EP174: Home Equity Loan or HELOC?

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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!

One of the best ways to rapidly build your real estate portfolio is to use the power of leverage. And if you own your primary residence, taking a loan based off of the equity can be immensely useful. There are a few ways to utilize this strategy, and many of you have asked whether a home equity loan or a HELOC is a better strategy.

On this episode of Investing in Real Estate, I’m sharing my personal experience with HELOCs and home equity loans. I’ll discuss which financial product I prefer, and how to shop around for the best deal. Don’t miss episode 174 of Investing in Real Estate!


More About This Show
Home equity loans and home equity lines of credit are similar in that they both allow you to borrow against the amount of equity in your home. However, the two financial products have some main differences you’ll want to consider.

A home equity loan gives you access to one lump sum of money. This is a fairly traditional loan. The bank looks at the value of the home and gives you a loan in one amount.

A home equity line of credit, or HELOC, works a little differently. A HELOC is a revolving line of credit, meaning it works similarly to a credit card. A HELOC can typically be used for around ten years. It has a low introductory rate, and uses simple interest.

Personally, I like to employ the strategy of using a HELOC because it is repeatable and reusable! It can be used like a traditional checking account; you will even be issued a check card and a checkbook.

On today’s show, I’ll discuss more of the intricacies of home equity loans and home equity lines of credit. I’ll share how to get the most bang for your buck at the bank, and when each financial vehicle might be appropriate. It’s all here on the Investing in Real Estate Podcast!

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 find a business checking account without fees?
  • What are the benefits of working with a local bank?
  • What is a typical introductory rate on a home equity line of credit?
  • How does simple interest work?
  • And much more!

Episode Resources
RealtyShares
Morrisinvest.com/funding
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Real estate investing: Home equity loan or HELOC?

EP173: How to Reach Your Financial Independence Day - Interview with Fernando Aires

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How would your life change if you could totally replace the income from your day job with passive income? Today’s guest, Fernando Aires has done just that, and he helps others do the same!

On this episode of Investing in Real Estate, Fernando is sharing the philosophy of identifying your Financial Independence Day. We’ll talk about creating wealth, real estate investing versus the stock market, and more. Don’t miss episode 173 of Investing in Real Estate!

More About This Show
Fernando Aires worked in corporate America in the tech industry for over 25 years. He always knew in the back of his mind that the true means for creating financial security is real estate. He knew if he wanted to become financially independent, he had to begin putting money into real estate investments.

Eventually, Fernando was able to reach what he calls his Financial Independence Day, which allowed him to totally replace his corporate income with passive income from rental properties. Today, he helps others reach their Financial Independence Day.

He is an Investment Counselor with Jason Hartman. In his role, Fernando helps people map out a specific, strategic plan to replace their income with rental properties.

Specifically, he helps his clients analyze their net income. Then, he calculates the number of rental properties it would take to cover their income. By replacing their income with passive cash flow, his clients reach their individual Financial Independence Day.

On today’s show, Fernando is sharing his personal investment strategy. We’ll discuss financing, appreciation, and more. Fernando has so much insight into the world of financial independence; you won’t want to miss today’s show!

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 has Fernando acquired most of his properties?
  • Why does Fernando rent?
  • What is his philosophy on appreciation?
  • How does Fernando approach financing and leveraging?
  • And much more!

Episode Resources
Real Estate Tools

Property Tracker
Property Fixer App
Property Evaluator App
Jason Hartman  
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How would your life change if you could totally replace the income from your day job with passive income? Today’s guest, Fernando Aires has done just that, and he helps others do the same!

EP172: Property Management Do's and Don'ts

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Hiring a property management team makes real estate investing simple and passive! A skilled property management team is an indispensible part of your success, and will make your business scalable.

On this episode of Investing in Real Estate, we’re tackling your questions about property management teams! You’ll learn about finding the right team for the job, how much you should expect to pay for their service, and more! Don’t miss episode 172!

More About This Show
Finding the right property management team is a duty you should take very seriously. We like companies that develop strong relationships with our tenants. We also want them to communicate with us.

First of all, we ask how they tend to communicate. Some use email, while others use text messages, or snail mail. We want to know whom on the team we’ll hear from in each circumstance, and how they’ll reach out to us.

We also ask about their tenant screening process, as it’s one of the most important roles your property management team will hold. You’ll want to ensure they are able to place high quality tenants in your properties. Ask them to walk you through their screening process. An effective team will conduct criminal background checks, verify employment, perform credit checks, and confirm previous rental history.

