How to Communicate with Your Partner About Finances

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Money can be a touchy subject, but it’s important that couples are able to have constructive conversations about financial goals. We hear from investors all the time who struggle to get on the same page as their spouse. In fact, this is an issue Natali and I encountered early on in our marriage.

Let's be honest: money is a huge pain point for many people! I've discussed before that I'd been engrained with limiting beliefs about money, and I don't think that's rare. Many of us hold some sort of fear about money. Even if these fears aren't rational, they can feel very real! And when those fears are threatened, they can explode into a plethora of emotions. 

Early in our marriage, we would often disagree about finances and have unproductive conversations. It’s very common for what should be a reasonable discussion to explode into a fight. We're not perfect, but over the years we've made a lot of progress. We’ve put together four tips you can use to avoid fighting with your partner about money:

  1. Recognize your own fears and limiting beliefs about money. Most of us have these, but overcoming them requires introspection. Consider your fears, and where they stem from. Realize that most of our fears never become a reality.
  2. Consider your partner’s fears. Once you understand their background, and the things that trigger their fears, you can start being more careful. If you know your spouse is fearful of lack, you can do your best to not feed those fears.
  3. Also, know your numbers. Think about your Freedom Number, and calculate your net worth. If you understand your goals and where you’re headed, you’ll be more centered in reality.
  4. Our last tip is to make and trust your plan. You both need to be the same page, but if your plan is based on shared values, you can move in the right direction intentionally.

Using these four tips has helped me have more productive, positive conversations about finances, and I hope they can do the same for you! 

How to Interpret Crime Data: a Guide for Real Estate Investors

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If you’re like most people, you do a lot of research on the internet before making a big decision. That’s an excellent way to be an informed consumer, but when it comes to real estate investing, the internet isn’t always the most accurate resource.

One of the biggest hang-ups that new investors face is hesitation about crime. Many people are curious about this topic, and the thought of crime can totally demolish their real estate investing dreams.

If you focus on the potential for crime, or are put off by the data you read on websites like Zillow or Trulia, you may decide not to invest at all. I’m here to tell you, get that idea out of your head. Don’t let crime data debilitate and discourage you. 

I understand why this data can be so overwhelming and troubling. If you’re new to real estate investing, you only have the internet to rely on, especially if you’re not purchasing in your own neighborhood. But the truth is, the internet is often wrong.

Crime data is calculated by zip code, and that simply doesn’t make sense. These sites can accumulate data from a mile away. Zip codes were created specifically for mailing purposes; they have nothing to do with the quality of a neighborhood.

When you’re looking into real estate investing, don’t be discouraged by this data. If you search hard enough, you can find reasons not to invest. There are much better ways to measure whether or not a property is a sound investment.

So how exactly can you measure if a neighborhood will be riddled with crime? Talk to your property management team! They will have accurate information and experience to share. Also, are other investors purchasing on the same streets? If so, that's good reason to think it's not a high crime area. 

Check out our list of the five rental markets with the highest crime rates. 

Creative Ways to Fund Your Investing Career

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You might think that investing is only about the numbers, but in order to grow your portfolio, you’ll need to put on your thinking hat and be creative! The beauty of investing in real estate is that there are many ways to finance a deal. It's important to be open-minded, and receptive to the possibilities.

When we talk about different strategies for investing, it’s important to note that not every method will be applicable to your unique situation. We all have different financial backgrounds and circumstances. We don’t think that a 401k loan or a HELOC is appropriate for each investor. They’re great strategies, but they’re not for everyone.

Disclaimer: we are not financial advisors. We don’t know what is right for you, your family, or your situation. We’re simply a family that educates ourselves on different strategies, and executes the ones that we feel are most fitting. We are trying to share that education with you. We are in no way trying to tell you what you should do.

But that’s what is so fantastic about investing in real estate! There’s no one right path to follow. There are so many ways for you to meet your goals!

Pushing Past Fear in Order to Reach Your Goals

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If you play your cards right, you can build incredible lasting wealth through real estate investing. Many people don’t fully pursue this opportunity, simply because they are held back by fear.

My mentor once told me that the difference between a rich person and a poor person is how they manage fear. And now that I’ve gained perspective, built my portfolio, and spoken with thousands of investors, I’ve realized how true that sentiment is.

So many people want to build wealth, but they can’t because they are held back by fear. They don’t consider the potential of what could go right, because they’re too focused on their own hesitations and anxieties. I've heard from a lot of people who have considered investing, but they're too fearful about losing their money or the possibility of having an eviction.

We all have these fears—it’s in our nature. I have struggled with fear my whole life, so I’m speaking from experience. It’s not the fear that’s the problem; it’s how you deal with it. Do you become consumed by fear? Do you let it stifle your dreams?

Or do you run toward it? When you’re able to embrace fear and move forward regardless, you’ll find that these fears and boundaries aren’t real. They’re in your mind. The fear dissipates, and you can move toward your goals. When you push past your fears, then you can reach financial freedom.

