The SFR Show

A common refrain in the investment world is, diversify your portfolio. But many real estate investors have a massive majority of their net worth in property. In this episode, Michael shares his thoughts on portfolio diversification and why he is so heavily focused on rental property.

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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.

 

Pierre:

Hey everyone, welcome to the Remote Real Estate Investor. My name is Pierre Carrillo and today I am joined by…

 

Michael:

Michael Albaum

 

Pierre:

and today we are going to talk about portfolio diversification, so let's just jump right in.

Hey, Michael.

 

Michael:

How's it going Pierre?

 

Pierre:

So Michael, one of the basic pieces of investment advice that I hear everywhere is diversification, diversification, diversify, don't be too consolidated. Because if any one piece of the market goes down, you're going to be left exposed somewhere. I remember you saying in a previous episode, that you're about 80-85% in real estate, and that made me think, wow, that's heavily consolidated. How do you find, how do you find comfort in being so consolidated in one asset class?

 

Michael:

Yeah, it's a really good question, Pierre and I think, for me, my strategy has changed over the 10 plus years that I've been investing and so for me, I was very focused on single family when I first got started and I think a lot of people do kind of find their niche inside of single family investing and it's funny because there's this, there's kind of two camps. There's one that says, diversify, diversify, diversify and then another one says, get rich in your niche and niche down and pick one thing to do and do it really well and if you can do it really well, you don't really need diversification. Diversification is for people that maybe aren't able to niche down or pick one thing or particular that they're passionate about, or really good at. So for me, I was always thinking about single families. I wanted to purchase a bunch of them, I wanted to own a bunch and I thought that was great and at the end of the day, and we've talked about it on prior episodes, the like I think what people are always scared about is their value decreasing, given some event or over time and that's when people talk about, like the S&P 500 index funds, you have a bunch of different companies.

 

And so if one goes out of business, you're not only holding that stock and so that is usually because the value can evaporate and unless the stock is paying some kind of dividend, or it's paying some kind of yeah, I guess that's what stocks dividends, the value of the stock is really in the value and hopefully it goes up over time. With rental real estate, we've got kind of a two headed play here. One is like a yield play a cashflow play, that pays us every single month and every single year and then the other is the appreciation, which is congruent, or synonymous with the stock value going up over time and so again, I'm really less concerned with the value of the property over time, because given a long enough time horizon, I'm comfortable, that thing is going up into the right. But even in the event of a downturn where the value is decreased, I've got yearlong leases and so the rent that I'm going to be collecting is likely going to be unaffected and unchanged. So for that reason, I was really comfortable getting very involved in the single family asset class. The other thing to think about is, I think real estate is this big, all-encompassing umbrella, if you will, it catches a lot of things, and a lot of dif

In this episode, we are joined by Matt Crawford and Alex Fischer, two Roofstock Certified Agents, to discuss the Greenville and Spartanburg South Carolina markets. We cover the different asset classes, neighborhoods, demographics, price points and return metrics, short term rentals, geographic considerations and much more. If you want to learn more about investing in South Carolina, Matt and Alex have the goods.

Contact Matt and Alex at: [email protected]

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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.

 

What's going on everyone? Welcome to another episode of the remote real estate investor. I'm Michael album and today I'm joined by Matt and Alex, two of our agents as part of Roofstock Certified agent network down in South Carolina. And they're going to be talking to us today about the Greenville and Spartanburg markets and everything we as investors need to know about it. So let's get into it.

 

Matt Crawford, Alex Fisher, how are you guys?

 

Man? We're doing great Michael here. Thank you guys so much for having us. Good to be here.

 

I guess. Yeah, our pleasure. So I know you because I work with you guys regularly as part of our certified agent network with Roofstock. But for anyone who might not be familiar with who you are, give us a quick rundown who you are. Where do you live? What what markets do you operate in? And what is it that you're all doing in real estate?

