EP146: Using HUD Homes to Get Started in Real Estate - Interview with Larry Goins

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There are many different approaches for getting into real estate investing. There’s no wrong way to begin, but buying your properties under market value is the key to high return on investment. One way to find properties under market value is by bidding on HUD homes.

On this episode of Investing in Real Estate, I’m sitting down with real estate investor, author, and educator Larry Goins. Larry is one of the largest HUD property buyers in the Carolinas, and he also invests in 12 different states. On today’s show, Larry is sharing his insight into the world of purchasing HUD homes!

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Larry Goins has been investing in real estate for over 20 years. He encountered his first HUD deal in the 1980’s. Since then, he has loved working with HUD homes. Larry explains that what he loves about HUD homes is that he never has to worry about bandit signs or direct mail; all HUD deals are conducted online.

All HUD bids are made at hudhomestore.com. It is the only place to buy HUD homes. Typically, there is a 15-day bidding period that is open only to owner-occupants. After that, anyone can bid on the home, including investors.

HUD is a daily auction, and Larry bids on houses every day. All bids must be submitted by an agent, and the agent must be qualified. In order to submit a bid, the buyer must make an offer in writing, submit a deposit, and provide proof of income.

Although HUD properties are already listed slightly below market value, Larry explains that often investors can have even lower bids accepted. For example, in one of his recent deals, the property was listed for $76k. Larry's bid of $26.6k was accepted, at 35% of the asking price! Larry posits that he has found there is a sweet spot to getting offers accepted—which is typically 60-75 days after the property has been listed. 

 

If you’re interested in learning more about HUD housing, you’ll want to pick up a copy of Larry’s book, HUD Homes Half Off. Larry has graciously offered a free copy to our listeners; you can download yours here!

On today’s show, Larry is sharing more details about his investing career, and how to get started purchasing HUD homes. He’ll share the benefits of HUD properties, the cost of a deposit, and how financing works. It’s all here on episode 146 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:

  • Where is the only place to buy HUD homes?
  • What is a property condition report?
  • What is an NAID number?
  • What do you need to submit a bid on a HUD home?
  • And much more!

Episode Resources
Dell
Download a free copy of HUD Homes Half Off by Larry Goins
Getting Started in Real Estate Day Trading by Larry Goins
HUD Homes
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 Larry Goins
Website
Facebook
Twitter
LinkedIn

 

 

Buying your real estate properties under market value is the key to high return on investment. One way to find properties under market value is by bidding on HUD homes. Interview with Larry Goins.

EP145: How to Deed a Property to an LLC

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As a real estate investor, there are many reasons why you might need to deed a property to an LLC. We get asked questions about this topic frequently. Since Natali and I recently went through this process, we thought we’d share exactly how it’s done.

On this episode of Investing in Real Estate, Natali and I will walk you through the process of deeding a property to an LLC. We’ll share everything you need to know, including banking information, insurance policies, and more. Join us for episode 145 of Investing in Real Estate!

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The first thing you’ll want to do is transfer ownership. You’ll deed the property from either yourself or the LLC it’s in to the LLC you want it to be in. We have used the services of a lawyer to accomplish this. Depending on your state, you can use either a lawyer or an escrow company.

After the LLC is established, you’ll need to get all of the components in place to ensure the LLC runs smoothly. You’ll need to set up a bank account. Take your new EIN number to the bank and ask for a business account.

It’s also important to consider how this new setup will affect your insurance policies. Be sure to contact your insurance company to transfer the property to the correct LLC.

You’ll also want your property management company to be informed of any changes. They need to know if their check or ACH should be made to a different LLC. If you’re a DIY property manager, then you’ll need to instead inform your tenants.

Additionally, you should call the tax department in the county where the property is located. Inform them of the changes you have made. This ensures that your tax bill will be sent to the correct owner at tax time.

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 anticipate to pay per deed?
  • What is the difference between a quick claim deed and warranty deed?
  • What are the tax implications of transferring a house to an LLC?
  • What should you put in a due diligence spreadsheet?
  • And much more!

Episode Resources
Provision Wealth Strategists
ReadQuick
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

As a real estate investor, you may want to hold property within an LLC. Here's how to deed property to an LLC.

EP144: Panic! Don't Borrow from Your 401k!

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Traditional financial advice will tell you that you should never, under any circumstances touch your 401k. I recently came across an article that used fear-based tactics to convince people that disturbing their retirement account is a serious, dire mistake.

On this episode of Investing in Real Estate, I’m explaining why I vehemently disagree with the idea that taking a loan from a 401k will end in disaster. I’ll share my personal experience, as well as how you can turn your own money into cash flowing real estate assets. Don’t miss episode 144 of Investing in Real Estate!

