... and Landlord! Rental Real Estate Investing Podcast

The acronym is I.D.E.A.L. - where I = Income; D = Depreciation; E = Equity; A = Appreciation; & L = Leverage. These are the benefits of Rental Real Estate Investing and how you make money in multiple ways. This is how it's not unheard of to make a return of something like 50% with Rental Properties (or more); whereas you may be lucky to make 5% with other investments. Even if you are making 10% or 15%, even 20% with other investments - you can often do twice as good with well purchased, well located, and well managed Rental Properties.

So this episode of the... and Landlord Podcast is just to get you thinking about the many benefits and ways of making money as a Rental Property Investor... Does your investment in Precious Metals (Gold & Silver) produce an Income? Do you get Depreciation from your Stocks? Now maybe you have some "Equity" in your Stocks or Gold if they are now worth substantially more than you paid for them, so you might have some value Appreciation there - but was a Bank or other Lender willing to give you a loan of 80% of the purchase price? If there was any Leverage involved, it was only against the value of other Stocks you already owned.

Rental Real Estate is the only class of investment of which I'm aware that provides all of these I.D.E.A.L benefits. An investment that can pay for itself because it produces an income. Gives great tax benefits because of Depreciation and other expense write-offs. Builds Equity quickly through both Amortization (Mortgage Pay-down) and value Appreciation that is highly likely if you are buying where people actually want to live. And skyrockets your Rate of Return (ROI) by leveraging 80% of the asset price from a Lender, leaving you to only put in 20% - yet you are still 100% owner!

Rental Real Estate is the I.D.E.A.L Investment!

Funding Your BRRRR Deals... BRRRR investing often requires Rehab Lending, be it from Private or Hard Money Lenders. In this episode of the [... and Landlord!] Podcast, I cover the typical requirements of working with Rehab Lenders, and the things you need to be on top of... These being: Down Payments; Appraisals; Reserves; & Credit Scores.

When working with Rehab Lenders, you'll almost always need to put some amount of money into the deal ("Skin in the Game"), as your Down Payment. This will typically be 20%, but it can be lower or higher by 5% to 10% - depending on the specific numbers and terms of the deal.

This will be largely determined by the Appraisal results. There will be an Appraisal of both the "As-Is" Value (to make sure you're not paying too much for the property); and the After Rehab / Repair Value (ARV) to determine what the home may be worth upon completion. And it is the ARV that will be critical in determining how much of the deal the Rehab Lender will fund versus what you'll need to pay out-of-pocket as your Down Payment. As they will typically only fund 70% to 75% of the ARV as the total project cost, which is both the purchase price and rehab budget.

And most Rehab Lenders are going to want you to be able to show a certain amount of Cash Reserves in the Bank, which includes your Down Payment amount, Closing Costs, Holding Costs, and Interest Only Loan Payments.

Lastly, they are most often going to pull your Credit and want to see certain minimum credit scores, along with no liens, no judgements, no collections, and no other derogatory information present on your Credit Report. In this regard, I discuss my personal situation of balancing the amount of Reserve Funds I use to pay off Credit Cards to keep my Credit Scores high, versus what I keep on-hand to be able to meet the Cash Reserve requirements.

Its all good information for those seeking to do BRRRR investing at a high level, which at some point will require Private or Hard Money funding from a Rehab Lender.

By the end of this episode, I just put it out there... Something I've struggled to admit for most of my adult life. This episode of the [... and Landlord] Rental Real Estate Investing Podcast speaks on the subject of our: Mindset; Attitude; Vision; (and what I come to admit) - my Passion - TO BE RICH!

But in the process I give insight into the books on the www.andlandlord/books page that have aided me greatly in expanding my Mindset; improving my Attitude; focusing my Vision; and refining my Passion.

This Episode #23 of the [... and Landlord] Podcast is an extension of last week's Episode #22 that asked the question - What's Your Why? Because the things discussed in this show are the things that will help you to achieve your WHY.

What's your WHY? Your reason? Your purpose for getting up every day and going to work? Whether it be at a job where you're employed; or a business you own (self-employed) - why do you do it? Is it just to pay the bills? We all need money, and so is your current endeavor just the way you have of getting it - until some better way comes along? Or is it a means to some greater end? Is there a method to the madness?

Or are you just keeping busy (because its what you're expected to do) - until you have some moment of inspiration as to your: WHAT; WHERE; WHEN; WHO; HOW - and of course WHY?

It's a critical question, as a strong WHY will keep you motivated while you search for and determine those other things... WHAT; WHERE; WHEN; WHO; HOW. You need to know your WHY - and it needs to be something so big and important to you, that you'll do every day for YEARS, whatever it takes to achieve your goal. A weak or non-existent WHY, will yield week or non-existent results.

