The SFR Show

This episode is an example of what the Roofstock Academy Mastermind sessions look like. Mastermind groups have long been a powerful tool that successful people use to support each other and advance their goals. Gathering a group of motivated individuals with a diverse range of skillsets to focus on one person at a time helps shine fresh light on challenges, uncover new solutions and provide accountability.

The Mastermind group is just one of the many benefits we offer inside the Roofstock Academy.

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Transcript

Tom:

Greetings, and welcome to Roofstock Academy. My name is Tom Schneider. And I'm joined by Michael Albaum, Ryan Minekime and Dean West, and today we're going to be walking through a template of a mastermind group.

 

So this is a mastermind session that lasts about an hour. And we're going to be going through the regular activities where everyone is going to provide an update on their successes, their challenges. We're going to go into specific action items. And then we're going to put Ryan on the hot seat and talk about what he's working on. We're going to grill them, we're going to give them some feedback, all that good stuff. All right.

 

Dean:

All right. Hi, everyone. My name is Dean West, a Roofstock Academy coach. And I have been investing in a couple markets now. Primarily Atlanta and Indianapolis. I believe I'm the the remotest real estate investor. I'm currently in Cape Town, South Africa, while investing in the US.

 

Ryan:

Hello everyone, I'm Ryan Minekime. I'm also coach at the Roofstock Academy. I've been investing for about seven or eight years, I started out investing in California. And now I'm doing bur investing in the Indianapolis market as well. And I live in the Bay Area, California.

 

Tom:

Hey, my name is Tom Schneider. I'm also a coach at Roofstock Academy. I have been investing for about 10 years, and I invest remotely in the southeast of the United States as well as the North East.

 

Michael:

Hey, everybody, I'm Michael album, I'm also a coach at the Roofstock Academy. I like Ryan got my start investing in Southern California about a decade ago and do value add multifamily investing all over the country with a emphasis and focus on the Midwest on some of those Midwest markets.

 

Dean:

Alright. So I'm really excited today to on behalf of rootstock Academy to be introducing mastermind groups. And a mastermind group is something that's actually quite near and dear to my heart. It's It's when I first started out several years back, I was in my own mastermind group with three other people. And that's the one thing that really spurred me to take action on my real estate investing and pushed me both professionally and personally.

 

So the mastermind group what it is, it's a accountability group of like minded people. So groups typically consist of three to five people. And there's certain roles within the group. And how it's broken down is it's broken into four major sections. And the sections talk about kind of the week overview, talking about, you know, some of the challenges and successes that you've had during the week goes then into talking about, you know, what, what your major or epic goal is that you're trying to achieve. And it doesn't just have to be in real estate, I actually I encourage people to talk about not just real estate, but also kind of personal if you're looking to lose 10 pounds or something like that, as well as invest in a property in Dallas, Texas. Great, put it out there. And I think it's something that's, that's really helpful for people to grow.

 

One of the big things we do in a mastermind group is what's called the hot seat, the hot seat is kind of a deep dive. So every week on a rotating basis, and the hot seat is chosen for one person and and that person talks about any challenge that they're having that they're trying to overcome. And they use the rest of the group as a sounding board, or as a way of soliciting feedback to try and overcome that challenge.

As you may have noticed, the market is crazy right now, and knowing what to do can be a challenge.  Today we give a couple of quick tips on how you can make the most out of the current state of the real estate environment. 

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Transcription

Michael:

Hey everybody, welcome to another episode of The Remote Real Estate Investor. I'm Michael Albaum and today I'm joined by my co hosts,

 

Tom:

Tom Schneider,

 

Emil:

And Emil Shour

 

Michael:

And today we're gonna be tackling what should you be doing right now given the current state of the market with interest rates, where they are and values doing what they're doing.

 

Alright guys, before we get into it, I just want to give a call out to all of our listeners, all of our watchers, we just launched our YouTube channel, we would love, love, love. If you came over and liked and subscribed to the channel, we've got tons of new content coming out regularly, I want to make sure everyone stays up to date. So that's a big help for us.

