EP198: Don't Buy a House, Rent Instead

1.png

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

This episode of Investing in Real Estate is brought to you by SaneBox. SaneBox sorts through your email and moves all of the trivial stuff into a different folder, so the only messages in your inbox are the ones you actually want to see! Visit sanebox.com/investing today and they’ll throw in an extra $25 credit on top of the two-week free trial!

Most people pride themselves on owning their home. After all, it’s a major component of the American Dream. But as mortgage rates and home prices continue to surge, it seems that owning your primary residence might not be the best use of your funds.

On today’s show, I’m sharing the major reasons why you might want to rent, instead of owning your primary residence. I’ll talk about appreciation, strategies for wealth building, and more! Don’t miss episode 198 of Investing in Real Estate!

More About This Show
Recently I read a news story on CNBC.com by Diana Olick that suggested that putting your money into a primary residence isn’t the wisest financial move. The article referenced an index from Florida Atlantic University, showing that due to current economic factors, renting might be the better option for wealth building.

Although I personally own my home, this news comes as no surprise to me. Most millionaire real estate investors that I have met do not own their homes; instead they rent.

Let’s say your primary residence costs $300,000, and you put down a 20% down payment of $60,000. Is that really the best use of that $60,000? Alternatively, you could purchase a rental property that brings in passive cash flow every single month.

In the scenario in which you own your home, the future of your wealth building is tied up primarily in the chances of appreciation. That’s a terrible strategy! Instead, you could use that money to purchase a rental property that will add to your net worth, mitigate your tax burden, and create wealth.

On today’s show, I’ll dive further into the topic of renting vs. owning a home. I’ll share details from the Florida Atlantic University study, and touch on my controversial YouTube video on homeowners. Please join me on episode 198!

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:

  • According to the Florida Atlantic University index, how many US cities are in the buy territory?
  • How much could you make in passive income every month from a $50,000 rental property?
  • Why do most millionaire real estate investors rent?
  • What is the relationship between home values and mortgage rates?
  • And much more!

Episode Resources
Sanebox
Don’t Put Your Money in a House on CNBC.com
Why Owning the Home You Live in Is a Terrible Investment
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

 

EP197: The Legal Loopholes of Real Estate Investing - Interview with Garrett Sutton

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

This episode is brought to you by ZipRecruiter. With ZipRecruiter, you can post your job to 100+ job sites with just one click. Right now, Investing in Real Estate listeners can post jobs on ZipRecruiter for free by visiting ZipRecruiter.com/investing.  

As you establish and grow your real estate business, it’s important to consider how to protect your assets. This is something many investors overlook, and sadly most learn their lesson when it’s too late. On today’s show, we’re calling in an expert to discuss how you can protect yourself and your business!

On this episode of Investing in Real Estate, I’m sitting down with Garrett Sutton. Garrett is an attorney, best-selling author, and Rich Dad advisor! On today’s show, he’s demystifying legal issues, and breaking them down in an understandable and accessible manner. Garret has so much wisdom to share; you won’t want to miss episode 197!

More About This Show
If you’re working tirelessly to create financial freedom for you and your family, it’s imperative that you protect yourself. Part of this protection entails keeping your real estate investments in a legal entity. It’s actually quite simple to set up an LLC, but Garrett Sutton posits that many new investors skip this step.

 

They either believe that it’s too expensive to register their business, or they procrastinate and eventually forget. If you own real estate in your own name, and then get sued, all of your personal assets are exposed to the lawsuit.

Working with his clients, Garrett likes to thoroughly explain the law, its risks, and then allow them to make their own personal decisions. For real estate investors specifically, he typically recommends one property in each LLC.

This is because in the event of a lawsuit, a tenant would sue the LLC that owns the property. If the tenant were to win the lawsuit, they could potentially gain the equity of all properties in that business entntiy.

On today’s show, Garrett is sharing more loopholes of real estate! We’ll discuss the tax code and asset protection, and how to set up your real estate insurance properly. Don’t miss episode 197 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 many real estate investments should you put in a business entity?
  • What is a quick claim deed?
  • Will a title transfer trigger a due on sale clause?
  • What is continuity of obligation?
  • Which state in the US provides the best asset protection?
  • And much more! 

