Register here for the live online event to learn about ‘Cleveland’s Amazing Cash Flow Opportunities on Thursday, 3/20.

Keith discusses the current state of the real estate market, highlighting that single-family rents have risen 41% since pre-pandemic times, while multi-family rents have increased by 26%. Single-family rents have been rising faster than prices for nine months, benefiting investors. 

Austin, Texas, is an example of how increased supply can lower rents, as seen in their drop in rents after the city relaxed building regulations. 

Real estate strategy expert, Phil, joins us and explains how this niche method can offer high leverage and cash flow.

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Complete episode transcript:

 

Automatically Transcribed With Otter.ai 

 

Keith Weinhold  0:01  

Welcome to GRE I'm your host. Keith Weinhold, build it and rents will fall. I discuss the direction of rents and prices. Then a real estate strategy for all time that can generate 8x leverage with investor cash flow and the exact city that could be the most advantageous for it today on get rich education. 

 

since 2014 the powerful get rich education podcast has created more passive income for people than nearly any other show in the world. This show teaches you how to earn strong returns from passive real estate investing in the best markets without losing your time being a flipper or landlord. Show Host Keith Weinhold writes for both Forbes and Rich Dad advisors and delivers a new show every week since 2014 there's been millions of listener downloads of 188 world nations. He has a list show, guess who? Top Selling personal finance author Robert Kiyosaki, get rich education can be heard on every podcast platform, plus it has its own dedicated Apple and Android listener phone apps build wealth on the go with the get rich education podcast. Sign up now for the get rich education podcast, or visit get rich education.com

 

Corey Coates  1:13  

You're listening to the show that has created more financial freedom than nearly any show in the world. This is get rich education.

 

Keith Weinhold  1:29  

Welcome to GRE from elizabeth new jersey to Elizabeth, Colorado and across 188 nations worldwide. I'm Keith Weinhold, get rich education, founder, Forbes real estate council member, Best Selling Author and long time real estate investor, you are inside, get rich education. What's that all really mean? Ah, I'm just another slack jod and snaggletooth podcaster.nationally, rents for single family homes are growing faster than for multi family apartments. Okay, that you might have already known, because for a few years, we've been in this era where available single family rentals are scarce and apartments are closer to being adequately supplied across the nation. We're now at the point where median single family home rents are up 41% since those blissful and Halcyon pre pandemic days, and yet, multifam rents are up just 26% since that time. So it's 41 versus 26 and that's all according to a new report from Zillow. Now you probably listen to this show every week, so although that might be a helpful update, you probably don't find those facts surprising at all. But here's a more nascent trend that could surprise you. Every single month for the past nine months now, single family rents have risen faster than single family prices. Yeah, the John Burns home value index is up 3.3% annually, and the rent index shows that those rents are up 3.6% so 3.6 versus 3.3 really not a big gap there, but single family rents rising faster than prices for nine months. You know that's exactly what swings things into your favor as a real estate investor, it increases your ratio of rent income to purchase price. This has been happening because for someone that needs housing out there, paying rent has looked more affordable than buying a home. So then those things have to soon come back into balance. Now you remember that five months ago, I visited Austin, Texas, walked the streets and with all of the new building of apartment towers there, I called it America's oversupply, ground zero for apartments. Well, I'm not sure if you've noticed, but here, a few months later, major media sources are now reporting on the same thing that I was telling you about on the ground five months ago, and this is really insightful for real estate investors in a real world case study that will be on every intro to economics syllabus this fall, rents in Austin, Texas plunged. They fell 22% from their peak a couple years ago after the city accelerated permitting processes and scaled back the rules on building height, and this is exactly what created Austin's apartment supply surplus and therefore lower prices for renters. Bloomberg was the one recently reporting on this. So Austin's, if you build it, rents will fall mantra that created about 50,000 new units over just the past two years, a 14% increase. I mean, that is the biggest spike in supply of any US city. Over that time, just tons of cranes in the air. And by the way, the median asking rent in Austin, Texas is now $1,400 remarkably, though, that is down a full 400 bucks from the height of the pandemic. I mean, that is such an aberration That is so weird and rare. Yeah, Austin rents dropped from $1,800 down to $1,400 in in fact, that is so weird, and they've fallen so much that notoriously pricey Austin is no longer the most expensive city in Texas. It's now DFW. And you know, this is astounding on a few levels, because typically rents are even more stable than home prices. Gosh, but now to take off our investor hat for just a minute. Don't worry, we'll put it right back on. This is what society needs. I mean, how in the world are we the nation that put a man on the moon in 1969 yet we can't house our own people today. It's what I've discussed before. We need to build more. If you build it, rents will fall. If you build it, home, prices will become affordable. Again, we're not doing enough of that. Not enough places are following Austin's model. Up zoning, as I've told you before, up zoning. That's the name for allowing taller building heights. And you know what? That's something that both developers and environmentalists often like. Both types developers get what they want, and environmentalists know that housing and the economics of that are more efficient. There's less energy use in everything when we build up and we build apartments rather than single family homes, Austin relaxed regulations and they got it done. So congrats to them. I mean, that is a model for what we can do to address not only housing affordability, but the swelling homelessness problem like I enjoy talking about as well. So yeah, congrats, Austin, though you might have gotten too far ahead of your growth for the short term. America really needs the housing so thank you. 

