Welcome to the Get Real podcast. Your high-octane, boost of full on reality therapy for personal, business, and investing success with your host, Ron Phillips. Because somebody’s gotta tell it like it is.
Ron: Well, everybody, welcome back to the Get Real podcast. I’m Ron Phillips here with Heather Marchant. And it’s another one of the very popular Lightning Round episodes today. Now there are you loaded up on the with a bunch of questions.
Heather: This is really fun for me.
Ron: Our live events, when you used to just take those questions and at the end now you know what the most fun I ever had. I think I’ve talked about this maybe on the show, but I spoke at OREA, which is the Ohio Real Estate Investor Association. And yeah, there was like FY2009 several hundred people in the room. And we did a live Q&A after my speech and political speech. And it was fun, man. People came to the microphone, you know, like a public forum. I kind of felt like a politician except I didn’t lie to them. Bam. Okay, you should probably ask me something else before I start about the damn government again. Oh these people. Go ahead.
Heather: My clients that I know are active listeners to the podcast because I knew….
Ron: You know, we love it. We love the active listeners who actually send us feedback and questions and want to want to learn. And so just a shout out to them, but also an invitation to the rest of you. Just in case you don’t think we actually listened to you.
Heather: I keep a Google doc with all of this information.
Ron: Before we get into the first question. Heather, how good like all these other people? Well, wait, wait, wait. How do we get how do we, like, submit or question? Oh, yeah. I can’t. Can’t they just shoot me an e-mail like invest at RPCinvest dot com. Can’t they just shoot an e-mail? Yeah, I let’s just do that. So now you guys have it. We’ll put in the show notes to just shoot me an e-mail. Invest@RPCinvest.com. And then we’ll answer. You can also comment on anything. And we actually monitor those. Believe it or not. So, yeah, that’s how you reach us. OK.
Heather: This is only fun if people listen and it helps people. Otherwise, we’d just be chatting about stuff.
Ron: Well, and in all honesty, we have fun even if you don’t listen. So, I mean, we prefer that you listen because then this actually does something for someone else other than us. But this is a lot of fun. Us just sitting here talking to ourselves.
Heather: Yeah. When Ron asked me to do this, I was like, I don’t know, man. That’s not really my jam. But I think the second, second recording, I was like, yeah, this is my jam. OK. So first, I love this question. And it is people think I’m crazy for buying properties out of state. What do I say to them when they tell me I’m crazy?
Ron: You say, yes, I am crazy. Be scared. Be very scared of me. Do what I do. Yeah. There’s not enough for everybody to go around. So you should you should be scared for sure of what I’m doing. Yeah, that’s pretty normal. Yeah, that’s pretty normal. I recently, Heather and I were talking to one of our clients, the Ostroms and they, we were doing it. Actually, were they’re recording a testimonial for us. And one of the things that they said, I think answers this question perfectly. Don’t you Heather? I mean, they said everybody thought they were nuts, which is pretty again, that’s pretty typical. But they have an attorney and they’re working with their attorney. And their attorney said there was the only person in their lives that told them that he thought this was a good idea. Yeah. Why, you ask? This is the other thing. Because he said he said, quote, Because this really isn’t that sexy, which I thought was. I mean, that’s a that’s a fair response. Right. Yeah. Because it isn’t that sexy. Yeah. It’s just good old-fashioned wealth building one or one. And so I don’t know. What do you say? You say, hey, there’s this cool podcast called Get Real Estate Success, dot com. You can go there and you can subscribe to and maybe you can be my kind of crazy. Use that as a pickup line. Are you single? You think I could?
Heather: I think a lot of people that say these things have never done it. They all know someone, right? Like my cousin’s uncle’s friend bought property out of state and my most horrible experience ever. The tenant destroyed it and the property manager sucked. And all of this. Is there risk in owning out of state? Definitely.
Ron: Is there risk in owning down the street? Definitely. Is there a risk in owning your own property? Definitely. If you’re risk averse, just rent something and don’t invest your money and stick it in your bed. Yeah. You know, inflate your sheet with it.
