The SFR Show

One of the major upsides of investing in real estate is the tax benefits you can take advantage of as an owner. This episode covers a powerful tax strategy, the cost segregation study. Scott Roelofs from RCG Valuations, explains how they work, who they are good for and why you might want to start employing this strategy now to save big on taxes. 

Visit RCG at https://rcgvaluation.com/

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Transcript

Michael:

Hey everybody, welcome to another episode of the real estate investor. I'm Michael album, and today I'm joined by a very special guest, Scott Roelofs. With RCG valuations, and Scott's gonna be talking to us today about all things cost segregation study. Some of you may or may not have heard about, but let's jump into it. Well, Scott, thanks so much for joining me today. Really appreciate you taking the time, man.

 

Scott:

Yeah, man. It's exciting.

 

Michael:             

So I just have to ask, I mean, you've got a ton of letters after your last name. I'm just curious. What do they all mean? What do they represent? Let us know give us some insight.

 

Scott:

The big ones, CFA, Chartered Financial Analysts, you know, three years of study, average pass rate is 45%. So basically 8% of the people who try to get it actually do get those three letters. So that's kind of the big one ABV, that's

 

Michael:

Your alcohol by volume.

 

Scott:

Yeah, alcohol by volume. Yeah. It's an auditing. It's a construction, auditing. accreditation, then you have a IMS, which is asset management, AWS, which is a wealth management. I also have 679 1063 life health. It's actually funny, my cousin who is smart as I am, she comes up to me, and she's like, so are you done educating yourself? And I'm like, Yeah, I guess so. I guess,

 

Michael:

I guess I shouldn't be.

 

Scott:

So yeah, so I guess I'm, that's an…

 

Michael:

Awesome,

 

Scott:

You know, you may not know what they all look like, but you're like, there's a lot of them. So, yeah,

 

Michael:

Totally. So there's not a whole lot that you don't do in the financial world. That sounds like?

 

Scott:

I feel like I can walk into any room and hold down in any kind of conversation, whether it's, you know, in business or, you know, venture capital or anything like that.

 

Michael:

Awesome. And so did you are you the founder of our CG Valuation & Monetization?

 

Scott:

I am, yeah, I started doing cost segregation, kind of like in a selfish ways I had owned my own office and didn't want to pay as much taxes. So I started looking around and got introduced to it. And then I found a company that actually allowed me to do them, and like, actually kind of do the work. And they would help with some of the engineering and that worked out great for a while, but what happened is, is I started to look at things and go, okay, you know, you send me out with a measuring wheel and a measuring tape. And some of these places are huge. I mean, just my first one, which was our office, I own a portion of, like, the land of a whole bunch of offices, it was eight acres. And we had to, you know, count and measure, you know, is something like 2500 shrubs, you know, it was bananas.

 

And I'm like, this is an awful way of doing this. And so I started searching around, I first found, I got into, like, the drones, which is kind of a hallmark of what we do. And then we added the interior, I saw commercial for matterport cameras. Yeah, that's kind of like used for real estate. And I saw that commercial, I don't, man, if that can measure, like, I really got something and turns out again, so well, voila. So now we have the, you know, interior exterior, you know, kind of all this stuff. So but what happened, and I think this is, you know, just an a general business since this is interesting. But I started to try to implement the technology with the other company. And we kept running into roadblock after roadblock after roadblock. And finally, like, had a conversation with the founder of the company. And he's like, Listen, we jus

Housing prices have continued to rise over the past year as listings have dropped by about half. Given this super-competitive market, is now a better time to sell or should you continue your acquisition cycle? In this episode, we discuss the investing philosophy and considerations you should take when thinking about selling your property.

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Transcript

Pierre:

Welcome to another episode of the remote real estate investor. I'm Pierre Carrillo. And today I'm here with the usual suspects Tom, Michael and Emil. And today I'm going to be asking them about rising home prices in the markets right now. And if it's a good time to sell instead of buy, so let's jump into it.

