EP159: Five Ways to Not Annoy Your Property Management Company

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This episode of Investing in Real Estate is brought to you by Harry’s. For $5 off any shave set, including the limited addition Father’s Day set, visit harrys.com/realestate.

Working with an experienced, qualified property management team is paramount to a real estate investor’s success. A property management company finds the right tenants, collects the rent, and does all the legwork so you don’t have to! It’s important to remember how valuable your property management team is, and to treat them with respect.

For today’s episode, I asked my property management teams what investors can do to be helpful and easy to work with. I’m sharing the top five things you can do to not annoy your property management team. Don't miss this episode of Investing in Real Estate! 

More About This Show
Occasionally, it seems that certain investors get a big head when it comes to dealing with property management. They fall prey to the mindset that they are in charge, and the team works for them. This is not good business practice, and it’s certainly no way to treat people.

It’s important to be kind, and remember that the property management team is comprised of human beings. We as landlords should treat our property management companies as team members. Without their hard work and dedication, we would not be able to do what we do. With the help of my property management teams, I’ve compiled a list of five things you can do to collaborate with your team and make their job as easy as possible:

  1. Fix the things they ask you to fix. This one is really simple—when they contact you regarding a leaky faucet, rattling heat vent, or a broken toilet, give them the green light to fix those issues. It might seem like some of these complaints are small to you, but to your tenant, the little things compile. When you anger your tenants, you make your property management team’s job harder.
  2. Let them do their job. You hired this team because they’re qualified to screen the tenants, and collect rent. Don’t try to micromanage them. Don’t come to them with a list of additional demands or tasks. They know what to do, and how to do it!
  3. Don’t be greedy with pricing. Your team is already established in the market, and they know what price is appropriate. Trust their judgment and experience.
  4. Get your account numbers right, and don’t change them last minute. Most property management companies will pay your rent via ACH. If you decide you need to change the account where your rent is deposited, give plenty of notice.
  5. Take care of all paperwork. When you onboard with a property management company, they’ll send you a packet of paperwork to complete. This stuff is important! It’s how you receive your payments and important tax documents.

If you’re ready to begin building a passive income through rental real estate, book a FREE call with our team today. We’re ready to talk about your goals and want to help you learn more about earning legacy wealth for you and your family. 

On this episode you’ll learn:

  • Should you compete with other investors on rent prices?
  • How much notice should you give before changing your account numbers?
  • What is the harm in trying to collect a higher monthly rent?
  • How can you get on the same page as your property management team?
  • And much more!

Episode Resources
Harry’s
EP126: Are You a Hands-On or a Hands-Off Investor?
Subscribe to Investing in Real Estate on iTunes
Find Your Financial Freedom Number
Subscribe to the Morris Invest YouTube channel

Like Morris Invest on Facebook

EP158: How to Defer Taxes Forever with Real Estate - Interview with Leonard Spoto

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If you’ve ever wondered about selling an investment property, today’s show is for you. Our guest is Leonard Spoto, the co-founder of Asset Exchange Company. Leonard is here to share his extensive knowledge on how a 1031 exchange can help real estate investors defer taxes forever.

On this episode, Leonard is sharing the four basic guidelines of a 1031 exchange, and why it’s important for real estate investors. We’ll also talk about the three D’s of investing, and the crucial steps involved in a successful 1031 exchange. Please join me on episode 158 of Investing in Real Estate! 

More About This Show
At Asset Exchange Company, Leonard and his team have worked with thousands of investors to create wealth through real estate. Leonard posits that the 1031 exchange is one of the greatest wealth building tools available to investors. A 1031 exchange allows an investor to defer capital gains taxes on the sale of an investment property by purchasing a new property.

A 1031 exchange allows the investor to keep more money in their pocket, and use it as additional purchasing power on their next transaction. Leonard explains that a 1031 exchange is permitted under section 1031 of the Internal Revenue Code, but there are strict guidelines that must be followed in order to qualify.

First, the properties involved in the exchange must be held for either business or investment purposes. This information is proven by tax returns, including rental income, depreciation records, and intent. It’s important to have this documentation in place in case of an audit.

There are also regulations in place for the new purchase. The new property must meet the reinvestment requirements. This means the new property must be of equal or greater value than the property that was sold.

Additionally, there is a strict timeline that the investor must uphold. The investor has 180 days to complete the exchange. This begins on the day escrow closes on the sale. Leonard explains that it’s important to work with an accommodator, such as his team. You also must reach out to your accommodator before escrow closing.

Finally, the IRS requires that the investor identify their purchasing plans on day 45. The investor must describe the property or properties they are planning to use as the replacement in the exchange.

