How to Become a Millionaire on an Average Salary | 5 Keys

this is the bigger pockets podcast episode five one niner this voice sounds so familiar do i know you and did i just catch a niner did i catch a niner in there what do you call him from a walkie-talkie so i thought today we could kind of go into how someone else can attain that and reach that my husband i never combined made over a hundred thousand dollars with my w-2 and his farm income we were able to reach that net worth with real estate you're listening to bigger pockets radio simplifying real estate for investors large and small if you're here looking to learn about real estate investing without all the hype you're in the right place stay tuned and be sure to join the millions of others who have benefited from biggerpockets.com your home for real estate investing online what's going on everybody this is david green your host of the bigger pockets real estate podcast here today with my co-host the one the only the lovely ashley care of the real estate rookie podcast ashley how are you today good uh are you surprised to see me today well yes so i tune in and i'm expecting to see the bearded wonder himself and instead i'm getting a much nicer better looking and frankly smarter version of him and as i'm trying to figure out like has brandon been going to a salon is he getting some self-care what's going on i realized it's not brandon so what happened yes he did not shave his beard off uh brandon and i are actually at a self storage convention in coeur d'alene idaho right now and brandon is just downstairs right now enjoying the lunch hour and sent me up here to take over for him well it's our gain that you're here so thank you very much for uh doing this today ashley and i are going to get into her story so we're gonna be learning about the five keys that ashley brings that help you become a millionaire making less than a hundred thousand dollars a year at your w-2 job this episode is full of knowledge bombs i mean i said that over and over and over really good practical content this isn't just one of those feel-good stories although you will feel good it's very practical and will make you money if you take what we're talking about and apply it so make sure you listen all the way to the end because i had a great time with you ashley before we get into the show i'm gonna have ashley introduce our quick tip for today yeah so if anybody is a rookie investor or wants to get their first property biggerpockets is actually hosting a boot camp where you can learn uh in 90 days over three months you can learn how to get started in real estate and basically taking you through the steps how to you know analyze a market how to analyze a deal how to build your team everything you need to know there's going to be videos provided by me going over this content and then we have weekly live sessions where we just do q a and then there's a slack channel where you can network with anyone and ask me questions so if anybody is interested we're going to link in the show notes where you can sign up to get to the on the wait list for the next boot camp so make sure that you check that out the rookie boot camp what do you think ashley should we get into the thing and uh start our conversation yes let's do it miss ashley care so nice to have you with me today yes thanks so much david it's very exciting going from being a guest on the podcast to co-hosting with you today yeah so which number was the first episode where you were interviewed on bigger pockets it was uh number 348 and uh we talked about just my investing journey and how to get started as a new investor so this is really cool because i think everyone listening should go back and listen to 348 and hear about how actually got started and now we have some pretty cool news to share some congratulations on order you recently hit a net worth of 1 million dollars congratulations on that thank you so much yeah i hit that um almost a year and a half ago now maybe almost two years actually uh so i thought today we could kind of go into how someone else can attain that and reach that my husband and i never combined made over a hundred thousand dollars with my w-2 and his farm income we were able to reach that net worth with real estate so i'm a little late to the party apparently this has gone on for a while but i do think that it's cool that people can hear from when someone started out to where you are right now and sort of see the evolution that you've taken because a lot of people look for that path that they want to follow i think most of us take inspiration from a certain person we heard on the podcast or on youtube and we say hey i could do what they did or that person resonates with me so i know you have a very big appeal there's a lot of people that you resonate with i think this should be really fun and then for those of you who don't know ashley is also the host of the real estate rookie podcast along with tony you want to share a little bit about what your show is like and what people can expect if they hear that well it is the best real estate podcast out there i would say the number one so if you guys haven't listened to it go check it out but we primarily focus on rookie investors so if you want to get started or you're just beginning we really break down the fundamentals and we bring rookie investors on who have done less than 10 deals so it's really fresh in their minds as to how they got started and then they share that with you and then we do have uh you know experts on two to to share with rookies uh we recently had on uh an asset management and planning attorney and that has been like an awesome episode so if you guys want to go check those ones out but um just learning how to have that asset protection now as a beginner and a rookie so we do kind of special episodes like that too what do you think is where do people get the most value out of listening to your show like who's the ideal person that should be listening to that so it would be somebody who is just getting started in real estate they don't know anything about it yet start from episode one and just listen to all the episodes also somebody who's maybe has one or two to five deals and they don't know what that next step is they don't know if they should pivot they should stay on the same track um usually we say like under 10 deals you're kind of still considered a rookie or within your first year to two of investing uh but there's definitely stuff to learn even if you're an advanced uh investor too you know i think when i look at my own investing career there was many different times where i would pivot or start a new phase and i became a rookie all over again so it could be one market now you go to a new market you're starting all over you're in single family you get into small multi-family or multi-family you want to start flipping houses there's all these cool things that we're all interested in but you're always a rookie when you start the new thing so that mindset is very important to get and just maintaining that humility that oh you just you never know everything and you're always making mistakes you have to be comfortable with the fact that you're doing that but continue to take progress so i like your guys a show i think you do a good job and you actually had me on there as a guest that was a lot of fun i hope we can do that again yeah we'll see maybe i'll put my application in and i'll keep bugging you know it's actually up to my producer i really don't have a say so those producers are really the ones running the show oh one more thing though i wanted to add about people listening to the show is and the same with this show too is even if you're looking for motivation and inspiration not even advice or anything that you just need real estate is a roller coaster so sometimes hearing these rookies that are starting from zero and then get their first their second deal can really jumpstart you and motivate you and i think that's one of the best parts of me getting to be a co-host of the rookie show is that i get to experience that firsthand almost every single week and it definitely keeps me on track and keeps me moving too that's awesome okay tell me a little bit about where your portfolio is at this stage in your investing career so i have 33 long-term rentals buy and hold i have one airbnb arbitrage it's an apartment that i actually rent and then airbnb it out and then i have uh two commercial units and then i have a mobile home park under contract that's a lot how much of that has happened in the last couple years uh so i think i probably added maybe 15 units maybe i also did like my first accidental flip i got the mobile home park learned about phase one and phase two environmental studies i had a self-storage facility under contract that just recently fell out of contract because of the environmental issues and um then running a liquor store starting that out that's cool so now you've got the like the business component to real estate to add that in there too so now ashley are these all in one geographical area or are they sort of scattered around yeah they're actually all within 45 minutes of my house so and i didn't even intend for it to be that way but it just happens that that's where the deals have been for me and i i have done i've looked outside of new york into texas california and different places and then as i may be about to purchase something out there something comes up close to home and it's just easier for me because i know the market so well and it's easy for me to make cash offers and to move on and i have my team there so really it's just it's been a good opportunity so far so i'm just sticking with it what about you have you done any new markets or anything different you know i spent the last three four years not buying a whole lot of property because i was building up the businesses that i'm running so that the david green team real estate team uh the mortgage company i just started the one brokerage so i was sort of like learning how to be a businessman and now i'm actually making some pretty big moves and i don't get a chance to talk about it very much because we're usually interviewing the guests and