 

Absolutely. So for everybody out there, you know, welcome to the Roofstock remote podcast as you guys know, Michael, he's a champion of the people he's the one in the van rockin. But for us, you know me now it's we're the greatest broker Team roofstock has ever seen. That lightly, but I do mean it. I think we're very passionate about we, that what we do, how we present the products to you guys, as consumers. And as the educational base, you know, we're very thankful for the opportunity. So we represent a couple of markets here in South Carolina. It's where Alex and I are born raised. Alex, you want to add two cents on top of that, sir?

 

Yeah, I mean, obviously, our hometown is Columbia, really anywhere in South Carolina. That's where we have most of our experience. And you know, we love doing nothing more than trying to get out here and make some people some money and find some good deals. So our obviously our go to is going to be South Carolina areas. Love it.

 

And why did you guys partner up? And how did you two meet?

 

That's such a long story. But it's been we've been kicking it for, like 12 years. And and you know, and we're both we're both 32. So I mean, we were we were young lads and our ladies at the time were like best friends. And you know, Alex's wife was always talking to my girl about meeting Alex and I thought he was strange because he was like, a financially adept teenager, like Alex had his first house and like nine years older, or like, 19, whatever. Don't none of those. And meet Alex just kept kicking it in. You know, Alex was working at one of the top four consultancy firms. PwC. And I was out in Denver, sort of so notes and Alex, you know, hats off to him. He'd call me like, every week, checking up on me, and it's like, Matt, you know, we got to get new real estate, we have the potential. He really convinced me to move back to South Carolina. And fast forward five years. We have our own companies now.

 

Love it. All right, you too. Well, let's talk about Greenville and Spartanburg, South Carolina. It's a market that I'm not very familiar with. And so we're going to, you know, talk to me, li

Most investors are familiar with using conventional mortgages on residential property, but how do loans work in the commercial space, or after you have hit your 10 conventual loan limit? In today’s episode, Emil and Michael walk through what you need to know about using a commercial mortgage.

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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:

What's going on everyone? Welcome to another episode of the Remote Real Estate Investor. I'm Michael Albaum, and today I'm joined by my co-host…

 

Emil:

Emil Shour.

 

Michael:

And today we're gonna be talking about a topic that I've been getting a lot of questions about inside the Roofstock Academy and that's commercial mortgages and what do I do with I've hit my 10 loan limit on the conventional side. So let's get into it.

 

Emil, what's going on, my man?

 

Emil:

Hey, dude, how you doing?

 

Michael:

Hanging in there, traveling on the road. Hanging out, no complaints how you doing?

 

Emil:

As always…I'm good, I'm good man. Just ready to talk real estate and loans, conventional commercial. I mean, this is it is an interesting one, actually. Because I think when you're new, and you hear about like the 10 loan limit, you're like, what do I do after that? I remember being like, what am I going to do after that and then you learn a little bit more about commercial, you're like, oh, this isn't that complicated and it's really not that much more expensive from an interest rate perspective.

 

Michael:

Yeah, yeah. It's so funny, I hear the same thing all the time from folks like, oh, what I do, like, I can't get started investing in real estate, because what if I hit my 10 limit, like you have a little worry about that after you have 10 properties, like, that's a great problem to have and by that point, most people figure out an alternative source of financing anyhow, so.

So I just, you know, let's start by talking about what a conventional mortgage is kind of how it works, what the mechanics are of it, and then we can transition to talking about commercial mortgage. So Emil give me the breakdown of what a conventional mortgage looks like, and sounds like and what some of the terms are.

 

 

Emil:

Sure and please correct me if I incorrectly say any of this. So conventional mortgages, you know, your typical bank will loan these out, they are usually government backed, they come in 30 or 15 year amortization, meaning that is the life of the loan and the repayment period. What else am I forgetting here? You pay your I mean, do we want to get into like the nitty gritty like, most of your interest is paid up front, and then more, your principal is paid on the back end. So it's not like a linear payment through those 30 or 15 years, but…

 

Michael:

Not yet, I think that's perfect, man. So most people, when they go to their bank, they're gonna see their 15 year fixed, 30 year fixed, they also have ARMs, a lot of banks will offer ARMs, which just as an acronym for adjustable rate mortgage and you'll usually see that as a five one or a seven, one or a 10 one and that first number is just how long the interest rate is fixed for. So in a five, one situation, it's fixed for five years, and then it adjusts once per year, every year, is what that five one means and that amortization can either be a 15 year or a 30 year, I believe, but check with your lender see what options they have and just like Emil mentioned, the, it's like how many pieces the loan is cut into is the amortization, so 15 years, you're gonna pay 15 years by 12 months, or 30 years gonna be 30 yea

Michael Episcope is co-CEO of Origin, co-chairs the Investment Committee, and oversees investor relations, marketing, and company operations. Michael brings 25 years of investment and risk management experience to the company and believes that calculated risk-taking in inefficient markets is the key to building wealth. He frequently shares his knowledge with individual investors on Origin’s blog, Forbes, ValueWalk, and HuffPost, and his expertise has made him a frequent speaker on real estate investment panels and podcasts.

Michael learned about the physical aspects of real estate in his youth as he helped his grandfather manage his apartment buildings on Chicago’s west side. He began college at DePaul University and a year later was introduced to the floors of the Chicago Mercantile Exchange. He continued to work full-time on the trading floor for the next sixteen years while attending night courses to complete his undergraduate degree. After rising from runner to broker, Michael was given an opportunity to become a floor trader by a Chicago-based hedge fund, Tradelink, LLC, and then had a prolific nine-year trading career, twice named one of the top 100 traders in the world by Trader Monthly Magazine. Join Michael, as he walks us through his role doing ground-up multifamily development and discusses current market conditions and qualified opportunity zones.

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Episode Links:

https://origininvestments.com/

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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:

What's going on everyone? Welcome to another episode of the Remote Real Estate Investor. I'm Michael Albaum, and today I'm joined by Michael Episcope, who is the principal at origin investments and Michael is going to be talking to us today about his role in doing round up multifamily development in today's current market conditions. We're also gonna be talking about inflation, and qualified opportunity zones. So let's get into it.

 

Michael, thanks so much for taking the time to hang out with me today. I really appreciate you coming on.

 

Michael E.:

Thanks for having me, Michael.

 

Michael:

My pleasure. So I know a little bit about your background. But I would love if you could share just a quick and dirty Spiel who you are, where you're coming from and what is it that you're doing today in real estate?

 

Michael E.:

Yeah, how is the quick and dirty so I'll take you back. Well, I'm CO-CEO of origin investments were a real estate investment firm, located in Chicago, we primarily focus on ground up development in what we call the smile states tax friendly, climate friendly, business friendly states. Even though we're located in Chicago, we don't do any investing here and my real estate career if I want to, you know, take you kind of far back started God, I didn't realize this, but I was about 10 years old and I used to go and work for my grandfather in the summer and he was somebody who was pretty gritty bought buildings in the west side of Chicago and if anybody knows, the west side of Chicago, it's not a good area, it hasn't been a good area. Never was and he bought buildings out of tax sales and that was at a time when people didn't take pay their taxes, you can go in there and buy, I mean, a 25 story building for $100,000 and that's what he did and in order to run those, though, you had to be hands on you had to be gritty and so I used to spend my summers with him and, and then I had another friend too, that his dad was in construction. So I love swinging hammers and the bricks and sticks and putting up garages and things like that

Jaden Sterling is an award-winning, international Best-selling author of, “The Alchemy of True Success.” Creator of Wealth & Wisdom Daily Oracle Cards and founder of Sterling Stock Ed. Inc., an International stock investment program with hundreds of students worldwide. Sterling draws on 30 + years as a professional investor assisting people to become confident investors by simplifying the investment process. Prior to consulting, Sterling held title as Regional Vice President of Asset Management for Citigroup increasing sales from 100 Million to over 300 Million in two years. Sterling also worked as a financial consultant for Merrill Lynch and Smith Barney advising some of the wealthiest families in the United States.

Sterling’s passion and purpose is to assist people to take control of their finances and live life financially free. Sterling teaches via online platforms how to invest in stocks and how to buy and sell stocks via his software, “Sterling Stock Picker.” Join Jaden, as shares his story, his passion for teaching and helping people in real estate, what people need to be aware of going into their investment career, and an overview of his software, Sterling Stock Picker.