On today’s show, Leonard is sharing so much more about the power of 1031 exchanges. He’ll share how to initiate an exchange, and the importance of an accommodator. We’ll talk about how a 1031 exchange is like a 401k, and the importance of long-term deferment!

If you’re ready to begin building a passive income through rental real estate, book a FREE call with our team today. We’re ready to talk about your goals and want to help you learn more about earning legacy wealth for you and your family.

On this episode you’ll learn:

  • What is the three property rule and the 200% rule?
  • Can you conduct a 1031 exchange on a primary residence?
  • Which states have high tax liability for sales of property?
  • How can you declare intent when purchasing a property?
  • When does the time frame begin for a 1031 exchange?
  • And much more!

Episode Resources
Subscribe to Investing in Real Estate on iTunes
Find Your Financial Freedom Number
Subscribe to the Morris Invest YouTube channel

Like Morris Invest on Facebook

Contact Leonard Spoto
Call at 877-471-1031
Website
Facebook
LinkedIn

 

If you’ve ever wondered about selling an investment property, this is for you. Leonard Spoto shares his extensive knowledge on how a 1031 exchange can help real estate investors defer taxes forever.

EP157: Using the Money in Your LLCS' Bank Accounts

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This episode is brought to you by Mack Weldon. Visit mackweldon.com and use promo code CLAYTON to receive 20% off your order of high quality clothing!

When you have a business entity, especially multiple business entities, banking can become complex. There are many reasons why you might need to move your money, but there are strict regulations, as well as tax implications that will dictate how this should be done.

On this episode of Investing in Real Estate, Natali and I are discussing how to use the money in your LLCs’ bank accounts. We’ll share what we’ve learned, the mistakes we’ve made, and more! Please join us for episode 157!

More About This Show
We’ve discussed before the importance of owning real estate inside of LLCs, and how we personally structure our banking accounts. Each LLC should be treated as its own bank entity. The LLC has an EIN, which is owned by you, and gets reported on your personal tax return.

But that doesn’t mean the funds inside that LLC banking account are yours for the taking. You can’t write a check from your LLC’s business account to purchase groceries for your family. In fact, that’s known as commingling, which is illegal.

The rent that you receive as income every month should be paid to the order of the LLC. Those funds must be deposited into the LLC account. You should not deposit checks into your personal checking account.  

In our business, we have our LLCs under holding companies. This was done at the counsel of our legal team. We’ve been advised that under the circumstances that we need to move money, the LLC should send the funds up the holding account. That account can then disperse the funds accordingly. It’s incredibly important to have some sort of trail of proof any time funds are rearranged.

On today’s show, we’ll discuss more about our personal banking structure, and how we use our different accounts. We’ll talk about the Profit First system, the importance of treating each entity individually, and how umbrella LLCs are taxed. It’s all here on episode 157 of Investing in Real Estate!

If you’re ready to begin building a passive income through rental real estate, book a FREE call with our team today. We’re ready to talk about your goals and want to help you learn more about earning legacy wealth for you and your family.

On this episode you’ll learn:

  • Can you use funds in one LLC to purchase a property for another LLC?
  • Can you be taxed twice on money that you’ve transferred?
  • What is a distribution?
  • Does your owner pay account need to be owned by the LLC?
  • When should you consider setting up a holding company?
  • And much more!

Episode Resources
Mack Weldon
EP010: How to Set Up Profit First for Real Estate Investing – Interview with Mike Michalowicz
EP040: How to Implement Profit First for Real Estate Investing
Subscribe to Investing in Real Estate on iTunes
Find Your Financial Freedom Number
Subscribe to the Morris Invest YouTube channel

Like Morris Invest on Facebook

 

How to use the money in your LLC's bank accounts - plus mistakes we made that you'll want to avoid. | Real estate investing | Small business

EP156: Renters are Staying Put, Here's Why

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This episode of Investing in Real Estate is brought to you by RealtyShares. With Realty Shares, hundreds of people invest fractionally, reducing the cost of the initial investment.  If you have $5000 and qualify, you can begin group investing. Visit realtyshares.com/IIRE to receive $100 toward your first investment!

Recent studies show that many renters don’t expect to purchase a home anytime soon, and that they feel confident about their living situation. On today’s show, I’m discussing these findings, and sharing my outlook for real estate investors.

On this episode of Investing in Real Estate, we’ll talk about why tenants rent, and how you can set yourself up for success as a landlord. I’ll elaborate on consumer confidence, renters’ finances, and how the banks come into play in this situation. Don’t miss episode 156! 

More About This Show
A recent article on CNBC.com reviewed data from mortgage provider Freddie Mac, citing that 37% of renters have no pressing plans to move, jumping from 30% in September. Additionally, the study showed that only 33% of renters intend to move in the next two years. This figure fell from 38%.

