The SFR Show

In this episode, @thefinancesavior shares how getting a solid grip on your personal finance strategy can translate into growing your real estate portfolio in the most efficient way. We cover everything from boosting income, tax benefits - like the 1031 and 721 exchange, diversification, using other people's money, and hedging against inflation.

Check out Salvador Bentolila at:

https://www.thefinancesavior.com

https://www.instagram.com/thefinancesavior/

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Transcript

Before we jump into the episode, here's a quick disclaimer about our content. The remote real estate investor podcast is for informational purposes only and is not intended as investment advice. The views, opinions and strategies of both the hosts and the guests are their own and should not be considered as guidance from Roofstock. Make sure to always run your own numbers, make your own independent decisions and seek investment advice from licensed professionals.

 

Michael:

Hey, everyone, welcome to another episode of the real estate investor. I'm Michael Albaum, and today I'm joined by my co host, Tom Schneider, and a very special guest with us, Salvador Bentolila, and he's gonna be talking to us today about his real estate investment journey, personal finance, and how he's married the two into his own personal coaching business. So let's jump into it.

 

Michael:

So Salvador, thanks so much for taking the time to hang out with us today. Really appreciate it.

 

Salvador:

Yes, thank you so much for having me. So we're looking forward to this conversation? And, yeah, I mean, hopefully, it's gonna be a productive and helpful topic for everyone, in terms of the intersection between real estate and personal finances.

 

Michael:

I don't doubt it. I don't doubt it. So I know you and I kind of go back because you're a member of the Rootstock Academy. But for all of our listeners who might not be familiar with your story, your background would love for you to kind of bring everybody up to speed about how you got involved in real estate, which and what you're doing now, because you're kind of doing some interesting things.

 

Salvador:

Yes, yes, absolutely. So personal finances has always been a topic of interest for me. And it kind of accelerated accelerator when I moved to the US. About six years ago, I started realizing how complex the system is here, it can get complicated, very quickly. So I started, I started reading a lot, taking courses helping friends and family. And over time, as I you know, I still work at my regular day job and started to get to know more people and eventually, you know, personal finances is one of those topics that usually comes out in, in conversations. And I started realizing that it's often a topic that people are not so much familiar with.

 

And, you know, I'm not here to blame anyone, because it's something I didn't know either, something that isn't regularly taught in schools. So recently, in the last couple months, I started to develop this coaching program for personal finances where my goal is just to educate people about all the different topics that go around it. So things like very basic things like how to create a budget, how credit work, how to pay off your debt, how to minimize your taxes, how to invest your money. And, you know, there I cover all of the different, let's say, investment classes from stocks and bonds, and real estate and commodities.

 

And a little bit also more about my background, then no real estate is also something that through the Roofstock Academy, that I started recently getting involved with about three years ago. So it's a topic I'm super enthusiastic about. And when I started this, this coaching program, I saw there was a nice intersection, which is what we want to speak about today.

 

Tom:

I'd love just for context, telling everybody kind of, you know, what is that? What is the regular day job? And is that still going on? And just to give a little more context?

 

Salvador

Yeah, sure. So I

Making an offer on your first rental property can be intimidating. It's different than buying your primary residence, your investment can be made or broken at this point. In this episode, we give 3 practical tips for you to gain confidence in your numbers and start your investment journey off on the right foot.

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Transcript

Emil:

Hey everyone, welcome to another episode of the remote real estate investor. My name is Emil Shour. And I've got my co host with me,

 

Tom:

Tom Schneider,

 

Michael:

and Michael album.

 

Emil:

In today's episode, we're going to be talking about how to feel confident enough to make that first offer. This is something we see all the time newbie, someone who's interested in real estate, they're looking at properties. And they'll they'll either run it by a friend of theirs, or they'll send it to us in the academy. And, you know, they'll say, Hey, I looked at this one looks pretty good. What do you think? Should I make an offer? Right? That's the main question, should I make an offer. And so the goal, this episode, we're going to give you our top tip, each of us is going to give you our top tip, so that you feel confident that when you find the right property, you will make that offer that first offer. So let's hop into this episode.