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I’ve taken loans from my 401k; in fact, I do so every year in order to purchase cash-flowing real estate investments. This is a fantastic strategy, because it allows you to borrow from yourself. It also lets you pay interest to yourself, instead of a bank. 

But 401k providers and employers want to discourage you from doing this. They want you to think they care about you and your retirement. The truth is, they don’t care at all about your future. The only reason they’re concerned is because they think if you haven’t prepared for retirement, they won’t be able to instead employ younger, lower cost workers.

It’s disturbing that some company thinks they are a better steward of your money than you could be. It’s offensive to think that they want to prohibit you from borrowing from your 401k. Remember, it’s your money! Add to your net worth! Take that money that’s just sitting in an employer-selected fund, and turn it into cash flow!

I’m not saying you should take a 401k loan and blow that money on frivolous purchases. But purchasing rental real estate is a great way to plan for not only retirement, but also life in general. I implore you to not be panicked by companies who want to scare you. Be the ultimate authority of your finances.

On today’s show, I’ll share more details from the article I read. You’ll learn about financial steps you should take in order to be in control of your finances. I’ll share specific examples of companies’ scare tactics, 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 are the three main benefits of taking a 401k loan?
  • What is the federal annual limit for 401k contributions?
  • What can you do with an old 401k account from a previous employer?
  • What percentage of 401k borrowers default on their loan?
  • And much more! 

Episode Resources
EP092: The Mind-Blowing Power of a Solo 401k – Interview with Dmitriy Fomichenko
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

Traditional financial advice will tell you that you should never, under any circumstances touch your 401k. Here's why you might want to if you're investing in real estate.

EP143: Reaching the Top of the Real Estate Mountain - Interview with Joel Block

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When it comes down to making a real estate deal, money is the most important piece of the puzzle. Today’s guest, Joel Block is here to share a higher-level way of looking at your money. This strategy is what Joel calls "reaching the top of the real estate mountain!" 

On this episode of Investing in Real Estate, Joel is sharing his in-depth knowledge into the world of syndication. He’s sharing details about the private placement business, changing the psyche around money, and much more! Please join us on episode 143 of Investing in Real Estate!

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Joel Block is a long-time venture capitalist, and a hedge fund manager who speaks at conferences around the country informing audiences about raising capital. Joel also holds an incredible conference twice a year to assist investors in learning how to syndicate properties.

He explains that he got into syndication shortly after leaving an unfulfilling accounting position. He teamed up with a partner, and pieced together his first deal. Joel and his partner purchased a 12-unit apartment by raising capital from 22 different doctors.

That’s exactly how syndication works—an investment is divided into shares of stock. The capital is placed in an LLC, and the LLC purchases the real estate investment. Then each investor owns a fraction of the real estate.

This is an advanced way to construct a deal, because there is no lending involved. The lenders always receive their return first. Then, if the deal was done correctly and wisely, the participants will receive a return.

On today’s show, Joel is sharing more about how to get started with syndication, and why it os so effective in real estate. He’ll also supply all the details about his upcoming symposium. Don’t miss episode 143!  

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 a non-correlated alternative asset?
  • How many people can attend the Real Estate Syndication and Deal Making Symposium?
  • What is the main limitation of active investors?
  • What are the two key problems with hard money lending?
  • And much more! 

Episode Resources
Deal Making Symposium
Syndicate Fast
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 Joel Block
Website
Facebook
Twitter
LinkedIn

What it takes to reach the top of the real estate investing mountain. (Interview with Joel Block.)

EP142: Behind the Scenes of Our Next Real Estate Purchase Part 2

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Sometimes being a real estate investor can involve making serious decisions about how to most effectively run your business and manage your finances. On today’s show, Natali and I wanted to pull back the curtain once again and discuss how to best move forward in our real estate business.

On today’s show, you’ll hear Natali and I discuss the constant revision of our Freedom Number, and how we’ve leveraged our assets. We’ll also talk about how to move forward with our new business credit cards, and how to evaluate financial products. Please join our conversation on this episode 142 of Investing in Real Estate.

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On episode 115, I interviewed Mike Banks from Fund&Grow about using business credit cards to purchase rental real estate. This is a fantastic strategy, because it’s not tied to your personal credit score. Using these credit cards allows you to purchase properties at no interest for an introductory period.

We decided to employ this strategy on a personal level. We applied jointly, and were approved for five different business credit cards. These lines of credit total $176,000, and are zero interest. We are able to request credit access checks, and treat these credit lines as cash!

Clearly, $176,000 could help us grow our portfolio rapidly, especially since the all-in cost of our properties is right around $50,000. We do have aspirations of reaching our Freedom Number, but we’ve also seen great success in making large payments toward our primary mortgage.  