Episode Resources
ZipRecruiter
Loopholes of Real Estate by Garrett Sutton
Start Your Own Corporation by Garrett Sutton

Run Your Own Corporation by Garrett Sutton 

Writing Winning Business Plans by Garrett Sutton

Buying and Selling a Business by Garrett Sutton

The ABCs of Getting Out of Debt by Garrett Sutton
More Important Than Money: An Entrepreneur’s Team by Robert Kiyosaki and the Rich Dad Advisors
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 Garrett Sutton
Get a free 15 minute consult with Garrett’s team by calling 800-600-1760
Website
Facebook
Twitter
LinkedIn

 

 

EP196: The Three Stages of Real Estate Investing (encore episode)

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

If you’re wondering when you’ll achieve financial freedom through real estate investing, there’s a simple formula that can help. On this episode, I’m elaborating on the three stages of real estate investing from Gary Keller’s book, The Millionaire Real Estate Investor.

Today, I’m going to walk you through the stages of real estate investing, including when you should expect to reach each one. This is an important concept to understand; you won’t want to miss episode 196 of Investing in Real Estate!

More About This Show
The first stage of real estate investing is buying. In this stage, you shouldn’t be concerned with making money, which I know seems counterintuitive. This stage is simply about building your net worth, and letting your rental payments go toward paying off your loan or private lender.

The second stage of investing is when you own your properties. At this point, you’ve paid back your lenders. Once you own your properties outright, you’re well on your way to reaching your goal.

The last stage of real estate investing is when your properties are cash flowing. This is the stage that many people look ahead at prematurely. It’s the main goal; this is the destination in which you will reach true legacy wealth.

I find that many people tend to look at these stages in reverse, and want to attain the cash flow immediately. I’ve been there in my own business. It’s incredibly important to keep these stages in mind in order to meet your end goal of financial freedom.

On today’s show, I’ll explain how I keep this process in mind for my own business, and how you too can get started achieving financial freedom. I urge you to find your Freedom Number to begin on this journey.

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 long should it take to accumulate a portfolio of real estate investments?
  • What is the rule of thumb for leveraging properties?
  • When should you be focused on cash flow?
  • How should you allocate profit in stage one?
  • And much more about buy and hold investing!

Episode Resources
The Millionaire Real Estate Investor by Gary Keller
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

 

Walks you through the stages of real estate investing, including when you should expect to reach each one.

EP195: Back to Basics: High Return Real Estate

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

This episode of Investing in Real Estate is brought to you by SaneBox. SaneBox sorts through your email and moves all of the trivial stuff into a different folder, so the only messages in your inbox are the ones you actually want to see! Visit sanebox.com/investing today and they’ll throw in an extra $25 credit on top of the two-week free trial!

There are two kinds of investors: those who make a high return on investment, and those who make a low return on investment. It’s important that you realize the importance of making a high return, and identify exactly how to make a high return on your rental property.

On this episode of Investing in Real Estate, I’m sharing how you can become a high return investor. You’ll learn the three things you need to put in place in order to earn high ROI, and I’ll share some of the mistakes I, along with other investors have made. Don’t miss episode 195 to learn how to make consistent high return investments!

More About This Show
I spend a lot of time talking to investors. Most people realize the value of investing in real estate, but they just don’t know where to begin. I’ve heard from so many people who are otherwise successful, but they’ve made a real estate investment that isn’t profitable! If you begin by calling up a realtor and investing in the city you live in, chances are you won’t receive a high return.

If you want to become a high return real estate investor, there’s a foolproof strategy you have to follow. It’s nothing fancy, just a very straightforward number of qualities you need to look for in an investment.

  1. Find wholesale properties. If you purchase a piece of real estate at market value, it will be increasingly hard to make a high return. When you stay below the market value, you’re going to receive high ROI. Buying rental real estate off market is key! 
  2. Find the right location. Purchasing properties in states like California or New York is going to come at a high price tag. Remember, the cutoff point for the rental value keeping up with the purchase price is about $125k. But to get the most bang for your buck, you still want to be below that amount. Don’t overpay for a property.
  3. Collect consistent rent. Whether you use my ROI formula or the 1% Rule, you need to run the numbers and make sure that everything makes sense before you purchase a property.