 

Alright, guys, so I don't know about you, but this one has come up for me time and time again, right? Like someone will send you a link send you a link to a property on roofstock or Zillow, or realtor or wherever and just kind of be like, what do you think? Should I make an offer? Have you guys had that happen before?

 

Tom:

Is this a good property?

 

Emil:

Yes!

 

Tom:

Is this a good deal?

 

Emil:

There you go.

 

Michael:

That's probably the number one question I get in the academy is students asking that, because nobody wants to buy a bad deal. Nobody wants to be that person that bought, you know, an alligator bought a bad deal. And so that's, I think, what's on everybody's mind. But I'm excited today to talk to you guys about how to get over that. And then maybe some different questions that they could be asking either of us in the academy or of colleagues or other investors.

 

Maybe that would be good to chat about as well as what other questions can be asked to decipher? Is this a good deal without just saying, Hey, this is a good deal? Because good is such a relative term.

 

Tom:

Yeah. And having confidence? I mean, that's what the episode is about, like, what are? How do you build confidence in the process and all that good stuff, submitting an offer.

 

Emil:

Totally. And just for the record, I did this as well, I sent it to people I knew who were who had experienced buying real estate. And I did the same thing. So I'm not saying you know, it's bad that you're doing this. It's a very, very common thing. I've done it. I don't know if you guys did, but it's common. And our goal is just to help you feel a little more confident so that you can you can walk in and put an offer in and feel good about it.

 

Michael:

No, I totally did this. I mean, I I still do this. The questions I'm asking are more sophisticated. Now, thankfully, because I'm learning. But I think it's important to bounce ideas off other people I think I don't want to ever be think that I know everything or that I'm the smartest person in the room. And so think that Oh, like why bother asking someone I already know the answer. No, I think that's totally the wrong mindset.

 

But again, I think calibrating the question to get more of a useful response, as opposed to is this a good deal? I think is really, really important. And that comes with time, because when you're just starting out, you don't even know what questions to ask, let alone what the answers mean.

 

Tom:

Pealing in the onion peeling in the.

 

Michael:

That's right. And hopefully not crying.

 

 

Tom:

Sometimes that's okay, too.

 

Michael:

Yeah, that happens. You know, it's good.

 

Emil:

All right, guys, who, who wants to kick us off w

In this episode, Ryan Porter with Next Home Realty Experience tells us what we should know about investing in Jackson real estate. Learn about the particularities of the market, return metrics, the school zones, taxes, common problems, and what you need to do to win in this hot market.

Ryan Porter:

[email protected].

601-238-6620

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Transcript

Michael:

Hey everybody, welcome to another episode of the remote real estate investor. My name is Michael Albaum and today I'm joined by my colleague, Mark whittling. And we're going to be chatting with an agent out of Jackson, Mississippi. Ryan Porter. local guy knows a lot about the market and is just killing it out there. So let's jump into it with Ryan and learn a little bit more about the Jackson Mississippi market.

 

Alrighty, Ryan Porter out of Jackson, Mississippi, how you doing, man?

 

Ryan:

Man doing great. So glad you guys could invite me on the show.

 

Michael:

No, we're happy to have you and thanks for taking the time. Really appreciate it.

 

So let's just jump right into it. Man, you are a Jackson, Mississippi born and raised?

 

Ryan:

Born and raised Rankin County just out of the Jackson area and lived here all my life.

 

Michael:

Awesome. And I'm curious, how did you first get into the real estate game.

 

Ryan:

So a friend of mine gave a book to me around Christmas Rich Dad, Poor Dad. And I'm sure a lot of people got into real estate with that book. And I bought in hook line and sinker several, several years ago. And it was one book led to another and I just never stopped. I've been scratching and calling ever since. And it's been a really, really cool, fun ride.

 

Michael:

That's awesome. I think so many people share that similar experience. I know I did for with Rich Dad, Poor Dad. I just kind of smacked me upside the head. And I was like, Man, what have I been doing up till now?

 

Ryan:

Right?