 

Now here's some ominous news for society and the economy. I wouldn't make too much of it yet, but the Atlanta Fed tracker has plunged. They're now forecasting a shrinking economy this quarter, minus one and a half percent. GDP is a projection which that gets us going down into recession territory, and part of the reason for that is this recent drag in consumption. But news like that can come and go, and we all know how frightfully just laughably bad recession predictions have been for years. We haven't had one in five years. So I want you to get the longer term lesson here, because things pop up like this over time. What usually happens to real estate in a recession? Because we know that there's going to be one. No one knows when. What happens is that unemployment rises. That is bad, home prices go up. Yes, home prices typically rise modestly in a recession. Just remember, since World War Two, home prices only fell significantly in one period, and it was a bad one in those years around 2008 what happens to interest rates? Interest rates of all kinds. In a recession, they fall. Interest rates fall. The Fed make sure that happens, and the reason for that is rates fall because the economy needs the help to review what you've learned so far today, single family rents are rising faster than apartment rents. Single Family rents are rising faster than single family home prices, although not by much. And Austin is proof that if you build it, prices will fall. And during recessions, residential real estate is a good place to be. Then let's say it's a widespread job loss recession as we pivot into the core content of today's show, you're probably quite familiar with the turnkey real estate investing model, where ideally on day one of your property ownership, your income property is either new or renovated. There's a tenant in it. It's under management, and you might even get a little trickle of tenant rent at the closing table. All right, but instead, what if you had six months of patience you own the property for those months through the renovation, and what's your reward for doing that? It is both high leverage and high cash. Flow, potentially, and usually those notions are antagonistic. High leverage means low cash flow and vice versa, but not with what we're talking about today, my expert guest and I discuss how you can have both the cash flow, which is like your spending money, and the leverage that constitutes your long term wealth growth, and he has bought, renovated and sold more than 2000 properties. And my guest and I go back more than 10 years before I go to break where you hear who sponsored the show this week, I have a trivia question for you, and you'll see what this has to do with our episode soon enough, Ohio has six cities with a population of 100,000 or more. Name them. Name those six Ohio cities. I'll give you your answer later. I'm Keith Weinhold. You're listening to get rich education.