 

And as always, if there are content ideas that you want to hear an episode about, let us know drop us a line in the comment section. Wherever it is listen to your podcast. Alright guys, before we jump in today's episode, where are we at? How are things coming? Tom, you got your insurance all squared away, right?

 

Tom:

Yes, yeah. So what I did recently was a long story short, I guess short story long. My insurance is a bit of a mess on my rental properties. I was using this third party company and they kind of dropped the ball where I paid to renew but they like sent me a refund. I mean, this I'm probably it's probably my fault. But anyways, short story long, I ended up getting lender placed insurance for like a few months. And wouldn't lender place insurance. It's not necessarily what you want, you're maybe not getting the coverage you want, you're probably paying way more than you should. So what I did through the the prodding and poking of a meal and Michael to keep me going is I did some bundling, I went to my home insurance, the company that does my house and my cars. And I added my rental properties all on on one gigantic policy, I would say you know, when it's all said and done, my costs on my insurance are probably pretty comparable to what they were but the coverages was way more expansive, with a little bit lower deductibles and just a little more, those blankets at night are a little bit warmer, the pillows a little bit softer of comfortable.

 

So did that finishing up refining, seeing a couple of rentals, getting them all refinance, actually under the same lender that ended up buying a bunch of my other loans. So it's there's some convenience there of having it all through the same lender first a bunch of the rentals that I have. So that's my…

 

Michael:

Nice, Emil, what's good in your world?

Emil:

Tom, I just want to first say how proud I am of you that you did it, man. like six months, but you did it to there.

 

Tom:

Yeah. There are things in this world that you know, like wouldn't take a lot of effort. But for whatever reason, it was in this like rebellious little part of you, like just doesn't want to do it. And like the moment you do it, it's like, gosh, why did I do that like a long time ago. And that kind of stuff like pops up all over the place? You just need to get through the fog and just, you know, just do I don't know. But thank you. No, thank you that positive reinforcement has me geared up to continue to do things that I for whatever reason, like the rebelliously like have a hard time finishing through on so thanks, man.

 

Michael:

Yeah, Tom. I'm also proud of you. Nice work, man.

 

Tom:

Michael, that sounds fake. Thanks, Emil.

 

Michael:

Just kidding.

 

Emil:

I'm actually proud of you. Michael is patronizing you.

 

Michael:

I'm just frustrated how long it took. But I'm one of those people, you know, you can only take the horse to water not calling you a horse by any means.

 

Tom:

It's about the journey, Michael. It's

As an investor, it's important to remove emotions from the deal-making process. Knowing when to walk away from a deal is an important skill to have to be able to scale your portfolio effectively. In this episode, we give you 3 reasons to stop negotiations to save yourself from future headaches - even if it means absorbing sunk costs. 

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Transcripts

 

Emil:

Hey everybody, welcome back to another episode of The Remote Real Estate Investor. My name is Emil Shour and my co hosts today are,

 

Tom:

Tom Schneider

 

Michael:

and Michael Albaum.

 

Emil:

And in today's episode we're going to be talking about deals that we've walked away from. So we've gotten into contract on a property but something came up during inspections or during escrow and we decided to walk away from the deal so we're gonna review what happened, the lessons learned and some insights that you can take away and use in your deals. So let's get into this episode.

 

Alright guys what's going on anything new in your personal real estate investing careers?

 

Tom:

Yeah, I'll go first. So not a lot on the investing front just quite a bit of home renovation stuff so working on the homestead but you know, still using some of the fun mechanics or fun tools of the real estate investing trade like pulling money with a HELOC, but right now more just investing in myself investing in my personal house working on a kitchen remodel and some structural foundation stuff and busy on that front not a lot of the remote investing side right now.

 

Michael:

What are you doing on the structural foundation stuff that sounds heavy?

 

Tom;

Yeah, right. This is like one of my like, pieces of advice I give to people in the academy is like you know, stay away from foundation stuff, you know, it's a big red flag. Well fortunately, I am family friends with a concrete contractor, really reputable guy in the local area that I live in. So I just one of the corners of the houses started sinking a little bit I live in the hills, suburbs around San Francisco and one of the corner of the house dropped like two inches down. So when I'm like kicking a soccer ball with my son, you know, the ball just starts running down to the corner of the house and it's kind of thinking this is kind of an issue and we're planning to stay here for a little bit longer. So let's address that stuff.