so i appreciate you asking that um so far this year i've bought two short-term rentals in maui those are both doing way better than i was expecting and i got really lucky i bought those during the pandemic when nobody else was buying and just in the time they were in escrow they each appreciated over six figures it was pretty incredible how fast that turned around did you have to build a business to run those short-term rentals or did you kind of already roll it into the management of your long-term rentals that's funny that you ask it was a very rough start getting going because i was trying to use people that are on my other businesses to run those and they just didn't do very well so like most things that happen it's like one key hire or the right person whether it's a contract or a property manager for me it was a higher name karen who stepped in and just took over she's she got everything going and we got him up on airbnb pretty quickly and you know when you get the right person in there it's like this is not hard when you get the wrong person in there everything is hard so there was a little bit of a struggle going on with that and i just wasn't paying a lot of attention to them because i was looking at other things so um now like that that systemized i can take that there's not very much to it i thought there'd be a lot more to short-term rentals than there are and i can buy in other areas so i am selling 25 or 26 properties in florida and i'm going to 1031 that money into more properties and more debt so i basically am looking at what's going on with the fed and kind of like the market in general i don't think a crash is coming i think the opposite i think we're going to see an even bigger increase in prices i think that with the money that's being put into circulation with the squeeze on like hedge funds and institutional investors that they need a return but they're moving into certain markets just buying a ton of property there's a shortage in inventory so what i'm looking to do is sell a house say for two hundred thousand dollars take maybe a hundred thousand dollars of that gain and then put that down on a 500 000 property that's a very general understanding but i basically want to take on more debt and owe more money and pay it back with cheaper dollars as inflation comes and move into better areas just markets where i think we're going to see more appreciation i can get a higher quality tenant and more of the short-term rentals and just have a back-up plan that if something happens and i can't rent this as a short-term rental that there's a corporate housing backfall or i could rent it out as a long-term rental and i could make it make sense so i'm kind of gearing up if people have deals out there that they think would work for that please send them my way because i'm going to be going on a buying spree here pretty soon and then i don't have any markets in mind that you're looking at where you do want to buy in yes i'm looking at tennessee florida texas those are really big areas in arizona so basically just so you guys understand my strategy i want to go buy places i think californians are going to move to because every time california's move somewhere we drive the prices up way high and it forces appreciation everywhere so i'm looking in the tampa orlando area some of the vacation areas in florida so like the space coast that little area um the smoky mountains in tennessee avery carl we've had her on the show a few times i'm working with her team and looking for some properties as well as some other areas like kind of around nashville and then uh the scottsdale mesa gilbert area in arizona and then in texas like sort of the dallas area and then i'm sure more stuff is going to pop up as they go yeah i uh we just had avery carl on the other uh rookie show too and she has her new short-term rental book uh so if anyone does want to learn more about doing short-term rentals you can check that out at the bigger pockets bookstore too david what else is there anything else you have going on besides working on that 1031 exchange um i bought a commercial property my first triple net in minnesota and uh that one's pretty solid i bought it outside of minneapolis my thoughts were there's a lot of sort of like political unrest right now in minneapolis and certain people are moving in certain people are moving out but a lot of the businesses that have been going through like the riots that are going on there have the people don't feel comfortable working in that area so they're sort of moving into the suburbs then i bought a big commercial property where people would go put their business and so that's been filling up with tenants and that was pr that was the biggest deal i ever bought i've talked about it briefly i don't know if i ever have on the podcast but it was a 16 million dollar property and i've i've told people before i'm back to being a rookie buying that deal right you get that same like this is triple net can it really just be that simple what do you have to make sure you get right with these deals i've mentioned before that the mortgage is eighty thousand dollars on that so you can't get that thought out of your head you're just like eighty thousand dollars it's like a butt pucker number that you should constantly get nervous but even me who's been investing for a long time so i had to go through all those same rookie emotions and reminding myself that the numbers make sense and needing a lot of reassurance that i was making the right decision so that was a that was definitely a unique experience that i went through this year yeah that's definitely a mindset shift of going from like larger scale properties that cost more i had that kind of recent too i mean the most expensive property i bought was a six unit for 150 000 and then all of a sudden this summer i had two properties for over 750 000 under contract and the self storage one fell out but i'm moving forward with the mobile home park but that was like just a huge thing for me i had never even come close to that amount and really it came down to like you said do the numbers work but also the ratio of what you're paying compared to what the rental income to what that mortgage payment actually is so like you said the mortgage payment is 80 000. well maybe your rental income on that is and sixty thousand so you know it's it's looking at that ratio too of what are the chances that that whole unit is uh vacant and you're not going to have any rental income at all to and that was the key yeah what are the odds that every one of these is going to go vacant and really what helped me get over it just emotionally was knowing that the bank was providing 80 of the money they were taking a bigger risk than me and they felt good about that deal and i think we forget that sometimes you're getting into commercial property that your bank is your partner in this case because they were the lender they had smarter people that had done this a lot longer than i have done that looking at that deal and saying it looked good and it sort of verified or validated okay right like my gut told me the right thing now i just need to get over the fear and i forgot to mention i have a property getting ready to close in a couple days here in the bay area of california and you reminded me of it because i'm buying it for a little under 1.9 million and that would normally just be oh my god how could you spend that much money on one house moment right but because our clients are constantly buying houses in that price range and i'm seeing it all the time that number did not scare me when it was in the bay area in a market i'm used to right there's no objective reason why 1.9 would be good or bad it's just an emotional hit that you get when you see like you like you said i've never bought a house over 150 000. 1.9 would feel like this real big scary thing but it didn't feel that way for me just because i'm used to it i see people paying those prices and i see them going up in value and really there's less risk in this deal this is actually a deal as crazy as this sounds that i'm buying as like a safe play there's so much rental demand in that area i'm sort of preparing for that property when i first buy it to just break even i don't think it's going to cash flow very much it's got two four car garages that are on the property that could be converted and then it will cash flow but i know there's going to be so much demand in that area because so many people want to live there that i'll never have to worry about a vacancy so something that i've i've learned as i've gone in my career is that bigger prices feel scary but in many situations they're actually more stable buying that 50 000 house that feels safe in a terrible area that leads you to massive vacancy and big turnover and stuff that becomes really expensive there's this like catch-22 or maybe not that's not the right word but there's this irony to what the price feeling being smaller feeling safer actually works the other way and oftentimes the more expensive properties you end up with more solid tenants that have better financial backgrounds and they're less risky i have a great example of that i bought a portfolio from an investor and there if i wanted the golden goose properties he called it i had to take this little duplex and buy it for 17 500 i mean it was tilted you could tell that it was crooked there's so many structural issues well it had a tenant in the downstairs um that you know was hoarder but she paid every single month on rent she didn't want anybody to come in and touch the unit nothing done to it she was content so i kept it for almost two years and then in the upstairs tons of turnover tons of damage and just a lot of upkeep and repairs and it was a cash cow i mean it cash flowed i think almost 600 a month and it was only cost me 17 000 to get into it and um but it was just a headache a headache property and so i ended up selling it and it sold for 60 thousand in three days with four competitive cash offers and it's just like now is the time to get rid of those headache properties if you do yeah that's i think that's really smart when the market is is hot and there's demand for properties that's