 

You know what's crazy, your bank is getting rich off of you. The average savings account pays less than 1% it's like laughable. Meanwhile, if your money isn't making at least 4% you're losing to inflation. That's why I started putting my own money into the FFI liquidity fund. It's super simple. Your cash can pull in up to 8% returns, and it compounds. It's not some high risk gamble like digital or AI stock trading. It's pretty low risk because they've got a 10 plus year track record of paying investors on time in full every time. I mean, I wouldn't be talking about it if I wasn't invested myself. You can invest as little as 25k and you keep earning until you decide you want your money back, no weird lock ups or anything like that. So if you're like me and tired of your liquid funds just sitting there doing nothing, check it out. Text, family to 66866, to learn about freedom. Family investments, liquidity fund, again. Text family to 66866, 

 

hey, you can get your mortgage loans at the same place where I get mine, at Ridge lending group NMLS, 42056, they provided our listeners with more loans than any provider in the entire nation, because they specialize in income properties, they help you build a long term plan for growing your real estate empire with leverage. You can start your pre qualification and chat with President Caeli Ridge personally. Start Now while it's on your mind at Ridge lendinggroup.com, that's Ridge lendinggroup.com. 

 

Richard Duncan  12:46  

This is Richard Duncan, publisher and macro watch, listen to get rich education with Keith Weinhold, and don't quit your Daydream.

 

Keith Weinhold  13:02  

We were last graced with the presence of this week's guest about two and a half years ago. Since then, we had dinner together in Boston. He is a long time experience expert in the real estate BRRRR strategy will explain, and he knows just the exact few markets where the strategy really works and where it doesn't, and he explains how this can deeply accelerate your ROI and your portfolio growth and get this he's been a real estate investor since he bought his first rental property in 1978 he's been working the burst strategy and mentoring others on it since before there even was a burr acronym, brrr, he has mentored and coached more than 5000 investors. Oh, it's great, Phil, welcome back onto the show.

 

Phil Alexander  13:54  

Keith. Thanks so much. It's such a pleasure to be here. It's always great to see you, and the time really flew from when we were able to break bread together in Boston, which is my hometown. And as I recall, we went to America's oldest restaurant, the union Oyster House, which was a fun experience

 

Keith Weinhold  14:14  

right, where there are lobsters crawling all over the place. Yeah, that was a cool distinction to meet with you in America's oldest restaurant there in Boston. Pretty unforgettable. Phil, though you're from Boston, well, that's not really where the cash flowing numbers work so much you're an expert in the art of the BRRRR  the real estate, buy, rehab, rent, refinance and repeat strategy, and then we'll discuss the market that you say is number one in the USA for this so really high level, big picture. For those that don't know, what is the burr strategy? What makes it so compelling?

 

Phil Alexander  14:55  

There are a lot of different ways Keith to discuss the burr. Strategy. It really is nothing more than a turnkey property. However, in the old days, I'll say, you know, I've been in the business for over two decades, we would sell turnkey properties, and a buyer or investor would come to us, and we'd show them a number of properties that were available. They'd pick one, we'd renovate it, and then they would have it inspected, and then we would correct against that ugly inspection report, and then they probably would be using leverage, so there'd be an appraisal, and then we'd put a qualified tenant in place. And after all that had happened, we would close on the property, and they'd be cash flowing from day one. There's nothing wrong with that approach and strategy. It's very conservative, but relative to the burst strategy, Keith The one big element that's missing in the classic turnkey model, there's no built in equity. And what the burst strategy does is it allows the investor to create value through that renovation, and it's nothing more really than a developer himself or herself does when they renovate the property to create value, and in doing so, you then wait a prescribed period of time, often called a seasoning period, and then you do a cash out refi to pull out that built in equity that you created yourself. And the idea then is to recycle that cash and buy into your next property.

 

Keith Weinhold  16:35  

Why don't you give us a real example with some numbers? 