 

Michael:

It takes just simple book to figure it out and explain it to me.

 

Ryan:

They tried to tell us with monopoly, but we had to be pointed out it's

 

Michael:

Right. Right, right. So you're an agent, you're a property manager, you're an investor. Talk to us a little bit about all the things that you're working on.

 

Ryan:

So last year, I teamed up with a next home franchise and started a brokerage here in Brandon. We've got 22 agents. Now we teach a lot of investing class. That's a lot my background. And a lot of our agents are invested minded. We teach how to we'll do field trips on newer agents to show them how to video a house for someone that's out of town, how to work with clients, they'll never see that house.

 

So they'll have that special skill set to be able to point out potential problems going down the road, or a potential problem right now it says hey, this is just not a good fit for out of town, this house may need a lot of maintenance, something like that. We want to teach those agents. So we've, we've started that with next home, we've really had a lot of success, we've got a lot of really killer agents.

 

With our property management. I've teamed up with one of my high school friends that we've remained friends throughout our life, he's got his real estate license with us it next time we started a broker, Property Management Division. Super excited about next rental we used to build software we spent several several months doing our homework on property management, probably another year, doing our personal properties and just our local friends and acquaintances properties to where we felt comfortable. Okay, we could pretty much take anything on, we've seen so much within the last three years of running property management that it's just a really fun job for certain people.

 

Our employees we have, they love their relationships with the tenants, we've learned that if you can get that right tenant and teach them how to take care of a home in a way that we're not just putting them in a rental home, we want to show them how to take care of a

In this episode, Evan Manship from Mainstay Property Group gives us the low-down on all things wholesaling: how it works, who it's good for, why you might want to go this route, and how to be successful with this strategy.  

Mainstay Property Group

www.mainstaypropertygroup.com

https://www.youtube.com/channel/UC-3oqmkbkyW6ilsVm57h0qg

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Transcript

Tom:

Greetings, and welcome to the remote real estate investor. On this episode, we're speaking with Evan Manship, who's part of the Maine state Property Group. In this episode we're going to talk about wholesaling. We're going to be talking about their process and sourcing deals, as well as the process on the buyer side and how you can use wholesaling groups to help in your acquisition process. All right, let's do it.

 

Before we get going, I want to notify everybody about a promotion running with roofstock Academy roofstock Academy is our all in one program that includes over 50 hours of on demand lectures, five hours of one on one coaching, as well as all kinds of materials plus access to our private forum. The coupon code is remote pod with this coupon you're going to get $50 off your enrollment fee. And with that enrollment on top of everything I said before, you're going to get 20 $500 of marketplace credits to use on roof stock calm as well as a five year no questions asked full refund guarantee.

 

Michael:

Hey Evan, before we jump into things here, can you give us a little bit of background on yourself who you are as an individual where you're from and how you got into the real estate game.

 

Evan:

Thanks for the time boys appreciate it very much.

 

Yes sir, I will say born and raised I was a landlord when I first got started. Realize that you know there's other ways to make money than just buying and holding or You know kind of started digging in more and more to this and we've ramped up a nice little wholesale Group here in Indianapolis and Louisville, Kentucky and Cincinnati on Monday effectively so love the Midwest and love wholesaling.

 

Tom:

And you mentioned in the background you have your your brother there is this a family business as well as he working on some different stuff

 

Evan:

Man a lot like wholesaling it kind of blossomed into that. So it wasn't my mother's a teacher My father is a I guess he used to be a waiver for Eli Lilly a big pharmaceutical manufacturer here in Indianapolis and clay who's over there someplace blended into the chair is my business partner my best friend My other other half and ironically my father now works for our group as does my younger brothers. We've got 16 folks here on staff and four of them to share my last name which is kind of neat so I work with my twin brother my baby brother my father every single day I'm the luckiest guy in the world.

 

Tom:

I'd love to hear a little bit more how transitioning into it because you know sounds like your family wasn't as much into real estate or wholesale I'd love to hear how you found your way into this space and brought across the the rest of the family with you.