Heather: Yeah, I think. What I tell clients all the time when I first meet with them, is I say, look, we work to mitigate the risk. Every level we can, what’s possible for us to mitigate. We work really hard to mitigate because there’s ways to do that. Good property management and making sure that you have a property ina good location and a good economy and so many things. Right. But yes. Are there horror stories out there? Hundreds, thousands.
Ron: I own some of those stories. Yeah, you can just tell them. Yes, it is crazy. And that’s exactly why you should be doing it, too.
Heather: Yeah, that’s great. I like that one. Okay. Next question. Single family versus multi-family. What do I need to know?
Ron: Yes. How’s that for a lightning round? You’re killing me. Yes. I’d say I’m saving up my time for other questions. Well, I own all of the above. And so. OK. So pros and cons: pros to single families, pros to a single family is that they appreciate usually quicker than like duplexes and fourplexes because duplexes and fourplexes people just sit on, they don’t really sell them. So there’s not as many sales going on. But the con to a single-family home is that if you own a single family home and the tenant moves out, then you’re a hundred percent vacant. Right.
Ron: 0 percent occupied. So the more doors you have, the less one vacancy hurts you. And you can one of the one of the pros to multi-family is that you can buy two doors or four doors talking about smaller multi-family with one loan. And if you have a substantial amount of assets, then you don’t want to be buying, you know, 50. So it’s not true because I did buy fifty-six single family homes. I bought them in a package on one loan.
Ron: Yeah, different deal. But you don’t. The idea is you don’t want to use up 10 Fannie Mae loan positions on single family homes if you need to buy 50 units. Right. That’s the wrong strategy. But there’s nothing wrong with either one of them. Cool thing about multi-family, though. I like real multi-family, which is commercial. Apartment building. Multifamily. The pro there is that you can actually affect change in the value of the property by changing the financials. And that’s a big deal. Yeah, that’s a really, really big deal because with single family properties and even duplex and fourplex, they are they are appraised based on comparable sale, comparable sales. So you’re just kind of hosed based on what other people are saying your property’s worth where in the multifamily space the cap rates dictate what the price is based on your financials. So if you can if you can increase your net operating income, then you’ve increased the value of your property. If the cap rate is the exact same, right. So if the cap rates 7 percent and you know, I just realized maybe people don’t know what a cap rate is.
Heather: Yeah, that’s all I can summarize that. Like the better performing the property is, the more money it makes, the more it’s worth. Which is not the same. I can raise my rent on my single family and have it make me more money, but it’s still worth what other single families are worth in that area. With apartments, they’re valued very differently.
Ron: So yeah, it’s because it’s a business. So there’s a multiple on your business, you know. So if you’re a business owner out there and you can do three times, you know, your earnings, right? Well, if you’re if your earnings go up and it’s still three times your earnings and your business is worth more money, it’s the same principle, right? Yeah.
Heather: Cool. I like that. And it’s super it’s awesome because you can be creative and start to eliminate expenses and things like that to increase the value of your property, which is pretty cool.
Ron: It’s pretty cool. And let me give an example really quick. People really understand how powerful it is. But let’s say you let’s say you own one hundred doors and you instead of cutting expenses, let’s say we rate well no, let’s leave the rents the same and we cut expenses like just 50 bucks a door.
Heather: Like maybe you get a better property management rate or something.
Ron: Yeah. Or you do a bunch of different things and you reduce expenses by 50, 50 bucks a door. Well I mean that’s thousand dollars a year. And at a seven percent cap rate that’s worth eight hundred fifty seven thousand dollars. Yeah. So a really small change per door can make your property worth a significant amount more money. Yeah. And you can sometimes do that stuff very quickly with a property that’s in good shape that has kind of sucky financials.
Heather: Seeing potential like that’s cool. Okay. Vacation rentals versus long term rentals. Why do we not do vacation rentals in our business? Ron?
Ron: Well, right now is a perfect time to illustrate why we don’t do vacation rentals. Because if anything goes wrong, vacation rentals suffer. That’s just the way it works. I wish it weren’t because there there’s some cool places down properties. But the reality of the situation is, is that every time we have a downturn, people can’t vacation as much as they did. Businesses don’t go to the places to have their conventions because they’re struggling. And those places really struggle. As a matter of fact, right now, within the next probably twelve months, if things don’t get better dramatically, then I’m right now looking for properties on the beach, which would be vacation rentals for me to go live in because I think I’m going to be able to get a good deal there specifically because people are losing money right now on those properties. Yeah. And that’s what always happens with them ultimately. So for a short time, can you do really incredibly well on some vacation rentals? Absolutely. Can you on Airbnbs? Absolutely. Can you currently on Airbnbs? Yes, you can. It’s got to be really creative. I know what you’re doing. So if you don’t. Well, then.