 

So it's crazy they did these like 1415 foot holes in the ground to get to the bedrock and they fill it with concrete jack the house up a little bit left the house up a little bit and they are in the process of pouring the concrete into these gigantic holes that are the new piers that will be supporting the house.

 

Emil:

I've never seen this process and this videos

 

Tom:

Yeah, I mean just like you think of like piers you know, we're like going over a lake like these long metal you know, whatever piers it's like the same thing with the house they did they just jacket right into the bedrock like I was thinking they were gonna have to do all these like retaining walls and stuff like that along the side of the hill, but nope, just piers, giant holes in the ground, filling them up and jacking the house up. Yeah, I'll share some some videos in the show notes.

 

Michael:

You should put a time capsule into the concrete so that way, when in 150 years, when it's to race, someone will find it.

 

Tom:

That's a great idea. There's probably some time right now.

 

Michael:

Yeah. So my friends were remodeling their bathroom and they took out down to the studs, and they found a beer can from 19 like 52. With that someone had put in the stud in the wall. I was like, Oh, you guys gotta leave something from 2020 now.

 

Tom:

Yeah. I love it. Love it. Love it. Love it. So that's what I'm doing not real estate related, or investment related. I'm going to pass the hot potato off Emil. Go ahead. What's going on?

 

Emil:

What is going on with me, I think I've been talking about property management changes. Luckily, those are both done. So

There are tons of videos floating around about getting rich quickly with real estate. But let's be real, real estate is a long game.

In this episode, we use a model from the Roofstock Academy Playbook to project exactly how long it would take you to get to $100K per year in passive income based on 3 different sets of assumptions. This episode shows how you can set realistic, time-bound goals for your financial freedom. 

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Transcript

Tom:

Greetings, and welcome to the Remote Real Estate Investor. My name is Tom Schneider. And I'm joined today by

 

Emil:

Emil Shour

 

Michael:

and Michael Albaum.

 

Tom:

And today we've got a fun episode. So there's lots of content out there that talks about how to become a millionaire and you know how to become rich with real estate and in today's episode, we're going to go through some specifics year by year to meeting some specific goals. So both Emil, Michael and myself, I guess all three of us are going to come up with some scenarios. And we're going to use this tool from Roofstock Academy to see how long it takes to meet our goals. All right, let's do it.

 

Emil and Michael, what is going on?

 

Emil:

Hey guys,

 

Michael:

Not too much. I'm just getting ready to take off in my van again, we had some solar issues around the road for a week so we came back to home base to get those squared away. So got brand new solar installed brand new batteries, did some plumbing customisations and ready to rip and roar in the next couple days. So we're stoked.

 

Tom:

Very cool, Emil What's going on?

 

Emil:

You know following Michael really sucks because I'm just a guy living in his home just doing normal boring stuff every week. So Michael I'm just gonna vicariously live through you in your van now everything's good. Nothing crazy going on. Yeah, just happy. It's it's summer the waters warming up. So it's been it's been more fun to go surfing in the morning. Don't have to wear booties, feet don't get cold. So that's been nice.

 

Tom:

Nice. Nice. Nice.

 

Michael:

What about you Tom, how comes the construction on the house and the refinances?

 

Tom:

It's coming. Oh, closing on the refi is on Thursday, which is exciting.

 

Michael:

Awesome.

 

Emil:

Nooice!

 

Tom:

Some ammunition for some acquisitions. But yeah, yeah. And the construction is cruising along, almost done. It's like stop and go, you know, like there's like certain dependencies on certain parts of the project and takes a while to get done. And then a bunch of stuff gets done. And then it kind of goes back to a little bit of a halt. But Fingers crossed, we're moving some things back into the kitchen. over the holiday weekend that is coming up. So fingers crossed.