 

Evan:

I would argue I'm still finding my way so we'll save found for another couple years here. I'll keep it as brief as I can. It's a long long long story but my my twin brother and I graduated from Xavier University in Cincinnati both finance guys graduate and finance degree and you know we've worked with twin brothers right so it was you know, we went to the same school study the same thing look the same talk the same hunger with the same friends and when we graduate from school is one of those things was like shit, this is our eminent twin divorce, you know, you're you're going to go to Seattle, and we're going to Jacksonville and we'll see Thanksgiving type thing.

 

Well, we both applied for one job and Indianapolis apiece and naturally we both got it. So my first job out of school was property tax consulting, I was doing valuation on multifamily structures and I was just some schmuck, I knew how to talk to pe

Passing a real estate portfolio to the next generation is not always straightforward, and if not planned well, it can be a painful point of contention for a family. In this episode, we discus come clever ideas on how to equip your children with the skillsets needed to responsibly manage what you leave them.

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Transcript:

Emil:

 

Hey everyone. Welcome back for another weekend wisdom episode of the remote real estate investor. My name is Emil Shour and I got my co host with me today who are

 

Tom:

Tom Schneider,

 

Michael:

and Michael Albaum.

 

Emil:

And today we're going to be talking about generational wealth. We're gonna be talking specifically about our thoughts on it, what our plans for the future what we want our legacies to look like and even how that's changed over time. So let's hop into this week's episode.

 

Tom sounds like he's at the motor speedway right now he's…

 

Tom:

…got a little construction going. Like the dentist over this

 

Emil:

Oh, let's just drilling

 

Michael:

Are they still jacking up your house?

 

Tom:

They finish jacking up now they're adding in plywood to strengthen the sides of the walls usually houses have plywood on the side but mine did not so it's kind of scary living in the bay area where it's like a little bit earthquake prone not being as structurally sound but…

 

Michael:

like around just the perimeter above the ground not like the shear walls that are on the foundation.

 

Tom:

So you have the two by fours like the framing and then yeah normally outside the framing there it's common to have plywood and mine My House did not so they're adding in like some plywood and stuff so a lot of stuff going on at the old Casa so that's the dentist noise in the background is plywood going in deck being rebuilt all this all this jazz. So kitchen being redone. Fun Fun, fun,

 

Michael:

Rehab that work.

 

Tom:

Rehab and live in rehab. I yeah, grind through it. Yeah, it's a first world problem. But it's uh it'd be nice to have a kitchen with running water.

 

Michael:

So needy Tom, needing running water, electricity. Gosh, Come off it already, man.

 

Tom:

Yeah, this toughened me up. Sounds good.

 

Emil:

Alright, guys, so back on track. We're talking generational wealth today. This is personally for me, some I have just gone back and forth on like, what do I want to do? There's like, kind of two schools, right? There's some people, there's a lot of different variations. But I think the two main ones are, I want to leave a lot of the assets that I'm buying and owning to my family. And then there's some people who are like, No, I want my, my kids, my family, well, mainly your kids to build for themselves. And you either I don't know, donate to charity, or do something with it where you know.

 

So I'm curious, like, have you guys thought about the future? What does it look like, for you in terms of passing, will stick to real estate specifically by passing on your portfolio to your kids?

 

Tom:

To be honest, I mean, I haven't really thought too much about the mechanics in a way that I want to do it. But what I what I do know is there's a good amount of lead time, hope that I that I live long, that I can, you know, I don't necessarily have to make that decision today, with real estate and I think is relevant to you know, passing on to kids, there's, there's two things you can never change with real estate, that is the location of the property and the price that you pay for it down the line, if they you know, one thing that I like so much about single family rentals that you have multiple kids, it's it's much easier to kind of break up that kind of disbursement of, versus your you know, your family owns a big apartment complex, you know, it's a little bit trickier have a thinking about passing it on to the next generation.

 

So that's one thing I'm thinking about with single family is it's a lot easier to slice and dice that type of wealth, you know, some questions that I've been having is, you know,

Mindy Jensen from BiggerPockets joins us to share personal finance and self-management tips, strategy considerations, side hustle ideas, and what it is like to be a female investor in a historically male-dominated industry.   