 

Pierre:

Alright guys, so, like we talked about previously, my brother and I are working on buying some houses right now. And one of the things that we're seeing is that compared to last year, active listings on the market are down 52% the prices of homes are climbing continuously, there's like 16% up year over year and they're continue to climb. A lot of the projections are saying that they're not going to drop anytime soon. Is this a good time to sell? Are you guys selling? And if not, like when is a good time to sell?

 

Michael:

Yeah, such a good question. Tom do you want to take a first crack at it?

 

Tom:

What's the acronym that Bitcoin guys say hodl, hudl, huddle? Do you know I'm talking about?

 

Emil:

HODL!

 

Michael:

We're not all Bitcoin guys. Now, Tom, we don't know what that is.

 

Tom:

I'm sorry. I'm excited. I bought my first little fractions sliver of one. And I just am using their acronyms now HODL.

 

So yeah, Pierre good question on, you know, looking at some of the stuff I think for myself, and I would assume also for Michael and Emil, is that we're pretty long term bullish and going through year over year, like there are going to be some trends. But like, over the long time, like, the way that I think about building my real estate portfolio is I just want to build this big cash flow machine. And like, yes, there's going to be fluctuations on like, what's available for sell prices are doing but looking at my North Star is just building this long term growth machine. Like I can't be like chasing a car just like falling metrics. And like, Oh, I should sell right now.

 

So it's like having a long term perspective. That's not to say that I don't sell because I think sometimes it is opportunistic to sell. A lot of my more recent dispositions have been consolidating in specific markets. So let's say I have a property in like a corner where I don't want to have any scale in that market, maybe it makes sense to sell it, maybe I've caught some nice appreciation, you know, I had a property in the corner of market where they have like, I didn't have a lot of properties. And also there was like, some, like legitimate, like weather concerns of like floods and stuff and like I don't want to sweat that out every single time if I'm not planning to get you know, the right kind of insurance to protect myself against that. So my meandering answer of a question is you know, sometimes there is a place to sell but I you know, I won't sort of panic sell and in monitoring those metrics, because I use my North Star to hang on to so enough pontificating Tom, somebody Michael Emil jump in quick.

 

Michael:

So I think it's a really good question, too. And so I actually am in the process of selling a couple properties. I think I've talked about it on a couple episodes in the past, but I have a six unit out in the Midwest that I'm under contract to sell. And then I just sold a luxury condo in Southern California.

 

Tom:

Oh, congrats, man. That closed.

 

Michael:

Yeah, that close. So I was super excited, thanks for short story long is that they asked for a reduction in rent, because of COVID, which we were happy to give them. The property wasn't cash flowing. Really before that. So then it was a little bit negative. And I said, You know what, there's been so much appr

Selecting strong renters can be the difference between a cash-flowing property or an alligator. Even if you can get a judgment on a tenant that owes you big, collecting on that judgment is not a guarantee. 

 

On this episode, Steve White From RentPrep gives us the scoop on how you, as a landlord, can do the proper due diligence on your applicants to save you time, money, and headaches. 

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 Albaum and today I'm joined by Steve White, founder and CEO of rent prep. And today Steve and I are going to be talking about all things tenant background check related. And we're also going to delve into some things that you can do personally to boost your credit score. So there's a lot of fun information in here. Let's jump into it.

 

Well, Steve White, thanks so much for joining us today, man. Really appreciate you taking the time.

 

Steve:

Yeah. Thanks for having me on. I appreciate it.

 

Michael:

Absolutely. So you're the founder and CEO of rent prep, right practice? Yes, I really want to want to dive into what that is. But I would love to get a little bit about your background first, and how you got into the space?

 

Steve:

Sure, yeah, I'm totally on accident. I never intended to be doing background checks at all. So I, I got out of the Marine Corps, I served eight years took an opposite direction. And most of the guys that I knew that were getting out and becoming police officers, or getting into law enforcement in some way, and I sort of went the corporate america route, and I worked for a company that played a really niche role in a legal process called a replevin order. Nobody's probably ever heard of that. But…

 

Michael:

No, what is that?