Heather: Right. Yeah. OK. Next question. What do I need to know about evictions? How to prevent evictions? What happens if I have an eviction? Teach us, Ron.
Ron: What happens if you have somebody in your property that has an eviction? Because if you have an eviction, that’s a whole different ballgame.
Heather: Sorry, my property that I own. A tenant stops paying and the landlord says, well, do you want to move forward with an eviction? How do you know what to do?
Ron: Well, I’ll tell you what I what I do. And, you know, other people have other ways that they look at things. I as soon as I can file for eviction, I filed for eviction notice. Sometimes my property management companies will say yes, but if they pay, you’re just gonna be out your money. And I say, yeah, I know, but they need to know that I am serious. So just file. Right. Because I do want them to pay. As a matter fact, I want them to stay. But I also want them to know I’m not playing. Yeah. Now, sometimes what happens is the property management company they’ll be like, they’ll tell a client that and then the clients go. OK, cool. And then they have a promise to pay and then the promise to pay doesn’t come through. Right. Now, if I have somebody who’s notoriously late and I know they’re going to pay by the 15th, well, then I’m going to then I’m going to file after the 15th after I know when they normally pay my rent and I’m not going to every single month file for eviction.
Ron: Waste my money when I know they’re going to pay the rent on the 15th instead of the 5th or the 1st or when it was due. Right. But just know that every day you wait is another day. It’s just another day. Because sometimes they’ll do a promise to pay. They get to the end of the month and you finally get the promise to pay. Well, then their next month’s rent is due. They’re behind a whole month, even though they paid you for last month. They’re already going into next month. They’ve just spent all the money they have. And all you’re doing is prolonging the inevitable here because they’re going to continue to drag this out. And that’s just not a good place to be. It’s just not. Because they’re having people actually get caught up after you get that far behind is almost impossible unless they know that there’s something like they have to go ask mom for some money. Or dad for some money. Right. And that usually only happens when the evictions file, unfortunately. Yeah. You know, because then they know, oh, oh, this guy’s serious. Like I need to go get some money. Right. So I file as soon as I can and I and I post notice as soon as I can. Soon as the state law will allow.
Heather: I mean right now there’s some states that aren’t allowing you to evict.
Ron: You know, that’s normal. Right. Right now, I’m being way more lenient than I would normally be. And I’m being I’m trying to be way more helpful than I would normally be. Right. Because right now people have gotten thrown into a situation that is not of their own making. Yeah, they should have had more money saved up. But most people don’t. And they weren’t expecting to get shut down by their government. Right. So because of that and because there’s ways that we can help them, then we’re being way more patient with them right now. Way more patient with them right now, because I really don’t want good people to have to move out.
Heather: Yeah, that makes sense. Makes sense. OK, how do I handle bookkeeping of my own rentals? Right. And if you have a small portfolio of rentals and you’re not really sure how to track the income and expenses, how should they handle that, Ron?
Ron: For small portfolio? Yeah. Because I was going to say you send them to your bookkeeper. That’s what I do. But if you don’t have a bookkeeper and you are not. Don’t understand QuickBooks. So I’ll give you a few answers. The best way to do it is to have some kind of a software where you put all of the stuff in there and it tracks it for you. And, you know, if you’ve got two or three, four or five houses, they have, you know, all separated in there and everything works great. And QuickBooks is not so challenging that you couldn’t do that if you wanted to. But if you don’t know the first thing about it and you don’t want to watch all the tutorials and you don’t want to learn how to do it, then a simple spreadsheet will work fine. And man, if you don’t know how to put together a simple spreadsheet, you can probably get one.