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Transcript

Michael:

Hey everyone. Welcome to another episode of The Remote Real Estate Investor. I'm Michael Albaum and today I'm joined by my co host,

 

Tom:

Tom Schneider.

 

Michael:

Mindy Jensen from BiggerPockets is joining us today. And she's going to be talking to us today about some personal finance tips for those of us who are just getting started, as well as what is it like to be a female investor in this space, and some tips and tricks and takeaways for all of our listeners. So let's jump into it.

 

So Mindy Jensen, thank you so much for taking the time to hang out with us today. I was telling you before we start recording, I am a total fanboy. I'm all giggly today. So thank you, again, for hanging out with us.

 

Mindy:

Well, thank you for having me. I love talking about real estate.

 

Michael:

Awesome. Well, you are in the perfect place to do so. So I know all about you, because I'm a big fan of your podcast, the BiggerPockets Money Podcast that you and Scott host. But for all of our listeners that might not be familiar with you can you give us a little bit of background on kind of who you are, where you're from, and then how you got your start with real estate?

 

Mindy

I was born in a small town in Southern Illinois. And then I moved and moved and moved and moved and moved and moved and moved and moved. And I'm in my 28th or 29th house now, which is actually really relevant to the story. It sounds like a boring, I was born in a small town. And I have never lived in a house for more than six years in my whole life. And I just sold that house that I lived in for six years in January. So it's been like, we move all the time.

 

And that is really key to my preferred method of investing in real estate, which is called the live & flip, you buy a very unattractive house, you move into it as your primary residence, you fix it up while you're living there. If you live there for at least two years as your primary residence, it is tax free growth, when you sell it, you pay no taxes up to $250,000. If you're single, and up to $500,000, if you're married, I now have a new goal to actually pay capital gains taxes on my flip, I want to get to the point where I have to pay because I've made so much money, which is a very real possibility given our current market, the fact that I got this for a steel and a half, and we're doing a lot of work to it.

 

But in general, I live in flip. I love real estate. I love talking about real estate. And yeah, I'm a mom of two girls and I live in Colorado.

 

Tom:

Awesome. I love the live in flip strategy. I think I would like you know, with these types of strategies, you know, you have to be very much on the same page as your partner so and I don't think it would fly as much but I'm curious in you know doing this strategy like how big of a renovation Have you done with a live in flip flip Have you done like, you know, like basically camping in in in studs, the ground? Or do you like have some sort of limitation on how big of a project it is?

 

Mindy:

I have limitations now sold this is it's actually a really, really great example of like how big you can go, I have popped the top twice on houses. That means adding a second story, I will never do that again. Because I'm too old for that garbage. It is a lot of work. And when we were popping the top on our most recent house, my youngest was three years old, my oldest was six years old. We at one point had the washer and dryer in the kitchen with holes dug into the kitchen tile floor, which was gross anyway, we're gonna change it anyway.

 

We we drilled holes in the floor so we could put the out pipes and the water supply pipes into the crawlspace. And the rest of the house was walled off, or it was plastic tarpe

Sometimes closing on a deal is not so straightforward. Michael shares a nightmare closing scenario and we discuss how to mitigate struggles like these to stay on schedule, saving time and money.

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Transcript

 

Emil:

Everyone, welcome back for another weekend wisdom edition of the remote real estate investor. My name is Emil Shour. And today I've got with me,

 

Tom:

Tom Schneider,

 

Michael:

and Michael Albaum.

 

Emil:

And we're going to be talking about what happens when your closing goes sideways. So Michael recently had a refi on a triplex he owns and had some some challenges arise. And we're gonna just put them in the hot seat, learn what happened and learn how he deals with it. So you guys can get some tips and takeaways in case this ever happens to you down the road. So let's hop into this one.

 

Alright, Michael said, set the stage for us. What what happened on this refi on your triplex.

