Joe McCall joins our host Brian Trippe, to talk about the power of real estate. In this episode, they discuss how you can reach out to buyers in other areas to garner interest in your area, the use of podcasts as a marketing tool, and the power of real estate not only as secure living for individuals, but also the community.

Key Takeaways:

[2:37] Alabama has some fantastic cash flowing deals — numbers are good and the economies are good for the most part. There is some incredible value that you can’t get in other parts of the country.

[4:00] Joe talks about contacting buyers who are buying in other states to try and get them interested in the deals and real estate opportunities in Alabama; it is a great market for turn-key wholesalers right now.

[7:05] Brian and Joe talk about phone calls with sellers, and how to make the most efficient use of your time. You should know within the first 3-5 minutes whether they are ready to do business with you today. You have to set the agenda up front on these calls.

[9:13] Joe talks about how he got started in real estate. Originally he was trying a variety of different real estate ventures, and was struggling because he wasn’t focused on one thing. Fallen on hard times, he focused on wholesaling and followed the course and he found success. He started offering lease options to sellers, and flipped the contracts to tenant-buyers.

[12:47] Joe and Brian talk about starting a podcast, and the benefits of a podcast for marketing. This type of marketing is a great way to get not only sellers and buyers, but also coaching clients. Joe’s podcast has been very successful since they started up, and has given Joe the opportunity to meet new people and get to know other markets around the country.

[18:30] When did Joe decide the podcast was worth it? When he was flipping lease options, several people asked him how to do that. He created a course and was travelling around teaching people, and decided that with a podcast he could reach a larger audience without all the travelling.

[24:40] The power of real estate: Joe loves marketing and business perhaps more than real estate, but of all the businesses out there, real estate is one of the easiest ways to make money. Joe feels a certain kind of security in real estate — it levels the playing field, and anyone can do it. You don’t have to be the best in order to make a good living.

Mentioned in This Episode:

Facebook Page

AlaREIA Website

Joe’s Podcast

Flip to Freedom

Rich Dad, Poor Dad, by Robert Kiyosaki

Cash Flow Quadrant, by Robert Kiyosaki

Joe’s Website

Our guest today, Bill Gulas, works with IRA Innovations to help set up self-directed IRAs for people who want to invest their money in alternative assets. In this episode, he talks about what it means to have a self-directed IRA, the difference between traditional and Roth IRA, and the various ways people can use self-directed IRAs to invest in real estate. Tune in today to learn more about this important topic.

Key Takeaways:

[2:15] At IRA Innovations, Bill and his team help self-directed IRAs. The misconception is that these type of IRAs are different than any other type, but they’re not. They facilitate the transactions of buying investments that people want to do other than stocks, bonds, mutual funds, and CDs (ie: real estate, investing in non-publically traded companies, or lending money).

[5:25] How does someone get a self-directed IRA? In the industry, “self directed” indicates alternative assets — at IRA Innovations, you can set up an IRA the same way you would at a bank, by opening an account and making contributions. As with any other IRA, you have to have a custodian — a party who has been given the authority by the IRS to hold individual retirement accounts.

[9:40] At IRA Innovations specifically, about 35-37% of their clients are real estate investors. The remaining percentage of their clients invest in private equities, lend money, and things like precious metals or livestock. When lending money out of a self-directed IRA, you can’t lend money to yourself, your spouse, parents, grandparents, children, grandchildren, or their spouses.

[11:31] What are real estate investors doing with a self-directed IRA that is most common and most successful? Some will buy a property and invest the money they collect on rent, some buy a property and rehab it to sell it, and others still, that wholesale properties. When wholesaling, someone can put a property under contract, and wholesale to the next person before it closes. When they sell the contract, that money goes into the IRA to use for the next deal.

[13:09] Two main types of IRAs: traditional and Roth IRA. In a traditional IRA, you can invest money pre-tax — everything in there grows tax-deferred while it’s in your IRA. When you take it out of your traditional IRA, it is taxed as regular income. In a Roth IRA, you put money in after tax, and anything that you make on that money is tax free.

[16:15] With all IRAs, you cannot get your money until you’re fifty-nine and a half. Unlike a traditional savings account, IRAs were developed specifically for use in retirement. So when you take it out, it has been growing tax-deferred for all those years.