When it comes to software, that isn’t the most important qualification. In fact, we even work with a team that sends a paper, handwritten check via email. Software can be helpful, and organization is important, but we prefer that our teams are more focused on cash flow than minor details like that.

On today’s show, we’ll answer your questions about working with property management teams. We’ll talk about building a strong relationship, how often you should communicate, and 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 details are on a property management statement?
  • How much should you expect to pay for property management?
  • Should your property management team be licensed?
  • Is it common practice for a property management company to hold the security deposit throughout the life of the lease?
  • What is a lease up fee?
  • And much more!

Episode Resources
Live Stream Version: Property Management Do’s and Don’ts
EP048: What Are A, B, and C Neighborhoods?
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Hiring a property management team makes real estate investing simple and passive. A skilled property management team is an indispensable part of your success, and will make your business scalable. This episode handles how to find the right team for the job, how much you should expect to pay for their service, and more!

EP171: Back to Basics: How to Become a Millionaire

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

What does it take to become a millionaire real estate investor? I know that seems like a lofty goal, but more millionaires in this country have attained their wealth via real estate than any other source.

On this episode of Investing in Real Estate, we’re going back to basics! I’ll share how you can become a millionaire real estate investor, starting from the ground up. I’ll share my personal experience, and walk you through a step-by-step process you can use to build your portfolio. Don’t miss episode 171!

More About This Show
If you want to become a millionaire real estate investor, you have to remember that it begins with one property. All successful real estate investors began by simply purchasing one property. Becoming wealthy is actually a simple equation of adding to your assets column until you reach your goal. 

I hear from so many people via email who want to become successful real estate investors, but they are overwhelmed by potential problems they might face down the road. It’s important to not get bogged down by those details.

In order to succeed, you have to start where you are today. Get that first property under your belt, then rinse and repeat! You have to release worry and limiting beliefs that are holding you back.

In order to become a millionaire real estate investor, you have to stop feeling sorry for yourself. You have to get off the sidelines, get out there, and take action! I know it’s attainable for you; you just have to start.

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 do you build net worth?
  • What is the next step after purchasing your first property?
  • How many rental properties does it take to become a millionaire?
  • Can you invest if you have bad credit?
  • And much more!

Episode Resources
ZipRecruiter
Morrisinvest.com/funding
Subscribe to Investing in Real Estate on iTunes
Find Your Financial Freedom Number
Subscribe to the Morris Invest YouTube channel

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What does it take to become a millionaire real estate investor? In this podcast, l share my personal experience, and walk you through a step-by-step process you can use to build your portfolio.

EP170: Business Entity Structure for Legacy Wealth Building - Interview with Andrew Howell

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Have you ever wondered how to set up your business entities in a way that not only protects your assets, but also allows you to build long-lasting wealth for your family? If so, today’s show is for you! We’re welcoming back Andrew Howell, a founding member of the estate planning law firm, York, Howell, and Guymon.

Andrew Howell is also a co-author of the incredibly insightful book, Entrusted: Building a Legacy That Lasts, and he is our personal estate planning lawyer. On this episode of Investing in Real Estate, we’re diving deep into business entity structure for investors!

More About This Show
On episode 167, which is part 1 of this interview, Andrew explained how to structure basic estate planning in order to build wealth. But today, he is sharing the intricacies of estate planning for real estate investors. In his law practice, he explains that estate planning is the first piece of structuring a real estate investing business.

When you purchase a piece of real estate, there are two huge liability risks. First is the piece of real estate itself. In the event of a natural disaster, an entire investment can be lost. There is also the risk of a person becoming injured on that property.

That’s why an LLC is so important. As you might know, this entity protects the individual’s personal assets. Since the entity itself owns the property, the LLC is liable in a lawsuit.

An LLC also protects a person’s ownership interest if set up correctly. In a business' operating agreement, its owners can agree to not transfer their interest unless all parties agree. Doing so protects the business owners from losing their business interest in a lawsuit; it adds an extra step in an already long and costly process. 

On today’s show, Andrew is sharing all the details about passing down real estate to descendants in a meaningful way. We’ll discuss why asset protection planning is so important, and how to think about generational wealth building. Don’t miss episode 170 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 do estate taxes work generationally?
  • What is a hot asset, and how can you cool it down?
  • Where was the LLC first created?
  • How often do estate taxes change?
  • How can you think of asset protection as a game?
  • And much more!

Episode Resources
EP167: Basic Estate Planning for Legacy Wealth Building – Interview with Andrew Howell
Entrusted: Building a Legacy That Lasts by Andrew Howell and David York
Provision Wealth Strategists
Subscribe to Investing in Real Estate on iTunes
Find Your Financial Freedom Number
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Contact Andrew Howell
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Call at 801-527-1040
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Have you ever wondered how to set up your business entities in a way that not only protects your assets, but also allows you to build long-lasting wealth for your family? If so, this is for you!