So this episode of the [... and Landlord] Rental Real Estate Investing Podcast asks the question... What Is Your Why? And in so doing, it reveals what my WHY happens to be and how I maintained my drive for it during both good and bad times.

How do you feel about debt? I LOVE DEBT! GOOD Debt that is... Debt that benefits me, while being paid back by someone else (my tenants). I don't want debt that I have to pay back - that's BAD debt.

In this episode of the [... and Landlord] Rental Real Estate Investing Podcast, I express my thoughts on debt and explain how and why I want to obtain at least $4 Million of additional debt (against cash-flow positive Rental Properties) in the coming 2 to 3 years.

Real Estate is the only asset class of which I'm aware that lenders will readily provide 80% of the purchase price. In other words, they provide $0.80 of every dollar needed - 4/5th's of the purchase price! And they do so at what are currently all time low interest rates that can be locked in for 30 years! OMG - what an amazing deal!

And then not only is the loan paid back by rent received from tenants, but over time the dollars being paid back (due to inflation) are worth less than those originally borrowed. And the end result of this is a FREE HOUSE for me, since I'm not the one who paid back the money. It was paid back by my tenants over time and I got cash-flow as an additional benefit all along the way!

So in this episode of the [... and Landlord] Podcast, I state my case for wanting as much debt as I can get - as long as its GOOD debt against cash-flow positive Rental Properties. Or do you only want Rentals Properties if paid for up front in cash? That's fine if so... Let's both work our plans for 10 years and see who's in the best position at the end - with the greatest cash-flow, equity and highest net worth.

Episode #20 of the [... and Landlord] Rental Real Estate Investing Podcast features an interview with Stock Day Trader, Realtor and Real Estate Investor / Landlord - Chad Kastel. This is only the second interview on the show, and the longest episode so far, as Chad had lots of great information to share.

I met Chad earlier this year in Denver, at Joe Fareless' Best Ever Conference. Chad was one of many people I talked to at the event, but I was intrigued by his being a Stock Day Trader prior to getting into Real Estate Investing. And we had several great conversations during the 2 day conference.

You see, prior to getting into Real Estate Investing myself, I had wanted to learn how to Day Trade Stocks. I actually had a class scheduled for later in the month, when I made up my mind to go full force into Real Estate Investing - so I cancelled the class and never looked back. But meeting Chad made me wonder if I could have done both - as he's doing successfully.

But no... I know that I did the right thing, as for me, I really needed to focus on Real Estate, with all else that I've had going on. However, Chad is an inspiration being a Husband, Father, Stock Day Trader, Realtor... and Landlord!

In this episode, Chad shares how he got into Stock Day Trading, leading from all things - a card game called Magic The Gathering. And how he then got into Real Estate Investing with properties in both Upstate New York and Florida (where he lives).

Chad goes into detail on some issues and challenges he's encountered along the way, including some problems refinancing his New York mixed-use property, partnership failures and concerns with Property Management. And Chad reveals that his latest Real Estate endeavor is a partnership to complete flips in Florida, for which his wife has taken the lead.

You can also hear Chad on Episode #1734 of The Best Every Show - with Joe Fareless.

This is Part 2 of "Self-Managing Landlords - 10 Things You Need To Stop Doing!" - which features #6 to #10. See last week's Episode (#18) for #1 to #5 on this list of 10 things you just need to stop doing (if you're a Landlord).

So in this 19th Episode of the [...and Landlord!] Rental Real Estate Investing Podcast, I continue to speak on Self Managing Landlords - completing my list of 10 Things You Need To Stop Doing! Last week's episode got a little long, so I decided to split it into two episodes, with this being the 2nd.

And here in this 2nd episode on the topic (19th overall), I get a little political in #10 - so please forgive me, because matters of politics is not really supposed to be the focus of this Podcast.

The second 5 of 10 Things That Self-Managing Landlords Need To Stop Doing - covered in this episode, include...

6. Stop Being Ignorant Of The Law.

7. Stop Using Leases You Got From Office Depot, Staples Or Just Found Somewhere On The Internet.

8. Stop Using Cheap Finishes In Your Rentals.

9. Stop Failing To Conduct Rental Property Inspections.

10. Stop Denying Potentially Great Tenants Based Upon Their Credit Score - (Political Opinion Alert).

If you've not already, checkout Episode #18 to hear the first 5 of 10 Things That Self-Managing Landlords Need To Stop Doing. Unfortunately, all 10 items on the list are things that are common for Self-Managing Landlords - and I've been guilty of some of them myself at the start of my Real Estate endeavor. And it has been my experience that the longer a person has been a Landlord, the more likely they are to be guilty of multiple things on this list - like those who started in the business decades ago.