 

Phil Alexander  16:40  

Let's say you could find a place. Now, anybody in California is going to listen to this say this doesn't happen because you can't buy houses for this. But trust me, you can't. You buy a house for $60,000 you renovate it for $40,000 that means you have $100,000 invested in that property. However, you bought that house because you knew, once renovated, it was likely to be worth, let's say, conservatively, 120,000 and yet, when you go and do the cash out refi often at six months from the time you acquired the property in the first place, you're going to be able to pull out up to 75% of that appraised value. I'll do the math for you quickly. 75% of that $120,000 is $90,000 you only put 100,000 into the property in the first place. So at a glance, that suggests that you've gotten this property for $10,000 Well, to be fair, you do have closing costs. So let's say the closing costs and the finance fees on that cash out refi loan are about $5,000 so in essence, for $15,000 you now own a property worth 120,000 now an illustration of the value of this BRRRR strategy is if you were to go and buy that very same house, 420,000 renovated, tenanted, cash flowing, it would cost you 20% down, which would be $24,000 plus finance fees and closing costs would push it to or over $30,000 here's the bottom line. Would you rather get it so it's cash flowing from day one after closing, no built in equity and 30 or $32,000 out of pocket? Or would you rather get it where you only have 15,000 out of pocket? And I can do the math on that and tell you that you're more than doubling your cash on cash return with the BRRRR strategy

 

Keith Weinhold  19:07  

 yes, and you've also increased your leverage ratio in the example that you gave after waiting six months, much of which includes waiting for that rehab to take place, you have A 120k property. Like you said, you only have 10k into it. Maybe add five more K to that for closing costs and such. So you've got 15k into a 120k property. That is an eight to one leverage ratio,

 

Phil Alexander  19:33  

exactly. And there are numerous other examples, typically speaking, Keith in good investor advantaged markets with the burst strategy. You can expect after leverage, after that, cash out refinance loan to be netted in the range of 200 to $250 per month cash flow. That's the rental property the. Less all of the direct expenses, less your monthly payment on the loan. Your net positive cash flow every month is between 202 150 in most good markets,

 

Keith Weinhold  20:13  

that is really good on a single family home, because typically when you have a higher leverage ratio, when you're borrowing more, that really crunches your cash flow. But in this terrific example that you gave, it does not So Phil to help distinguish the burr strategy from an investor buying a turnkey property. To make that distinction, I think of the turnkey provider is really already doing the first three letters of the BRRRR acronym for you, because the turnkey company, they buy it, they rehab it, and they rent it before selling it to you. They're doing the first three for you here, when you hang around for all five letters of the acronym, you can be the beneficiary of what you just described. 

 

Phil Alexander  20:58  

Spot on, Keith, that's exactly right. The bottom line is, I think a game changer for our company of late is that we have found a market where you could earn two to three times the net positive cash flow on a monthly basis with the BRRRR strategy. 

 

Keith Weinhold  21:19  

Yes, we're going to get into just where that market is, the number one market in the USA for the burr strategy, in Phil's opinion. But Phil, I think before some people wrap their head around the BRRRR strategy, sometimes they consider the investor doing this themselves. What's intimidating about doing BRRRR by yourself is that first R in the burr strategy, the rehab, it seems like a nightmare, especially across state lines for an investor to find and retain and to manage contractors, but you have a system where this is all integrated.

 

Phil Alexander  21:57  

exactly, you Know, Keith, I consider the two biggest pain points for an early investor is actually that first letter the B. You can buy properties anywhere, but the trick and the key is to buy a property that you know, with proper renovation of a rental standard, in fact, will be worth, generally, 20 to 30% more than your out of pocket cost. The second pain point is the construction component, finding a contractor, managing a contractor, keeping the contractor on the job and productive and not running away with your money.

 

Keith Weinhold  22:44  

We make you lose faith in humanity. Yeah,

 

Phil Alexander  22:48  

yeah. We don't really even need to go into detail more on that, but you're absolutely right, and what we do, which I think has made a significant difference, we have our own crews. We're able to have the projects managed. We have detailed scopes of work, for example, that detail line by line, item by item, the scope of work and the draw schedule to renovate a property and deliver it on time, on budget, without exception,

 

Keith Weinhold  23:21  

tell us about the track record of the team in the contractors. I think most people's bad experience starts with day one, when the contractor shows up 45 minutes late with beer on their breath.