Episode Links:

https://sterlingstockpicker.com/

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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 Remote Real Estate Investor. I'm Michael Albaum and today I have with me Jaden Sterling, who is going to be sharing his story about going from equity stock investor, to real estate investor to now equities teacher back in the markets which he left but with a purpose this time. So let's get into it.

 

Jaden, what is going on? Man, thank you so much for taking the time to hang out with me that I really appreciate it.

 

Jaden:

Hey, my pleasure, Michael, happy to be here with you.

 

Michael:

Awesome. Well, I think we're gonna have a lot of fun today and I know a little bit about your background. But I would love if you could share with our listeners who you are, where you come from, and what is it that you're doing in the financial sector today?

 

Jaden:

Currently presently in British Columbia, Canada, absolutely beautiful up here and working in the financial realm. I've worked in this area for 33 years and finances and 11 years in real estate, and then the last 20 in the equity markets. So I'm super familiar with both and yeah, happy to be here with you and share some value with your audience.

 

Michael:

Awesome and so you're living up in Canada. But did you always work up there? Are you doing equities in Canada or in the states talk to us a little bit about that?

 

Jaden:

So I've been up here 11 years prior to that I was in St. Petersburg, Florida, where I built a portfolio of affordable housing units with the city of St. Pete partnered with them. We did 125 projects, and it worked out really well built a 12 and a half million dollar business in the real estate markets and this was even during the 0708 when it was really tough money was tight, super challenging, but got through it, thank goodness and but my background is steeped in the equity markets. My an initial training was in my 20s, I worked on Wall Street for Merrill Lynch and Citigroup and loved everything that I learned from my wealthy clients, not what I learned from the brokerage firms. That was actually kind of shocking in terms of what I learned about the equity markets and how the system is rigged and it's rigged to make the wealthy wealthier, and the firms are situated in a way to make money off of

Omni Casey has been a real estate investor, broker, and coach for nearly 20 years. His real estate career started in Hawaii where he grew up. Over the last 10+ years, he and his family have lived in Northern Virginia and have been very active in both growing their real estate investment portfolio and growing a top-performing real estate team and office in Loudoun County Virginia. With a passion for building wealth and helping others achieve financial freedom, Omni has coached hundreds of real estate investors, real estate agents and clients alike to create and execute a plan to grow their real estate business, grow their investment portfolio, or both.

With a hyper-focus on building wealth and passive income through real estate investing, Omni is committed to helping as many people as possible stop needing to earn money, and start down the path of creating money, and setting up what he calls "PIFL" or Passive Income For Life. Join Omni, as he talks on the subject of passive income and rental properties. He will share his story, and what people need to be aware of going into 2022 with their investment career.

Episode Links:

https://www.omnitheinvestorguy.com/

https://www.instagram.com/omnitheinvestorguy/?hl=en

https://www.roofstockacademy.com/

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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:

What’s going on everyone? Welcome to another episode of the Remote Real Estate Investor. I'm Michael Albaum and today with me, I have a guest Omni Casey, who's an investor, broker, author, coach, and he's gonna be talking to us today about what his story has looked like, and what people need to be aware of going into 2022 with their investment career. So let's get into it.

 

Before we get to the episode, let me just give a quick shout out to the Roofstock Academy, which is a one stop shop for all real estate investors independent of where you're on your investment journey, whether you're just getting started, or a seasoned investor, our program offerings have access to over 50 hours of on demand lectures, one on one coaching, private slack forums as well as a plethora of other things. So come check us out at roofstockacademy.com and all of this is backed by the way with a full money back guarantee. So there is no risk to you for just coming in trying it out. We hope to see in there.

 

Omni Casey, what's going on man, thank you so much for taking the time to hang out with me today. I really appreciate you.

 

Omni:

Okay, super excited. Thanks for having me on.

 

Michael:

Oh my God, my pleasure. You've got a really interesting story and we were chatting a bit about it just for hit record here but for all of our listeners, give us the background who are you? Where do you come from? What is it that you do in real estate today?