If you're going to be a Self-Managing Landlord, then you need to stop doing these things. Or, you should outsource your Rental Property Management to a professional like me and my team at Blue Chariot Management.

In this 18th Episode of the [...and Landlord!] Rental Real Estate Investing Podcast, I speak on "Self Managing Landlords - 10 Things You Need To Stop Doing!"

But it got a little long on time, so I actually ended up splitting it into 2 Episodes, with this Episode #18 being Part 1, featuring #1 to #5. And Part 2 will be Episode #19, featuring #6 to #10.

The first 5 of 10 Things That Self-Managing Landlords Need To Stop Doing - covered in this episode, include...

1. Stop Collecting Rent Like Its 1989

2. Stop Allowing Tenants To Pay Their Rent Late

3. Stop Renting To Friends And Family

4. Stop Failing To Screen Your Prospective Tenants Properly

5. Stop Doing Things Manually (Again, It's Not 1989)

Come back next week for Episode #19 to hear the next 5 of 10 Things That Self-Managing Landlords Need To Stop Doing - resuming from #6.

All 10 items on the list are things that are common for Self-Managing Landlords - and I've been guilty of some of them myself in the beginning. And the longer a person has been a Landlord, the more likely they are to be guilty of multiple things on this list - like those who started in the business in the 80's or 90's or before.

If you're going to be a Self-Managing Landlord, then you need to stop doing these things. Become the best Landlord you can be... Or, you should outsource your Rental Property Management to a professional, like me and my team at Blue Chariot Management.

My first guest! In this 17th Episode of the [... and Landlord!] Rental Real Estate Investing Podcast, I welcome my first guest to the show - Garrett White. And we talk about our first ground up construction / new build house and our partnership, along with some challenges we encountered along the way.

Garrett is someone I first met a few years back when he reached out to me on BiggerPockets.com. We met shortly thereafter for coffee and found that we had a lot in common. Garrett was a relatively newly wed, and was about the same age I was when I got married. I admired that he was into Real Estate at such a young age, as although I was an Entrepreneur at that age - I did not get into Real Estate Investing until I was 15 years into my marriage.

As we got to know each other better through subsequent meetings and Garrett volunteering to help me at some of my BRRRR projects when I was still in my DIY Landlord phase - it became clear that we worked pretty well together. We quickly became friends with our similar sarcastic / witty sense of humor. Trash talk got added in when we started playing racquetball on Monday's for exercise - talking Real Estate in between sets.

We then began travelling together to some Real Estate educational training events and seminars, as far away as Vegas. These all allowed us to refine what we were doing, but as touched on in this Podcast episode, things just did not pan out until recently with the new build that we are now working on. Prior projects just went wrong for one reason or another, but not in ways that caused us to doubt our effort to work together.

But we learned from each action (even failures) and applied the newly gained knowledge to the next attempt. Our determination to work together on a successful project left no other option but to succeed at some point. Now we have a new build underway on Carver Street in Durham - with a very nice profit potential, that we'll split between us, with some held in reserve to apply towards the next project, as we seek to keep this going.

Continuing last week's discussion from Part 1 (Episode #15) on [Where To Get The Money?] - this week we focus on Private Lenders. Having your projects funded 100% by Private Lenders is the best method of [Using Other Peoples Money For Real Estate Investing Success].

This form of OPM may not be available to you on your very first project (I mention friends and family as a possible exception to getting Private Lender funding right from the start) - but as you successfully complete each project, you'll certainly be nearer to this target. And once you reach this point, you may find that low deal flow (a lack of properties needing funding) becomes a greater problem for you than not having enough funding.

Either way, both problems can be solved, and this Episode #16 of the [... and Landlord!] Rental Real Estate Investing Podcast gives insight into solving your project funding problems with Private Lenders. I go into some details on protecting your Private Lenders, but most of the show covers the topic of getting and working with Private Lenders in general.

And to that end, I mention my own difficulty in making what I'm doing known to friends and family members - and giving them equal opportunity to benefit from funding my deals as I have no problem making available to others. Excluding family and friends is really not fair them or myself, so I must work to overcome this apparent mental block of avoiding working with friends and family.

I end this episode with details on where to find more information on this topic, one great location for doing so being "The Book On Investing In Real Estate With No (and low) Money Down" by Brandon Turner of BiggerPockets.com- which you can find among other great Business and Real Estate books on the Books page of the Podcast Website.