[17:37] Bill shares how he got involved in the business of self-directed IRAs. When he found out he could in fact invest his money real estate, there were a limited number of companies doing this type of business. He opened an office with a franchise, and when they decided they didn’t want to be in the franchise business anymore, they became independent.

[20:23] Some of Bill’s clients have found success by buying properties and selling them to developers, or buying subdivision lots, and selling them off to builders. At IRA Innovations, they help their clients be able to invest in what they know.

[23:55] What cautionary advice does Bill have for people who want to invest their money in alternative assets? Bill’s biggest tip is to do your due diligence — know what you’re investing in, and know why you’re investing in it. You want to know as much information as you can before you invest your money.

[24:43] Although not typical, there are a few companies that will allow you to self-direct in a 401K. It all depends on what is in the plan. There are usually a very limited amount of options in which you can invest, for company liability. When you leave a company, you can rollover your funds into a different IRA.

[27:14] Bill discusses 1031 exchanges — when you sell a property, you have a certain amount of time to find a similar property, and you have to close in a certain amount of time, and there’s no tax on the profits of that sale. Once an account is open, and they find the property, the custodian must sign a contract. The IRA pays the earnest money, reviews the documents, and once the client signs off on it, they send the documents to the closing attorney and wire the money from the IRA; then the IRA owns it.

Mentioned in This Episode:

Find AlaREIA on Facebook

AlaREIA Website

Next Meeting - April 13th

IRA Innovations

Contact IRA Innovations: 205-985-0860

Claude Diamond, real estate extraordinaire, joins our host Brian Trippe to talk about the missing link in real estate — sales. Claude works in sales training and shares some of his personal story and philosophy for developing confidence and charisma in real estate. Listen to today’s episode for tips on how to improve the sales piece of real estate, and grow your confidence when speaking with people to get the deals.

Key Takeaways:

[1:18] What got Claude interested in real estate? Although he was having success making contacts, there was very little follow through — there was knowledge and motivation, but he was missing the sales piece.

[3:46] What changed? He was able to learn and practice with someone to develop his three-step sales method: agenda, qualifications, and close. Now as a teacher himself, he helps his students learn by practicing with them.

[7:35] Just as in his own experience, once he started his own mentorship program, he noticed many people were also missing that sales piece.

[8:55] Claude shares some take aways for new folks getting started: 1) Don’t use scripts — we’re talking to other human beings not machines. 2) Stop giving premature presentations — don’t overshare information. 3) Stop asking for the order — make them want to buy.

[11:55] Claude’s charisma certainly shines through, especially in this podcast episode. He talks about the “double P:” the passion and the practicality. For many people, real estate is not a hobby, it’s a business.

[14:05] We have to be the doctors of real estate. This involves learning how to ask the right questions and being empathetic toward our customers. Opening this dialogue is imperative to developing that missing link and building our confidence.

[18:32] The million dollar rule: people make immediate business decisions because of emotion. If you ask the right questions to get a prospect talking about one of the emotional topics of real estate, you have their interest and focus.

[22:27] Claude talks a bit about how he built his business, and how he continues to share his knowledge in different avenues via a giving mentality. If you’re in the Birmingham area, he’ll be speaking on June 8th.

[25:14] What is the famous three-minute timer? You can qualify someone on the phone in three minutes or less if you learn how to be conversational, and ask the right questions the right way. To avoid spending too much time on the phone, skip the traditional “salesy” questions and get straight to the questions.

Mentioned in This Episode:

Speaking at AlaREIA June 8th - Birmingham

youtube.com/cdmentor

Find Claude online

alareia.com

Local Birmingham Pastor Randy Williams of Parkway Christian Fellowship joins host Brian Trippe to describe how he unwittingly fell into becoming a real estate investor. As Pastor Randy says, “The Lord opened the door and led the way.” After years of buying and rehabbing houses for profit, Pastor Randy is converting his buy and hold strategy into hard money lending and cash flow. Key lessons from this podcast are not to deviate from the numbers and don’t get romantic about purchases.

Key Takeaways:

[1:35] A friend planted the seed of using real estate as an investment in Pastor
Randy Williams mind. Pastor Randy was able to negotiate owner financing and a large discount on his first home.

[5:14] When buying his second home, Pastor Randy rented out his first house for enough rent to cover both loans.

