Today, my guests are friends and neighbors. We’re going to talk about one word, “No.” It’s hard to say sometimes, especially in business and if you have a kind, generous heart. But you have to say “no” and master it.

Instead of just saying, “no,” ask the requester, “What should I do?” By asking them that question, they understand and feel where you are coming from. Sometimes you just have to say “no.” You want to help everybody, but you know that you can’t sometimes.

Topics on Today’s Episode:

• No means no. At work, you feel like you have to do what your boss tells you, but sometimes you probably have the ability to say “no.”
• You are a real estate professional who wants to level up one step at buying bigger deals, or you’re new to the game and wanting to learn. You are working hard for someone else, who is making all the money. You don’t want to “work for the man” anymore.
• Have you given your soul to a company, and they didn’t care? Are you just a number? There’s lots of people who feel like that and want to break free.
• Break free from a job by replacing your income through real estate. Learn how to raise private money. Other people’s money (OPM) can set you free.
• When you raise private money, you can do multiple deals with multiple vendors and people. The power is not real estate, but in the money – the ability to attract capital from other people.
• You’ve worked all your life to have a retirement income. What were you afraid of? Not having enough money to retire or running out of money. Most people get advice from a stockbroker on how to deal with this fear. However, they get paid a commission to take your money, so be wary.
• What are your options? CDs, bonds? What you want is to be able to live off the interest. However, if you don’t have enough money and only get a 0.5{c35051b4442fafb55b74468ce151e373ddcc3f5b6c0bbc4cc62a5de9551ee3ef} return, you’re going to start eating into that principle. That’s when people get really scared that they are going to outlive their money.
• With your retirement money, you’re not willing to risk anything. Remember 2007-2008? You’ve been saving your whole life, but when the market crashes, it can wipe out your money. Once you take the money and don’t have principle, it snowballs. That’s the real reality for people.
• Apartment investing offers financial solutions. You never sell anything because you don’t have to. It is an opportunity for people’s money to grow.
• Usually, with an apartment deal, there’s a 6{c35051b4442fafb55b74468ce151e373ddcc3f5b6c0bbc4cc62a5de9551ee3ef} preferred return. If an investor gives you $100,000, every year you’re going to be paid $6,000.
• The 6{c35051b4442fafb55b74468ce151e373ddcc3f5b6c0bbc4cc62a5de9551ee3ef} is far more than anything that a stockbroker or anybody could offer you. That’s a real deal.
• Pay quarterly. People want to schedule their monies, and they like paychecks. If paid quarterly, that means you’ve got an income stream. An income stream is important in return because that’s how you pay your bills. You want to turn on as much income stream as you can, so you never have to touch your principal. The 6{c35051b4442fafb55b74468ce151e373ddcc3f5b6c0bbc4cc62a5de9551ee3ef} is probably the best money you can get.
• With apartments, 6{c35051b4442fafb55b74468ce151e373ddcc3f5b6c0bbc4cc62a5de9551ee3ef} is usually based on the cash flow because there are several buildings and tenants pay rent every month. Tenants expect rents to go up, so never disappoint them. By raising rent, that’s how you raise your income.
• Hold onto properties for five years. Year 1, fix everything that is broken. Year 2, fix all the broken tenants. You upgraded and fixed everything, made it nice and shiny, so now you’re going to attract a better tenant profile. Years 3-5, optimize your rent growth potential and keep expenses as tight as possible.
• Guess who pays a lot of money when you sell it? Other investors or family office. A consistent rising income story: You have three years of solid operation, plus two years of fixing things.
• When you sell it, you usually give investors another 6{c35051b4442fafb55b74468ce151e373ddcc3f5b6c0bbc4cc62a5de9551ee3ef}. That’s a total of 12{c35051b4442fafb55b74468ce151e373ddcc3f5b6c0bbc4cc62a5de9551ee3ef}. It’s a growth and income story. Everybody loves growing incomes because everything keeps going up, too. If you reinvest in upcoming deals, your income will rise.
• When would you say “no” to an apartment deal? If it’s in the wrong spot. There’s a lot of foot traffic around the apartment complex during the day, which means nobody’s got jobs. You look at and around the property at night because you see a lot of things that no one tells you about. During the night inspection, you see a drug deal. It is time to say “no.”
• Walk through the worst units. Toilets are yanked off and there are misplaced pipes – a handyman hack job.
• If someone wants to work with you on an apartment deal, they may think it is amazing, but you need to educate them and share your honest opinion. They get into it. They see a deal, and all they see is a working deal – no roadblocks or red flags.
• It is hard to say “no” and hurt someone’s feelings. But you are preventing them from making a really bad decision. Champion each other’s dreams and goals. Push each other to be successful.