 

Michael:

All right. Step back in time with me to December of 2020. So that's what I started this whole process. And my wife actually found this awesome lender out in the Midwest, they could land on this property that I owned inside of an LLC. And I was like, great, this is awesome. So we got the ball rolling. He got a couple different quotes. For me. He was a mortgage broker. That's what he did he so he wasn't the lender specifically. So he found a lender that was going to work. We said, Great, we got the ball rolling, we got the application process started.

 

And then they said, Oh, you're doing some rehab work. So they went out for the appraisal, that's when they learned learned, quote, unquote, about the rehab work. And I was like, I told you about the rehab work. And they said, Oh, well, we can't we have to go back and do another appraisal once the work is done. So keep us posted. I'm like, oh my god. So that slowed things down to start, then we were supposed to close. And they said, Oh, you filled out some paperwork wrong. Yeah.

 

Tom:

Did you get charged for like a chip chart trip charge for the appraisal? appraisal.

 

Michael:

So I got a second charge for the appraisal, which they didn't tell me about until the closing statement showed it. It was only a couple 100 bucks. But I was I was still a bit frustrated, because they didn't like tell me that. And I should have assumed like, of course somebody has to travel to go do these things. But also at the same time, it seems a bit frustrating that they said oh, here's the price for the appraisal when they quoted it to me. And then the final amount being taken out at the closing is different, because they charged more for the appraisal example back second time, which they should have done because they knew about the construction. So that was a bit frustrating.

 

Tom:

Was the construction like really significant.

 

Michael:

It was a total remodel of a unit of the biggest unit in the in the triplex so fairly.

 

Tom:

King unit.

 

Michael:

Yeah. Yeah. So yeah. So then they tell me Oh, by the way, I know we're pretty close to closing, but you filled out some paperwork wrong. So on my statement of information to the Secretary of State of California, I put that the LLC was member managed. But when I initially filed and made the LLC, I put that it was manager managed. So those two documents didn't align. So they said, Oh, you got it, you got to change this. And I was like, all right. We should we're done about this earlier, but whatever. So I did that and filed an amendment with the Secretary of State, it really wasn't a big deal, like 25 bucks to do to do it all online. Good to go. Great.

 

So now fast forward, the closing has already been delayed. They finally got through the re inspection of the property, as well. And they say, oh, by the way, this same issue happened in Alaska, where the property is, is physically. So you need to update that as well with the the secretary of state or change the operating agreement. I was like, why didn't you bring this up when you were scann

Should you invest in real estate directly or indirectly through a REIT? In this episode, we debate just that. Tom and Michael go head to head on this topic and halfway through, switch sides to give you their strongest arguments for both of them. 

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Transcript

Pierre:

Hey there, everyone. Welcome to the remote real estate investor. Today we're sharing an episode that we did a couple of weeks back on the pod bean finance week, you can catch all of the episodes that were a part of that at pod bean.com/podcastweek/finance or simply search pod bean finance week on your search engine. And this episode is a showdown debate like we've done in previous episodes.

 

This debate is between investing in real estate directly or investing in real estate indirectly through a real estate investment trust, also known as a REIT.

 

Tom and Michael will be debating it out with email mediating and halfway through, they'll switch sides. So I hope you enjoy the episode.

 

Norma-Jean

And now we'll hand it off to our host of the live stream and the remote real estate investor podcast, Michael Tom and Emil, welcome.

 

Tom:

Thank you.

 

Michael:

Thanks so much.

 

Emil:

We're the we're the last show today, guys. So we got to get everyone hyped up I'm sure people are kind of, you know, like ready to end their day ready to enter the weekends. We got to

 

Michael:

It’s five o'clock on Friday. Let's bring bring the energy.

 

Emil:

Alright, so thanks, everyone, for joining us today. My name is Emil shore. And my co host here, as mentioned are Michael album and Tom Schneider. Say hi, guys. Hey, everybody. So we're gonna get into some quick intros on us in a second. But before we do that, wanting to give you all some background on the show, for those who are new listeners. So our podcast is called the remote real estate investor. And as you can imagine, there are tons of real estate investing podcasts out there, why did we decide to create a new one.