Ron: You could go to a few, can go to fiver and have somebody make one for you. Fiver.com and have somebody make them for you. Really inexpensive, but a simple spreadsheet with a tab for each month will work fine where you can enter your income. You going to line item out your expenses if you want to. And then, you know, you’re going to get some of that information from property management company. But then you’re also going to have your mortgage payment to put in there and things like that. You can list all that stuff out and calculate your net. And you could do that for every month. Now, that’s not going to calculate your amortization schedule for you and all that really cool stuff like that. But it would get would at least keep your books relatively easy so you could give them to your account at the end of the year and they could look at your statement and put in your interest versus your principal. Because they go in different places, in your financials, right? So, yeah.
Heather: OK. Good answers. I will add a couple that my clients have used. I have a client that uses Mint.com.
Ron: I thought about mint. I just didn’t know how robust it was.
Heather: But, you know, he syncs up a property with a different bank account and puts it in Mint. So Mint tracks everything and gives them charts and all sorts of stuff. That’s really well for him. And then I have a spreadsheet I’ve shared with clients that I made. That’s pretty basic.
Ron: Oh man you’re gonna get. Shall we give out Heather’s email? She’ll get flooded with e-mails. That spreadsheet that you made. I’m selling it for Heather. I have a referral link for everybody.
Heather: It’s not super robust. But the other thing is we are working on building a portal that will track all of that for our clients, too. So there may be some options like that out there for other people.
Ron: Why did I not say that, Heather? Well, because I don’t. It’s not done yet, people. That’s why you. And it’s not quite finished yet. It’s almost done. And it is going to be really cool.
Heather: So close. Hopefully two weeks, right? I think that’s where we’re at.
Ron:So we’re on that sprint right now in our software. So, our software is really cool. We should do an episode on our software. It’s really cool. That’s true. Good idea. What the heck are we thinking?
Heather: I think so, yeah. Those are some other ideas. And then I would say the lazy man’s way is to set up a bank account for your rental properties, even if you own just like under five. You can put them all going into one bank account and for the most part, it’s pretty easy to track. You just have your income coming in and your automatic draft of your mortgage payment going out. And what’s left is your cash flow and, you know, maybe something. And so, yeah.
Ron: And then you guys are going to want to track anything that’s not actual maintenance or anything that’s a capital expenditure cause you can expense that. Yeah, that’s true. Right. So like if you’re if you’re making major capital expenditures on your properties, you need to track them separately. What we have is a capital expenditure on anything, anything that’s large rent. So if you use each back goes out, you know, you put in $5000 in an HVAC system. You should definitely tell your accountant about that stuff. I would tell him about anything new that you do the property. Anything new. And just see if it qualifies because you can. Right now, you can write off 100 percent of anything you do during the year, which could be really cool because I can if it didn’t already take all of your cash flow, then it could at least offset down your income. Right.
Heather: Okay. Should I look at what the strategy of paying off my mortgage versus like taking extra cash. Either your cash flow or extra cash you have from your job or whatever to pay off a loan from a property? Or is it better to purchase more properties with that money?
Ron: Well, that is a very loaded question and it is very personal. So I’m not sure that I’m going to be able to answer that specific question for you in particular. There’s pros and cons to both of those. So people who want their properties paid off free and clear, they’re usually in a different spot. And then people who are trying to grow and build right there, they’re in a they’re in a place where they can’t afford to lose anything. And they just don’t they don’t want payments anymore. They just want cash flow coming in. And they have enough money that they can they can buy things for cash. And that’s just what they want to do. There’s another subset of folks out there and something wrong with this. They just don’t want debt. Period. End of story. Not going to have it. There’s no amount of any kind of conversation is going to change those folks mind. Yeah, and that’s fine. Nothing wrong with that.
Ron: In both of those instances, then you should pay cash. Anybody who’s looking to grow their portfolio and have their portfolio birth more properties should look at leverage, not overleverage, but leverage. Right. Because you’re able to use other people, lots of other people’s money and very small amount of your own money to grow your wealth in a way that is very, very attractive. But it’s not for everybody. Like I said. Right. So if you’re if you’re if you’re risk averse, debt averse, there’s no way of getting around it. That doesn’t really make any difference what I say about it. Yeah. I mean, you know, paying off your properties is not a bad thing. I mean, especially if you’re, you know, towards the end of your working years and you just want to chill. And you don’t want to have to make payments. You don’t want work for banks. You just don’t want any of that stuff. And you’ve and you’ve got some resources, you know, then why not?