 

Phil Alexander  23:35  

It could be, it could be, I am blessed. Currently, I'm active in three markets, although during my career, I've worked in 19 different markets around the country, not become fickle, but because markets do come and go. But I'm in Baltimore and Philadelphia and Cleveland right now, and the bottom line is that I have cruise boots on the ground in every market, and my one general contractor that oversees all three markets, he's been with me for over 15 years. As you mentioned earlier, I've been in the business for over two decades. We've just been doing this, like you said, since before there was an acronym to what we were doing. It's just a sensible thing to do. We know each other well. We get the scope of work done accordingly. That's something that we, with pride, say is a guaranteed number, which you don't often find in this business. Meaning if we have not gotten it right, if we have screwed it up, if we find something that we missed when we were, you know, reviewing the house and drawing together the scope of work, that's not the client's problem. That's our problem. If we say the rehab is 50,000 the rehab is 50,000 period there is no cost overrun.

 

Keith Weinhold  24:58  

We don't want. Contractors smelling like Michelob Ultra we want contractors smelling like sawdust and WD 40. But Phil, you talked about the specific markets that you work in because they're burr advantage markets, Cleveland, Philadelphia and Baltimore. Tell us about the one that is number one in the nation right now, and why

 

Phil Alexander  25:21  

Cleveland, Ohio. And it's not because my dad was from Cleveland. When we were kids, we all played I haven't met one person who hasn't on a seesaw, if you recall, you know, and now in your mind's eye, imagine the seesaw. One end is home prices and the other end is annual return. When the home prices are high, the returns are low. When the home prices are lower, the returns are higher. That's why, sadly, for virtually everybody on the West Coast, my hometown of Boston, New York, Washington, DC, South Florida. These are amongst, to put it bluntly, the worst markets in the country to try and cash flow positive. What makes Cleveland, however, especially unique. I'm oversimplifying, perhaps, but it is blessed to have both lower home prices than most markets, but very healthy real world rents, and that's a juxtaposition that causes extreme cash flows. I think at the current moment, I might have one property that doesn't cash flow 500 or more dollars per month, net positive cash flow, as we were discussing, 200 to 250 is normal for a good market, even in my other markets of Baltimore and Philadelphia. But you come to a market like Cleveland, and it's absolutely extraordinary. This is a perfect segue, if you'll allow me to the thing that makes us and me different. There's a billionaire car dealer by the name of herb chambers in Boston. In fact, he just sold, I understand his business for $1.58 billion massive car dealer. That's not important. What is important is his whole marketing mantra, Keith, is I don't sell you cars. I help you acquire your next vehicle. I don't just sell investors houses, Keith, I have taken an approach, and I've been doing this for a number of years, where I help investors achieve their goals. I have a very specific process, and I'd be happy to share, if you'll allow me, yeah, I first ask people about their war chest. To me, that's the amount of liquid capital they have to invest when they're ready to pull the trigger. It's not just cash in the bank. It can be equity in a home that they can pull out with a home equity line of credit, a HELOC, maybe they have a retirement account that they're able to borrow against. It's their money, after all, but that amount of cash is your war chest, and frankly, I'm not one of those people who says, You can buy real estate with no money, if you have maybe $30,000 or more, I can get you in the game. The second question I ask is, what's your goal? Because every one of us in this business has a goal. Every one of us, I don't need to know the specific goal. But whether it's to have your partner give up the nine to five job, or you want to give up the 90 to five job yourself, every goal has a cost. So what I seek to find out or learn is, what is your number in terms of a goal, how many 1000s of dollars of passive income every month are you looking to achieve? And then the last question is, time frame? Are you looking to achieve that goal in? What three years, five years, 10 years. And then, simply put, whatever the answers are, I show you how it's going to happen.