[8:08] A renter offered to buy Pastor Randy’s first house, and after several payments, he asked if he could walk away. This ends up in a total net gain for Pastor Randy.

[10:12] Every house Pastor Randy lived in, increased in value after they rehabbed it. He wasn’t acting as an investor, but he applied smart investment principles.

[13:20] In Birmingham, Pastor Randy needed to appease his three daughters, so he bought a house with a swimming pool. In order to pay employees during an economic downturn, Pastor Randy depleted his savings.

[16:07] Pastor Randy created an LLC to buy foreclosures, and then identified 5 couples in the church to become homeowners. After explaining the equity principle, the families were excited to buy their first homes.

[20:43] Pastor Randy explains his real estate strategies, including buying distressed houses at auction, rehabbing, and leasing with an option to buy.

[25:05] Pastor Randy is no longer buying and holding properties. His future will include private money lending.

[26:40] Why move away from income properties and into hard money lending?

Mentioned in This Episode:

ALAREIA

Parkway Christian Fellowship on Facebook

Pastor Randy Williams - (205)-835-6813

[email protected]

Scott Jelinek, one of the very best investors in the nation, joins Brian for our 11th episode. In this episode they discuss Scott’s real estate philosophy, lifestyle vs. property management, as well as some tips on how beginners can get started. Tune in for some fresh perspective!

Key Takeaways:

[1:37] Scott shares his story of how he got into real estate. He bought his first property as a non-qualifying assumption when he was 19 years old. He began just buying up properties until he accidentally wholesaled his first deal, and that’s when he focused on really treating it seriously like a business.

[4:58] Scott has been, and still is, based out of Virginia. Brian and Scott talk about the different real estate climates in Birmingham and Virginia.

[6:20] Which real estate ventures is Scott pursuing now? Since the bust, Scott is all about “free and clear.” He believes in five-year mortgages and pays until he owns the house in five years. His philosophies have developed based off his experiences, and help to ensure his peace of mind.

[10:47] Scott used to do a lot of rehab, but since 2013, has been strictly wholesaling. Both Scott and Brian talk about the necessity and benefits of owning a rental property.

[12:58] Property management: how does Scott manage his properties? All of his properties are slow flips, and he sells them with owner financing. His shares his process as well as the numbers involved, so listeners know how he is profiting in his ventures.

[16:57] Brian and Scott discuss lifestyle — what benefits does working real estate offer for freedom of lifestyle? For Scott specifically, when he invested his career in real estate, he was able to free up his time, and do things with his family, like travel.

[21:01] What is Scott’s wholesale business? It varies from month to month, but his marketing strategy remains the same. He does direct mailing, but doesn’t recommend it for beginners because of the expense. Some free or less expensive strategies include: billboard cards, Gorilla cards, and pre-foreclosures.

[29:02] What recommendations does Scott have for new people? Share your work, and do it with integrity. Brian and Scott talk about some different ways to get started monetarily.

Mentioned in This Episode:

Scott’s Podcast: The Ugly Truth About Real Estate Investing

Work Just Gets In The Way of Making Money

Alareia.com

Bruce Glenn, a licensed appraiser, joins our host Brian Trippe to talk about his different real estate ventures, from acquiring his first property, fix and flips, and his current work as an appraiser. Tune in today, to find out how investors can benefit from working with an appraiser, as well as tips on the real estate market in Birmingham, and how you can find success.

Key Takeaways:

[1:14] Bruce shares his experience getting started in real estate. His first job out of high school sparked his interest in the type of work, and he talks about how he ended up acquiring his first property, a 4-unit apartment building in downtown Denver.

[3:21] The process: 1. Found a partner, 2. Found a Realtor, 3. Found a great deal.

[4:30] Bruce’s experience as an appraiser is a tremendous help in his real estate investments. One big reason is that it has helped get good lines of credit right from the start.

[7:17] Bruce and Brian talk about his first fix and flip. This first venture was near Green Springs Highway — they bought it and did the work themselves, and since then, he’s done about sixty to eighty flips in the last fifteen years or so.

[9:37] They talk about the real estate climate in Birmingham in the past few years, and what they might expect for the next few years coming up.

[12:16] How might this changing real estate climate affect investors, especially those who do the fix and flips? Bruce advises to really make sure your numbers are as good as possible, and shares some of his advice for keeping these in check.