On today’s show, I’ll share more about what a high return looks like, and why it’s so important on your investing journey. I’ll share specific examples about what happens when you overpay for a property, and much more!

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 average return in the stock market?
  • Why shouldn't you consult a realtor about investment properties?
  • What is my personal ceiling for purchase price of a single-family home?
  • How do you include the renovation costs in your overall ROI calculation?
  • And much more!

Episode Resources
Sanebox
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

On this episode of Investing in Real Estate, I’m sharing how you can become a high return investor. You’ll learn the three things you need to put in place in order to earn high ROI, and I’ll share some of the mistakes I, along with other investors have made. Don’t miss episode 195 to learn how to make consistent high return investments!

EP194: The ABCs of Real Estate Investing - Interview with Ken McElroy

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

This episode is brought to you by Thumbtack. Visit thumbtack.com to find pros in over 1000 categories to help with your project.

There are a lot of myths out there about real estate investing. And unless you’ve actually had experience as an investor, it can be easy to succumb to these misconceptions. On this episode of Investing in Real Estate, our guest is real estate legend and Rich Dad advisor, Ken McElroy! Ken is here to clear the air about some of the most commonly held beliefs about real estate investing.

Ken is a legend in the world of real estate; he has done over $700 million in real estate deals. On today’s show, Ken is sharing his insight into the world of real estate, and sharing principles from his best selling book, The ABCs of Real Estate Investing!

More About This Show
Ken McElroy’s journey into the world of real estate began in the property management sector. He explains that this prepared him for his future in real estate investing. Working in property management gave him a complete understanding of business expenses and income.

He naturally began purchasing his own rentals, but like many investors, he found that his capital was not unlimited. Ken started looking for ways to raise money, and along the way crossed paths with Robert Kiyosaki. At the time, Rich Dad Poor Dad was not yet a massive success.

Today, Ken and Robert have been investing together for over 15 years. Together, they raise capital from accredited investors. Robert touts Ken as one of trusted advisors.

Ken has had incredible success as an entrepreneur, real estate investor, and author. On today’s show, he’s sharing some of the biggest myths about real estate from his book, The ABCs of Real Estate Investing. We’ll also talk about the importance of goal setting, how to get started, and what Ken looks for in a deal.

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:

  • Do you need to be a seasoned negotiator to find capital?
  • Do you need money to get started in real estate?
  • What is Ken’s advice for aspiring investors?
  • Why is setting a clear goal so important?
  • What aspects of a deal does Ken think are more important than the numbers?
  • And much more!

Episode Resources
Thumbtack
MC Companies
The ABCs of Real Estate Investing by Ken McElroy

The ABCs of Property Management by Ken McElroy
The Advanced Guide to Real Estate Investing by Ken McElroy
The Sleeping Giant by Ken McElroy
More Important Than Money: an Entrepreneur's Team by Robert Kiyosaki and the Rich Dad Advisors
Rich Dad Poor Dad by Robert Kiyosaki
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 Ken McElroy
Website
Facebook
Twitter
LinkedIn

 

 

 

 

Ken McElroy clears the air about some of the most commonly held beliefs about real estate investing.

EP193: From Zero Experience to His First Rental [Case Study]

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

This episode of Investing in Real Estate 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!

Last fall, I began tracking the progress of an aspiring real estate investor here on the podcast. Pablo Fernandez contacted me wanting to obtain his first rental property, but he had a few limitations in front of him, including a lack of funds and experience. I encouraged Pablo to do some research, and begin looking for a private money lender.

Today on the podcast, Pablo is returning to share his accomplishments since our last check-in! You’ll hear how he found a private money lender, and his experience purchasing US real estate from overseas. Pablo has big news to share; you won’t miss episode 193 to hear part three of his real estate investing journey!