 

Steve:

So if you can imagine, as you're driving down the road, and you see these really big, like, street paving machines, that, you know, like construction equipment that are usually like a million dollar piece of equipment, the company, if the company stops paying for it, and the bank wants that piece of equipment back, you can't just go and pick something like that up. And so if you

 

Michael:

Take a put on a tow truck,

 

Steven:

Right, no, it's a huge process, you usually got to break it down into pieces and ship it in on multiple vehicles. So what we were doing was arranging those replevin orders that were that had to be organized in the local municipality. So we would have to coordinate with the sheriff's department and local attorneys and, and get all this stuff organized. So I was doing that, you know, on the corporate side, kind of in the banking world and decided I could do it on my own and started a company that did exactly that. And I started it in 07, which was perfect timing for the big financial recession that happened two years later.

 

Michael:

Right!

 

Steve:

And, yeah, that definitely put a damper on things and made us get really creative for looking outside of the box with different business ideas. And we had a client that that basically came to us and said, hey, I've got rental properties. And you guys are using software to track down pieces of equipment and figure out where you know, where job sites are, where people might be where people might be hiding things, do you think you can tap into that or use some of that same, you know, access that you have to let me know if somebody would be a good tenant or not. And like any good entrepreneur, I said, we can absolutely do that for you before I knew how to do it.

 

So the business started there really what it is today, and we ended up within about two years selling, we split it up into different divisions,

We have all had a bad experience with a property manager. But when is the right time to let one go? Alternatively, when is it the right time to fire yourself as a property manager and hire someone else? These are the questions we address in this video while pulling from our own personal experiences for real-life examples.

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Transcript

 

Emil:

Everyone, welcome back for another episode of The Remote Real Estate Investor. My name is Emil Shour and my co hosts are,

 

Tom:

Tom Schneider

 

Michael:

and Michael album.

 

Emil:

And on today's episode, it's going to be a little bit less rosy. But we're going to be talking about what happens when you have a property manager that isn't working out. Essentially, how do you break up with your property manager? All of us have gone through this experience and so we're going to try to impart some knowledge on you guys. So let's hop into this one.

 

Alright guys, before we get into this episode, I want to give another listener shout out. So this is from longtime first time in a car who left us a review on Apple podcasts said love this pod found this by following Michael on Twitter, and love listening and learning a lot. The hosts are also very friendly and engaging on Twitter answering questions, and suggesting pod episodes for subjects. Great guys and just overall helpful for learning about real estate investing. So this is a shout out to us specifically, Michael well done. Michael. What's your handle?

 

Michael:

Thank you. Thank you. It's really complicated. Remember, it's @albummichael.

 

Tom:

Oh a reverse one nice

 

Michael:

Yeah, but I think it just got assigned to me. I don't like I don't know a meal got me hooked on Twitter.

 

Emil:

You probably picked it I don't think they assigned it or maybe I don't know maybe when you put your name and…

 

Michael:

If I had picked it would have been like cool surfer Guy 23

 

Emil:

They probably just making a suggestion for you so that it's like really easy when you sign up right? So it's not the thing too much. And you can check it very well.

Michael:

That could very well be. But I was pretty overwhelmed with the whole thing to begin with. So I was like, whatever just basic is fine.

 

Tom:

Emil, you're pretty active on Twitter as well. Right? What's your handle? I'm at a meal. Sure. I used to be a lot more active. I used to post regularly I go on from time to time Twitter can be a fantastic place to meet people It can also be a wormhole place that just sucks you in for hours and you're like where the time go. So I tried to moderate I deleted off my phone now I just have it on desktop. Use it a little bit less. But yeah, I'm on there.

 

Michael:

Tom. Aren't you on there too lurker lurker 27?

 

Tom:

I'm a lurker. Exactly. Yeah. wallflower white noise22. No, TSchneido is mine. But yeah, not not super active, more just lurker.

 

Michael:

I had a call with someone from Twitter the other day, and it's a pretty amazing place to network. Like you're saying Emil. I've had conversations with some really amazing people have been able to network pretty amazingly, for lack of a better adjective when used properly. I think it's it serves a really cool purpose.