where you unload the stuff that's not as good and that's one of the reasons i'm selling those florida properties i have a couple dogs in there the majority of them pretty solid but this is the easiest time ever to sell a dog when the market is down it's very difficult on all those you'd almost have to pay people to take them off your hands and so every market has a play to be made just like you know in sports there's always depending what the defense gives you there's a good play that you can run against that so right now i'm looking to buy in areas where i think we'll see appreciation i'm looking to get rid of the stuff that isn't appreciating as much i'm looking to take on more debt and i'm looking to be a little bit more aggressive with what i'm doing and then i guess the other thing that's kind of new is i started the one brokerage and we're now doing a lot of loans for investors that can't get traditional financing so we also do traditional stuff but i would say where i put more of my focus was if like ashley if you wanted to buy a property and you have too many to get a conventional loan or your debt to income ratio won't support it because you have too many properties and you can't show the income that's the case a lot of the time when you get into this we have loans that the lender will look at the income the property is going to generate and use that instead of income of the borrower so i've been putting a lot of time into kind of getting that word out there making connections with people that are buying properties like we are uh funding their stuff so that more people can buy properties because i i just have this gut feeling that we're gonna see such a run-up in prices that if you're not wealthy you won't be able to buy real estate at all and that's heartbreaking because real estate has always been the one way that like the little guy or little girl little gal can make their way to the top you can become a millionaire through real estate investing where you couldn't do it in the corporate world nearly as easy so that's probably a really good transition for us to get into just exactly what your five keys are to becoming a millionaire while working at w-2 where you make under six figures yes so i i started as a property manager um working for another investor and just kind of learning off him and seeing what he was doing and that's what kind of got me my start and i started off first of all paying off all my debt so we paid off all our farm equipment all my student loans everything like that i would just dump my w-2 and my little bit of cash flow to all of those payments so just the first like just setting those foundations those fundamentals in your own bit and your own money like managing your own finances before you jump into real estate can be a great start to or doing that as you're you're investing in real estate um but the first thing i want to talk about for this for the fundamentals is being a woman in real estate investing and you hear a lot of times about you know the glass ceiling and how um you know there's so many men uh that are investors and not a lot of women and it's a disadvantage but i really see it as an opportunity and i'm sure that there's people that have encountered uh situations or scenarios where it has felt like it hurt them being a woman and not a man as a real estate investor but for me personally i try to flip it and i try to use it as an opportunity so the first thing i look at is being the co-host of the real estate rookie podcast if i was a man i probably would not be the host of the podcast because i would be competing with tens of thousands of other men to be on there but since you know i don't know this for sure but i'm sure they're probably looking for a woman and a male to co-host together so there was a lot less women that applied for that position because there's a lot less women that are in real estate investing so then i look at the networking side of things too that i think that there's this little like bit of interest because i am a woman real estate investor where people might be more interested in talking to me because i have i am a woman and i started investing in real estate so i've kind of built a really awesome network of people um i got to go to brandon and tarl's maui mastermind before and i feel like if i was a male i wasn't doing anything exciting or different than anyone else um so yeah i think that if you are a woman and you are investor you're starting out look at look at it as an opportunity that you are one of very little people that are doing this industry and that is awesome that's cool that's a thing to be super proud of and i had um seen uh cody sanchez had uh sent they'd put out this article about how some women kind of play a victim card have the victim mentality and i completely related with that i think that as a woman you should you should take it as an opportunity and an advantage uh being in an industry where you have so much potential because you are and in the corporate world it may be different because you have bosses you have restrictions but in real estate you don't have those limitations at all it's such a beautiful perspective that you're taking with that because i like what you're what i hear you saying is you're a novelty in a sense there's there's something that will catch people's attention and make them want to know more about what's going on and it i i've heard a lot of women say well it's hard to be taken serious as a woman when you're talking to other investors and i do believe that that is how they are experiencing the interaction so some woman who's new to real estate investing goes to a conference they try to go talk to like the big dog of the thing and they sort of get dismissed and they if i was a guy they'd take me more serious but it also could be a lot of men feeling that way because they've never bought a house and they're being dismissed just the same because they're a rookie right and so if you're looking to see it as this person doesn't take me serious because of fill in the blank that will become your truth and then you will behave as if i don't belong here i shouldn't do this this isn't going to work versus if you look at it like well every other new person here is getting treated the same way i'm not any different you might have even got that person's attention because you stood out from all the other guys that were there that all look exactly the same right you see a room full of bunch of white dudes in nice suits wearing a shirt like i'm wearing right now and you're just one out of a million versus there's something different about you you can get more attention so i love that you're taking that perspective is there any advice you can share on how to use that uniqueness about you know being a woman in real estate but really this works no matter where you are if you're not the norm if you look a little bit different or appear a little bit different how you can use that to make better connections or work to your advantage yeah one thing you just said there was if you are a woman and you're at a conference or something and you go up and you talk to the the big dog the big shot and if they do make you feel that way that they're not taking you serious then you're talking to the wrong person because there are a ton of big shot you know male investors out there who will give anyone the time of day no matter what they look like so if you really do think that that person is making you feel that way there's definitely some mindset to it but um you're probably talking to the wrong person then and that's like another thing if you are working with contractors and you feel like they're not taking you serious i think that's a huge advantage right there being a woman because you're going to know up front that that person is going to try to scam you or try to take advantage of you and then you know not to hire them where say david goes hires a contractor and they give him the quote and stuff and everything seems good they might not try and you know do something shady until david's not around but if they're already trying to take advantage of you as a woman well then you know they're you don't work with them you have an advantage right there that you they showed their cards right off the bat yeah yeah so that's a great point i think just using things like that um are an advantage one thing i have done before is if i am like having a discussion with somebody and i feel like i'm being pressured to make a decision i will use the excuse well let me talk to my business partner he wants to be involved there you know let me talk to my husband or something and that's like it's amazing how acceptable that excuse is to delay giving a decision because it's oftentimes thought that i'm not the decision maker anyways so i think that's an opportunity where if a guy was to say well let me talk to my wife it'll almost be like laughed at like oh you guys are going to ask you don't know you don't know what you're doing here you need your wife to tell you that's a great point i love that you know one thing i've noticed when you're selling houses there's typically more female realtors than men and at least in the world i mean they usually do better and as you were talking i started it sort of dawned on me that part of that is guys are less likely to share our vulnerability we don't want to tell our buddies i'm going bankrupt i can't make my payment um i'm screwing up or something happened right whereas in general not everyone's the same but i think in general women are more likely to talk about what they're feeling and share what they're going through with their friends and so if you are a woman investor and you have that dynamic in your in your sphere of influence people are way more likely to say so and so is going through a divorce right or so-and-so's husband just lost her job or she just lost her job and they don't know what they're gonna do with the house they're trying to keep their kids in the same school they'll share this information which is smart like guys should do this more we don't and it gives the woman who's in that position sort of the inside track they know about that deal before everyone else do and i think