013: Making the Most of OPM
My friend B.P. is here today to share how the principles of OPM or using other people’s money has helped him 10X his business. He shares how this business has been life changing and stress relieving. It will benefit his kids and family for years to come. This is a great quick testimonial of how my teachings really can change your lives.
Topics on Today’s Episode:
- I have been in the real estate business for 10 years and Corey has been a guiding light to me.
- Corey has taught me the concept of OPM or using other people’s money.
- I have been able to 10X my business just by following his concepts and moving on to multi family homes.
- I liked the concept of OPM, but I didn’t think it was possible for me.
- How a mindset change helped change B.P.s confidence and he realized that if he could do it for one person, he could do it for many.
- Doing it and seeing it work started the shift in my mind that built self-confidence for me.
- Transitioning from flipping single family homes to multi-family homes it has made me look foreword to the beginning of the month.
- I credit Corey to showing me the long-term benefits of looking into multifamily.
- There has been a bright outlook created in my future. Making six or seven figures passively.
- Don’t sell yourself short and get into multifamily as quick as possible.
- If you follow Corey’s teaching, you can go from something to nothing
- I just want to thank Corey for his time.
Quotes:
“Things completely shifted in my mind. I realized if I could do OPM investments for one person, I could do them for other people.” B.P.
“Doing it and seeing it work started the shift in my mind that built self-confidence for me.” B.P.
“Multi Family has released a lot of stress and anxiety for me. Especially the stress that comes with fixing and flipping many properties at one time.”
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. On the next episode, I am going to give a quick shout out to some of my reviewers.
012: Practicing Safe Syndication
Mauricio J. Rauld is a PPM Lawyer and the founder and CEO of Premier Law Group. He is a nationally recognized expert in asset protection and private placements. He represents and educates investors from all around the world. He also assists with raising capital and ensures compliance with SEC, State rules, and regulations.
He has been a California licensed attorney for 18 years and specializes in security laws. He helps entrepreneurs like me, raise capital to go on and do bigger and better deals. He has been doing this for 15 years and has helped raise over $150 million dollars. He is just really laser-focused on this particular area of the law which is very specialized.
Topics on Today’s Episode:
- Syndication is the pooling of resources. Usually money to make an investment as a team.
- Providing other resources than money are also valuable to the investing team.
- Taking money from others to manage is a security. The structure doesn’t matter if you are selling a security, you have to comply with all of the security laws.
- When it comes to structure we will figure a way to do it.
- You can get creative and make someone part of a deal, but you can’t just give them a side commission.
- Register syndication with the FCC, or find an exemption to registration, or else it is illegal.
- Registering the syndication is a long and expensive option and your last choice.
- You don’t want to accidently do an illegal offering like failing to disclose something.
- The best option is #2 which is finding the right exemption for your deal.
- The Reg D exemption. These allow you to raise an unlimited amount of money.
- An accredited investor has a net worth of over a million dollars. These are private, you can’t advertise.
- The 1933 act prohibition against marketing a non registered security.
- You can only accept accredited investors.
- You must take reasonable steps to verify that they are accredited.
- Safe Harbor Provision of taking reasonable steps to verify.
- There are also third party verification companies.
- Getting an acquisition fee, all of costs, costs of buying, as long as it is disclosed it can be part of the offering.
- If you don’t have the money, but you have the other skills, you find someone and do a partnership and they put up the money, and get paid back at the end. They can also be the lead investor.
- Corey’s 12.7 million dollar deal. Bam!
- Having earnest money sitting around to lock up a deal. Once the due diligence is done.
- Emotional quotient and ability to handle stress. CQ or curiosity quotient helps you learn the process. so you can recall things.
- PPM or private placement memorandum. It tells you every single way that you can lose your money.
- This is protection for the investor and the syndicator. Because the market can turn and sometimes deals don’t go as planned.
- The PPM is mandatory with non accredited investors. Only accredited investors it is not required but they do need a complete disclosure.
- Each deal is different. The same PPM can’t be used on every deal. You need to do underwriting to understand what disclosures need to be made.