 

Emil:

Totally. And we even had one of those virtual meetups. I think it was in like November, December with a couple of us on Twitter. Yeah, that was fun, too.

 

Michael:

Super fun.

 

Emil:

Totally. All depends on how you use it. You can, you know,

 

Michael:

Use it for good or evil.

 

Emil:

Exactly. Anyway, just want to encourage people leaving us reviews, ratings, comments, whatever. We'll give you guys a shout out on future episodes. So wherever you listen your podcasts, leave us a comment or review. And we'll give you a shout out future episode.

 

Nice. Alright, guys, this is a topic a little near and dear to my heart, because I'm going through the process right now. But you know, when you hope that it never comes to it. But before we even hit record I asked you guys has have all of you g

For may investors, buying that first property is intimidating to the point that they let deals just pass them by. In this episode Roofstock Academy Coach, Dean West, shares the story of how he moved through that pain point to eventually quit his job to invest in real estate. 

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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 host,

 

Tom:

Tom Schneider.

 

Michael:

And we have with us a very special guest today, Dean West. He's actually a Roofstock, Academy Coach and consultant with us. And he's gonna be talking to us today about his experience and journey getting started in real estate investing all the way up to what he's doing now as a coach. So let's get into it.

 

Awesome, Dean West. Welcome to the podcast, man. So happy to have you on.

 

Dean:

It's a privilege Michael. Thanks so much for having me on your show.

 

Michael:

Yeah, of course. So we wanted to give our listeners a little bit of insight into your background as an investor, and then ultimately becoming a rootstock Academy coach. So give everybody a little bit of background on who you are, and how you first got started investing in real estate.

 

Dean:

Yeah, happy to do so. So it was the spring of 85 that I was born, and then from there,

 

Michael:

and you've been at it ever since?

 

Dean:

Yeah, exactly!

 

Tom:

Spring of 85. Great time to be born. great time to be born,

 

Dean:

Isn't it? So I was born in South Africa, I made my move over to America in 99. Since I've been in us, I've been all along California. So I've started in San Diego, then I was in Los Angeles for a bit. And then I spent about 14 years in San Francisco.

 

When I was in San Francisco, I spent the majority of my time so I was in a big four accounting firm working in the digital forensics e discovery space, which I loved. And I loved my colleagues and everything about it that at some point, I kind of got to this point in my career where I'm like, okay, I can either go for partnership, or I can kind of go this other path, which I've been had been slowly building over the past couple of years into real estate and I love Real Estate Guys Radio Podcast. And one of the things that I think Robert Helms always said was build a life that pays you to live it. So I've followed that ethos and quit my job and kind of pursue this full time.

 

 

Michael:

Amazing. But so if we just rewind the clock back a little bit, not all the way to the spring 85. But when you first got started investing in real estate, what was your first soiree into real estate investing,

 

Dean:

I started actually with my primary residence. So I purchased a home in San Francisco, I, like many other poor souls in San Francisco was hunting around with my wife for a few years or five years trying to buy a property. So I think I started in 2012 trying to buy a property and four years later, we finally found a home we've been making offers on these properties, but like everyone else, we were getting outbid and people were sending pretty pictures of their dog and family. In their little letter, though, we were kept getting outbid, and it was really quite frustrating.

 

So what I did like any logical person would do is I bet 25% over asking which wasn't enough by the way there was 16 offers on this property I was in the 16 I didn't know where I fell off my offer but I knew I wasn't the best one out there because I'd come back for another best and final offer so I raised it yet again to 30% over asking and I had after sending all my money I had the privilege of sending all my money to the seller and Yeah, got my first primary residence.

 

Michael:

Awesome.

 

Tom:

So in San Francisco big city is this like like a condo or a proper house or a townhouse and I'm curious having you know knowing San Francisco decently well yeah live it out like what area you were buying

 

Dean:

Yeah, yeah, absolutely. Bernal heights.