that's why realtors that are that are women and not just any woman right but like there's a dynamic like a personality that they have and they give you that feeling like you do ashley where i feel like i can trust you right there there's definitely like a warmness that totally gives you an advantage because you're gonna hear it that's probably one of the reasons that you get so many deals near where you live because everyone that knows you likes you and they're more likely to say hey did you know that so and so's farm is going to be going up on the auction block or something and you kind of get there first would you agree that that's sort of like one of the reasons you think you get deals close to home yeah and really word of mouth referrals has been like the best lead lead source for me is generating deals and my mobile home park that i have under contract that was actually a friend from high school we've stayed in touch he has a business and he heard that somebody wanted to sell their mobile home park and he called me he's like hey would you be interested you know and uh just like that he thought of me first was um was awesome and i didn't even have to you know compete with anyone it was never listed there was no other buyers it was just i got the first chance at that so yeah that was uh pretty cool yeah and in my experience sellers don't see blue or pink they see green so if you're bringing the best deal to them and you have the best solution then they they're probably going to go with you and one more thing too if there is if you are a woman and you so and there are men out there that maybe do think that like you can't do as great because you are a woman or whatever that belief is that you have then use that as an advantage and ask them for help let them you know use their big ego to help poor little you to be so good into this you know great investor and make them feel good that they're helping somebody that you know has no idea what they're doing take advantage of that as an opportunity too you're giving some gold nuggets here because as i'm thinking not only am i a band but i'm expected to be the real estate expert in everything so i often end up in that rookie situation like we're talking about and i don't want to admit i don't know how this thing works i'm hoping you will teach me or there's some embarrassment if i have to say to the person who looks up to me hey can you tell me how this market works or what type of properties would make sense here all the stuff i write in a book and i tell someone else to go do when i gotta go do it it's kind of embarrassing so sometimes i don't but like you said you can just play that oh i don't know how this whole can you tell me what i should look for in this house yeah that is really good so and one thing too is there's so many women community landlord groups and investing groups too out there where i mean there are some groups that are just for men but there are so many free groups that are just for women investors that you can take advantage of too if you want to to network more with other women yeah biggerpockets actually has a podcast specifically geared towards women the invest her not investor podcast so that's definitely like when you listen to those two talk they're they don't sound like like they don't know what they're doing it doesn't bother them that they're women those are confident knowledgeable mature like i would listen to advice from either of those two so i if you're a woman listening to this and you would like that perspective you want more about what ashley has definitely check out the investor podcast all right so seeing being a woman as an opportunity it was the one of the first keys to becoming a millionaire making less than a hundred thousand dollars a year what would key number two be it would be using creative financing so when i started i think we had like maybe eight thousand dollars in savings and we ended up using about maybe five thousand of that for the rehab on the first property but i found a partner and the partner brought the cash so using a partner is definitely a way to get creative with financing if they are going to fund the deal then i've also structured seller financing deals and that has been beneficial because sometimes you don't even have to bring any money to the closing table uh i also love to when i get a property before i even make an offer i like to send out emails to four or five different lenders that i work with and tell them about the property what i want to do with it and ask them what do they have to offer me so a lot of times these small local community banks they can come up with different ways to finance deals and what they can give you so i always ask i don't say i want this type of loan i try and find out what they can offer me and then i wait and see what they get back and then i run my numbers based off of whatever financing route i want to go with and sometimes there will be nothing unique but this one time i had a property that i was actually signing for a line of credit and i was telling the lender about this property he's like well how are you going to buy it i said well maybe with this line of credit and he said actually if you wanted i can give you a 90-day unsecured loan to purchase the property and then after you close we'll just refinance it into long-term financing with that bank and like i never would have known that was even an option to do and um but he just threw that out so there's definitely ways to to get creative david what about you do you do a lot of creative financing i haven't yet but that's one of the things that is sort of in the next phase is i'm looking because really if you want to do creative financing you usually have to have like an off-market opportunity if it's on the mls that the seller should go to an agent just aren't as comfortable with that as an option or the house has to sit there for long enough that they'd be open to considering it so what i'm looking for is more of the bigger pockets community to be bringing me those opportunities and then putting together the seller finance thing because that is something i want for sort of like the rest of my career to get deeper into what i do do that you mentioned that i don't want to let us pass over without highlighting it because it's brilliant it's just that concept that instead of putting pressure on yourself to go to the bank or go to your agent or go to your contractor and say here is what i want to ask them what would you do how would you solve this problem that is one of the things that i've learned in business that has been so monumentally important and people pass this up all the time there's this belief that a lot of the bigger pockets community has is i have to learn every single thing about this and then i can go do it and i don't even do that i was just talking to one of my brand new employee employees his name's david gold it's funny because i'm david green right put us together where the oakland is green and gold and he we're looking to buy properties and he's going to be helping me to sift through the inventory and he said hey the agent wants criteria this is the criteria i gave him and here's what he gave me back which one do you want to buy i was like david how can i possibly decide which house i want to buy based on this well i just thought you were david green so like you could just you would just know i was like like you're doing what every person does in the beginning and it's the same mistake that they all make is they the agent is just going to tell you how many bedrooms how many bathrooms have you square footage okay that's what i want i'll go find it i want you before you give the agent any criteria to get information from them you should be asking them which which part of this city do we want to buy in would this strategy work what are other people doing that are making money what's something that no one's doing that they should be doing right you should be using these people that we typically are just only seeing as a resource to get from a to b as a way to learn and grow and improve our own knowledge and education so that's what you did with this bank is you said well i want to buy this property and get a loan and he came up with the idea of get a line of credit pay cash you can get a smoother transaction then we can switch it over you didn't have to know that and i just i i wonder sometimes like at the end of our lives if when we're standing in front of god we're gonna look back and say oh i could have just asked this question instead of i spent three years trying to learn it all on my own and then go do it so if you have any other examples of that i would love to hear him if not we can move on to the third example yeah well even just asking questions so i like to ask sellers to uh two questions if they're interested in doing seller financing and also if they have any other properties for sale and i've gotten a couple deals because the investors do have other properties that maybe they're gonna sell you know a couple months from now after this one sells but hey they'll give me a package deal or um this one guy when i was actually sitting down with him going over the contract for one property he actually pulled a survey out of his file cam and was like you know i do have this parcel of land too and i didn't even get the chance to ask he just already was like do you want to buy this too and i got a great deal on that just because i was taking both off um so that's the two questions the seller financing and um if they have any other properties for sale that i like to ask yeah so smart and there's no reason not to ask that question yeah in fact this is one of the ways that i know if this is a person i want to work with is if i can say to them what well what else could you do or how could you solve this and they come up with the answer that's how i pick my partner for the one brokerage christian is i would say hey here's the problem i have too many of these properties money is coming in through these corporations but it's not claimed in my name but i want to buy the property in this way and i'm it's tricky and he would say well we could do this we could we could structure it this way