 

Awesome, guys. So we got a fun episode. This is also going to be on YouTube,I encourage you to check our YouTube station out, just search Roofstock.

 

What we have here is we have this tool that was built within Roofstock Academy, it's not an over complicated model that just goes year by year. And what it does is, you take some baseline assumptions of your investment, kind of by box right on what type of returns you're getting, what is the cost, and then you extrapolate that over years. And what the model does is it assumes that you're reinvesting all of the cash flow that you're collecting into your acquisitions into the following year. So that way, you know, when you're buying into year two, you're using the income from year one, when you're into year three, using the income from year 2. The model accounts for a little bit of rental appreciation. What the model does not account for which is a benefit in real life, and perhaps we'll work this into the model at some point is doing 1031 exchanges or cash out refi. So, you know, there is ability to move a little bit faster when you're having some appreciation. Emil, Michael, before we get into the specific examples, go ahead.

 

Michael:

I was gonna say I just wanted to take a moment to pause here and highlight and talk about o

Today we talk with Matt Crawford with the Montgomery Company in South Carolina about what is happening in the Columbia Market. We cover everything from the economic and employment trends, taxes, the current level of competition, and other things that make Columbia an investor's market. 

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Transcript

Michael:

Hey, everybody, welcome to another episode of The Remote Real Estate Investor. I'm Michael Albaum and today I'm joined by my co hosts, Tom Schneider and Mark Woodling. And we have a very special guest with us today, Matt Crawford is an agent out of Columbia, South Carolina. And today Matt's gonna be giving us a market overview and talk about some of the things that he and his team are able to assist buyers and sellers in doing in that market. So let's get into it.

 

 

Awesome. So Matt Crawford, thank you so much for taking the time to join us today. Really appreciate you being on the show.

 

Matt:

Excellent. Thank you, Mike. Glad to be here.

 

Michael:

And so you're out in Columbia, South Carolina. Is that right?

 

Matt:

Yeah, Sunny Columbia mass about 85 degrees, you know, beautiful state born and raised about an hour north of here. So fantastic market, man, it's a good place to be.

 

Michael:

Awesome. And I'm curious, Matt, who are you an agent with.

 

Matt:

So right now, my agency is hung under the Montgomery company, which is a pretty interesting story. And just to quickly unpack that, Matt Montgomery, he's a great friend of mine. He runs a massive construction business here in the southeast. And just for the conveniency of our partnership, I ended up creating a brokerage with him. And I'm really sort of the head of the firm, sole proprietor of that brokerage, which I moved my company under, which is technically not a capital in southern capital brothers, which is our investment brokerage underneath this umbrella.

 

Tom:

That’s a perfect segue, Matt, and, you know, before jumping into Columbia, South Carolina, I'd love to learn a little bit more about yourself and your background and how you got to where you're at today.

 

Matt:

Yeah, 100% time, you know, it's a, it's been a journey, you know, as we all are inclined to take. And so, you know, I'm going to probably take this back five years, you know, I'm in Denver, Colorado, man, loving life, sort of so in the proverbial oats of a new broker. And I started really getting into cahoots with a lot of the investors out in Colorado, a lot of these guys were doing huge land acquisitions, building massive multifamily complexes, as well as doing something that I'd never heard of, which was institutional capital investing.

 

So they were piecing together these massive SFR, BTR portfolios, renting them out, stabilize them, and then doing the disposition strategy. And I was like, what a awesome niche within the real estate arena to start cutting my teeth on. And so we got licensed in Colorado started working with these guys, the barrier to entry there for a new young agent in his 20s was so massive, and like, man, it'd be great if I had $600,000 for my first rental, not the case.