 

Tom:

Oh, very cool.

How to do make money grow quickly, yet safely? Is real estate a good strategy if you need liquidity in 2-3 years? In this video, we discuss time horizons for real estate returns and what you could do if you need liquid cash within the next couple years but still want your money to work for you.

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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:

Tom Schneider,

 

Emil:

and Emil Shour.

 

Michael:

And today's weekend wisdom, we're going to be talking about some of the different time horizons to be thinking about with regard to your investment. So should you if you need the money sooner? Should you be investing in real estate? Do you see it as a long term growth vehicle? Or is it something that you're going to need in the more immediate future? So let's get into it. So, guys, we were chatting before the show, Pierre brought up an amazing question he's dealing with right now. And with his family that he's investing with, they are looking at investing money into real estate. And someone brought up the question of, well, the kids are going to college in a couple of years, should we be investing this money in real estate? What is the different time horizons that we should be expecting for real estate investments?

 

So Emil, I'm going to kick it to you first, if you are planning on using a chunk of change in three to four years, you know, you're going to need it for something, whether it's a new purchase a car, kids going to college kids, you go into school, what have you? Should you be investing in real estate? What are your thoughts?

 

Emil:

Personally, I look at real estate only as long term investing. So if I was looking at something three years down the line, I would I would not take that money and put in real estate personally. Everything I buy, I'm thinking about in terms of at least 10 plus years. So

 

Michael:

And what are you worried about in that three to four year time horizon? Why wouldn't you put it in real estate? The last couple years, the markets been on fire?

 

Emil:

Yeah.Yes, yes, it has. But it's always hard to predict, will that happen? Just with real estate, in general, my thought is, on a long enough time horizon, it is much harder to mess it up. I'm, obviously I want to mitigate risk and do as good of a job and like, you know, you walk into a properties thinking like, Oh, my spreadsheet math is tells me I'm gonna make this much per year and blah, blah, blah. In reality, things happen, things break, you know, you have down years. And so to know that it's only going to be two to three years, it's very possible that that could be a period where either a the market goes down, we have some significant capital expenditure where cash flow for the year is negative, so you're losing some value there. So for me, I just I think two to three years, especially this is this is more of like a side hustle, quote, unquote, right? I don't I don't do real estate investing full time where I feel like I'm a pro and, and all that.

 

So just for me, personally, where I'm at in my career, I don't, I wouldn't take short term money and put it in real estate and be like, Alright, I'm gonna get on two to three years. Plus, when you sell a property, you're typically paying five to 6%. So like, even let's say you have five to 6% appreciation, after you sell and pay your commissions and closing costs, all those things like a lot of that could just be vaporized. So I like holding for long term.

 

Michael:

I mean, I've got a follow up question for you on the timeline. So let's kick it out to a 10 year time horizon. Let's turn the clock back to somebody investing in 1999. They have a 10 year time horizon. Now 08 hits, they're planning on selling in 10 years, and they just get decimated?  Doesn't the same same risk factors apply 10 years down the road that we could be in a down market by the time you're looking to sell?

Financial literacy is something that is often lacking from our education systems. Kids often learn about saving and investing later in life, wasting precious investment potential. 

That is why The 7 Dollar Millionaire wrote Happy Ever After: Financial Freedom Isn't a Fairytale, a book written to teach youth how to get ahead on their path to financial freedom as early as possible to live the lives they want to live.

The 7 Dollar Millionaire joins us to talk about the lessons in his book and share sound investment knowledge!

https://www.sevendollarmillionaire.com/

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Transcript

Michael:

Hey, everybody, welcome to another episode of The Remote Real Estate Investor. I'm Michael album, and today I'm joined by my co host, Tom Schneider. And with us, we have a very special guest, Michael, better known as the $7. Millionaire is with us today, he's going to be talking to us today about personal finance, how to talk to your kids about finance, and some things you can do to be getting ahead and be proactive with your finances. So let's get into it.

 

Michael, thank you so much for joining us this evening this morning, today really appreciate you taking the time.