and when you get a person who is taking the initiative and the responsibility to solve your problem for you that's where you have a really good person and that's why i like him because now he's doing that for all of our clients who run into those same situations so i can't highlight this enough if you're talking to people do what ashley said ask them do you have other properties to sell do you have other problems that i could solve that's really good yeah i do have uh two examples i can give quick about uh creative financing so uh for one property the person was going to be moving out and building their own home so they needed a large down payment but also they were going to do seller financing for the rest but they wanted a larger amount of money coming in than what i wanted to do so for the seller financing so what we did to structure it was we decreased the down payment and then we did seller financing over 15 years at three and a half percent and then what we did in year three and year four was they'll get a lump sum payment of twenty five thousand dollars at those two years um just to kind of break it out and that's a great thing with seller financing is there there's no rules that you can create it however it works for you guys and i sat down with this couple three or four times and every single time we completely scratched out my letter of intent and reorganized it and made it so that it worked for both of us too but just like asking the questions so him telling me how much he wanted monthly i was able to he didn't care about the interest rate at all and that's why i was able to get three and a half percent because all i did was tailor his mortgage payment to what he wanted and then kind of put a low interest rate with it um and then another example is we're actually buying another farm and it was going uh into foreclosure so we are doing a subject two on that property where we're actually taking over the mortgage payments uh for the seller and we are going to quit claim deed the property into our name and then you know we've gotten the mortgage payments caught up uh we there was back taxes on the property so the seller did agree to pay the back taxes and then we're just paying to get the mortgage caught up so it'll be about 35 000 out of pocket but if we would have went um to a bank and we would have gotten conventional financing we would have had closing costs we would have had to put 20 down and it would have been about hundred thousand dollars we would have had to come up with to purchase the this property um just getting that conventional loan so the subject-to is hopefully going to work out great for us so this was a farm that had fallen behind on their payments and they had fallen behind on paying their property taxes they were headed to foreclosure so it was a lose for them no matter what you stepped in and you basically said we will take over your payments instead of getting a new loan to buy the property and we will pay the money that you owe the current lender so that they don't foreclose on the property you pay your own back taxes you can avoid foreclosure we can avoid closing costs and having to get a new loan on the property you probably got it at a better price as well because they were under some kind of duress and their property had them as the the primary residence so they have a low interest rate it's a low mortgage payment or amortized over a long time it's a usda loan uh so great terms better than we would get buying it as an investment property um and then we actually got a great purchase price because what we're actually buying it for is basically what the balance was on the mortgage we're not paying them any more money than um what was owed on that so it's a great deal but also we tried to go the short sale route too um but the bank would not work with us on that and part of if we did that they would not allow the current owner to stay in the property um with it being a short sale so this way with doing the subject to we're actually renting back renting the property to the the seller and he's going to continue to live there and pay us rent and then there's two other uh houses on the property too so it really is a win-win he gets to stay in the property and he doesn't have to worry about you know having it go up to tax auction or being foreclosed on so that takes us to key number three we've sort of hinted you formed a form of a partnership with the seller in that case to make it work for both people what is your third key so this one is leveraging partnerships so i like i like working with people on a project so making someone your partner they are definitely a lot more interested and motivated when they have ownership in that that property as to working with you on it so my first partnership uh he was a very passive it was just money um and so basically whenever i have a project i know i can do it myself i don't need help i go to him and he's the money guy and i just take care of everything and but that's a great way to leverage someone if they are busy they don't have time to invest but they want to invest be that person's opportunity take that take the money from them invest it for them and work out that partnership my second partner he was already had a couple properties on his own and we were both kind of stuck as to where to go next so we pooled our money together and our resources together so i took over the property management leasing and he handled the maintenance and any repairs remodels on the couple properties we bought but really my biggest use of a partner was when i bought my mixed use building so this was um two commercial units and two residential units and it base basically three of the units needed to be completely gutted and rehabbed and at this point i had never done a full-blown rehab so i wanted to put a wine and liquor store in this building and what i did was i took on a partner who could do a rehab and our agreement was that he would do the rehab i would help i would learn from him and he got forty percent equity of the building and then also uh forty percent equity of the liquor store and another advantage of using him as a partner is that he already owned um a bunch of uh restaurant franchises and he had a supervisor who managed all of those who could help us implement running a business and managing a business and what systems that put in place and even just things like doing payroll and sales tax things like that so um those were like the two things using him to help with rehab and then uh with having his supervisor help us actually get the store running i think that's something that is often overlooked when people are considering partnerships is i always hear at frame that well this person does the money and this person finds the deal and you're leaving out all the work of managing that asset so if it's a flip or who's going to find the contractor who's going to manage that person or if it's a liquor store there's more moving pieces than just buying a property and renting it out you've got people that have to track the inventory people that have to manage the crew who's going to work and when and the payroll and the taxes and making sure that the books are kept well and who's going to make sure that it's actually running profitably who makes sure no one's stealing money out of the till that off the bat would stop me from buying a pro a business like a liquor store because i know the work i'd have to then go put in because i'm the rookie in that space now right yeah i gotta learn how to do it but if i'm doing it the person who already has the infrastructure that can make that work that's a massive advantage and so it's more than just who brings the money right there's these elements that you're seeing angles that other people are missing yeah so i the deal was i purchased the property i used my cash for that and i did the startup cost for the liquor store such as the liquor license um we've actually paid a broker who actually did the whole application for us for the liquor license and made it super easy i am having this partner though like the one thing that we both wanted was we didn't want to get that phone call oh so-and-so is not coming in to work we need you to go in and run the store today like we did not want to be involved with the store at all we didn't even want to know if somebody didn't want to show up for work we wanted that taken care of by a manager um and that's how we we built it and it we really relied on that supervisor from the the restaurant franchises she i mean set up our pos system she did our first inventory order she hired our full-time manager for the store and then our manager pretty much runs all the day-to-day operations and we have some part-time employees and then the supervisor just kind of oversees her and then we have a bookkeeper that does payroll and sales tax for the liquor store but really i have a dashboard that i log into i can look at sales things like that but it's pretty um hands-off for me and that's really what we wanted so it was a great partnership being able to take advantage of using my partner's supervisor because it would not have been cost effective to hire somebody um in that role to just run the liquor store that's exactly right like the the volume of the scale that you had that you get into where it would maybe break even or lose money to hire a person just to do that you'd have to have several of these things before it would make sense so i love your point about leveraging partnerships because it's deeper than just finding the money or finding the deal there's the operational component that you have to consider and i think that that ties in really lies really nicely with the next key that we're going to get into because in order to have this next key you have to be able to leverage partnerships and you have everything going on so that's my little tease why don't you let everybody know what the fourth key is going to be so the next one is multiple income streams so looking at a property and seeing how many different ways it can make you money what are those revenue streams and also i like the diversification of a property looking at it and seeing different revenue streams and it makes