 

So I look back to my roots back here in Columbia, South Carolina, where I can get that first rental for about 50,000. And so jumped over here about four years ago, and started building some institutional funds with a previous venture, we built that went to about 2200 homes deployed around 220 million over 24 months. I don't think I slept much. I probably lost a little bit of weight. But I learned a lot, you know, and, and from there, you know, there was a talk about destiny, talk about fate, you know, the pandemic arose, a created a little bit of space, to sort of see where I wanted to navigate. And, you know, I decided with a few of my other founders, Jordan, and Alex Fisher, to start our own company. And that's sort of how we got here today,

 

Tom:

I had a boss who had a pretty funny joke. I was like, working a lot of hours. And he's like, Hey, good news. Tom, you're getting credit for

We often see titles online that are misleading. Today we take a little time to push back on a video we found on Youtube titled, "Warren Buffet: Why Real Estate Is A Lousy Investment". Taking into account investment strategy, the size of your organization, your entity structure, and your expertise, we show how these blanket statements might not be applicable for you as an investor.  

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Transcript

 

Hey everybody, welcome back to The Remote Real Estate Investor. My name is Emil Shour. Today, I've got my co host with me,

 

Tom:

Tom Schneider,

 

Michael:

Michael Albaum.

 

Emil:

And we're gonna be talking about and breaking apart a video that we've seen floating around on YouTube, titled Why real estate is a lousy investment. And this was from a speech from Warren Buffett and Charlie Munger during one of their annual conferences. So we're going to break it down and tell you what the video says and give you our thoughts as to why we believe this title is absolutely wrong, and why real estate is actually a great investment. So let's hop into this one.

 

Alright, guys, so we all just watch this video. And the title is very click Beatty, right? Why real estate is a lousy investment. And I'm sure that was created for a very specific reason to get a lot of YouTube clicks. But when we when we all watched the video, there were some very clear takeaways. First, first one, which is like the first minute or two, Warren Buffett actually talks about how Charlie Munger, his business partner actually made most of his early money in real estate. And that, why they believe real estate is a lousy investment is actually why it's a lousy investment for Berkshire. And so he lists lists a couple different reasons. You guys want to talk about those reasons real quick.

 

Tom:

I’ll start with it's a double clickbait article. It's not just why real estate is a lousy investment, it's Warren Buffett; Why real estate is a lousy investment. And I think I'll let Michael speak a little bit more to one of the arguments, which is the tax implications. Mike, I'll let you lead through,

 

Michael:

Oh of course you give me the tax.

 

Tom:

You know, there you go.

 

Michael:

Smooth!

 

Tom:

Smooth transition, but all, you know, all speak to one of their arguments is one of them is they didn't feel that they had a competitive advantage in and they were mainly speaking to commercial buildings, like talking about like Chicago class, a office, their argument is that is priced pretty effectively. So they didn't feel they had much of an advantage in in any type of price discovery. And I think, you know, there's such a, like an industry, institutional capital in that like larger, you know, Class A commercial space, it makes sense that, you know, as, as them and as an investor, you know, they're they're looking for value in other spaces. It's not necessarily that it's a lousy investment, it's just like, that's not where they're kind of bread and butter is, even though it was in the very beginning of their career. So, Michael, let you I'll let you transition you over to the more technical response on…

 

Michael:

Yeah, tax, vitiated. Yeah, I think just kind of, to paraphrase what you're saying, Tom, for our listeners is they just can't seem to find deals or they don't think that there are deals out there to be had where the there's a disconnect between what the investor can buy it for versus what it's worth. And so in that market, that they talked about that class a commercial stuff, they're just not seeing deals to be swept up. So I think that's, that's kind of the point they're making.

 

So regarding the tax structure, I'm gonna do my best here. Full disclosure, not a tax professional, not a tax expert, but there are different types of entity structures in which you can have as a business, you can have a sole proprietor, you can have an LLC, an LLC, you can have a C Corp, you can have an S Corp. Just real quick side note, have you guys ever seen Arrested Development

In this episode, Roofstock's Director of Local Market Growth, Mark Woodling explains the new developments with the Roofstock Select program, how it works, how to make the most of it, and where it's available. 

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Transcript

Tom:

Greetings, and welcome to the remote real estate investor. On this episode, I'm joined by

 

Michael:

Michael Albaum,

 

Mark:

Mark Woodling.

 

Tom:

And today, we got a fun topic. So we're actually going to be talking about the Roofstock select program. And this is a really neat program that Roofstock has that merges our technology, as well as our awesome local broker and agent network. And today we're going to talk about that with Mark who leads the program.