- Due Diligence checklist. Lack of PPM. This is a red flag, cutting corners, and possibly illegal.
- Attention needs to be paid to the whole process of syndication, and it should never be done alone.
Links and Resources Mentioned:
- Premier Law Group
- CS@PremierLawGroup.net
- Mauricio J. Rauld on Facebook
- Curiosity Is as Important as Intelligence
- Devil’s Advocate
Quotes:
“It’s not all about money. Time, relationships, and credit are also valuable resources.” Mauricio Rauld
“Anytime you are taking money from another person with an expectation of managing it, that is a security.” Mauricio Rauld
“Most lawyers like to talk. In a business like this, it is better to listen.” Mauricio Rauld
“If you can find other people with money to invest, you can make bigger deals faster, but you have a fiduciary responsibility to those people and that money.” Corey Peterson
“We only do fat deals. If you do fat deals and they get skinny everyone is still happy.” Corey Peterson
“Less equals more. The less I have to work and not do stupid crap like pushing paper the better.” 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. On the next episode, I am going to give a quick shout out to some of my reviewers.
011: The Secret of Operations
I have a special podcast for you today, because I am in Kauai, the garden island. The backdrop behind me is just amazing. This is what happens when you get that wealth that I have been talking about. It enables you to go on really cool trips and bring lots of friends and stay in amazing places like I am staying.
Today’s topic is about the secrets of operations. What operational things do you need to do to make a big difference. How can you get the most important things done and free up your time by finding the right person to do those things for you. You want to run your ship by empowering the people you put into the system to do their job which allows you to focus on the money.
Topics on Today’s Episode:
- Find management companies or multifamily operators.
- Pay them between 4{c35051b4442fafb55b74468ce151e373ddcc3f5b6c0bbc4cc62a5de9551ee3ef} and 6{c35051b4442fafb55b74468ce151e373ddcc3f5b6c0bbc4cc62a5de9551ee3ef}. You can pay them less because it is a lot of business. That is the power of multifamily.
- Questions you ask your management company are things like:
- How they turn a tenant into a client?
- What is their sales process for getting people in the door?
- What are their managers responsibilities?
- Managers should scan the bills to the home office, and the home office pays the bills.
- Keep asking them about all of their systems and processes. Including staff for X amount of doors.
- Best Practices for a Management Company
- Make sure you ACH all of your tenants. That means they fill out forms to have their rent ACH drafted each month. Collecting rents wastes an insane amount of time. Lead manager is in charge of the people who come on the property, and the financial status of the property. Accountable to P&L.
- Lead manager has the responsibility of leading people. Hiring the correct managers and maintenance people. Don’t rent to the wrong tenants.
- Replace all of the old light bulbs with LED lights. Replace tenant controlled switches and put lights on a timer. Take one year and cut all of the overgrown stuff down and make it look like a new property.
- Put in USB plugs in kitchen and every bedroom. Point this out when doing the walkthroughs.
- Have the maintenance guys clean the carpet and then have the manager check to make sure that it is done right. This saves time, money, and gets the job done right.
- You can make money by increasing rents or decreasing expenses.
- We are fanatical about P&L and our supply chain. We use buying power collectively to lower operating costs.
Links and Resources Mentioned:
Quotes:
“The legacy lifestyle isn’t going to the job each and everyday and managing a bunch of people.” Corey Peterson
“Most newbie operators try to do everything themselves. I think that is a bad idea.” Corey Peterson
“Lighting is the number one biggest bang for your buck that you do at a property level.” 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. On the next episode, I am going to give a quick shout out to some of my reviewers.
010: What It Means to Be a Supportive Spouse
Having love and support makes everything we do easier. The topic for today is what it means to be a supportive spouse, and my lovely wife is here on the show with me. Shelley Peterson is part of Kahuna Investments and helps with all aspects from finding deals to using her amazing communication skills to connect and communicate effectively.