 

Omni:

I'd love to um, Omni Casey is my name, I am originally from Hawaii born and raised in the islands and I don't live there anymore, migrated out to East Coast just outside of DC Northern Virginia about 10 maybe 11 years ago but started in Hawaii very entrepreneurial family, got into real estate investing fairly young. That wasn't my first business venture but it turns out that you know, real estate's a really cool business I love the business aspect of it I just always knew I wanted to be an entrepreneur business owner and eventually got into real estate investing real estate brokerage as well side of things so just all things real estate for the last 20 years it's been my passion and for the last few years I've been nominated the investor guy I do some coaching we run

As a founding partner of JWB Real Estate Capital, Gregg Cohen has seen the company grow from humble beginnings to serving over 1,300 clients in 49 states and 13 countries, managing over $750 million in real estate assets. Gregg’s recipe for success in business includes a belief that whatever is measured gets improved and a true passion for creating passive income for clients. He and his team have been featured in The Wall Street Journal, Inc. Magazine, The Jacksonville Business Journal, The Florida Times-Union, Advantage Business Magazine, and Entrepreneur Anchor Magazine. Gregg is a graduate of the University of Florida and contributes to the JWB Real Estate Capital blog and its Facebook group connecting with the community by sharing insights.

Rental properties can be a great source of additional income, but committing to that first one can be intimidating. In this episode, join Gregg Cohen, as he talks on the subject of passive income and rental properties. He discusses the strategies for taking advantage of secondary income through real estate, the pros and cons of turnkey solutions and how vertically integrated companies can produce great results for investors. A great episode to learn from if you’re looking to get into investing in rental properties. Episode Links: http://jwbrealestate.com/ https://www.jwbpropertymanagement.com/nyai-show/

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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:

What’s going on everyone? Welcome to another episode of the Remote Real Estate Investor. I'm Michael Albaum, and today I'm joined by Gregg Cohen, who's the founder of JWB real estate capital and he's gonna be talking to us today about vertically integrated companies, turnkey solutions, and what investors should be aware of when it comes to investing in the Florida market. So let's get into it.

 

Gregg Cohen, welcome to the show man, thank you so much for taking the time to hang out with me really appreciate it.

 

Gregg:

Absolutely can't wait, man.

 

Michael:

I'm really excited because you've got a really interesting story and background. But for anyone who doesn't know, give us the quick spiel who you are, where you come from, what it is, you're doing real estate.

 

Gregg:

Yeah, absolutely. So my name is Gregg Cohen, I run a company here in Jacksonville, Florida, called JWB real estate capital. We're here to make rental property investing easy for the masses out there, which, you know, most people see rental property investing as an opportunity to make money to make a great return on investment. That's not usually what holds people back from it. What's usually the thing that holds people back is the experience when it comes to rental property investing. So we really built our business to make this a wonderful experience. It keeps people coming back to be able to take advantage of an asset class here, which, you know, historically has performed so well, and especially for what our country has been through over the last couple of years, has performed incredibly well. And I just think that there's real value for families and communities, when you can invest in a stable asset class that performs well over time. You can do some really great things for your family, for the community for the world.

 

Michael:

Totally agree. Just out of curiosity, what is JWB stand for, where does it come from?

 

Gregg:

Oh, man, how far do you want me to take you down this path? We've been in business for 16 years and like any other entrepreneur, we didn't know exactly what we were doing when we started right. You k

Common issues when working with property managers are the fees associated with repairs, a replacement might be better than a fix. What do you do if your property manager makes a decision that costs you more money? In this episode, both Michael and Emil share recent stories where this happened to them and what they did to address the situation.  

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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.

 

Emil:

Hey, everyone, welcome back for another episode of the Remote Real Estate Investor. My name is Emil Shour and today I'm joined by…

 

Michael:

Michael Albaum.

 

Emil:

And on this episode, Michael and I are going to be talking about something that's very common to new and seasoned investors, which is, what do you do when you get a charge on your property management statement that looks a little too high? What are the steps you should take? How should you handle it with your property manager to make sure you're not getting ripped off? So let's hop into this episode.