 

7 Dollar Millionaire:

Excellent. Thank you for having me here. It's good to be here in your evening. My early morning sons just come up here in Singapore. So it's great to join you.

 

Michael:

Yeah. And so you're out in Singapore. How did you end up there? Just just briefly.

 

7 Dollar Millionaire:

Oh, no, that's a long story. I've been here 18 years now, I studied Southeast Asian economics. And now I work in the finance industry for more than 20 years out here. And this this is like the center of Southeast Asian finance. So it's the place to be.

 

Michael:

Okay. Very cool. And so today, we're gonna be talking about financial literacy, financial independence, growing wealth. And you wrote a book, right? Happily Ever After?

 

7 Dollar Millionaire:

Yeah, so I've wrote that book. Actually, five years ago, I read it very specifically for a target market of one. And this was fun when I was talking to my publisher has now just been published by Wiley. And they're like, the who's the target market, I was like, my daughter, who else was originally no one else, I just wrote it for my daughter.

 

Because I went through a similar thing, I, before I worked in finance, I'd actually been a journalist. And I got into finance and got into finance really kind of by accident. And I had to get up to speed very, very fast. And like, within like a month or two, I kind of realized, actually, I can I can do this. And I felt two emotions at the same time. One, I was like, this is actually quite simple. You know, and it's really important. And one of those two things hit me together as I was kind of angry is, how are we not being taught this really simple, really important stuff? You know, this is I knew immediately it was life changing for me.

 

And I said, this is could be life changing for everyone. And yeah, I've not learned anything. Like literally, it was kind of two months in, it didn't take a very long time. And I you know, it's not because I'm super clever. It's actually really some simple stuff. I don't use anything particularly clever today. It's a lot of really simple stuff. So I went through that. And I was like, in my mid to late 20s. When I went through that. And now, like five years ago, I'm looking at my 17 year old daughter, she's about to go off to college. And I realize she's not learned any of this stuff, either. And she's an arty kid. She's writing plays, poems and stuff like that. And she doesn't want to learn math, she doesn't want to revise one. Look, I think she knows none of this stuff. She could get into her 30s and 40s. Without investments without savings. With debt, she can make a lot of mistakes. I need to get this through to her. But she's gonna head off to college. So I've got a year do I want every single weekend to be filled with a lecture from dad is t

Is now a good time to refi, should you wait? It's an important question to get right. In this episode, we discuss our approaches to assessing what needs to be in order to refinance a property with a desirable result.

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Transcript

 

Emil:

Welcome back for another weekend wisdom episode of The Remote Real Estate Investor. My name is Emil Shour. And today I've got,

 

Tom:

Tom Schneider

 

Michael:

and Michael album.

 

Emil:

And we are going to be talking about when is the right time to refi a property, whether it's an investment property, or even your personal residence. So let's hop into this topic.

 

Alright guys, so important question when to refi. There's obviously, yesterday, yesterday and last night yesterday, today, today, I actually refi every single month alone just keeps going up. But I keep refining. So it's all good. There's advantageous times to refi and less advantageous times refi. And sometimes, you know, you can grapple with Oh, is now the right time. Should I wait. So let's talk about when you guys have personally reified. any examples you want to start with?

 

Michael:

Go ahead, Tom.

 

Tom:

Go ahead. Michael, you hit the buzzer first, I saw you hit!

 

Michael:

A nice gentle nudge back! So I recently reified my primary residence, I did a rate and term only refi. We didn't do a cash out because the rate would have gone up quite a bit. So we were able to get down I think a full percentage point for basically free as they call it. So I just paid like escrow and closing escrow and title fees. That was like, I don't know, 1200 bucks. And I think I saved 150 a month was doing that. So that was kind of a no brainer in terms of cost to pay back benefit.