 

Mark:

Thanks for having me on guys, this is really a cool opportunity because Roofstock is growing. And we're growing in many different directions. But one of the things that most buyers are starting to see on our website is that there's more properties that are coming from MLS. And so we really want to make sure buyers understand, Hey, where are the properties coming up? Number one, what markets then number two, how are those properties coming to roof stock, right Roofstock doesn't go on the market and cherry pick these off of MLS, we actually have what we call our certified agent network. And those agents are the ones that we work very closely with, by vetting them, number one to make sure that they know what they're doing that they're you're really top agents in their industry. But secondly, that they have the experience really understand the investment side of the world. So these agents are the ones going to MLS and identifying quality investment properties, underwriting them using Roofstock tools, and then posting them to Roofstock.com. So buyers can sift through properties that are also on market.

 

Michael:

So if I'm a buyer market, I'm on the website and I see a roof stock select property, does that mean that somebody or investor from the agent has already put eyes on it and identified it as a potentially great investment opportunity?

 

Mark:

Exactly. So roof stock has provided these agents with underwriting tools where they can go in and identify properties on MLS and look at the pictures, you know, really get into what the estimated market rents are because many of these properties are vacant. So they'll come up with a market rents. And then they'll actually have an idea of what the cap rates look like, and can study our neighborhood scores. So they understand what Roofstock buyers are looking for, because we've done a lot of coaching to give them that direction. And so anything that makes it to the site has been touched by the agent, and then they have the authority to push those directly to Roofstock.

 

So we go in QC and make sure that you know, these are some quality properties. But with all the training that we're doing for him, the ones that are hitting the market, they know as a local expert that these are good buys.

 

Tom:

This is great. So just to paraphrase a little bit, so you know, within Roofstock properties for sale, they have these exclusive properties that you're not going to find anywhere else. But they also have these properties that are listed in the MLS that these local experts using Roofstock technology have identified for people to be able to acquire through roof stock. And I understand that correct Mark?

 

Mark:

Absolutely. As you know, buyers like to look through the roof stock lens and see all the analytics and the details from our neighborhood score to cap rates and just long term equity opportunities. So this is a place to be able to identify properties using the Roofstock lens. But what's cool is that when a buyer makes an offer, they're always going to get the inspection contingency. So they can make an offer.

 

In fact, Roofstock is going to pay for that inspection. And we're going to help them with a certain part of the transaction. But they're going to have the local agent that understands wha

With home prices soaring and competition through the roof, it's important as an investor to know how to be competitive without compromising your returns. In this episode, we discuss different strategies to consider to make sure you're not left high and dry from an emotionally driven deal.

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Transcript

Emil:

Hey everyone, welcome back for another episode of the remote real estate investor. My name is Emil Shour and my co host today are,

 

Tom:

Tom Schneider

 

Michael:

and Michael album. And today's episode, we're gonna be tackling something that's a little relevant to the time. So as everyone knows, very hot real estate market, not a lot of supply a lot of demand. So we're gonna tackle the question, how do you make competitive offer in today's environment without overpaying? So let's hop into this episode.

 

Alright, guys, this is a very timely topic. As I mentioned earlier, very hot market out there not a lot of supply. A lot of demand a lot of owner occupant demand, right people very interested in home. So if you're an investor looking to buy a single family home, probably pretty tough out there right now. So Michael, I wanted to kick this one off to you first, just because I'm sure in in Roofstock Academy you get this question a lot from new investors, seasoned investors. So I'm curious what your you're telling people what the message your your relay is?

 

Michael:

Yeah, absolutely. Is I First off, I just have to say I love the wording you use. It sounds very coach, like at a sports event? So my answer is like, you got to have high and low and you go out there. It's tough out there. But you got it. Yeah, score barkos. So I think it's really apt. It's really apt question and definitely really timely. So what I always tell people is, look, the numbers need to drive the decision making above anything else. So if you can afford to pay 5000 over ask 10,000 over ask or ask or 10,000 under ask. I mean, that's just the numbers. That's the math.