Quotes:

“No is a hard word sometimes to say, especially in business.” Corey Peterson

“I’ve given my soul to this company, and they don’t care. I’m just a number. I know there’s lots of people that are out there that are like that and you wanna break free.” Corey Peterson

“I learned how to raise private money. OPM, other people’s money, can set you free, and that’s what set me free.” Corey Peterson

Don’t forget to download my Free Workshop Quickstart Video Series, and if you like what you have heard please leave a review on iTunes.

Text the word MONEY to 408-500-1127 to get my free private money program and credibility kit for single family.

When you live a magical cash-flow life, where you make money that shows up again and again, it allows you to enjoy the beauty of a place like Breckenridge, a ski resort town in Colorado. Today, my guest is Robert Nickell, who launched Real Estate Investor Virtual Assistants (REIVA).

No matter what business you are in, things need to get done and people need to do them – they are called virtual assistants (VAs). Robert aggregates steps that you didn’t even know could be aggregated when it comes to hiring a VA..

Topics on Today’s Episode:

• What are VAs? They are people who help you and your business in some way. They usually perform day-to-day types of tasks.
• Robert trains his VAs on real estate investing tasks, from marketing to social media and real estate documents.
• REIVA gets to know its clients – who they are, where they are, and where they want to go.
• Once it knows this information, it can create a job description for a VA to meet the needs of the client.
• Robert’s team facilitates the whole process, from technology questions, profiling, hiring, to onboarding.
• The job description should detail what tasks need to be done and the type of person needed. Set a skill set to that job description.
• A task or success map is created to describe a 90-day plan. For success, Robert’s team facilitates a lot of organization up front.
• When most people want a VA, they want them to do everything! There’s too many things to do, so that’s why they need a VA.
• Interviewing Process: When hiring someone to be your VA, you want to make sure it is a good fit. Get to know the applicants. Having options gives you confidence in who you select.
• For example, you may need a VA who can work at the same time you do.
• Growth and productivity is hard. It’s a lot of work, and REIVA is there to help its clients solve problems, get time back, and get more done at the same time.
• There’s so many tasks that a CEO should not be doing, especially when a VA can take care of them.

Links and Resources Mentioned:

• Robert Nickell

Quotes:

“Somebody’s got to do the work.” Robert Nickell

“Their time is your time.” – Robert Nickell

“You’re hiring somebody that’s going to be working for you and your team. We want to make sure that that person’s a good fit.” – Robert Nickell

Don’t forget to download my Free Workshop Quickstart Video Series, and if you like what you have heard please leave a review on iTunes.

Text the word MONEY to 408-500-1127 to get my free private money program and credibility kit for single family.

Ever thought of going to a training session on how to invest in multi-family real estate? You may not have the money to go, but you can’t afford not to go! Today, my guest is Bob Bowman, a real estate investor. He attended Ball State University to major in education and become a teacher. Eventually, he realized he wanted to be in business. He learned how to sell and talk to people, as well as create business where there was none. He made a lot of money – for the company he was working for at the time.  After several years, he got tired of working for a company and making money for other people. He dreamed about working for himself in real estate.

Bob began buying single-family homes. He would buy, renovate, and lease them – and found it to be a great way to make money.  Around 2007-2008, the market changed and Bob realized he needed to start selling these homes. He lost his net worth and income. He needed to reinvent himself and started looking into investing in apartments.