 

Keith Weinhold  29:18  

 See, these are the types of questions that your everyday realtor just doesn't ask you. I mean, Phil doesn't just sell you houses. He helps you achieve your stated goals for passive income. There's nothing wrong with an everyday realtor, but that's just not the lane that 98% of them are in. And what makes this burr strategy so compelling? I'm just doing calculations, not even on the back of a napkin, but in my head here, if you've got eight to one leverage, like we do in the example here, even if you have 3% annual appreciation on a property, that's a 24% return on the 15k of skin in the game that you have here. And then additionally, if you achieve $500 Dollars of monthly cash flow once your burr property is done, that's $6,000 a year divided by only 15k of skin in the game. That's a 40 or 40% cash on cash return in addition to the leverage depreciation that stepped up. And these are two of only five ways you're paid. This is why people love the burr strategy, if you've got the patience to wait six months,

 

Phil Alexander  30:25  

here's the other thing too. A lot of people say, Is it possible to cash out earlier? And the answer actually is yes, but you have to be prepared to decide what's that worth to you. Meaning, if you wait six months, you can expect 75% of the appraised value. However, I have some lenders that I can introduce that will do a DSCR loan, debt service coverage ratio loan, which is against the cash flow capability of the house rather than the credit worthiness of the borrower, and they'll do it at three months, and yet it'll be at 65% perhaps of the appraised value, a lower loan to value or LTV. But still, it's a cool way to roll plain and simple. 

 

Keith Weinhold  31:18  

Yes, so Phil, here, he offers you total solutions. It's not just helping you with the Property selection, it's renovation by his license, then insured crews, introductions to the financing needs that you might have hash out, refinance introductions and that all important professional property management, unless you choose to manage the property yourself. And Phil, I want to ask you more about Cleveland and just the neighborhoods that you're selecting in a moment, but I've got great news here. You get to join Phil live. He and a GRE investment coach are co hosting Cleveland's amazing cash flow opportunity with the burr strategy, and you can join from the comfort of your own home. It is just 10 days from today, Thursday, March 20, at 8pm Eastern. Registration is open now at GRE webinars.com I suggest you register. We had hundreds of registrants for our last BRRRR event, which was last year. But Phil, tell us more about what you'll let us know on that webinar when it comes to Cleveland areas and neighborhoods.

 

Phil Alexander  32:26  

Sure thing Keith, Cleveland's a pretty dynamic and interesting town. Of course, most people know it's the home of the rock and roll, Hall of Cleveland rocks and Exactly. And there are so many things about Cleveland that I think are really kind of cool to get to know. First of all, we talk or you mentioned appreciation, home price appreciation in Cleveland last year, 7% Yeah, crazy, absolutely crazy. The cost of living is well below the national average, it's at 6% below. Now here's the interesting thing, too, the rent to own ratio of people who rent versus own, very strong 59% rent. And of course, if you're a landlord, what does that mean? It means a greater opportunity to have qualified tenants in place with very low vacancy periods regardless. Now the average rent is $1,433 a month, which, again, when you're talking about properties, the average price of which, even with the renovation, is between 100 and 130,000 let's say 14 133 is even ahead of that cool little metric that we sometimes call the 1% rule, where the rent is at or above 1% of the value of The property. It's a small city only about 360,000 people the metro area, of course, a bit larger, at 1.7 million. And there are a number of top employers, and you know, the Cleveland Clinic, obviously well known Progressive Insurance. Love their ads. Sherwin Williams, you think about that the next time you want to go paint, but it's as to where we're investing principally we target Keith. What often are called C and C plus neighborhoods this week, yeah, often on the eastern, southeastern side of the downtown. Of course, to the north, you've got Lake Erie, so you don't want to get wet, so that you stay east, west or south. And yet, there are a number of places, maybe areas, if you're familiar with Cleveland, like Shaker Heights, Maple Heights, Brooklyn Heights, Cleveland. Heights, University Heights, all of these areas are considered suburbs with high taxes, uniquely so we tend to stay away from those, but in close proximity, we're all around them, and we benefit in terms of appreciation by being all around them, but not being in them, because you don't achieve any higher rent in those suburbs, but you do have the higher taxes, and in that respect, we're able to enjoy these outsized returns. 