 

And so we just saw rates going down like crazy. And so yeah, let's jump on it. So did a refinance. If I had been able to, I would have absolutely done a cash out refi. Because basically, so I'll just I'll put it out there for everybody. So we were at a 3.875 when we bought our place like two years ago, just over two years ago, which was great at the time, we were super thrilled with that rate. And then COVID, hidden rates started plummeting. And so we locked in a 2.875 on our primary. And so the cool thing is that we've talked about it on prior episodes, that investment property rates on loans traditionally, are about 1%, spread higher than your owner occupant rate. And so what's really great to do is if someone has a lot of equity in their home and their primary, they can do a cash out refinance, borrow money at a much lower rate, and then use that money to invest as opposed to somebody else who's has an investment property with a lot of equity, they do a cash out refi, that rate is that money is going to be at a higher interest rate. And so it doesn't go as far your purchasing power is a little bit diminished.

 

But again, I didn't do it wasn't an option for us. So we didn't do that. But if I could have I absolutely would have.

 

Tom:

So was it a strictly a rate decision? Like once the rate got to a syllabus certain level you're like?

 

Michael:

Exactly, yeah, so they got to certain levels, we pulled the trigger, I was in contact with that same lender, and actually rates had dropped again. And so we were going to jump on it and do another one down to like two and a half. But then by the time we got around to doing it, then rates had tick back up. So that wasn't really a feasible option anymore. So we're still at a .2875, which is still great, very happy with that rate. Of course, less is better. But it just has to make sense. And so we could get down to a 2.75. But for the 1200 bucks, that's like I don't know, 12 bucks a month savings. So it just wouldn't really make sense for us at this point in time.

 

Emil:

So for anyone who's done a refi or just got a loan, you know, loans aren't free, refunds aren't free. So typically one or two things happen. Either you pay up front to do the refi, you pay all the costs, or they roll it into your loan value, and no

In this episode, Nate Trunfio from Lima One Capital joins us to share essential knowledge about multi-family rentals and portfolio loans. Nate and Michael also share some important lessons learned throughout their careers. If you are looking to transition from single family to multi-family or want to bundle your loans into a portfolio loan this episode is for you.

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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 again by Nate Trunfio with Lima One Capital. And Nate and I are going to be talking today about making the jump from single family to multifamily and some things to be aware of, as well as portfolio loans and a lot of different things to consider when to use them, and maybe when to avoid them. So let's get into it.

 

Nate, welcome back to the podcast, man. super happy to have you back on.

 

Nate:

Man. I don't know how I made the cut for another one. But man, I'm just thankful to be here. So thank you.

 

Michael:

So I thought today, we could pick up the conversation. We had you on the podcast last time and we started talking about portfolio loans. And then we also started to dovetail into talking about multifamily. So we'd love to start with talking about portfolio and then we'll jump into multifamily Sounds good?

 

Nate:

Absolutely.

 

Michael:

Awesome. So I don't remember if we covered it on the last episode, but maybe for those folks who didn't catch it, what is a portfolio loan? And who might be a good candidate to use them? I think there's a lot of misnomers around the name itself. So give us the quick and dirty about what it is.

 

Nate:

Absolutely. Yeah, so just as a reminder, Nate with Lima, one capital providing financing solutions for all types of investors with a residential focus that's both single family and multifamily following the residential category, one of our favorite products is very large, a growing appetite for is portfolio loans.

 

And so essentially, a portfolio loan is in our world, at least anything that's more than one property. Alright, there's different functions of loans that are implemented when you have more than one asset, because it just things get a little complicated, right? What happens if one deal gets paid off, and there's were two in the loan, which we can certainly talk on, but our portfolio loans not only addressed the need for smaller size portfolios, you know, 2-5-10, but all the way up 50 and 100 plus, so there's a couple different variations. But the bottom line is if you want consistent terms, on all assets baked into one loan, that's when you're going to look for a portfolio. If you have one investment strategy for all of your assets, that's when you want to look at a portfolio. When you say when wouldn't I look for a portfolio and I own multiple assets, it's sort of back to what I just said, of, if you have numerous investment strategies, like you're very confident that you're going to want to take some assets to market soon, you might want to reconsider putting those into a portfolio. But the bottom line is if you have an investment strategy, and you own multiple assets, in all of the assets, that you're looking to finance have that same strategy, that's when you're going to go out and get a portfolio loan, it could be on the acquisition ends, you can buy a bulk property portfolio with a loan, you can take properties that are free and clear and combine them into a loan. You can take ones with existing debt and trying to get better terms on it, especially with nowadays low rates. Or you could have good rates on your existing loans on assets and want to recapitalize or refinance and take cash out. So a lot of different options. But the bottom line is multiple properties, but with a more singular investment strategy is when in a portfolio loan is going to be of good use to you.

