story taught him and how real estate has been a financial cushion to him 

19:56 – His new project: Teen Finance Accelerator – what is it all about 

Key Takeaways: 

“I am a strict buy and hold long-term guy. It served me pretty well. And that’s the strategy I just like. I like things simple. I find buy and hold to be simple so that’s what I tend to stick with.” – Jay Gabrani 

“I had always driven to be successful. I was always rather ambitious, but I wanted to know how millionaires became millionaires. I read a whole bunch of stuff. I chose real estate.”  – Jay Gabrani 

“When you’re going through some trouble. Keep it rented. Keep the space full. So that’s one thing I want people to point out. It’s not always doom and gloom, even when the numbers go down if you stay rented.” – Jay Gabrani 

“There’s so much money just sitting around. You should never have the excuse of, there’s no money. Because if you don’t have one, that’s fine. Partner, partner. Be resourceful. It’s not about having resources. It’s about being resourceful.” – Jay Gabrani 

“I love doing the consulting and coaching so Prepared Fathers is what we’ll call an everyday business that I do.” – Jay Gabrani 

“What I encourage people to do is be ready for life’s curveballs and real estate lets me be ready after that tragic and obviously, a very difficult experience I went through.” – Jay Gabrani 

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Meet Your Host

Dave Dubeau is a professional real estate investor, a best selling author and a highly sought after trainer and consultant.

Dave understands that over 80% of Real Estate Entrepreneurs get stuck with 3 or less properties in their portfolio. They want to grow it more, but they don’t know how to attract investors and raise capital, which is why he has decided make helping frustrated, Capital-strapped Real Estate Entrepreneurs his life’s work.

Dave is also the founder of the first and only done-for-you investor attraction marketing service for Real Estate Entrepreneurs in the world . . . The Money Partner Formula™

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