Topics on Today’s Episode:

• How Bob learned how to raise money for real estate deals. After all, you need money to buy real estate.
• Create an elevator pitch as a selling technique. This is your moment to shine!
• Educate yourself, as well as generate discussions and relationships to learn about what you want to do. In Bob’s case, it was apartments.
• Bob learned about how to get deals, how to talk to brokers, and underwriting when it comes to apartments. Also, he got a coach to help educate him.
• Corleone Method: When you are good at raising capital, it gives you power when talking to brokers and others. You can act competent.
• When subscribing for a deal and looking to get a commitment, it should be 2.5X the money you need.
• As you build a database of investors, it gets easier to raise money. You need to build relationships where they know and trust you.
• If you can’t raise money, you will never reach your full potential.
• No matter who you are talking to, you need to be a strong underwriter and know your business and market. Take care of your investors through underwriting, and know your numbers!
• Is it a good deal? Or, a great deal? You need to be confident enough to be able to discuss and decide. You can always say, “No.”
• When spreadsheets are spread around, formulas are changes and not calculated correctly. The results aren’t what you are going to get in your investment.
• Bob created a software product, called Commercial Underwriter – Simple Input, Sophisticated Output, for underwriting apartments and commercial real estate. It is a simple, yet comprehensive tool that shows how an investment will perform.
• One of the enhancements for the product will be the ability to create a professional property package for investors, which will save you a lot of time.
• Bob’s Method of Success: Educate yourself, mastermind and surround yourself with like-minded people, teach others, take action, and become a strong underwriter. If you want to get ahead, help others through a hand-up, not a hand-out.
• Money comes first, and protect your capital. Plus, find a partner who complements what you do and shares the risks.

Links and Resources Mentioned:

• Bob (bob_bowman@outlook.com or 321-239-0647); Commercial Underwriter; Diane Bowman
• Carleton Sheets and Russ Whitney
• Dave Lindahl
• Xerox, IBM, Canon, and Linear
• Harvard Club
• Fortune 500

Quotes:

“I learned how to sell, learned how to talk with people and create business where there was none. I made a lot of money….” Bob Bowman

“I decided that if I am going to do real estate, I might as well get myself educated.” Bob Bowman

“Within my first 90 days, I had over a million dollars of signed accredited investor forms.” Bob Bowman

“Once you put me on stage and people knew I knew how to raise money, all of a sudden I became like a rock star. People started bringing me deals.” Bob Bowman

Don’t forget to download my Free Workshop Quickstart Video Series, and if you like what you have heard please leave a review on iTunes.

Text the word MONEY to 408-500-1127 to get my free private money program and credibility kit for single family.

Do you want a cash flowing portfolio that lets you live a life of freedom?  But what if you lack capital, time, and no idea where to start? Today, my guest is Mike Zlotnik, who has experience raising private money, raising OPM. He started out in software development. Since 2000, he has been a real estate investor, and since 2009, a full-time fund manager.

Most people don’t even know what the process is to start a fund. It takes a lot of work to get one set up, and Mike is already on his fourth! In this episode, we discuss how to set up and get capital into a fund.   

Topics on Today’s Episode:

• Set up a financial vehicle, and develop an offering memorandum, term sheet, and summary sheet of marketing materials – with these, you can start raising capital.
• How do you raise capital? Start with friends and family. That’s the #1 step. They will put in whatever they can.
• Ask them to refer you to others who may have capital to invest. Establish a network and build relationships.
• If they invest in your project, they can get a better return than in the stock market with higher predictability and lower volatility.
• Masterminds are a great place to meet people, especially investors.
• You’re never raising money for the sake of money. You are trying to have people know, like, and trust you.
• Another option for raising capital is to have a partner. Also, you can borrow your partner’s credibility.
• If you and your partner are complementary, you can move mountains and the fund process is much easier.
• The multi-family space is suited for syndication. Mike’s job is to find high-quality syndication projects with the right sponsors and invest in them.
• Mike does a “Blind Pool,” which is not a specific property or deal, but invests in “X,Y,Z.” He vets what he is going to invest in and can find deals that others can’t.
• Don’t forget to communicate and let others know about what you do and your unique opportunity. You need to share your story.
• Mike is good at math and chess (he played competitively), but not so much at sales. So, he is happy to share his wisdom…about chess.
• Having a good, strong track record definitely helps to raise capital.
• Ask questions about funds, cash flow, rate of return, etc. Mike has a book that helps people learn how to invest in funds and syndications. It is titled, How to Choose a Smart Real Estate Investment Fund.
• When you first start out and have a deal, most cannot bring that deal home. They are unwilling to give up a piece to someone else, such as a partner. Share the wealth until you gain enough experience to be on your own.
• You need bank financing and a co-sponsor. If you’re raising equity, you need to be able to go to the bank for loan approval.
• Elements of a Deal: the market, bank financing, and operations.
• There are two elements to financing a deal: 1) bank loan and 2) equity rates.
• If you are trying to put a deal together, but don’t have all the pieces, that’s ok. Realize that you need to be strategic on how and who you bring into your deal.
• Mike’s crystal ball broke a while ago, so he does not know the future. But you can prepare for it. Interest rates are expected to rise. There might be a correction coming. That doesn’t mean the market is going to crash.
• In the multi-family space, as interest rates rise, that creates some buying opportunities and deals.
• If you buy affordable real estate, instead of the Taj Mahal, when there is a downturn, people go for affordable. You don’t necessarily buy for value, but for cash flow.
• If you want to write a book, don’t write it word for word. Outline your chapters, and record your thoughts. Have them transcribed, and you’ll have the words for your book!