 

So you need to do your analysis really thoroughly and be very confident in your numbers both on the income and the expense side, which is then going to dictate Okay, what kind of returns should you be anticipating based on these different purchase prices. And so we've actually got a really great tool in the academy, the property analysis tool, and you can do a goal seek in Excel, which will basically tell you, Hey, this is the maximum offer price you can have, or that you can offer in order to hit your goals, whether that be cash flow, or cash on cash or cap rate. And so like Pinocchio says, always let your conscious be your guide.

 

Tom:

But that's not a good mentor He’s got a, you know, a checkered history. So think of someone else Michael

 

Michael:

Depending on his nose length is gonna determine how how good of a mentor he should be, always let your numbers be your guide. And the other thing too is if you're buying with a loan, there's going to be an appraisal done. And so the lender is also kind of going to be your backstop in that sense. And they're going to look to other properties and say, Well, this isn't worth that much. So we're not going to lend on this much. So you've got a little bit of leverage. But the thing to keep in mind is that a lot of people are overpaying for properties they're paying over ask they're paying above and beyond what the appraisal comes in at. So it is just very competitive. So I'd say first and foremost, let your numbers be your decision making beat up pointed out spear. Tom, what are your thoughts there?

 

Tom:

I think that's great. You know, it's funny, we have the outline of this episode. And sometimes I'll I'll sort of quickly run the episode and how I expected to go out like our talking points, just kind of knowing each other and I think you stole mine in this episode.

 

Michael:

You were going to use my reference to Pinocchio?

 

Tom:

Well, no, I didn't know we're just talking about this is the magic bullet for like making competitive

Dana Dunford from Hemlane Property Management joins us again with some practical tips to ensure the best outcomes with your rental properties. 

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Transcript

Michael:

Hey everybody. Welcome to another episode of the real estate investor. My name is Michael Albaum and today I'm joined by my co host,

 

Tom:

Tom Schneider.

 

Michael:

And we have a very special guest with us. Dana Dunford, CEO of Hemlane is going to be joining us again for another episode. And she's going to be talking to us today about some of the tips and considerations we need to be cognizant of and thinking about if we're going to be remote landlording. So let's get into it.

 

Michael:

Hey, Dana Dunford, welcome back to the show. Real pleasure to have you back on.

 

Dana:

Great. Thanks for having me, Michael. Thanks, Tom.

 

Michael:

Absolutely. So Tom doesn't get any credit!

 

So today, Dana, you're going to be talking to us today about a couple different rules that landlords should be mindful of, if they want to get into remote landlording. So I am just going to kick it off to you to start out. And if you could start with rule number one walking us through what people need to know about before they become a remote landlord?

 

Dana:Yeah, so a lot of people just so you know, the background is a lot of people do self manage their properties, right? 73% do. And many of those are remote. And so a lot of people ask us, you know, how do I manage my property from a distance, there are a couple of key rules that you have to set up.

 

And very first one is setting yourself up as a professional and as a property management operation. And not considering yourself just a landlord of a single individual working with the tenants, your local service professionals, a leasing agent, really making sure that you're set up professionally from an operations perspective.

 

So Mike, if you want, I'm happy to go through some of those details. And some examples,

 

Michael:

That'd be great. I'm just curious, you say that 73% of remote landlords self manage?

 

Dana:

73% of landlords in general self manage their properties. And so the Census Bureau did a study on…

 

Michael:

Wow, I didn't realize that was so high.

 

Dana:

Yeah, majority do self manage majority do not use full service property manager. And and you have to think about it, Mike, when you're buying a physical asset, right? It's a lot different than stocks that are very passive, where it's not a physical asset, or a REIT where you put money into something to real estate, but you never see it. It does become emotional. You know, if you think about it, you go on roofstock, you see this property? And you're like, Oh, I would change those carpets and put hardwood floors and at some time, Oh, those sinks, I need to change those, right? That's a real estate investor. When it's physical, like

 

Michael:

That paint color!