 

So there's this growing segment of investors who are bucking the trend of only investing in their backyard and finding ways to invest outside of their local market, either from hundreds of miles away. So think, living in Los Angeles, investing in Fresno, or investing across the country, so investing in the Midwest or the south east, or even in Michaels case, which we'll get into across the world.

 

So they're doing this because it's either too expensive to invest close to home. So think LA and New York, San Francisco, Seattle, any high cost of living area, or they're looking to diversify their portfolio across markets. And for anyone who's invested remotely, you know, it's a completely different ballgame with its own set of unique challenges, then if you're just investing locally, so we wanted to create this podcast and raise awareness and give our personal experience as remote investors. And we all invest that estate in different sizes of residential real estate. And we want to start this podcast again, just to educate people on on what that experience is like, and for people who are interested in potentially doing the same.

 

Besides us hosting a podcast where the three of us will will talk about our experiences. We also invite authors and industry experts to pick their brain as well on the show. So with all that out of the way, we'll we'll kick off some intros.

 

My name, again is Emil Shour. I'm a self employed marketing consultant living in the greater LA area. I started investing back in 2017. I picked up my first single family rental property in Jacksonville, Florida. I was hooked after I got my first quote unquote mailbox money, and have been growing ever since I've bought in Indianapolis, Memphis, St. Louis. And I'm up to six rental units of both single family rentals and small multifamily. Tom, you want to go next?

 

Tom Schneider

Yeah, so my name is Tom Schneider. I am the Director of Education here at Roofstock. I've like people who have worked at startups before, I've worn a lot of diffe

Managing your money upfront is a smart way to make sure you are hitting your financial targets. In this episode, Tom, Michael, and Emil share their strategies for managing money as it comes in, to efficiently allocate it to their investment projects and work towards financial freedom.

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Transcript

 

Emil:

Hey everybody. Welcome back for another episode of the remote real estate investor. My name is Emil Shour, and my co hosts today are the lovely,

 

Tom:

Tom Schneider

 

Michael:

And Michael Albaum.

 

Emil:

And on today's episode, we're going to be doing a little bit of personal finance. And particularly, we're going to be talking about how we set up our systems and bank accounts and everything to set us up for investing. So money comes in, where do we put it? How do we make sure somebody gets allocated for investing? All the nuts and bolts and juicy details? So let's hop into this one.

 

What amazing thing happened to you guys this past weekend?

 

Michael:

Easy question. With an easy answer. I celebrated my two year wedding anniversary. This weekend. That was a lovely thing to do. My wife took me to a very fun little resort. It was very COVID safe. We had a room to ourselves and enjoy the pool and did like nothing. So we were able to just sit and relax and be and get a little bit sunburned.

 

Tom:

You're in North North California right now not not overly north, but at least north of San Francisco.

 

Michael:

Right. We're just north just north of you guys.

 

Tom:

Congratulations, by the way.

 

Michael:

Thanks, man. This was over in Glen Ellen which is outside of Santa Rosa. And it was really secluded, really quiet. It was just really a nice weekend to get a little bit of r&r because my wife and I always joke that we don't ever stop. So we will sit down for a day of relaxing be like yeah, I'm bored. Time to do something. So this weekend, we really force ourselves to really just sit and be and read and relax. And it was lovely. So that was definitely my highlight. What about you Tom?

 

Tom:

I have a one and a half year old and we go on campus tours. So we go tour the local elementary schools and we went on a lovely campus tour over the weekend. So it was really big. I don't remember elementary schools being that big it was it was a particularly big one. It was one called Burn Valley over in Lafayette. But it was really nice. There was a little league practice we scouted out future potential teams. So just a lot of a lot of scouting. I really want to live by an elementary school like for like weekends like play games and stuff. It's like the giant backyard of like, you know, basketball hoops big grass fields. Anyways.

 

Michael:

That's really great for like Ultimate Frisbee games in college I lived across an elementary across your elementary school we play frisbee there all the time playing the baseball diamond. It's lovely.

