The REtipster Podcast | Real Estate Investing

193: I discovered George McCleary recently when I came across a viral video he made called “I Stole a House.” In this video, he demonstrates how easy it is to be a squatter and take over a house in Portland, Oregon.

(Show Notes: REtipster.com/193)

This video amassed tens of millions of views, and since then, George has been featured on Dr. Phil and in news outlets worldwide, including BiggerPockets, Fox News, and Joe Rogan. Since this happened, George has been educating property owners about the financial devastation caused by squatters and title fraud.

Unfortunately, title fraud has become a big problem in some parts of the country. Even the squatting issue is a potential problem some of us may have to deal with in the land business, so we’re going to get into this subject a bit today and understand what squatting is, what "squatters rights " are, why squatters have rights at all, and what a property owner can do to protect themselves and deal with a squatter if this issue ever comes up.

192: Jay Thomason and Daniel Earhart have been friends of REtipster for many years now. I first talked with them in episode 50. This is a great place to start if you want to hear their backstory, how long they’ve been in the business, and so on.

(Show Notes: REtipster.com/192)

In this episode, I wanted to learn more about how they’ve been pretty successful at getting bank financing for their land deals. Most land investors have a hard time with this because most banks aren’t interested in lending on residential vacant lots unless the owner has an immediate plan to develop it.

When I caught up with Daniel and Jay at the Land UnConference this past year, they explained a little bit about how they did this, and I thought the whole REtipser audience needed to hear about this. After all, if we can unlock bank financing and the lower rates that come with the package, this would be a very helpful financing alternative for those of us who don’t have the funds ourselves, don’t want to take out much more expensive hard money loans, and don't want to give away huge amounts of our profit to funders.

For many years in my land investing journey, the biggest challenge I faced was access to capital. I had to walk away from countless opportunities to buy properties at a fraction of their market value simply because I didn't have the funds, and most banks wanted nothing to do with these kinds of deals. The landscape of land investing has changed significantly over the past 15 years. With thousands of new investors entering the field, the emergence of land funders has opened new avenues for those who know how to find deals but lack the money to close them.

(See the Full Blog Post)

In this episode, we'll dive deep into land funding—a fascinating sub-niche where funders provide the necessary capital for deals and share the profits with operators. We'll explore how these partnerships are structured, the key elements to consider when drafting a funding agreement, and the different "recipes" that funders and operators use to divide responsibilities and ensure a successful partnership. Whether you're a seasoned investor or just getting started, understanding these strategies could be the key to unlocking new opportunities in your land investing journey.

191: In this episode, I'm talking with Clayton Hepler.

(Show Notes: REtipster.com/191)

Clay has been on an incredible journey, building a thriving land-flipping business over the past two years. We discussed the challenges he faced during his first year, the importance of having financial reserves and consistency, and how he scaled his business by focusing on market selection and sales.

Throughout the interview, Clayton emphasizes the significance of having a strong mental game and using land investing to achieve financial freedom and build a legacy for his family.

190: Are you ready to take your land investing game to the next level? In this episode, we sit down with Mike Balcom, a former professional poker player turned land investing mastermind. Mike shares his unconventional journey and the hard-won lessons he's learned along the way.

(Show Notes: REtipster.com/190)

From navigating the challenges of novation deals to building a rockstar team culture, Mike reveals the strategies and mindset shifts that have allowed him to close hundreds of successful deals. He also shares cautionary tales of the costly mistakes that can trip up even experienced investors.

Whether you're a seasoned pro or just starting, this episode has actionable insights and insider tips you won't want to miss. Tune in now and discover how to avoid common pitfalls, unlock hidden profits, and build a thriving land investing business.

When you sell a property with owner financing, one of the biggest advantages for you, as the seller, is that you can dictate and control a lot of the terms and conditions of the loan you set up.

This is a huge benefit, but only if you know how to wield this kind of power and what options you have on the table.

Let's step back and acknowledge something.

When you give your buyers the option to purchase your property with seller financing, you're doing them a huge favor. This allows them to sidestep a lot of the time-wasting (and sometimes deal-killing) red tape that banks force their borrowers to go through.