 

Alright, Michael, you've been at this for a while and I feel like this by still happens to you, right? You see some charges on your property management statement and you're like, hmm, this seems a little more than either I'm used to or that I know this should cost, so I'm curious. What do you do, when you see one of those charges? How do you handle it?

 

Michael:

Yeah, so I see it. Not all the time, thankfully, because if I did, I might be with the wrong property manager. But I've seen it enough times to get frustrated by it and so it's as simple as sending an email with a copy of the invoice that I'm questioning or that I have an issue with, or picking up the phone or having a phone call with the property management saying, hey, this seems too high, this seems excessive, you know, whatever, whatever the words are that you're feeling, send that to the property manager and see what they say. I had an instance where I sent that to a property manager and I said, hey, these plumbing charges seem really high. What's going on? They said, oh, it was an emergency call. There was someone else that could do it, this that the other thing. So it was in this instance justified.

 

But that was all details that I don't have looking at the at the portal, right. So it's all kind of supporting evidence, supporting details that you get from the property manager, because they are there physically, locally doing the stuff and so I think it's important not to get all up in arms and not to get accusatory, but just say, hey, this doesn't look quite right to me wanted to get find out a little bit more about it, then you can take it to the next level. Just recently, I had a property manager get a quote for to replace a furnace. It was like 3800 bucks to replace it and I was like, whoa, that seems really high. Can you please go get another quote and I had them get a quote from a company that's doing a bunch of work for me up the road, and they were like, we're too busy to quote it. But at that price seems totally reasonable and like, sweet, thanks for doing that. It seemed high to me, but that's just kind of the going rate in the area, we found a cheaper rate from another, another vendor, but they're known for not doing the best work. So it's like, you know, in this instance, yeah, the cost is high, it sucks. But that's just what it costs and especially now because things just goods and services tend to cost a little bit more prior to doing business. So again, find out the details, find out what's going on, and then have a conversation around it. But I mean

With all the current uncertainty in the markets, recent interest rate hikes, and the fed’s talk of continuing to hike rates through out the year, the decision to refinance should be made carefully. Why are you trying to refinance? For cash out? To lock in a rate? To take advantage of current rates before they increase even more?

In today’s episode Emil, Tom and Michael discuss what they think is important to consider before deciding, and Michael shares his recent experience with a lender backing out of a deal.

 

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.

 

Emil:

Hey everyone, welcome back for another episode of the Remote Real Estate Investor. My name is Emil Shour and today I'm joined by my co-hosts…

 

Tom:

Tom Schneider

 

Michael:

and Michael Albaum

 

Emil:

…and on this episode we're going to be diving into refinances. Is it too late as rates are going up, or should you do it now or what's what do we all do it? So let's hop into this episode.

 

What are we doing with our lives? Hey, guys. Hey, Tom, welcome back.

 

Tom:

Yeah, yes. What’s up Emil, what's up, Michael?

 

Emil:

How you doing?

 

Tom:

Excellent, excellent. Hey, but a quick, quick personal note. I was been working in my garage trying waiting to build this little lot of land and I started getting lightheaded and I realized that there is some just kind of like, toxic fumes in my garage. So back in the house, so apologies if you hear some baby noises while we're waiting to build out the exterior office. That's my yeah, I am doing good man, not not lightheaded anymore, so…

 

Michael:

and the baby's not in the garage?

 

Tom:

….Right Dukes of Hazzard area. Yeah, we switched babies in I mean, it's good young lungs, like they feel.

Obviously…

 

 

Emil:

Did you have the gas company come out and like, report on, what's going on?

 

Tom:

I did, they gotta have to come back again. So they came out, I mean, there's like two like gas entry points into the house. There is like a little further away the house like, like a little gear thing you tighten and then next to the house, there's the meter. They replaced all the meter stuff and I think it helps, but there's still stills of issue. So anyways, don't want to go too deep into that rabbit hole, yeah…

 

Michael:

Never a dull moment with Tom Schneider.