it feel more safe to me but also presents other exit strategies because maybe you will have a variety of buyers because you have those different revenue streams coming out of that property so with the liquor store building it has a two commercial downstairs and it has two residential upstairs but in the the one commercial unit we put the liquor store in there so there's business income commercial income and residential income so there's those three revenue streams coming out of that property so say for some reason you know everybody moves out of that town there's no resident nobody wants to rent apartments anymore in that unit well then i still have the businesses i still have the liquor store another great thing too about purchasing the property that you're putting a business in is the kind of the tax advantages of that too just that we pay rent to the building so that kind of offsets some of our business income and we're taxed as rental income on that property too and rental income is taxed at softer than the business income would be so you've got depreciation they can shelter that money when it's going into the building because i know a lot of people hear that and they say well what is the difference it's six one half a dozen the other you're gonna pay three grand to the building or you're gonna keep three grand in the business it's all the same but when you're taking money out of your business that doesn't have as many tax advantages and you're paying yourself rent now that rent money is soften and uh what's the word i'm looking for here like shielded i guess you could say buy the um tax code that helps landlords so that's another really smart point that you're hiring and i think that's one of the reasons why when we interviewed robert kiyosaki on episode 500 he said the purpose of business is to is to buy and own real estate and take on debt and he talked about how mcdonald's is doing so well because of the real estate they own not just the hamburgers that they're selling so you have made a great case here for how you sort of work all these pieces together synergistically and make them work to your advantage yeah and just looking at properties when you look at it think of different ways that you can generate revenue off it um so there's the mobile home park there's sheds scattered around the property you can rent those out to the tenants for say 50 a month there's 16 of them on this property that's a nice little chunk of change putting in laundry coin operated washer and dryer um if there's just like a vacant lot throw some gravel down and do boat and rv storage that's huge in our area because everybody has to store their boat and rv in the winter months so just looking at properties and seeing different ways or you know maybe there's a garage that even you can rent out um additional so when you're purchasing a property try and find those unique ways that you can generate more income and a lot of times other buyers aren't going to be looking for that they're just going to look at oh this property brings in you know this much rental income and they're not thinking well i could charge an additional hundred dollars a month for that garage to rent that up to yeah this that's an amazing point again with this episode's full of these really good nuggets that i want to highlight i see a lot of investors stuck in the mindset that worked in 2010 right at that time there was deals everywhere you would just look for the best of the really good deals and then try to low offer as low of a price as you could on that best deal and there was so much opportunity that you could make that strategy work the problem is it established a baseline in our minds of that's how buying real estate should work is i just go in there and i look for the one that's been on the market the longest i get the lowest price i walk into a bunch of equity and i just wait and it goes up in value today's market we're in a much healthier economy you have much more competition for these assets there are bigger companies and more money chasing them there's 10 or 15 years of price appreciation leading to 1031s of people who need to put that money into the same deal you're trying to buy a lot of people don't realize they're like what that's only a six percent return i would never buy a six percent return well you might if you were shielding five hundred thousand dollars of gains that you were going to have to pay taxes and now that makes sense and that's your competition so if you're gonna thrive in this environment which i think people need to more than ever because like i said earlier we're getting to a point that real estate might just not be attainable for some people you have to see angles other people aren't seeing and i that's what i hear you saying a lot ashley is you're actively looking for how could i make this better than it is rather than just relying on some algorithm that says well this is what they're saying you can make this is what it would cost that's your analysis and that's it yeah and one thing that i've been looking at actively to making offers on is a campground so there's so many different ways you can pull revenue off of a campground like having a little store that sells some more stuff having golf carts for rent and then just even having seasonal or daily rentals uh having you know kids crafts having a pool different things like that that um you can pull having glamping sites set up so going into these kind of specialty properties has been something that has interested me too or turning properties into specialty properties because there's that opportunity there to pull those different revenue streams you know before we get into the fifth key i want to just ask you selfishly with all these different types of assets that you're buying i know you're sort of i don't want to say spread thin but they're not all concentrated into one place yeah right you've got the the liquor store a campground a mobile home park single families a short-term arbitrage if you don't have a big portfolio you might not understand how much more complicated it's kind of like if you're this is the best analogy i could think if you're a waiter or waitress working in a restaurant if my three or four tables are all next to each other it's way easier than if i gotta run to the back of the restaurant for this table and all the way to the front for this one and then outside on the patio it becomes way less efficient to move around what are you doing to manage these assets do you have people that you've hired that sort of look at them or are you all self-managing right now so with like my uh buy and hold rental portfolio i outsourced to a property management company uh in february 2020. so i got that off my play it was like a huge relief um not self-managing anymore so that freed up a lot of my time uh and then i for the airbnb the supervisor that runs the liquor store she takes care of all that i don't even touch that at all i just the little notification that money is being deposited from the airbnb uh but as far as like doing these deals um i suffer so bad from shiny object syndrome and chasing after right now i'm sitting at a self storage convention i looking at some storage now i i think for me is like with buying the single family duplexes the smaller multi-family it's so easy for me to do which that that's a great thing but i like to have something that challenges me i'm not going to stop buying you know the small multi-family i do that so well in my market i'm going to keep doing that too but i just have the systems in place where that's very easy and i recently um took on an acquisitions manager who's going to be starting within the next couple months to really focus on those and that will free up even more time for me to go after these larger commercial properties uh i actually had like this realization moment i uh went to seattle and um spent some time kind of job shadowing james daynard who had a episode on here if you just search red rob and waiter i think you'll find his episode but he just talked about having the multiple stacks of properties so just putting that small amount of cash into a small single-family duplex holding onto it for a couple years for that appreciation maybe your cash flowing very small or breaking even and then 1031 exchanging into those bigger properties he said people get so focused on oh i you know i'm a big investor i need to go and buy these huge commercial properties now and forgetting about where they started and what helped them build their wealth uh so i i think that was like a big mindset shift for me is like continuing what i'm doing and not forgetting about what i'm good at and keeping that going and then you know maybe seeing what's the next uh best thing for me too that's really good and if you want to hear the james daynard story which was an excellent podcast by the way that was episode 338 um what james does that i 100 agree with and i do as well i notice a lot of people let's say that most people's goal i would say in this business is cash flow that's what people are ultimately looking for the problem as i see it is cashflow is incredibly difficult to build like these small multi-families you're buying multi-families are meant for cash flows so it's even easier than single family but even then you're talking about a couple hundred bucks a month and you got to get a lot of them before you can get that much cash flow however how much they appreciate when you buy a property under value and then you fix it up to make it worth even more i guess what i'm getting at is it's easier to add equity than it is to build cash flow you have more control over the process when you're building equity versus cash flow you sort of just have to wait for rents to rise there's not a lot you can do with small residential properties what james did well was he focused on getting a great deal buying it right making it worth more keeping it afloat with the cash flow but then 1030 winning that equity into a bigger deal with more cash flow so if he was to save the money he needed to buy the bigger deal it would have taken forever versus you get the smaller properties that boost and amplify how quickly you can build equity and then