More About This Show
In case you missed episode 50 and episode 59, Pablo is a London based tech entrepreneur, who is interested in increasing his net worth through real estate. By purchasing rental real estate, Pablo aims to have the freedom to work on his startup company, without worrying about bills or income.

After our initial conversation, Pablo began putting steps in action in order to make his real estate dreams a reality. He started reading about real estate investing, and began pursuing private money. In his conversations about real estate, Pablo encountered a friend who happened to have money that he was willing to invest.

Pablo and his friend constructed a deal, and he began working with our team on finding a property that matched his needs.  We're excited to share that he is closing on his first rental property in a few short days!

On today’s show, Pablo is sharing his experience purchasing US real estate from overseas. We’ll discuss the entire process, from setting up business entities, to bank accounts. Pablo’s story is a testament to what can happen when you are proactive. Tune into this episode of Investing in Real Estate to hear how Pablo attained his first rental property! 

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 was Pablo unable to secure traditional financing with a bank?
  • How did Pablo find a private money lender?
  • How did Pablo structure his business entities?
  • What was the hardest part about setting up a real estate business from overseas?
  • What are the details of Pablo’s rental property?
  • And much more!

Episode Resources
Mack Weldon
EP050: How to Begin Investing with No Money and No Experience
EP059: How to Secure Your First Private Money Lender
EP034: The Power of Private Money – Interview with Susan Lassiter-Lyons
Getting the Money by Susan Lassiter-Lyons
Getting the Money Course
The Millionaire Real Estate Investor by Gary Keller

ProVision Wealth Strategists
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

 

Pablo is sharing his experience purchasing US real estate from overseas. We discuss the entire process, from setting up business entities, to bank accounts. Pablo’s story is a testament to what can happen when you are proactive. Tune into this episode of Investing in Real Estate to hear how Pablo attained his first rental property! 

EP192: How to Find Your Freedom Number (encore episode)

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

This episode of Investing in Real Estate is brought to you by Bonwi. Bonwi.com gets you the best hotel rates and up to 30% back in rewards! Learn more by visiting bonwi.com.

Are you looking to achieve financial freedom and create true legacy wealth for your family? I’ve found that the only true way to create passive income is through real estate investing. And the only way to embark on this journey is to discover your Freedom Number. Once you understand this number, you’ll be able to effectively plan your way to financial freedom.

In today’s episode, I’m going to walk you through the exact formula I used to change my life. If you’re ready to begin your journey to financial freedom, join me on episode 192 of the Investing in Real Estate Podcast! 

More About This Show
The Financial Freedom cheat sheet was born out of my own frustration. I was in a financial struggle. My situation was not dire; my bills were paid, but at the end of the month, I wasn’t saving anything.

Does this sound like you? Many of us blindly follow the ideal that society tells us: work hard every day, commute for two hours, and set aside some funds in a 401k, and your retirement will be paid for.

This simply isn’t true. The average 401k holds $70,000 at retirement age. Can you live off of $70,000 for the rest of your life? Of course not.

If you want to reach your financial goals, you’ll need to take a closer look at your expenses, and calculate the exact amount that you’ll need to feel secure at the end of the month.

Many people wish to be millionaires, but simply put—we don’t need a million dollars. One million is an arbitrary number.

You don’t need to be a millionaire to be financially free. Achieving financial freedom means having all of your expenses covered, even if you were to suddenly lose your job.

Let’s get specific. By uncovering your Freedom Number, you’ll have an exact number of the number of real estate properties you’ll need to obtain to have your expenses covered. I think you’ll be surprised at how few properties it will take for you to reach financial freedom.

On today’s show, I’ll walk you through step-by-step plan that changed my life. This method has helped thousands of people create real passive income, and I know it can change your life too.

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:

  • The exact step-by-step process you can use to start building passive income.
  • Why contributing to a 401k isn't the best way to save for retirement. 
  • How to use your Freedom Number as a moving target.
  • The importance of having a clear plan when it comes to financial freedom.
  • And much more!

Episode Resources
Bonwi
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

You don’t need to be a millionaire to be financially free. Achieving financial freedom means having all of your expenses covered, even if you were to suddenly lose your job.