Heather:So the way I typically answer the question that’s similar to this is I say that like on paper, always better return on your investment to purchase more properties. However, you being able to sleep at night and your stress level is worth money. So if that’s worth it to you, then you should pay off your loans and or maybe look at paying off some of your loans. So you have less debt. Maybe you don’t want to totally pay off everything and be free and clear. But just to have some of them paid off. So you have that level of comfort.
Ron: So, yeah. And there’s also. You know, a lot of people will say, you know, you should put these things, we had a whole segment on not 20 year mortgages versus 30 year mortgages or 15 year mortgages versus 30 year mortgages. Well, that dependson what you’re trying to accomplish. Because right now, if you don’t need the cash flow, then you’re you know, you have plenty of income coming in. It doesn’t really make any difference. Yeah. And why not let the properties pay themselves off? Now, there’s no there’s nothing wrong with that necessarily. But that’s a that we’ve just talked about probably five different people. And, you know, each person is unique. This is not one size fits all. So you really have to. That’s not a question we can really answer without understanding quite a bit more about what you’re trying to accomplish. But there’s a lot of information for you for sure.
Heather: OK. Next question. How to thrive during a recession. Because we could be heading into recession. No one really knows for sure. So what are some things that you can do to prepare yourself so that you can do well in your real estate investments in a recession?
Ron:And if they keep printing money and handing it out like candy, then we’re also probably can have inflation. In which case you need to have your money in assets, in hard assets that that do well during inflationary times and recessionary times. And there aren’t very many of those. But there are some. And that’s where that’s where I’ve put my money. Obviously, I’m a big fan of real estate. So I’ll just. And I really can’t talk to gold or silver. I’m not. Or precious metals. I’m not an expert on those at all.
Ron: But I know people do buy those. I’d sure look at the freaking graph. Before I did that. But, you know, if you can get it at a lower price, there’s nothing wrong with that. They tend to do really well during those times. But rents usually track with inflation. So for moving into an inflationary time, which I can’t imagine that we’re not since we’re there. They’re literally printing trillions of dollars and just throwing it at people right now. Yeah, rent’s a great it’s a great place to be. It really is. And even if real estate again, we’ve done how many episodes on. Doesn’t make any difference if real estate goes down so long as you have rental property, that’s cash flowing really well because rents will track with inflation. Right. And if we’re in a recession like last time, people still have to have a place to live. So, you know, don’t again, don’t buy the most expensive property. Forget to invest in real estate. That’s a bad plan because those people will be really hard to find. You got to buy what people can afford. But man, having multiple streams of income coming in during a recession, especially if you’re in a job market that’s highly competitive and is volatile. If you’re in that kind of environment, you really need to have more income streams coming in.
Heather: Yeah, I agree. I think the diversifying your portfolio, like you said, into properties, but also properties at different price points up rents and things like that is a good way to protect yourself. Whoever would have thought that a pandemic like this and how it’s affected our economy and who has been affected is unbelievable. Yeah. Unprecedented.
Ron: It’s just this is the craziest thing ever.
Heather: OK. Do we have time for more questions? How we doing? How can I gather funds to make my first purchase? So someone who is going well, I need thirty thousand dollars to buy a single family home. How? What’s. What’s a good way to be able to get funds to help you move forward?
Ron: Well, it really depends. So you need three things to buy property. You need knowledge. Right. You need money and you need time. And you have to be able to either have to have all three or you have to leverage one or more of those. Right. So if you have no time, you have no knowledge and you have no money, that you have no business investing in real estate. Sorry to say it, but that’s the way it is. But if you have time, no money and you can apply some knowledge or you gain some knowledge. Well, then you can go get money because you can find the deals because you have the time to go out and find the deals. Yeah. Because where there are good deals, there is always money. Always money. Plus, there are really creative ways to put together real estate deals. I think I’ve talked about my first real estate deal and I put that together with like maybe 150 bucks, maybe 150 bucks. But I leveraged my brother’s expertise. I think his money, too, because I’m pretty sure I didn’t have any. I’ll have to ask him. But I’m pretty sure I used his money.