you convert it into cash flow that's really what my strategy sort of looks like is i buy like you know i've got say 40 or 50 single-family homes that i use the bur method on that are all building the equity now i start taking chunks of those and selling them off and converting that into higher cash flowing properties and then you wait and see did i get more appreciation if so i might sell those and go into something bigger versus i'm going to start with multi-family and i'm going to wait till i can save 700 000 of a down payment right and 15 years later when you finally have that money the property's worth three times as much as if you bought it in the beginning well and i think a lot of people get into real estate for wealth building there are the people that are like i want cash flow so i can quit my w-2 job asap so yeah maybe then you're really focused on you know getting a large amount of cash flow but there's a it's harder to find a property that's going to cash flow it's easier to find a property that will break even or just a little bit of cash flow and then you hold on to it for a year two years and then 10 31 exchange it so i think look at what your your goal is are you still going to be working your w-2s in the next couple years then maybe that is the right path for you to take is to focus more on appreciation than cash flow for these properties and kind of build wealth that way i talked to a couple investors now since that first conversation with james and since they're already kind of set or have other revenue streams where they're not reliant on that rental income it seems like a lot of investors have been doing that now but it's focusing more on that appreciation to build that well david but what about if the the market were to crash do you think a lot of investors are using appreciation right now and using that strategy because of what we've seen the last couple years and how much appreciation and they've actually gained on their properties that it has been a huge opportunity i think confidence is up because we've seen a run in prices so people are more comfortable doing this cash flow feels like the safer route and appreciation feels like a riskier route so yeah i do think that that plays a role i also think there's actually some wisdom to it that with the way the market is working you will be more successful taking advantage of appreciation instead of just depending on cash flow and i say that because of the way the fed has handled the country's money is every time we hit what would be a recession they just throw stimulus into this thing and throw more money and then all of a sudden the price of everything's going up because we have massive inflation that no it's like this carbon monoxide no one's talking about it until it hits and then you're in big trouble but you didn't see it coming right so i do think that's a component of it i also think cash flow itself is becoming so much harder to find because you're competing with so many people who want it hedge funds need it syndicators need it like if you understand the model of the big players they are borrowing money from other people investing it and then selling the property to pay people back and most of those people that are putting their money into these organizations want some form of continuing revenue they want a six percent referred return or an eight percent preferred return so that asset that is being bought has to generate enough cash flow to pay the investors of the people who bought it like just the model works that way so now they're like locusts that are just going over the field of the usa looking for cash flow and ascending on that thing and eating up as much of it as they can and the little person who's listening to a podcast like this just feels like i they got it before i could get to it or there's not enough left and so i think that's another reason why we're seeing more of that appreciation becoming the strategy of choice is because the competition for that cash flow is fierce yeah and there's definitely ways to protect yourself if you do feel that it is a risk going for appreciation what are your access strategies i mean worst case scenario you hold on to the property longer and you know you break even but at least everything is paid so are you in a great rental market where you don't see the you know having a problem with vacancy or can you turn it into an airbnb and maybe cash flow a little bit more if you need to or you know is it a property that would sell um you know maybe for a different model or something like that but having those extra strategies in place um those are huge i think you know that there's that phrase warren buffett said or maybe someone else said it before him but it was when the tide goes down you see who's swimming naked there's a lot of people that are buying properties that they maybe shouldn't be or they're paying too much or whatever because they're getting away with it it's like musical chairs works when the music's on right and then when the music stops you see who's close to the chair so i do think whenever that happens who knows what it'll be because the way we keep printing stimulus every time we hit a rough patch that there's a lot of syndicators that bought properties on margins that were way too thin and did overpay or bought in areas that didn't make sense but they skated by and then when we have a recession if rents drop a little bit or or tenants have more opportunity to go to nicer places they totally will right and then those people who are on those areas they shouldn't have bought in because they thought the deal made sense on a spreadsheet will be exposed and what you said is the recipe to avoid that is you have multiple exit strategies that's everything that i look to buy okay the goal is let's say it's short-term rental do i have a backup of corporate housing do i have another backup that i could make this thing into two or three units and i can rent it out as separate like apartments almost in the home does it have a basement does it have an adu that's my third backup plan so i don't just go let's say oh this is the return let's buy it it's got to be in the right area the right city the right neighborhood attracting the right tenant base all those things have to be in place and then when i find it i rush after it but that's why i sleep well at night because i'm not gambling on this is my one way and if something changes i'm going to be in trouble well should we move on to the yes the fifth fundamental number five what is your fifth key so it is owning a business so taking the shift from you know just real estate investor to kind of a entrepreneur of owning a business and running one so i think that this can definitely help so my husband has owned a dairy farm and that's kind of been his business that he's run forever and all he's ever known uh so i was kind of my dad was an entrepreneur ran his own business so just watching both of them i kind of had an idea of how a business was run both of them have um very small businesses not a lot of employees at all but um it has definitely it's a huge change going from real estate investor where you can do that on your own you can go and you know acquire properties and you can do a lot of that just from you know sitting on your computer screen but actually running a business where employees depend on you and your you know you are their livelihood like they depend on you for your paycheck but also learning how to to manage how to lead um being available for you know answering questions these were all things i was uncomfortable with and i really had to learn to deal with because i my whole goal eventually like down the road is to not be bothered uh my my cousin is a recruiter and she actually had somebody that she interviewed that said he this guy's just looking for a remote job where he doesn't have to talk to anybody so i was like you know what that actually sounds really nice that does that job actually exist but i i think uh you know me and tony will keep talking on the podcast and having our guests i love that but as far as um you know learning how to have people come with me for problems and dealing with that i really had to um kind of change because it wasn't like i was an employee of somebody where i could say oh to the boss like i don't know what to do can you help me or can you take care of this i am the boss i have to find that solution i have to make that decision um so just making learning how to overcome those things that made me uncomfortable and especially confrontation i don't like confrontation at all and having to learn how to deal with that but i think a big thing if someone is looking to start a business and get into a business is know how you want your business to run like if you want to be like me and you don't want to be involved day to day don't put yourself in the position where maybe you're just going to start out working the cash register at the liquor store because it's going to be a lot harder to get out of that position so from day one figure out who are the people that you need and get those people first before you even open the doors and i think that was really beneficial yeah and when you consider the revenue you can make owning a business as opposed to just working that w-2 job it's incredible when you do it right what you can make for yourself right that's why a lot of millionaires are entrepreneurs because they could they were able to scale that's a whole new show we we could get into like what it takes to be successful i know to me the biggest mistake that business owners make is they do what they know and what they're comfortable with which is having a w-2 job and they bring that mindset into their business so they do exactly what you said i go buy a 7-eleven and i immediately make myself the manager and the clerk of the register because that's what i'm used to doing and you don't think about marketing expanding tax strategies bookkeeping all the things are going to help your business be profitable because you're moving you're ringing up the sprite or trying to figure out should i put the the slurpee machine on this side versus that side and that's what everyone and when you're working