Writing a Family Mission Statement

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There are so many intricacies that go into running a successful family business. Undeniably, it’s important to properly organize banking accounts and taxes, but unless you’ve actually contemplated the underlying motives for your business, it can be difficult to act in accordance with your values. And that’s why we decided to write a family mission statement. 

Our lawyers wrote a book titled, Entrusted: Building a Legacy That Lasts, which is a discussion on successful transfer of wealth to succeeding generations. Not just monetary wealth, but the less palpable aspects of wealth, such as wisdom, lessons, and virtues. 

An exercise in the book is focused on writing a family mission statement. Its purpose is to allow you to make known the principles on which your wealth was built. It might sound hokey or self-congratulatory to sit down and think about your family mission statement, but to us it has proven to be a helpful tool.

Having a tangible mission statement for our family helps us feel more secure about the future our wealth, and the values we plan to instill in our children. Another situation to consider is that should a trustee need to make a decision on behalf of your trust, they will have a clear set of values to act in agreement with.

On the podcast, we’re getting more in-depth about the idea of a family mission statement. We’ll discuss the benefits of this exercise, and the importance of having a straightforward approach in estate planning. We hope you’ll consider taking the opportunity to make clear your own family values.  

Morris Family Mission Statement

We take great pride in being the Morris family. We have spent the majority of our time and energy in creating a legacy of love, health, and wealth for our children and their children to come. We never stop learning to grow in those three tenets: love, health, and wealth. We hope that our descendants value those things in that order and learn to pursue them with meaning and passion.

We believe that happiness is made from loving human connections and the pursuit of meaningful goals. We believe that each person assigns meaning differently in their life and that freedom is the ability to pursue your own meaning markers. We hope that each of our descendants can dream up and chase their own goals knowing that happiness lies in every step, not in the end result.

We believe that wealth follows passion. We believe that career is amplified when you can see your contribution to making the world better. We believe the human race grows when each of us make our own decisions out of love and courage, not obligation and fear. We believe that a strong family and support group help to make those decisions a lot easier.

We create this trust to help our descendants pursue their own paths. We do not want to pave that path for them, only to influence it with the life lessons we have learned. We believe in our children. They have been our greatest gift in life. We want to serve as proud ancestors as they pursue their own personal legends.

“When we love, we always strive to become better than we are. When we strive to become better than we are, everything around us becomes better too.” — Paulo Coelho, The Alchemist

Cultivating a Wealthy Mindset

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I’ve been poor, and thanks to real estate investing I’ve also been wealthy. You might be surprised to learn that the biggest difference between the two is not about money, but more so about mindset. The good news is, if you’re purposeful you can change your mindset, which will in turn change your financial situation.

I spend a lot of time talking to people who are interested in building wealth through real estate. And unfortunately, I’m met with a lot of fear-based objections. Many people out there are simply not in the right headspace to begin creating wealth.

If you think you cannot change your financial situation due to personal circumstances, that’s a lie you are telling yourself. I truly believe that we hold the ability to manifest money through our thoughts. And if you’re telling yourself that your situation will never improve, then that’s exactly what will happen.

That’s why it’s important to take inventory of your thoughts, and think about what triggers you. If you are able to identify those thoughts and fears, then you can quiet them. If you really want to create change, you’ll need to squash any beliefs that do not align with your goal. 

Natali and I put together a free download you can use to confront your limiting beliefs so that you are able to attract wealth into your life. Get your free copy here!  

How to confront your limiting beliefs so that you are able to attract wealth into your life - free download.

The Allure of the First Property

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I speak to a lot of new investors, and there’s one mistake I see them make on a regular basis. Many investors think they can self-manage their properties when they first get started in real estate. This is a giant mistake—I call it “the Allure of the First Property.” If your plan is to grow your portfolio, you’ll want to place this job into the hands of professionals.  

More often than not, these investors are simply looking for ways to save a few bucks and bring home more money. But a smart investor will build in the 10% property management fee to their ROI formula. For instance, if your property rents for $700/month, you can expect to pay $70 to your property management company. Let me tell you, it’s well worth the $70.

I've seen this scenario play out time and time again. Investors self-manage their first investment, then buy their second rental property and they decide to play landlord again. Maybe they had a great experience with the first property, but it almost never works out once the second property is under their belt.

Even if you were to luck out and get fantastic tenants the first time around, chances are the next tenants won’t be so great. If you’re not experienced, you won’t know how to properly screen your tenants and get the right person in your rental. Not to mention, things just get out of hand once you have multiple properties. It’s more tenants, more toilets, more repairs, and generally more to worry about.

Being a landlord is a full-time job. You should always think ahead, and play the long game with your properties—that includes reaching your Freedom Number. What seems easy with one property quickly becomes a nightmare while trying to juggle 15 or 20 properties. 

Rental investing doesn't have to be hard. Plan from the very beginning to hire a property manager and put your passive income on autopilot! 

I speak to a lot of new rental property investors, and there’s one mistake I see them make on a regular basis. Here's what to do instead.

The Best Neighborhoods for Real Estate Investing

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If you're new to real estate investing, I know it can be confusing to nail down the perfect rental market, and then the perfect neighborhood! My personal strategy is to purchase my properties in C class neighborhoods. The properties can be acquired for cheaper than B neighborhoods, and the rents are comparable. Therefore, the return on investment is higher. Simply put, it’s a better value. Remember, that’s why we do what we do! It’s all about ROI.

A lot of people worry about the quality of tenant in a C neighborhood, but truthfully, I rarely have issues with my tenants. These are hardworking, blue-collar Americans. They are satisfied with the homes that my team renovates. The neighborhoods are quiet during the day, because the tenants are away at work.