This data shows that an increasingly growing amount of renters possess a positive outlook of renting. For investors, this is fantastic news! We have the opportunity to create spaces for renters to call home. People will always need a place to live, and my opinion has long been, “why shouldn’t they rent from me?”

A separate study conducted by Zillow determined that a lack of down payment funds prevented more than two thirds of renters to purchase a home. As banks continue to tighten their belts, many people have difficulties qualifying for mortgages.

The article explains that whether by choice or financial necessity, homeownership rates are low, and not expected to rise anytime soon. The bottom line is, anytime is a great time to be a landlord, but now is especially favorable.

Not only are there an excess of tenants, but they’re also willing to pay for rent. Not only that, they’re willing to rent for an indefinite amount of time. On today’s show, I’ll discuss this opportunity further. I’ll share more statistics from the studies, and I’ll also talk about being a landlord amidst an economic downturn.

If you’re ready to begin building a passive income through rental real estate, book a FREE call with our team today. We’re ready to talk about your goals and want to help you learn more about earning legacy wealth for you and your family. 

On this episode you’ll learn:

  • Why is there a surge in rentals?
  • Is there a wrong time to own rental real estate?
  • How can you protect your investments from economic downfall?
  • Why are renters content in not purchasing homes?
  • And much more!

Episode Resources
RealtyShares
Renters are staying put. Here’s why on CNBC
Subscribe to Investing in Real Estate on iTunes
Find Your Financial Freedom Number
Subscribe to the Morris Invest YouTube channel

Like Morris Invest on Facebook

We’ll talk about why tenants rent, and how you can set yourself up for success as a landlord | real estate investing | make money with real estate

EP155: Cash Is Trash, Cash Flow Is King - Interview with Damion Lupo

Book a call with our team: https://goo.gl/dezwHT

This episode of Investing in Real Estate is brought to you by Harry’s. Harry’s offers high quality razors at half the price of drugstore brands. Harry’s is so confident you’ll love their blades, they’re giving you a trial set for free—you just pay shipping! Visit Harrys.com/realestate to get your free trial set!

You’ve heard it here before: the key to building lasting wealth is cash flow. Here to share his perspective on this topic is Damion Lupo. Damion is an entrepreneur, a financial consultant, and a high-level real estate investor.

On today’s show, Damion is sharing the highs and lows he’s experienced throughout his storied real estate career. We’re discussing the importance of cash flow, how to get your mind right, and so much more on episode 155 of Investing in Real Estate!

More About This Show
As a financial consultant, Damion encounters many individuals who are simply in the wrong mindset. He posits too many people think wealth means having cash. They’ve also bought into the idea that having a giant portfolio of stocks and bonds is the key to success.

But the truth is, Wall Street bankers are the ones that profit from that system. Not to mention, it creates a lot of fear because there is no control. The market will inevitably crash, because the system is cyclical.

Having cash set aside in a bank account isn’t profitable either. If it’s just sitting there, it’s not producing anything. There’s a better way: cash flow! Damion explains that cash flow via real estate is the true way to create wealth.

Damion is a long time investor, who actually purchased his first investment property with a credit card. On today’s show, he's sharing more about his real estate experience, including his $20 million loss, and how he bounced back. We’ll talk about the middle class mentality, the importance of having mentors, how to find a deal, and so much more! Damion has so much knowledge to share—you won’t want to miss this episode!

If you’re ready to begin building a passive income through rental real estate, book a FREE call with our team today. We’re ready to talk about your goals and want to help you learn more about earning legacy wealth for you and your family.

On this episode you’ll learn:

  • What is the only reason to save money?
  • Is it smart to use leverage to purchase rental properties?
  • How does Damion combat negativity?
  • What is Damion’s advice for finding a real estate deal?
  • And much more!

Episode Resources
Harry’s
Total Control Financial

Books by Damion Lupo
Morrisinvest.com/funding
Subscribe to Investing in Real Estate on iTunes
Find Your Financial Freedom Number
Subscribe to the Morris Invest YouTube channel

Like Morris Invest on Facebook


Contact Damion Lupo
Website
Facebook
Twitter
LinkedIn

Cash flow is king when it comes to real estate investing (and other types of passive income). Find out more in this interview with Damion Lupo.

EP154: How to Deal with Negative Family Members

Book a call with our team: https://goo.gl/dezwHT

This episode is brought to you by Mack Weldon. Visit mackweldon.com and use promo code CLAYTON to receive 20% off your order of high quality clothing!

This episode is also sponsored by Away. Visit awaytravel.com/iire and use promo code IIRE during checkout for $20 off your luggage order.