 

Tom:

Totally I think there was some random you know, college kids or whatever bringing what's that game or you like hit the ball into the net and it like bounces up and anyways there was some folks that…

 

Michael:

Spike ball.

 

Tom:

Spike ball yeah, it was a big spike ball game going on. So that was my campus tours with with baby. So we're on our way through the of the elementary schools, yourself Emil?

 

Emil:

So last week was my birthday.

 

Michael:

Happy belated.

 

Emil:

Thanks, guys. And so that the family together on Sunday, just immediate family, my wife's parents, my parents, my brother, had a nice lunch, we hung out, they got to hang out with our daughter just a good time, I also got to go surfing that morning. It was like a nice warm day. So even though the water still a little bit cold in Southern California, was warm out. So it's like this nice balance. And just a nice weekend. Anytime I can get out to surf.

 

Michael;

You don't know a cold water is man.

 

Emil:

I know. Let's get back to talking about personal finance. How do we set up our money? How do we allocate it? So let's just

All-cash or debt? The answer to this depends on what return metrics you are looking for and the specifics of the property being considered.

In this video, Michael shows you exactly how to analyze a property and establish what financing strategy works best for different deals.

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Transcript

 

Michael:

Hey, everybody, welcome to the remote real estate investor. My name is Michael Albaum and today I'm joined by

 

Tom:

Tom Schneider.

 

Emil:

Emil Shour.

 

Michael:

And on today's episode, we're going to be talking about some of the different ways to evaluate properties and determine whether or not it makes sense to purchase them with debt or with all cash. So let's get into it.

 

Alright guys, so Pierre and I were chatting last night, and we were doing some evaluation on different types of properties. And what we were noticing is that some properties are better purchased with debt, and others all cash, have you come across the same thing?

 

Emil:

I have, when you, you actually pointed that out? When we were I think doing some type of video, like how to analyze a property, and we're looking at different properties. And that came up where I didn't even realize that that was a thing, really. But you're right, in that some properties, the cash on cash, debt won't always juice the cash on cash return.

 

Tom:

Yeah, I mean, just the return profile can can shift quite a bit with leverage leverage. So you know, obviously, increasing your loan to value ratio is going to would be a like, more aggressive thing to do. So if there's like changes in the value of the home, you know, by having a you know, by getting as much debt as possible, there's, you know, risk of the value of the home getting to the other side, which would be like, deemed underwater.

 

And then on the actual yield side. You know, depending on how much cash flow you want to make in a month, if you're using all cash to buy, you're going to have much more cash flow, but it's, you know, obviously, a higher upfront costs, gosh, I don't like him using the word obviously, all the time. It's a good good feedback from from Pierre because…

 

Michael:

It's not obvious Tom.

 

Tom:

It's not obvious. So anyways, it's a different return profile. And it depends on your risk tolerance, and where you are in your kind of time horizon of if you're planning to, you know, need to live off the cash flow, or all that kind of good stuff. So go ahead, Michael.

 

Michael:

Depending on your strategy for investing is often going to dictate what types of properties you want to be looking at, and then also how you want to be purchasing those properties. So for anybody listening to this podcast, we're actually going to be doing on the doing a screen share here in a minute, and showing some visuals about how I go through the property analysis section, and determine whether or not this property is best fit for an all cash purchase, or a finance purchase.

 

So for those of you listening at home, or listening on the road, or not watching the YouTube version of this, the list price is 75,000. The current rent on it is $975 a month. And what I'm gonna be doing is walking through just how to evaluate this property, but also how to look at some of the different ways to purchase the property.

 

And what I mean by that is Tom, Emil, and I could all be looking the exact same property. And depending on how we purchased it, Tom could use all debt, Emil could use 50% financing, and I could use 20, or rather 80% financing with a 20% down payment, the performance of that exact same property with the same income and expenses could look vastly different for the three of us.

 

And so what I'm gonna do is I'm going to scroll down the page and click on financials. And then I'm going to start playing around with some of the assumptions here. And the first thing I like to do is put the down payment up to 100%, which is significant, or rather indicative of an all cash purchase. And for those of you following just liste