Not to mention, I don’t communicate with my tenants anyway! All of my properties are in the hands of effective property management teams. Should a problem arise, the property management team handles it quickly and professionally.

It might seem counterintuitive, but A neighborhoods are typically the neighborhoods that have problem tenants. Those tenants have higher standards, and are more likely to complain about insignificant details.

If you want to know more about C class neighborhoods, check out my property tours on YouTube! I'll walk you through some of my favorite neighborhoods, and show you exactly what to look for in the perfect rental market! 

Interested in picking up your very own C class property with high ROI? Let’s talk! Pick a 30-minute time slot that works with your schedule, and we’ll match you with a great property!

If you're new to real estate investing, I know it can be confusing to nail down the perfect rental market, and then the perfect neighborhood! Here's my strategy.

Don't Fall in Love with Real Estate

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So you're ready to become a real estate investor, and you're picturing it now: a cute little bungalow nestled into a picturesque neighborhood. You've started brainstorming paint colors, and picking out shrubbery. I'm going to have to stop you right there. This is the WRONG approach. 

It doesn't matter what the house looks like. It doesn't matter what the paint colors are. It doesn't matter what the hardware on the kitchen cabinets looks like. None of that is important. Why? It doesn't bring you closer to financial freedom, period. 

Here's a little secret that only effective real estate investors understand: don't fall in love with real estate, fall in love with ROI. It doesn’t matter what the house looks like. All rental homes are simply four walls and a roof.

Houses in the best rental markets in the US rent, regardless of if they're cute or not! Our goal is to create a safe, solid, and comfortable home for our tenants. We aren't shooting for something that's Pinterest-worthy. 

Real estate investing is a business, and as a business owner, you'll have to look out for your bottom line. ROI is the most important metric. Keep your focus on the numbers, and you'll be well on your way to financial freedom! 

Want to learn more about purchasing high ROI rental properties in the best rental markets? We're ready to help you reach your goals! Click here to book a free call with our team. 

So you're ready to become a real estate investor, and you're picturing it now: a cute little bungalow nestled into a picturesque neighborhood. You've started brainstorming paint colors, and picking out shrubbery. I'm going to have to stop you right there. This is the WRONG approach. 

Exponentially Growing Your Real Estate Portfolio

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Smart investors know that if you want to rapidly expand your portfolio, you'll have to use leverage! I've watched investors go from one rental property to a robust portfolio in a short few years by utilizing a strategy known as the BRRRR Method.

Let's say, for example, your Freedom Number is 14. If your plan is to save cash and purchase properties one-by-one, it could take a while. Unless you happen to have a huge savings account or another means to cash, the BRRRR Method might be your ticket to financial freedom!

Here's how to use this strategy: 

Buy - You don’t want to just purchase any house. Don’t simply call up a realtor, and pay over market value for a house plus closing costs. You want to find a property below market value, so that you can add value in repairs. The purchase is very important in this process—buy low!

Repair - Repairing can be tricky, because you don’t want to spend more than necessary, but you still want to create a solid home for your tenant. It’s a balance. Don’t over-upgrade the property. You don’t want to take too long either, because then you aren’t making money from rent checks. Check out my video on how to renovate a rental property.

Rent – Get a tenant in there, so the property begins to produce cash flow. If you’re working with a professional property management team, they’ll take care of this step for you.  

Refinance – I suggest approaching a local bank. They’re way easier to work with than big banks on refinances. Local banks tend to have great introductory rates for refinances. Sit down with a banker, talk about the property, and let them know what your goals are. They’ll be able to match you with a great product that meets your needs. You should expect to receive 75-80% of the value of the home.

Repeat – Once you’ve pulled the money back, out purchase your second and third rental properties! Rinse and repeat!

That's it! I've watched many investors successfully pull off this strategy, and I know you can too. If you're ready to get started on your journey to financial freedom, we'd love to help! Click here to book a free, no obligation call with our team. 

Smart investors know that if you want to rapidly expand your portfolio, you'll have to use leverage! I've watched investors go from one rental property to a robust portfolio in a short few years by utilizing a strategy known as the BRRRR Method.

How to Evaluate a Real Estate Deal

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The ability to decide whether or not a real estate deal is profitable is crucial to your success as a real estate investor. If your investment breaks even (or worse, loses money) then you're not moving closer to your goal of financial freedom. There are a few different methods you can use to evaluate whether or not a deal makes sense financially. 

One commonly used method is the 1% Rule. The 1% Rule helps investors determine if a rental property will produce cash flow. Basically, when you purchase a piece of real estate, it should cash flow up to 1% of the purchase price every single month. 

To use round numbers, let’s say you purchased a real estate investment for $100k. Following the 1% Rule, that property would need to produce $1000 in rental income every month. This is a simple tactic used to ensure that your expenses will be covered.

Personally, my main focus is cash flow, so 1% isn't as sturdy as I'd like. That's why I use an incredibly conservative ROI formula. ROI is a formula used to evaluate the performance of an investment. ROI is the way you can measure how much profit a property is accumulating. Typically, ROI is calculated by dividing the net profit of investment by the amount of money invested.

But I like to take it one step further. I always subtract 40% of my annual rental income to account for vacancies, repairs, or expenses that could occur throughout the year. You might think that sounds like too large of a portion, but it gives me peace of mind. I don’t have to worry if something goes wrong at my properties. If a furnace goes out, I want to know that the money is there to replace it. Expenses are inevitable, so I like to prepared. 

Regardless of what method you choose to evaluate your real estate deal, make sure your focus remains on the end goal: financial freedom. 

The ability to decide whether or not a real estate deal is profitable is crucial to your success as a real estate investor. Here's how to evaluate a real estate deal.