In fact, earlier this year we applied a large payment to our mortgage by accessing a home equity line of credit. We were able to shave an entire year off the life of our loan, as well as $34,000 in interest. Doing this is so rewarding. It’s liberating to strive toward owning your home free and clear.

On today’s show, you’ll hear us navigate this decision making process. We’ll talk about our acquisition strategy, and how many properties we plan to purchase in 2017. We’ll discuss creating financial freedom through real estate, and how you can access your own business line of credit! Don’t miss episode 142 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.

Behind the scenes of our next real estate purchase, plus how we're using leverage to buy rental properties. | Real estate investing

EP141: Rich People Buy Assets

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Some books are worth rereading from time to time, and there are two written by Robert Kiyosaki that fit the bill. It can be easy to fall back into old habits, and I have found that these two books are helpful in order to reassess goals and aspirations.

On this episode of Investing in Real Estate, I’m discussing principles from Rich Dad Poor Dad and Rich Dad’s Cashflow Quadrant. I’ll talk about how to build your net worth by attaining assets, and why it’s so important. Don’t miss episode 141!

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The story outlined in Rich Dad Poor Dad is the foundation of all of real estate investing! Rich Dad Poor Dad is filled with invaluable pearls of wisdom about investing, having your money work for you, and gaining control of your finances. Many successful investors began on their real estate journey after striking inspiration from this book.

In Rich Dad Poor Dad, Kiyosaki describes a poor dad mentality that many of are familiar with: go to work for a paycheck, and trade your hours for dollars. This is a flawed system. It disallows wealth building.

True wealth building, particularly in our country, is built through creating wealth. This is attained through four different means highlighted in the book. They are identified as four asset classes that wealthy people buy: businesses, real estate, commodities, and mutual funds.

On today’s show, I’ll discuss further the importance of building wealth through real estate. I’ll also elaborate on the principles from Cashflow Quadrant, and how you can use them to set yourself up for success. Please join me for episode 141 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:

  • Which two sections in the cash flow quadrant generate the most wealth?
  • How can you save on taxes with real estate?
  • What is the best way to create wealth?
  • How can you make a paycheck income scalable?
  • And much more!

 Episode Resources
Rich Dad Poor Dad by Robert Kiyosaki
Rich Dad’s Cashflow Quadrant 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

True wealth building is built through creating wealth. This is attained through four asset classes that wealthy people buy: businesses, real estate, commodities, and mutual funds.

EP140: How to Invest in Corporate Housing - Interview with Kimberly Smith

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Within the realm of real estate investing, there are many unique niches. Corporate housing provides short-term, furnished rental options for individuals and families. On today’s show, we’re diving into the intricacies of corporate housing.

Joining us on this episode is Kimberly Smith, the CEO of AvenueWest and Corporate Housing by Owner. Kimberly is sharing all the finer details of corporate housing, including how to get started, what to expect from regulations, and more! Don’t miss episode 140 of Investing in Real Estate.

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Corporate housing is a unique space within the real estate sector that I knew very little about until my interview with Kimberly. Corporate housing provides short-term housing solutions for individuals and families. Corporate housing is primarily for business travel, but Kimberly explains this service is also applicable for renters who have just relocated to a new city, or are temporarily relocating.

The properties are furnished rentals that are typically provided on a monthly basis. Kimberly explains that the industry is not new, but the popularity of services such as Airbnb has shed light on corporate housing.

The reason why corporate housing is largely unheard of is because it is a B2B transaction. Typically, corporate housing works with relocation packages, insurance claims, or even professional athlete contracts.

Kimberly owns two corporate housing businesses. AvenueWest provides property management services for fully furnished corporate housing residences. They have local offices in many US cities. Kimberly’s other business, Corporate Housing by Owner provides marketing solutions to corporate housing owners—this service connects landlords and renters.

On today’s show, Kimberly is sharing more about her extensive knowledge of corporate housing. She’s sharing the main benefits, and how to build relationships in order to get started. We’ll talk about annual returns, the future of the trade, and much more! Please join us for episode 140! 

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 are taxation laws for corporate housing?
  • What percentage of corporate housing are private homes?
  • What amenities are industry standards?
  • How does corporate housing compare to Airbnb?
  • And much more!

Episode Resources
Idiot’s Guides: Making Money with Rental Properties by Kimberly Smith
AvenueWest
Corporate Housing by Owner
CHBO Corporate Housing Real Estate Report
CHBO Rental Calculator
Corporate Housing Providers Association
Mobility Magazine
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 Kimberly Smith
Facebook
Twitter
LinkedIn

Real estate investor? Find out how to invest in corporate housing in this interview with Kimberly Smith.