[15:25] What advice does Bruce have for newcomers to get to know the market better? If you can get in touch with a Realtor, they have a lot of knowledge about good areas and what types of properties will do well.

[19:43] Brian and Bruce talk about the relationship between a Realtor and an appraiser. As a Realtor, you can dispute an appraisal if you can provide data for why you think it’s worth a different amount.

[23:35] What is the importance of an appraisal for an investor? Value is everything — you’ve got to understand the numbers. They discuss some of the factors they consider when making an appraisal.

[26:12] Price per square feet: while Realtors love it, it can set a standard that may not be realistic for all the houses in a given area.

[28:52] Some final thoughts from Bruce: appraising isn’t an exact science — you might run into differences. If you don’t agree with the appraisal, you can dispute it with good data. Getting to know appraisers and Realtors in your area can really help you out!

Mentioned in This Episode:

To contact Bruce: (205) 369-5662

Innovative Renovations on Facebook

[email protected]

alareia.com

On today’s episode, Brian Todd joins Brian Trippe to give us a new perspective on real estate. Although not in the real estate game professionally, Brian has many years of real estate experience, and shares his ideas about a penny-pincher mindset, setting goals, and how these can affect your real estate ventures.

Key Takeaways:

[1:36] Brian shares his background and his story on how he got into real estate. Growing up, his dad did a lot of fixing up of houses, and Brian learned a lot about doing things for yourself. As he was working on his own house, he fell into a chance opportunity, and ended up selling the house.

[5:26] Brian takes us through the process of buying his first house out of college. He knew if he saved enough, and didn’t finance a lot, he would be able to make money on the house. He also carefully chose a quality area and was confident he would be successful.

[9:27] Brian talks about the chance sale of his “dream house,” and how the situation came about. He also talks about working with a partner, and the emotional investment in a property.

[13:36] Why is the penny-pinching mindset important? Brian was raised that way as a kid, and it continues to influence his real estate decisions. It’s a survival mindset — the one who makes more in the end, saves more.

[16:45] Brian shares some tips or tricks on how you can adopt the penny-pincher mindset.

[19:18] How important are goals to Brian, and how does he keep track of his goals? He lets goals guide his decisions not just about money, but also spiritually and personally.

[22:26] Brian talks about his real estate goals for the next few years, and how his goals are affected by his plans for his family’s future.

[28:17] Brian shares some last few tips on getting into real estate ventures: make sure you love what you do, and be careful about getting into business with your friends.

Mentioned in This Episode:

freebook.alareia.com

Jason Hollon joins Brian to talk about his involvement in several different types of real estate in the Birmingham area. In this episode, they hit several highlights of different methods of acquiring and buying properties, what to do once you have them, and everything that comes along with each.

Key Takeaways:

[1:08] How did Jason get started in real estate? He had an interest in real estate for a while, but really got into it when he kept his old house when they moved, and began renting it out.

[2:57] What made Jason want to go full-time with real estate, despite being established in a different job? He talks primarily about networking and a local mentor, and how both of those were influential to getting to where he is today.

[4:27] C-class properties in Birmingham: houses that were appraised for $60,000 - $80,000, typically nice blue-collar areas. Jason mentions specific areas in Birmingham.

[7:33] What advice does Jason have in regards to marketing? The key is to be consistent, and give things time.

[8:30] As essentially a one-man show, Jason talks about how he divides up his properties between wholesaling, fixing and flipping, and buying and holding, as well as what conditions factor in for each.

[10:36] Jason and Brian talk about trends in the Birmingham market, and what institutions are buying in Birmingham.

[12:37] Jason speaks specifically to wholesaling, and what he’s learned from his experience over the past six years. He speaks to the importance of people skills and confidence, as well as knowing what you can do and what you can’t do.

[14:45] Highlights of self-directed IRA’s. Jason shares some of the things you need to know about this type of lending. He also speaks to being able to purchase owner-finance properties, and what benefits comes with this method.

[18:48] Is there a preference in paying 100% or getting a bank loan to purchase properties? Ideally Jason likes to grow his organically with cash and credit lines, although he will sometimes use bank loans, depending on the property.

[20:11] What is Jason’s favorite thing about working in real estate? He enjoys working with the buyers, especially when he is able to work with them to get them a home.