Ron: I had time, though, and I had knowledge. I had expertise because I had been trained about how to do this. And I had time to go find the deal and I had time to negotiate the deal. Good news is already knew how to negotiate because I had already been in sales before. Right. So I took what I had and I added a bunch of other things. So that’s what you got to do. You got to figure out where am I? Am I the got plenty of time person. And I just need to add some knowledge so that I can go out there and make this happen and then find the money. Yeah. Or am I the person who is going to try to do something creative, like go find a lease option where I don’t have to put a whole bunch of money down, but I can take advantage of one of the myriad of millions of loans out there at like, you know, between 3 and 4 percent interest rates. Yeah. Is that where I’m living?
Ron: Do I need to go do lease options? And if you do, then just email me at info@RPCInvest.com and I will give you a resource from a guy I trust to learn how to do that. Name’s Joe McCall. Maybe I should just have him on the show. I’ll just have him on the show. Good idea. I’ll just have him on the show. No problem. Yeah. So, I mean, you could still email me, but, you know, I’ll just have my own show. But he’s a really good guy. So you can do things that are creative or you can be creative and then use other people’s money. That’s what you do. But again, if you have no time, no money and no knowledge, please, for the love of all, that’s holy. Do not go do real estate because you don’t know what you’re doing. And if you’re doing it with grandma’s money down the street because you’re practicing now and try to figure out what you’re doing. That’s just not good. You’re going to lose grandma’s money. Piss off the family. Right. And then you’re still not going to have anything. You’re going to lose money. Yeah, I can’t do that. Don’t do that.
Heather: I think sometimes people have money and they don’t realize it. When I talk to people, they think they don’t have the money because they don’t have liquid cash, too. So I’m looking at other pockets of money like equity and things like that. Sounds true. Yeah. Okay. Next question. How do I say this is kind? This is our last question, actually. How do I start to create my life vision? So you’ve talked to quite a bit about how to create a life vision. And for those of you that haven’t heard that, I believe there’s a podcast episode for sure. But there are two podcast episodes to podcast episodes.
Ron: Look for the ones with Shawn McClosky, the ones with Shawn McClosky, and they’re really good. You should go back and listen to them. So, yeah, the question is, how do I start? Yes, I would find some quiet time and I would go to a place that is not my normal spot. Right. So if I’m lonely, if I’m normally in my house or if I’m normally my office, I would go somewhere else for same reason. We would do that for our quarterly meetings. Heather, we would go somewhere else. We would leave the office because it gets us out of our normal routine, wakes up our creativity and helps us not be around our phones and not be around our people that are going to interrupt this and our dog that, you know, like my dogs.
Ron: Your dog’s like my dog. Good lord, it whines all the time. And so there don’t so much love that I am going to cry when the dog dies. But, man, the dog drives me nuts. So you want to get away from all of that? Sit down. Either with the computer that doesn’t have anything turned on notifications mean because that’s dangerous or a notepad, which is preferable actually. And just start. Just start writing. Just start doing what? I mean, take notes from the episodes with Sean and that’s what I would do. And then the specifics for it or outlined in that episode. Those two episodes. So I don’t really want to I don’t want to go back over those, but that’s what I would do. That is the beginnings of it. And I would do it. I would just make a date. It’s funny. I was just telling my son that last night, like, if you if you want something to happen, you have to put a date on it where it’s going to happen by this date, which means I got to do my prep work before that date because come hell or high water on that date, it’s happening.
Ron:So if you give yourself a date whereby it has to be done or you have to start it or whatever it is that you want to do, you’re going to be more apt to make it happen. And then you need to make sure you’ve cleared your schedule and you’ve told your spouse or whoever it is that you know, is all over you all the time. I’m gonna be out incommunicado for X hours and then you just. And then you go do that. Like, so when like I used to when I lived out there, Heather, I would go to the mountains. And because there’s no cell reception, I could take my phone. And it doesn’t even matter right now. I would just I would ride my motorcycle up into the mountains in the canyon and I would park somewhere. There was nobody. And that’s what I would do. And nobody bothered me because they couldn’t get a hold of me.
Heather:So for someone that hasn’t listened to Shaun McClosky and his just hearings for the first time. Can you give us like thirty second one-minute version of what a life vision is?