EP169: Encore Episode: How to Set up Profit First for Real Estate Investing - Interview with Mike Michalowicz

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Finances are an integral part of running any business, and real estate investing is no different. Figuring out how to properly and effectively structure your finances can be confusing, but I’ve discovered a method that has totally changed our business!

On today’s show, my wife Natali and I are sitting down with Mike Michalowicz, the author of Profit First. Profit First is a simple and effective formula aimed to transform your business in order to earn more profit! Mike is a business guru—you don't want to miss episode 169 of Investing in Real Estate! 

More About This Show
Mike came up with the idea for Profit First when he heard a staggering statistic—83% of small businesses that make under $25 million in revenue are non-profitable. This blew Mike away; he couldn’t comprehend why so many intelligent, successful entrepreneurs were living paycheck to paycheck. 

Mike posits that the reason so many small business are not profitable is because the system we’ve been told to use is flawed. Most businesses use the following formula: Sales – Expenses = Profit. Logically, that makes sense. Mike explains that it defies human nature. 

Profit First is based off the principle that when something is put last, we disregard it’s significance. In order to make a profit, you have to take your profit first. Profit First is Sales – Profit = Expenses. The concept is simple—pay yourself first. 

In the current formula, sales and expenses come first, so profit never comes. By taking your profit first, you're prioritizing what's important. It's about thinking of your finances as a business. It's human nature to be drawn to the familiar; we are creatures of habit. But the current system doesn't work!

Profit First is so effective because it's a behavioral system. It works within your natural default behavior! Once you get the system in place, it runs smoothly and effortlessly, and your business becomes more profitable. 

On today's show, Mike goes in depth about Profit First, why it works, and exactly how to put the system into motion. We also talk about changing the way you think of your business, loss aversion, and why relying on willpower doesn't work! 

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 often you should do profit distribution.
  • How many checking accounts should your business have?
  • The importance of rewarding yourself.
  • How can you incorporate Profit First if you have debt?
  • How to use Profit First to maximize tax benefits in your business.
  • And more!

Episode Resources
The Pumpkin Plan by Mike Michalowicz
Tax-Free Wealth by Tom Wheelwright
Find a Profit First Professional in your area
Find Your Financial Freedom Number
Like Morris Invest on Facebook

Connect with Mike Michalowicz
Website
Facebook
Twitter
LinkedIn

Profit First is a simple and effective formula aimed to transform your business in order to earn more profit - here's how we set it up for real estate investing. | Podcast interview with Mike Michalowicz

EP168: Your 401k Is Under Attack

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This episode of Investing in Real Estate is sponsored by Thumbtack. Visit thumbtack.com to find help in your area with more than 1,100 services.

Many Americans have been convinced that the 401k is the best investment plan around. You probably know by now that I disagree with that, but now lawmakers are proposing to take away additional tax advantages from private retirement plans.

On this episode of Investing in Real Estate, I’ll discuss dwindling retirement returns, how the 401k compares to the benefits Congress receives, and their plans to roll back incentives from 401ks. Don’t miss episode 168!

More About This Show
According to a recent article by the Wall Street Journal, Congress is planning to remove even more savings from the 401k plan. In contrast to the retirement plan that Congress members receive, the 401k pales in comparison.

Congress members receive a amalgamation retirement plan that consists of a 401k type plan in addition to a pension plan. Alternatively, only 13% of Americans in the private work force have a pension plan. For most people, the 401k is as good as it gets.

Additionally, Congress members also only pay 0.03%, vs. the 1% fee that most Americans pay. So a fee on a retirement vehicle can be up to $100 for the average American citizen, whereas a Congress member would only pay $3.

Not only is the system unequal, but also Congress is looking to make cuts to retirement plans that the average American utilizes. This article suggests that while making cuts to traditional retirement programs, Congress should make matching cuts to their cushy system.

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 Federal Employees Retirement System?
  • Why is the idea of a pre-taxed retirement flawed?
  • What was the original intent of a 401k?
  • Who profits from a 401k plan?
  • And much more!

Episode Resources
Thumbtack
Grab Your Pitchforks, Your 401k May Need Defending from Congress
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Find Your Financial Freedom Number
Subscribe to the Morris Invest YouTube channel

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According to a recent article by the Wall Street Journal, Congress is planning to remove even more savings from the 401k plan. | Retirement savings | Investing