Sometimes, seller financing is a borrower's only option because their bank doesn't like the property or the borrower's risk profile.

Other times, buyers will take you up on seller financing even if they have other options simply because they don't want to deal with banks.

Don't get me wrong, working with a bank has advantages too.

Banks typically charge a lower interest rate and almost always allow for a longer amortization on their loans with no balloon payments. Banks have no problem letting their borrowers pay off loans over 15 to 30 years, but most sellers (including you) won't wait this long to get their money back.

If you decide to offer this convenience to your borrowers, you'll want to know how to stack the cards in your favor so that you're compensated for the inconvenience of waiting longer to get your money. It's not just about getting a large enough down payment and high enough interest rate (although that is a huge part); it's also about having control.

Read the Full Blog Post

189: Today's guest is David Pere.

(Show Notes: REtipster.com/189)

David is the mastermind behind the website and online community, From Military to Millionaire.

His journey began in the military, where he served his country and discovered his passion for real estate and personal finance. Through his platform, David is empowering military members, veterans, and civilians alike by sharing invaluable insights about achieving financial independence.

Dave's expertise in maximizing income, smart saving, and strategic investing has guided many toward building wealth and becoming millionaires. Today, we will hear his story, strategies, and the wisdom he's gained from serving in the military to becoming a real estate mogul and a financial mentor.

When you buy real estate with seller financing, you can structure the terms of the deal so that YOU, as the buyer/borrower, have a deal that is highly advantageous for you, with as many options as possible.

Granted, you'll be somewhat limited by the seller and the options they're willing to give you. However, when you get a loan from a bank or credit union, you will not have this flexibility. There's not even a point in trying to negotiate the terms of your loan with them because that's just not how they work.

When you borrow money from a bank or credit union, they will always use their boilerplate templates, which are written to give them the maximum amount of control and options.

With seller financing, there is much more opportunity to write the loan documents in a way that is fair to the seller but also works to your advantage by giving you plenty of upsides and advantages.

Of course, your ability to negotiate terms will depend on the seller's flexibility, what they need, how sophisticated they are, and how much they're willing to entertain what you want. But in many cases, if you're the one proposing seller financing in the first place, and if you already have your own documents and deal structure well-planned and ready to go, many sellers won't put up obstacles in the same ways a bank will.

Understanding Your Options

I want to share several different terms you can infuse into your loan documents, to give yourself the kinds of options and control you will never have with a bank loan.

I don't mean to imply that you should always push for all of these things. In fact, it would be highly unlikely that you could get a seller to agree to all of these conditions.

My point sis NOT that you should pursue all these things. My goal is to help you see the different cards you can play so you can get creative and pull the right ones out of your back pocket when needed.

This way, you can choose the most appropriate one(s), depending on the seller's willingness to accept. When you understand the seller's wants and needs, you can fine-tune the terms to craft a deal that will work well for you.

Read the Full Blog Post

188: Marco Santarelli is an investor, author, two-time Inc. 1000 entrepreneur, the founder of Norada Real Estate that helps investors achieve financial freedom, and the voice behind the Passive Real Estate Investing podcast.

(Show Notes: REtipster.com/188)

Marco is someone I look up to in the real estate industry. He's been in the business for a long time; he’s seen a lot of things, and he’s done some big deals that we can all learn from.

I’ve heard Marco present a couple of times at REWBCON, and every time he talks, I walk away with some BIG "aha!" moments that help me better understand the real estate market. This guy is a walking encyclopedia of knowledge!

Whether you're a real estate investor or someone who wants to get a business off the ground, I'm sure you will find a lot of value in his insights and lessons from his long and storied career. I did!

See the Full Video Here

From Ground Zero to Hero: The Story of My Two-Year Self Storage Facility Development

In this episode, I'm telling the story of my two-year journey when I built my first self-storage facility. I'll discuss the decision-making process, the challenges I faced, and the valuable lessons I learned throughout the construction project.

Through this experience, I learned the importance of taking calculated risks, stepping out of my comfort zone, and embracing the challenges to drive personal and professional growth.