Many people don’t fully pursue real estate investing opportunities, simply because they are held back by fear. Here's how to push past fear to reach your goals.

How to Determine If Turnkey Investing Is Right for You

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Is turnkey real estate right for you? This is an important question to ask yourself, because let’s be honest: it’s not for everyone. As always, I suggest real estate investors try to reverse engineer their lives.

Think about your end goal; imagine what you want your life to look like down the road once you’ve achieved your Freedom Number. What do you envision your future to look like? Will you be spending your free time renovating properties? Or do you plan to collect rent checks passively, while you spend your time with your family doing the things you love?

Turnkey real estate is not for someone who is Type A and needs to be hands-on. If that sounds like you, we have a DIY playlist on YouTube that you might find helpful.

Here’s are a few key indicators that you and turnkey are a match:  

  • You don’t know the first thing about finding a great investment in the right market.
  • You don't have the time to commit to everything investing entails.
  • You don’t want to get your hands dirty doing a rehab.
  • You don’t want to worry about hiring contractors.
  • You don’t care to pick out paint, or find the right materials.
  • You don’t want to interview property management teams to find the right fit.
  • You want a totally passive experience and high ROI.

It’s a fantastic solution for those investors who want the benefits of high ROI and monthly cash flow, but don’t want to put in the work. Turnkey is totally hands-off, you just sit back and collect rent checks.

The entire system is rock solid. You don’t have to worry about paying contractors crazy rates, and your property management team is ready to go! Everything runs incredibly efficiently, which makes your business scalable.

If you’re ready to pick up your first turnkey property, let’s talk! Book a free call with our team to talk about making your real estate goals happen.

Is turnkey real estate investing right for you? This is an important question to ask yourself, because let’s be honest: it’s not for everyone.

Five Attributes of an Excellent Rental Market

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Not just any city can function as a great rental market. Unless you live in a few select cities, chances are the best properties are not in your backyard.  So how do you go about finding a rental market that will produce high return on investment?

Certainly, there are many metrics you could consider. However, in this post, I'm sharing what I care about in a rental market and why it matters.

  1. Landlord friendliness. Unfortunately, legal issues like evictions are inevitable when you own multiple rental properties. Because of this, I aim to invest in states that are protective of landlords. This is one area that is easily overlooked, but can have far-reaching implications. 
  2. Job market. It's important to assess what the job market is like in a city you're considering investing in. Personally, I look for jobs that are American-based. Jobs in hospitals aren't going anywhere. You want your tenants to have consistent work, so this one is important! 
  3. Affordability. I look at the cost to acquire properties, as well as things like property taxes, and how much it costs to hold licenses. Remember, additional costs eat into your ROI, so you want to be careful about how much you're spending.
  4. Boring appreciation. As far as I'm concerned, slow and steady appreciation wins the race! I don't want drama or overinflated property values. 
  5. Shipping. We live in an e-commerce society. Online businesses like Amazon and Zappos are ever-expanding, so if I notice warehouses and distribution centers, I know that's a great place to invest.

If you're ready to pick up a turnkey rental property in one of America's best rental markets, book a free call with our team!

How do you go about finding a rental market that will produce high return on investment? Consider these 5 attributes of an excellent rental market.

The Dirty Word in Real Estate Investing

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A lot of investors that I speak to are terrified about the possibility of an eviction, Unfortunately, eviction is an inevitable part of being a real estate investor. It's just part of the business. As you grow your portfolio, it’s important to know what to expect should you ever need to evict a tenant from one of your rental properties.

As a landlord, you should know your rights amidst an eviction. Although eviction laws vary from state to state, there are a few typical terms of the eviction process you should expect regardless of your location.

You can’t begin the eviction process until you’ve notified your tenant that you’re ending their tenancy. You must give them proper notice. Then, you can file the legal paperwork to initiate the eviction process. Typically, it costs around $150 to file the lawsuit, depending on the city you live in.

There are three reasons why you can file an eviction:

  1. Pay Rent or Quit Notice. This notice gives a tenant who is behind on rent two options: pay up or get out!
  2. Cure or Quit Notice. This is when the tenant has acted in violation of the rental agreement. This notice gives them the option to either fix their wrongdoing, or leave the premises. An example would be acting out the terms of the lease such as having a pet that you are not aware of or making excessive noise.
  3. Unconditional Quit Notice. This orders the tenant to move out when they have repeatedly violated the lease agreement. This typically applies when you’ve discussed a matter with the tenant multiple times, but is still an issue. This can be for noise, damage, or other offenses.

And remember, it’s important to be knowledgeable about the state you’re investing in. Certain states are more protective of landlords in their legislation. Check out my list of the 5 most landlord friendly states! 

If you’re working with a great property management team, which you should be, they will handle the eviction process on your behalf. Sometimes people ask if you need a lawyer for this process, but my property management teams have always handled evictions beautifully. 

A lot of investors that I speak to are terrified about the possibility of an eviction. As you grow your portfolio, it’s important to know what to expect should you ever need to evict a tenant from one of your rental properties.