Links and Resources Mentioned:

• Mike Zlotnik
• Big Mike Fund Podcast
• Email for Mike
• U.S. Securities and Exchange Commission
• Cory Boatright

Quotes:

“That ability to aggregate capital is what makes things good for us.” Corey Peterson

“You have many investors who put their money into the fund, and the fund makes investments and pulls their money to various investments.” Mike Zlotnik

“If you have a good structure, if you have a good marketing business, you know how to find quality deals, then you can partner with people who can raise capital.” Mike Zlotnik

Don’t forget to download my Free Workshop Quickstart Video Series, and if you like what you have heard please leave a review on iTunes.

Text the word MONEY to 408-500-1127 to get my free private money program and credibility kit for single family.

When creating the cash flow lifestyle, you are going to want to know how to structure deals. Today, I go through the nuts and bolts of how to put deals together and the financing component. Plus, the all important people component. I also have a Free Live Webinar coming up February 20th. Please go to the link and register to everything I’m doing in the multifamily space.

The Boardroom is also coming up. I’m going to put on a small event three times a year with 35 participants. This will be a high level group that does a lot of great things and gets a lot of traction. I am doing a six-part webinar series on the six profit pillars and then a 3-day intensive. I’m really going to teach this game, so you can have time and money. Register at Kahuna Wealth Builders.  

Topics on Today’s Episode:

• Partner with people who have net worth. This person is a sponsor who puts down the earnest money and provides the net worth and signs for the loan.
• Give up 10{c35051b4442fafb55b74468ce151e373ddcc3f5b6c0bbc4cc62a5de9551ee3ef} of your deal for a sponsor.
• Finding a deal is worth about 10{c35051b4442fafb55b74468ce151e373ddcc3f5b6c0bbc4cc62a5de9551ee3ef}. It is a simple math process.
• Make a list of what I have and what I need and put the pieces together.
• Underwriting guidelines protect the capital or money.
• If you have no money or credibility give up more to get the deal and get started.
• Build a track record and build legitimacy. Then you won’t have to give up as much.
• The underwriting will tell you how much you can pay for capital and if the deal is a go or not.
• Don’t chase deals, only do fat deals.
• To find sponsors, simply start asking your friends and family and practice asking.
• You will soon develop a way to ask and find the right person.
• Don’t ask people for money, ask them who they know. The right people will always self-select.
• There are people who want to invest who don’t like the ups and downs of the stock market.
• We buy for the cash flow. Our investors crave consistency.
• I pay my investors quarterly paychecks or mailbox money. Plus we sell in five years and they get a big chunk of money.
• Do this over and it creates a rising income story.
• The deals have to be done conservatively to make money.
• The golden rule is to take care of the capital 100{c35051b4442fafb55b74468ce151e373ddcc3f5b6c0bbc4cc62a5de9551ee3ef} of the time everytime.
• Make a net worth statement on an excel spreadsheet. What you owe minus the properties value is your net worth.

Links and Resources Mentioned:

• Text the word MONEY to 408-500-1127 to get my free private money program and credibility kit for single family
• Free Live Webinar
• The Boardroom Join the Free Webinar

Quotes:

“I really want people to see the authenticity of what I do and the next pieces of the puzzle.” Corey Peterson

“If you want to get into the multifamily space, get good at raising capital.” Corey Peterson

“Having a deal under your built gives you so much more legitimacy.” Corey Peterson

Don’t forget to download my Free Workshop Quickstart Video Series, and if you like what you have heard please leave a review on iTunes.

Text the word MONEY to 408-500-1127 to get my free private money program and credibility kit for single family.