 

Emil:

Alright. Well, I'm glad you are alive, your brain cells are hopefully intact for this episode and yeah, let's get rolling. All right, so we're recording this, it is April 11. Interest rates have been climbing pretty quickly. I think I'm hearing four and a half 5% plus, when we were in like, you know, I got to 2.8 on my primary back in November, so four or five months, pretty crazy how quickly rates have gone up? And Michael, I think you have some pretty interesting going on you were in the middle of a refi currently. And give, I'm not gonna put words in your mouth. Go ahead, tell us tell us what's going on.

 

Michael:

So not even in the middle of a refi, I was at the end of it, I was supposed to close today and the lender calls me he goes, hey, Michael, we're not going to be able to do this loan. I'm like, what do you mean, we're not gonna be able to do this loan, he goes, yeah, at the rate that we locked you out, we're, we're not going to be able to do it and so basically just give everyone a little bit of context. I started this investigation like three months ago into getting 30 year fixed mortgages for multifamily commercial property. So five units and up, and I found a lender that would do it and I was making them compete against other lender

The yield curve has inverted, inflation is way up, interest rates are rising, the geopolitical environment is tense, the talking heads warn of hard times ahead. What are you doing to prepare? In today’s episode, Emil and Michael share what they think about our current moment and what they are doing to prepare.  

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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.

 

Emil:

Hey, everyone, welcome back for another episode of the Remote Real Estate Investor. My name is Emil Shour, and I am joined by…

 

Michael:

Michael Albaum

 

Emil:

…and on today's episode, we're going to be talking about what we're personally doing to prepare during these uncertain times. So let's hop into this episode.

 

What's up, Mike, are you are you on the road again?

 

Michael:

I am on the road again, we accidentally rented out our bottom unit of our house hack, which is the one we live in. So we're like, well, let's just go on the road for a month and a half. So we're back in the van hanging out on the Central Coast and headed up to Oregon to hopefully get some spring skiing in.

 

Emil:

I love how you use the word accidentally rented our place, like totally accident.

 

Michael:

I mean, it was a total accident, total accident.

 

Emil:

We just woke up one morning and our places rented and here we are.

 

Michael:

I mean, that's kind of how it happened. Our upstairs tenant was like, hey, I want to stay longer and we said, oh, we will rent I mean, your units rented out 20 minutes after you leave not really that soon, but a couple hours after for cleaning and stuff and she goes well, what if, what if you just rented your space out to these new people? You think they would want it and so and my wife's pointing at me, she's like, it was my idea, Michael. So she was like, my wife, Claire suggested, why don't we rent out the bottom unit to these new people. I'm giving our upstairs tenant way too much credit and I FaceTime with new people and they're like, oh my god, that actually works out way better for us. Our daughter wanted to come with us. So having an extra bedroom or two would be fantastic. So we said okay, great. So we said we'll get out of town. Got back in the van and now we're on the road again. So we've got both units rented out now and they are cash flowing in California Bay Area, which everyone said was not possible to do.

 

Emil:

Boom, baby there it is…

 

Michael:

Yeah. What about you? What do you got going on?

 

Emil:

I'm freshly shaven. I feel like I'm never freshly shaven on our podcast.

 

Michael:

It's looking good.

 

 

Emil:

Thanks, man. Very smooth.

For our YouTube viewers and nothing just dropped my daughter off at preschool. So yeah, just mela morning for me.

 

Michael:

Nice. Well, I'm super curious to get your insights into this episode.

 

Emil:

Yeah, I feel like you and I are doing different things right now. But hopefully there's some overlap and I think it's I think it'd be fun to just see what you and I are, are doing as things are a little uncertain. Do you feel like that's the right term to use right now, just uncertain, hard to say where we're headed? What's going on? What could happen in the next six to 12 months?

 

Michael:

Yeah, I think so. But I mean, in taking a step back and thinking about just like the economy at large and the past couple years, I feel like things are like always uncertain. No one predicted the pandemic, no one predicted that the pandemic would have this effect on real estate. So we turned back the clock, you know, 24 months, 28 months. People like oh, yes, things are certain,