 

Keith Weinhold  35:37  

This is a rare opportunity for you to meet Phil, someone with this wealth of experience. And of course, the benefit of showing up live, if you so choose, is you can ask a question yourself and have it answered. Phil, do you have any last thoughts overall with anything, whether that's the burr strategy or Cleveland itself, or anything else?

 

Phil Alexander  36:00  

 First of all, a lot of people ask me, Keith, you know, with rates mortgages and this and that, what do you think I heard? Maybe they're going to go down in the spring or the summer? Should I wait? The answer is no, the best time to invest is yesterday, and you will always be able, in a market like Cleveland, for example, to enjoy strong, positive cash flow. And you know something, as I said before, I've worked in 19 different markets. As soon as Cleveland stops being such a cash cow, I guess I'll have to move on and find the next great thing. But until then, I'm in Cleveland. 

 

Keith Weinhold  36:40  

It is supply demand. Our listeners know, as I've shared with them, that the Northeast in the Midwest are under built markets. So you have the opportunity to own an asset that everyone is going to want in the future. It ought to be great. Phil, it should be terrific 10 days from now. Thanks so much for coming on to the show.

 

Phil Alexander  37:01  

 It's my extreme pleasure, Keith, I have to say, in all the years that I've known you and known your listeners, they are easily amongst the best educated and most serious investors I have the pleasure to deal with. So it's always a pleasure to come back and thank you for having me. 

 

Keith Weinhold  37:19  

That's really kind. Thanks for saying that.

 

Yeah, excellent. BRRRR. Breakdown from Phil the consummate expert. In fact, when we had dinner at America's oldest restaurant, we sat just across from JFK, his favorite booth. He used to dine there. He was also a Bostonian. Of course, which six Ohio cities have a population of more than 100,000 people? They are Akron, Cincinnati, then, of course, the subject of today's show and our upcoming live event, Cleveland. Also Columbus, Dayton and Toledo of all 50 states, Ohio has tons of industry diversity. They had the nation's seventh largest population, and Ohio's population is slowly growing. A number of GRE buyers, just like you, have already connected with our investment coaching, so therefore you got the introduction to Phil and have already bought BRRRR through Phil, including in Cleveland, but he is sourcing more of them for this event. Phil and I looked at some Cleveland single family rental pro formas together that utilized the burr strategy that cash flow over $600 even two properties that cash flow over $700 but I would say those results are not typical. The ARVs after repair values have been pretty good. What Phil does is he runs comps of properties within a quarter mile before the appraisal. And you know, to give you a little behind the scenes. He bought the same software that lenders use to run valuation reports. So he has it himself. Phil has shown me proformas where you get cash back at closing, and therefore what that means are infinite returns. Though that's not an expectation that you should have, though it's nice when it happens, people are often buying two or three properties at a time. And to give you a little more, behind the scenes, Phil has his own in house wholesale unit for helping source these properties. And for every 100 properties, he buys two to five of them, Cleveland rocks. But even if you're more into rep, it's completely free to sign up for our webinar. You'll learn the nuances of what makes the burr strategy so lucrative, what makes Cleveland advantageous, and have any of your questions answered. It's coming up next week, already, March 20, at 8pm Eastern. I mean, this is the kind of event that can alter the trajectory of your entire investor life. Sign up is open. Save your spot now at GRE webinars.com that's GRE webinars.com until next week. I'm your host. Keith Weinhold, don't quit your Daydream.

 

Speaker 1  40:20  

Nothing on this show should be considered specific, personal or professional advice. Please consult an appropriate tax, legal, real estate, financial or business professional for individualized advice. Opinions of guests are their own. Information is not guaranteed. All investment strategies have the potential for profit or loss. The host is operating on behalf of get rich Education LLC, exclusively. You

 

Keith Weinhold  40:48  

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