When I lost my job at Edward Jones and was struggling to build up my business, in spite of fear and insecurities, Shelley stood behind me with faith and unwavering commitment. Even though it took time for my efforts to pay off, Shelley never gave up on me. We talk about early struggles, mistakes made, and how hard work and perseverance paid off.
Topics on Today’s Episode:
- Shelley shares how she felt when Corey was fired from Edwards Jones.
- Frustration that spouses feel when their partner works a lot.
- How women want security. When that is ripped away this is where faith and belief come in.
- Shelley’s faith, love, and commitment to Corey outweighed her insecurities when Corey was working constantly to try and build a business after losing his job.
- How Corey was relentless to get his business off the ground and was in the office until the early morning hours.
- Corey does this because he wants to provide and do what is best for the family.
- How couples have to work through doubts and struggles.
- Building the initial inertia is a lot of work.
- When times were rough they moved out of their home and moved in with Shelley’s sister. They had to make sacrifices.
- As a couple you have to make tough decisions to get ahead.
- Corey told Shelley that one of these days he would enable her to retire from her job. It took three years, but they got there.
- Not working an outside job has been an absolute joy for Shelley.
- A supportive spouse gives you a comfort level that is needed.
- Taking a step back, listening to your partner, and finding balance.
- We’ve always been able to communicate well together.
- Entrepreneurship requires a different support staff. Don’t underestimate the power of a supportive spouse.
- Shelley saw Corey as a diamond in the rough, and Corey thinks of her as his polisher.
- The power of having time and money through real estate. Cash flow is when your cup gets filled up regardless of what you do.
- Becoming a true investor with multifamily apartments.
Links and Resources Mentioned:
Quotes:
“It takes a lot of faith and commitment to be a supportive spouse, but I sure am glad I stuck it out with this guy.” Shelley Peterson
“I knew that if you were that passionate and had that much drive you were going to do well. I had no doubt in my mind that you were going to kill it.” Shelley Peterson
“My faith, love, and commitment in Corey outweighed my insecurities.” Shelley Peterson
“When you start something new it takes an insane amount of time and focus.” Corey Peterson
“We’re doing this and not making any apologies for what we are doing.” Corey Peterson
“Shelley has been my biggest cheerleader. I don’t want to undervalue that because entrepreneurs need a supportive base at home.” 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. On the next episode, I am going to give a quick shout out to some of my reviewers.
009: The Power of Solving Problems
Today’s show is going to be a shorter more introspective episode about how life and people work. I was never good at memorizing information for school or homework, but I have always been really good at solving problems. I was the person in our home who hooked up the VCR and set everything up to record.
I followed the instructions and figured things out. I feel like in life that is the thing that I have been able to do. When my kids come to me for help with things, I know that sometimes I have to step back and let them learn to solve their problems. How will they get good at problem solving without exercising that muscle? Today’s show is about the power of solving problems.
Topics on Today’s Episode:
- How sometimes people stop learning after college. They stop doing things that invigorate their minds like reading books.
- When you come across something that you don’t know how to do. Learn what it will take to learn how to do it.
- You don’t need to be an expert in everything, but you need to know how to do a lot of things.
- The greatest gift I have is always being able to figure things out.
- People over complicate problems.
- Instead of stressing take it step-by-step.
- Don’t get handicapped by thinking you can’t do something. It’s fine to still hire an expert, but you need some general knowledge.
- Use your brain and solve your problems. They don’t need to be solved overnight.
- You can solve problems by just being curious and trying to figure things out.
- LIfe can be the most inspiring and fulfilling experience, but you need to put yourself in a position to rise higher.
- You can proclaim your greatness and have the cashflow life.
- Go out and be the best you that you can be.
Links and Resources Mentioned:
Quotes:
“There is something insanely simple and rewarding about solving problems. Solving problems is CEO quality work.” Corey Peterson
“CEOs take problems that seem insanely complicated and solve them by giving people the motivation to solve the puzzle.” Corey Peterson
“When you want to say you can’t do it. I challenge you to say I can do it.” 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. On the next episode, I am going to give a quick shout out to some of my reviewers.