Ron: Absolutely. So most people go through their entire lives and they set goals and they reach goals. And then when they reach their goal, they’re like, what’s next? The vision for your life is is the what’s next for all of your goals. And in addition to that, your personal vision should come first, not second. The other thing is that we almost all of us prioritize business and work over our personal lives and our family lives and our spiritual lives and our health. All of that’s combined into your personal vision. And then you should wrap your work and your business around your personal vision. And personal vision is what you that’s how you want life to be. And so most of us are closer than we think. We just have never actually spent the time. Most of us spend more time planning or vacations than we do planning our lives, which is crazy to me.
Heather: Yeah, it makes sense, though. I think you just kind of if it’s not part of your conversation of what you want, then how would you ever arrive? And I think. I’m doing it with your spouses, really interesting. We’ve talked about this before, but you know what you want out of life. Maybe it takes a minute to get to the heart of it, but your spouse right. Is it the same? Is it different? Is it drastically different than what you want? You know, it’s interesting.
Ron: And then how can you live both of those while you’re together? You know, so putting together your personal visions separately doesn’t mean that you guys aren’t compatible. It just means you’ve got some things that both of you need in your lives and you got to figure out a way to do that. Being married. Right.
Ron: And that’s not that’s not impossible. That’s actually kind of fun when, you know, when you know both those and then you have to do the same thing in your business. And I have a bunch of coaching students and I do this with them all the time. And it’s hard work figuring out your how to blend the personal vision with the business vision and how to even come up with a business vision. Because most business owners I’ve never even thought about that. It’s just I got to do this to make money. Period, end of story. That’s not really the case. Most people don’t take the time to dream what their business should look like or what they want it to look like. Most of them never even thought they could, let alone how to do it, right. But all that’s really, really important.
Heather: I agree. Yeah. One of these days, I’ll be able to have mine dialed in. And I’m there. I’m close. I should say. I’m close.
Ron: Well that wasn’t very lightning. It wasn’t very lightning of a lightning round. Heather.
Heather: Well, my questions were a little bit too deep, maybe for a lightning round.
Ron: That’s all right. Keep sending the questions in, folks. We really appreciate you. We even more appreciate you when you leave us a some comments. Little bit of love on our site, but leave us a review on oni-Tunes. That really helps us out, guys. Really helps us out. So we appreciate you guys. If you liked it, like the episode. Share it. Don’t keep us a secret until next time. You all stay still. Stay safe. I think out there.
This has been the Get Real podcast to subscribe and for more information, including a list of all episodes, go to GetRealEstateSuccess.com.
Heather throws listener questions to me in this lightning round where I freely give all of the advice I have stored up. Should you buy out of state? How do you even get started in real estate? How do you figure out your life’s vision? What will happen to real estate in a recession? We answer all of these and more. If you have a listener question, send us an email!
Is there risk in owning out of state? Definitely. Is there risk in owning down the street? Definitely. Is there risk in owning your own home? Yeah, you can see where I’m going with this. If you’re risk averse, maybe this isn’t the industry for you. But if you’re interested in a wealth building tool, you cannot beat real estate returns.
Right now is a perfect time to illustrate why we don’t do vacation rentals. The reality is that when we have a downturn, the first thing to go are vacations. You can do amazingly well on vacation rentals, but you have to really know what you’re doing. A good deal in an up market should still be a good deal in a down market for it to truly be a good deal.
On paper, there’s a better return on your investments if you purchase more properties. However, your stress level and your ability to sleep at night cannot be quantified that way. Heather and I talk about when to leverage, when to pay cash, and when to walk away from more rental properties.
You need three things to buy property: knowledge, money, and time. Maybe you have one or two of these things, and I share a few creative ways to get around what you’re missing. But for the love, if you don’t have any of these things, you absolutely have no business in real estate. There’s a time and a place for real estate wealth building, and when you’re ready, you should jump right in.
- This isn’t really that sexy. It’s just good old-fashioned wealth building 101.
- Heather explains how apartments are valued differently and why that matters.
- How do you know when to evict a tenant?
- We give a few different options for bookkeeping, including my favorite: outsourcing.
- Finding your life vision starts with a quiet spot to think.