 

Michael:

Okay, awesome. And so I know that the loan structure starts to change when you mak

The 7 Dollar Millionaire joins us to share 1 simple tip that will help you make your children rich. The 7 Dollar Millionaire will be joining us for a full length episode on his book (linked below) very soon!

 

The 7 Dollar Millionaire is the author of Happily Every After: Financial Freedom Isn't a Fairytale https://www.sevendollarmillionaire.com https://www.sevendollarmillionaire.com/happyeverafter/ https://www.goodreads.com/book/show/55402867-happy-ever-after

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Transcript

 

Michael:

Hey everybody, my name is Michael Albaum and welcome to another episode of The Real Estate Investor. On this weekend wisdom, we have a very special guest with us, The $7 Millionaire is going to be talking to us today about some tips and tricks you can use for your young ones when they're just starting out to help them get ahead financially later in life. Let's get into it.

 

Michael:

So, Michael, I'm curious to know, Tom, has his youngster Charlie sitting on his lap here. And so we were chatting a little bit before the recording. Are there any tips, tricks, advice recommendations you have for folks that have really young kids where maybe the book doesn't make sense for them, but things they can still do to help their kids or young ones get ahead?

 

The 7 Dollar Millionaire:

Yeah, it's it, I wouldn't put this in the book, if I discovered it before yesterday, which literally, when I discovered it, I was so frustrated because I do this stuff. And I'm a spreadsheet geek. And I'd never done this. But I worked out just yesterday that if you put it in $7,777 into an investment account for your kids when they're born, and if it makes 7% returns during their life, they will be a millionaire by the time they turn 70.

 

Now 7% is just the number I pick because it's the number I use and all the other stuff I do, but the s&p 500 has made nine and a half percent returns for every 50 year period for the last 90 years. So yeah, if you put in eight grand the day they're born, that could be a huge number by the time they're 40 or 50 just life changing for a grant. So I think that's one of the things that even if the kids are too young to learn these concepts, you can put it away you can talk to them about how it's growing. You know, you can talk to them about what they can do with it you know when they can use it all that kind of stuff really powerful.

 

Tom:

That was a great par to just kind of follow.

 

The 7 Dollar Millionaire:

Yeah.

 

Michael:

Yeah. So Tom, you've got no excuse now for not making Charlie a millionaire. The pressure is on!

 

Tom:

All right, awesome.

 

Michael:

Sorry for throwing you under the bus.

 

 

Michael:

You know, it's it's so funny you say that? I think one of the best lessons my father ever taught me was for my 12th birthday, he bought me a couple shares of GMC stock. And we said every day we looked in the paper and said, Okay, this is what the value is doing. It's going up, it's going down and and learning about just financial finances from kind of that basic level, I think is so eye opening. So when you can do things to help give people in your life a leg up. I think that's that's super helpful.

 

The 7 Dollar Millionaire:

Yeah. And so I did it totally. I mean, one of the reasons for writing this book is I have in my day job, I get to meet billionaires and families or billionaires. And one of the common things that they talk about is the fact that their parents would talk about business across the dinner table from a really young age. And the rest of us don't have that we don't have I don't have any billionaires around my dinner table from a young age. But the more we can do, the more we do it, the more chance our kids have of having that level of skill.

 

Michael:

Yeah, I love it. And was it was it Albert Einstein who said compounding interest is the eighth wonder of the world or seventh one or the world.

 

The 7 Dollar Millionaire:

No, he the internet said it. If you get out, get out get that one. On Snopes. There's lik