a w-2 job that's all you have and like you said earlier conflict is rarely ever the employee's problem to deal with somebody comes in and they're ticked off and you escalate it to someone else which is just a way of passing the buck right and we all get used to that but when you're the business owner there is no one to pass it to you end up being forced to sort of eat that frog of conflict which is why i think you found out when you started running a business oh i don't like this because it just keeps coming and there is no one else to give it to uh what i love about what you're saying as far as this is the fifth key to becoming a millionaire while you're working is there are many businesses you can start as a side hustle that's what i did i was a cop and i started selling houses that was a form of having a business it selling houses was easier than me for me than the average joe because i already owned houses i was already buying rental property so i understood that asset class um most people here are passionate about real estate that's why they're listening to this podcast there is some business that they can start that they can do in addition to their job or sometimes at their job not every job requires constant attention 100 percent of the time so there may be people that own rental property and they have six properties they manage it themselves and they love managing it god bless those people that are out there but they don't like analyzing it or something else they don't like talking about it you could start a property management business and just take the systems you have apply it to other people and boom you've helped them that's kind of literally what i've done in the last four years was i said all right i buy rental property let me start a real estate team that serves our clients the way that i want my agent serving me so when i buy a house this is what i do all my agents are trained to do that for the clients well even with your mortgage company same too yeah yep and this is a great point is to what are things that can align with your real estate business like you'll see some investors that have uh like a plumbing company even or you know they do or they do turnkey or things like that um because it aligns with their business and it benefits them and it's making them money by having a customer source too it's a massive advantage you have over the other people in that space that you already understand it and you've been doing it so i know when i try to buy houses financing is just the hardest part it is so frustrating for someone in my position to get loans and i don't like the time it takes to have to go to every single market i invest in and find some credit union that will let me borrow there so instead i just started a company and said your job is to go find a nationwide lender that will let us borrow under these terms and lo and behold they come back and all of a sudden i'm buying houses again because they found me financing and because i sort of was the trailblazer to figure that out all these other investors that are in the same position as me get to benefit from that because we can get really good loans like in the fours for people that don't qualify for conventional rates and now that which should grow to other things right like a cpa business that's something i want to start in the future because i'm learning all these strategies of saving money in real estate i want to be able to help the bigger pockets community with that and and you actually you're doing the same thing in many ways where you pick up with liquor yes that's exactly right when you are stressed about your rental property your rehab is not going well makes you stop at the north collins line and liquor store to pick up all your needs that's where you meet your sellers to negotiate your deals and you sit down with a couple bottles of colt 45 and you get them nice and soft before you start the the numbers yeah but one thing with owning a business too is the sale of it like you can you have the potential to build a business up for the liquor store we started that from scratch we didn't buy it started it from scratch and potentially down the road we would have the option to sell it too so that's also can be a great opportunity is selling a business too absolutely especially when you establish it to run on its own that's why you don't want to be the clerk that works in the store because it's very hard to sell it if it depends on you when it's self-sustaining there's especially like these companies that are going and chasing after real estate and throwing money in it they would chase after businesses and throw money into that too because what they really need is a revenue stream so if you can create a revenue stream right now you can absolutely exit this is a great time to do that because the economy is is going so well so before we get out of here ashley i do want to ask you what is one thing that our uh accumulative audience here can do to help you with your investing career well if anybody knows of any campgrounds for sale i am definitely interested in that so you guys can send me your campground or your self storage deals but also if you guys are rookie investors and you are motivational you're inspirational you have less than 10 deals and you want to help other people get started just like you did and it's fresh in your memory because you're a rookie um but i want you to be able to tell me how you did something not just what you did if you think that describes you please apply to be on uh the bigger pockets rookie podcast you can send me a dm at wealth from rentals on instagram and i will send you a link to the application we're always looking for you know to have new guests on the show we usually record once or twice a week and it's like my favorite thing ever because i get to use it to my advantage all my curiosity comes out and i get to ask you know everything i know and it keeps me motivated so if you think you fit that profile please send me a message on instagram that's awesome and i highly recommend everyone go listen to that podcast as you can see ashley was just dropping knowledge bomb after knowledge bomb this entire time and who wouldn't want more of that several times a week well thank you so much david and thank you for letting me co-host with you yeah i wish we could do this more often i love hearing your perspective on things i love talking to somebody who's still in the trenches looking at deals ashley's recording this it looks like from her hotel room at a conference right now where she is learning about self storage like you said you're just sort of like me immersed in all things real estate and sharing that knowledge so we all get to benefit from the work that you're doing well david maybe one time you can co-host with me on the the rookie uh uh episode we can do one together but before we do that just so everybody knows uh actually the next episode i am kicking david off of the show and i am bringing my co-host tony robinson on and we are going to do a takeover that is right so ashley has officially forced me out of this place and and locked me in the side room while her and tony are going to take over the real estate podcast here they're going to do a great job so make sure you tune in to listen to that bigger pockets really has a lot of stuff going on as far as different podcasts that they're starting that are catered to different audiences so i would love if you the listener would leave a comment on youtube for us let us know what you like about today's show what you wish we would have covered what we could have went deeper into that you would have liked and what shows you like listening to because there's other people that are reading that and it really helps give them direction as to which direction that they should get started in yeah and if you guys leave the the comments we can um go into we have a rookie youtube channel too so i can definitely go on there and go more in depth into anything you wanted to to hear more about all right i'm going to get us out of here ashley any last words that you want to impart on our audience no just everybody take action uh that would be the only thing uh take whatever you learned from this episode and from every episode that david and brandon put out and make sure you're taking action and just get that that first start it doesn't have to be perfect yeah i am looking to buy or build a property management company that can work anywhere in the country because i'm looking to expand very similar to what you're doing ashley so if anybody knows of somebody who wants to start one or already has one that they are considering selling i'd love to talk to them so i could just buy more properties and have a little bit more control over how things go as you've seen ashley as you grow it gets very hard to keep your hand in all the various pieces there so let me know if that's the case um ashley great job today thank you very much for joining me i'll let you get back to your conference that we've pulled you away from thank you for having me my pleasure thank you very much for being here and make sure you catch ashley and tony on the next bigger pockets real estate podcast this is david green for ashley the knowledge bomb care signing off you're listening to bigger pockets radio simplifying real estate for investors large and small if you're here looking to learn about real estate investing without all the hype you're in the right place stay tuned and be sure to join the millions of others who have benefited from biggerpockets.com your home for real estate investing online

Channel: BiggerPockets

Views: 45,949

Keywords: biggerpockets, real estate, real estate investing, investing, rentals, rental property, investing in real estate, income property, bigger pockets, passive income, how to become a millionaire, becoming a millionaire, how to become rich, how to become a millionaire in your 20s, how to gain wealth, how to build wealth, build wealth, how to start investing, real estate investor, women in real estate, millionaire mindset, millionaire traits, millionaire habits, investment property

Id: EzWDfR1pjjo

Length: 77min 11sec (4631 seconds)

Published: Sun Oct 17 2021