[22:34] What advice or warnings does Jason have for new people who want to get started in real estate? He shares tips on methods of acquiring, marketing strategies, and people skills.

[23:51] Jason shares his take on contractors, and his advice on getting and working with a contractor. With price, quality, and speed, you can have two at a time. Choose your contractor based on project — some might be better for rentals while others might be better for large wholesale properties, for example.

Mentioned in This Episode:

To submit a deal to Jason: webuybham.com

Free book: freebook.alareia.com

Chad joins our host Brian Trippe to talk about his work with Alabama Rental Managers, and property management. In this episode, they cover everything from screening tenants, maintenance on properties, getting houses rented, and some of the specific processes they use at Alabama Rental Managers to accomplish their goals. Tune in today to learn more!

Key Takeaways:

[1:35] Chad discusses his work with Alabama Rental Managers, a full-service property management company. He talks about their process

and some of the benefits for investors working with their company.

[4:20] Brian and Chad talk about how one of the biggest issues is turnover between tenants. They discuss what processes are in place to get properties filled, and how they safeguard against having vacant properties for too long.

[6:12] Alabama Rental Managers generally like to stay in the A&B markets; what types of properties are they looking for? Chad talks about the hot market and what rent-range properties they look for, as well as in what specific locations they operate.

[11:00] Chad speaks to the difficulty of property management, in terms of the balance between serving their tenants and their homeowners. This is particular difficult when it comes to maintenance, and Chad talks about their policy for repairs.

[13:35] What is the most challenging part of property management? Both Brian and Chad agree that communication is a difficult aspect, both within the company and between the company and the homeowners. Chad talks about their requirement for homeowners to have a small reserve account in case of an emergency repair where they cannot get ahold of the homeowner.

[15:57] What kind of expectations should investors have for property managers to get the house rented? They discuss some different ways the property management and homeowner can work together to get properties rented.

[18:30] Chad and Brian talk about tenants, discussing everything from length of stay, how to deal with a tenant, and their five-point screening test. Chad explains the difference in motivation between a property management company and an investor in getting a house rented, and the importance of their process to benefit everyone.

[22:35] Chad talks about their rent collection process at Alabama Rental Managers.

[25:08] More on maintenance! Chad explains a little more about their actual process for accessing repairs, making repairs, and how all of this works monetarily with the homeowners’ maintenance limit.

[31:10] What tips does Chad have for listeners who are managing their own property? Chad really emphasizes the importance of a really thorough screening process, as well as being available for your tenants.

Mentioned in This Episode:

Alabama Rental Managers

Contact by phone: (205) 824-5008

freebook.alareia.com

In addition to being a Realtor®, Jeff also does rehab on houses, and flips houses, as well as renting and wholesaling. Listen in to today’s episode, to hear how Jeff got his start, the scope of his real estate, and the different ways he acquires and maintains properties.

Key Takeaways:

[1:30] Jeff shares how and why he got into real estate, and how long he’s been doing it full-time. With little background experience, Jeff had to get creative with his venture, buying a house at $500 down.

[3:07] Jeff and Brian talk about the strategy Jeff used to procure his first property. How do you find a deal that is owner financed, on which you can put a little bit down? He encourages putting in the work to search for properties, and being upfront with the owner, once you find a property.

[4:35] HUD: Houses Under Development; Jeff talks about the HUD system — how it works, what you need, and how you can bid on a HUD property. He covers two scenarios: both as a homeowner, and as an investor.

[9:47] When one of Jeff’s bids is accepted, what does he do next? There are several options, including wholesale (requires honest communication), and retail (involves getting the house to be the best on the market).

[12:10] What types of things can you do retail-wise? Jeff talks about what types of repairs he does, how much he spends, and how much he sells them for.

[13:40] Structuring owner-financed deals: every deal is a little different. Jeff and Brian talk numbers to get profit, as well as the areas where they are finding these deals.

[15:57] With such a wide scope of other real estate ventures, what are the benefits of also doing rental properties? How does he balance managing his properties, with everything else he does?

[19:30] Brian and Jeff talk about the benefits and negatives of Section 8. Jeff shares some tips about working with Section 8 as well.

[23:22] Jeff shares his advice for someone who is brand new to real estate. Just do it!

Mentioned in This Episode:

EPI Real Estate