 

Dana:

Yeah, the paint color, why would they choose that horrible green color? You know, I want to change it from puke green to gray or whatever, you know, off white color that real estate investors want these days. But yeah, so it does become much more of something where you take a little bit more ownership. But that doesn't mean that real estate investors want to do everything. Like they don't want to do the showings, they don't want to go and fix the toilet. You know, all of that stuff they don't want to do but they definitely want to be more hands on. And so that's why I do see a lot of investors come up with much more creative ways to manage their properties. And then how they tap into that is is what we're here to discuss today.

 

Michael:

Awesome.

 

Tom:

Yeah. And I guess to that point, you know, that statistic around 70 some odd percent, I bet you historically, a lot of landlords have come into landlording. More like accidentally, I think probably the vast, vast majority of our listeners are more kind of on offense of building not letting rental properties come to them. So anyways, I love point

Winning a judgment on a tenant that has trashed your property is one thing, collecting on that judgement is entirely another story. Did you know that only about 10% of judgments are actually collected?

In this episode, Steve White from RentPrep drops some serious wisdom on what you can do on the front end to increase your chances of being in that 10% of landlords that actually collect!

Website: https://rentprep.com/?utm_source=roofstock&utm_medium=podcast&utm_campaign=steve-media-outreach-2021

The "RentPrep for Landlords" Podcast: https://podcasts.apple.com/us/podcast/rentprep-for-landlords/id851540886

The "RentPrep for Landlords" Facebook Group: https://www.facebook.com/groups/RentPrep

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Transcript

 

Michael:

Hey everybody. Welcome to another episode of remote real estate investor. I'm Michael album, and today I'm joined by Steve White, who is the founder and CEO of rent prep. And on this weekend wisdom, Steve's going to be giving us some insider tips as to better ways to collect judgments that we have against former tenants. So let's get into it.

 

Hey, Steve, thanks so much for joining us on today's weekend, wisdom. Really appreciate you taking the time.

 

Steve

Yeah, thanks for having me on.

 

Michael:

Steve, we had you on another episode of the real estate investor, where we're talking about rent prep your company and some things that landlords can do to screen tenants. So stay tuned for that one, but wanted to give everybody a little nugget. And you've got some experience in collecting judgments, or winning judgment awards that landlords have put on tenant. So can you talk to us a little bit about some things, tips tricks landlords can do?

 

Steve

Yeah. So winning judgments is a lot easier than executing and collecting judgments, as you know,

 

Michael:

Yes, I know. I am all too familiar with that.

 

Steve:

Yeah, I hear landlords get excited all the time and say like, Yeah, we got to judgment. Oh, my God.

 

Michael:

Good luck.

 

Steve:

Yeah, the struggle has just begun,

 

Michael:

Right, really the best way to handle it. And  I'm gonna say that your strategy needs to start way earlier than you would imagine the strategy needs to start at the rental application process. I know, a lot of landlords are okay with applicants skipping information on their application. And there's a lot of information that you wouldn't think is super useful in the application process, like for example, their references, like who's going to call a reference and expect that they're going to give you a truthful, objective perspective of if this person's a good tenant or not, you know, their mom is gonna say they're lovely, and they're great. They want them out of the basement anyway. So they're just gonna be like, yeah, they're awesome. But, you know, that rental application has a future life well beyond that screening process.

 

So when you think about obtaining a judgment, or even executing judgment, some of the pieces of information that you might need are going to be hidden in that rental application. So for example, they were just evicted or abandoned, or whatever your property, where are they living now? Well, if they're short on money, they may not have a new apartment, they're probably living with whoever they listed as their next of kin or personal reference. So now, you know, now you know where to serve. And now you know where to you know where to find them at least.

 

So those personal references are absolutely worthless. When it comes to the application process. Don't waste your time calling them and asking if they're going to be a good renter, call the previous landlords, that's worthwhile, but not the references, the references are worthwhile after you've screened them, and you're trying to track them down.

 

Michael:

Interesting.

 

Steve:

Yeah, employment information, right. So you cannot garnish somebody's wages, if you don't know where they work, the court will not do that dirty work for you. So you got to know that