Have you ever encountered naysayers when you talk about your real estate goals? If so, you’re not alone. We hear from investors all the time who hear negative opinions, horror stories, and limiting beliefs—particularly from their own relatives!

On this episode of Investing in Real Estate, Natali and I are discussing how to combat negative family members. We’ll talk about the biggest arguments and objections you might face, and how to respond. Please join us for episode 154 of Investing in Real Estate!

More About This Show
Particularly if you’re just starting on your real estate journey, you won’t have all the answers, and that’s okay. But if you want to share the things you’re excited about with people in your life, you might encounter a “negative nelly” or two along the way.

Oftentimes, these naysayers have an anecdote to share. And typically, it has to do with terrible tenants. This is why we work with property management teams! They screen the tenants, and find a great, responsible person to live in your home. And if a problem does arise, you won’t be the one fielding the phone calls.

The first tactic we have to offer is to try spending some time educating that person. If you can explain to them the smart, slow, and steady approach to investing, they might be able to understand your situation. You can also point them to resources, such as this podcast

An alternative is to ignore the naysayer altogether. Just go out there, and pursue your investing goals. Soon enough, you’ll be making passive income, and they’ll be left scratching their head.

On today’s show, we’ll talk more about combating anecdotal objections. We’ll discuss assumptions, skepticism, and how to educate others about rental real estate. Don’t miss this episode of Investing in Real Estate!

If you’re ready to begin building a passive income through rental real estate, book a FREE call with our team today. We’re ready to talk about your goals and want to help you learn more about earning legacy wealth for you and your family. 

On this episode you’ll learn:

  • How can you start a conversation with relatives about retirement?
  • Where does skepticism come from?
  • What should you do if you’re married to a naysayer?
  • How can you determine when to engage vs. ignore an objection?
  • And much more!

Episode Resources
Mack Weldon
Away
EP073: How to Get Your Spouse on Board Your Real Estate Journey
Subscribe to Investing in Real Estate on iTunes
Find Your Financial Freedom Number
Subscribe to the Morris Invest YouTube channel

Like Morris Invest on Facebook

How to deal with negative family members who don't get you as a real estate investor.

EP153: Try Adding a Few B Class Properties to Your Portfolio

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There’s nothing I love more than building my portfolio around C class properties. C class properties produce the highest return on investment, and are largely untouched by economic downturn. However, recently I’ve started implementing a new strategy—adding a few B class properties to my portfolio.

On this episode of Investing in Real Estate, I’ll share why you might want to consider purchasing some B class rental properties. I’ll talk about equity, ROI, and the appreciation you can expect to receive. I’ll also share the secret that wealthy people know about owning real estate! Don’t miss episode 153!

More About This Show
I understand that the neighborhood classification system can be confusing. If you need a refresher, go back and listen to episode 48. I love to build my portfolio around C class properties—they are the backbone of everything I do in real estate.

But recently, Natali and I have started implementing a new strategy—adding a few B class properties into our portfolio. This is not to say we are totally rebuilding our strategy; we’re not. We still focus on C class properties, just not exclusively.  

B class properties will have a slightly lower ROI, yet higher equity and appreciation. Also, purchasing a property that is worth $80,000 instead of $40,000 is a fast way to increase your personal net worth. However, I’m not talking about B class properties in B class neighborhoods.

This strategy consists of finding a rare gem—a C class property in a B class neighborhood. I’m looking for properties I can still purchase under market value, add value in order to increase my equity position, and still get a high ROI. Again, I’m not suggesting redirecting your strategy altogether. I still love C class properties. But in a portfolio of 30 properties, it might be smart to consider purchasing 3-5 B class properties.

On today’s show, I’ll go more in depth about this strategy, and why it might appeal to you. I’ll talk about how much to spend on a rehab, and why building your net worth is so powerful. It’s all here on Investing in Real Estate!

If you’re ready to begin building a passive income through rental real estate, book a FREE call with our team today. We’re ready to talk about your goals and want to help you learn more about earning legacy wealth for you and your family.

On this episode you’ll learn:

  • How much should you spend on a B class property?
  • What kind of ROI should you aim for on a B class property?
  • Why is building your net worth important?
  • Why do B class properties become foundational properties in a portfolio?
  • And much more!

Episode Resources
Subscribe to Investing in Real Estate on iTunes
Find Your Financial Freedom Number
Subscribe to the Morris Invest YouTube channel

Like Morris Invest on Facebook

 

 

Why you might want to consider purchasing some B class rental properties. I’ll talk about equity, ROI, and the appreciation you can expect to receive. I’ll also share the secret that wealthy people know about owning real estate!