The CashFlowGuys Podcast teaches busy people how to use what they have, to get what they need in order to accomplish what they want. Using tips and techniques from industry leaders in Real Estate Investing and Financial Services, the CashFlowGuys are on a mission to educate the public on all things involving real estate and financial services. Your host, Tyler Sheff interviews experts from around the globe to help people improve their financial intelligence.
306 - Never Trust The HOA with Attorney Shawn Yesner
35:38In this episode, I bring back my Real Estate Attorney Shawn Yesner to discuss HOA foreclosure issues that are rapidly becoming more commonplace. This episode is packed with the info you need to avoid this common "gotcha" that catches many real estate investors off guard and can cost you hundreds of thousands of dollars. To connect with Shawn go to YesnerLaw.com
305 - What The US Debt Limit Means For You
33:09There's been a lot of chatter lately about the US Debt Limit "crisis" that was created by our elected officials. I'm not suggesting its not a crisis, it certainly is, yet 100% of the blame is shared by our elected officials on both sides. The easiest way to understand it is to think of it as a credit card that has a credit limit. Imagine if you paid all your bills using that card and suddenly decided you wanted (or needed) to buy more stuff. If the credit line is maxed out, simply call the bank and ask for a higher line of credit...what could go wrong? LOTS, lots can go wrong. There is an unimaginable amount of bad information spewing from Washington DC on this topic which is why I made this episode. It's time for you to take action to protect yourself from our elected criminals. This episode will help explain what's really going on, how we arrived here, and then offer suggestions on how to prepare yourself to weather the storm. SHould you be nervous about the debt limit? No, but you should be taking steps to prepare and to protect your financial future.
304 - The Subtle Art of Raising The Rent
28:26For every landlord, the day comes where we find the need to raise the rents. For many, this is a routine that happens annually or semi-annually. The event can bring with it a bunch of emotions from landlords and their tenants, some good, some bad, some indifferent. Nonetheless, there is a "right way" to raise the rent such that the most desired outcome for you is probable and that's what I am discussing in this week's episode.
303 - Can They Prove It?
33:02“Deal Shopping” tends to lend itself to the rose-colored glasses effect, everything is great, no worries here, this place is just under-rented, all ya gotta do is buy it and POOF double the rents and get rich right? WRONG Before we go any further, let’s discuss the two types of vacancies. Physical vacancy applies to actually empty units (nobody living in them) Economic vacancy identifies the difference between the potential (proforma) rent and the actual rent. As a passive investor investing in someone else’s deal, it’s a good idea to perform your own independent market research. Your findings should align with the finding of your deal sponsor. If you are buying a property yourself as an active investor, the same is true. You can’t count on the Wholesaler, Broker, or Seller to be accurate with the information they provide. It’s not that they are lying necessarily, instead, it’s more likely that they simply were not willing to do their homework if they are the Broker, Wholesaler, or Deal Sponsor. If the seller is off, I often find they are conveying what the “feel” it will rent. Let’s keep in mind that they never actually get that much, after all, they don’t want the tenants to leave right? In this episode, I’m going to break down how you can assemble the most accurate information available. Its making decisions based on facts that will keep you safe during your investing journey. If you want to learn more about what I am up to in Key West as far as my upcoming deals, go to keywestcashflow.com/call and schedule a time to get on my calendar to discuss our plans down here and how we might be able to work together in the future.
302 - What Financial Crisis?
24:32In this episode, I discuss recent headlines as they pertain to our current and future financial crisis. Recently, Tax Attorney Mark Kohler put out a great video about proposed changes to tax law that could have a massive impact on those who use IRA's to invest. You can watch this on youtube by following this link: HTTP://CashFlowGuys.com/IRAdrama This impacts house flippers, real estate syndicators, and the like across the board. Should you sit on the sidelines and let this unfold before you invest again? Does it make sense to buy now? These are the topics I discuss in this episode.
301 - The Spin-The-Pad Negotiation Technique
18:19Nobody enjoys making low ball offers - Let’s be honest….its painful! Brokers / Wholesalers / Sellers always “guess” at the asking price, that’s right, I said guess. Why do I say this? Because it’s true, let’s think about it for a minute. The Realtor does a market analysis and /or the seller is super savvy and gets an appraisal to help them determine the fair market value of their home. In almost every case, the seller will boost that valuation up a little to leave room for negotiation hence a “guess” when it comes to the asking price. I’d like to think that Key West Realtors are crazy in the pricing down here but they’re not. Homes actually sell for more than the asking price in many cases which tells me that the buyers feel the homes are worth more than the sellers and brokers do! That’s a great thing when you’re on the selling side of the transaction for sure! I’ve never met a seller, wholesaler or real estate agent who was happy to hear that you feel the property they are selling is “overpriced”, so, why bother discussing that topic at all? I suggest a “softer” approach...take copious notes, get detailed in note-taking and ask lots of questions. If the property is a rental property be sure to document ALL of the expenses that the seller is willing to provide and add the ones they tend to forget about (such as property management) Get all the data available, refuse to make an offer without knowing each and every expense on the property (crazy sounding I know). Then...Do The Math WITH the seller or agent., yes, I mean spin-the-pad, ask the seller or broker how to make this work...subordinate yourself, and prepare to have a fruitful negotiation.
300 - Crushing It In Short Term Rentals with J Massey of CashFlowDiary
59:43In this, the 300TH episode of the Cash Flow Guys Podcast I sit down with J Massey of Cash Flow Diary to discuss the amazing possibilities that can be had by investing in Short Term Rentals. As a student of J's Jill and I have built an incredible STR business that allows us the freedom to run it from anywhere in the world. Recently, we relocated to Key West, Fl to begin buying up long and short-term rentals in this market. With the help of Mike Marino of LayoverMoney.com we plan to revolutionize the traditional methods of syndication investing by building a streamlined, highly optimized investing opportunity for our investors. If you want to learn how to grow your very own short term rental business, you can get started today by texting "blueprint" to 949-506-5255 As a student of CashFlowDiary myself I can tell you that learning this skills will prove to be absolutely life changing if you choose to do the work.
299 - Tax Pros and Cons of Investing in Syndications with CPA John Hartung and Mike Marino
45:21In this episode, I talk with my investment partner Mike Marino and our CPA John Hartung for the Cashflow Capital Investment Fund we have opened recently about the pros and cons as it pertains to investing in syndications of all kinds. We discuss the several ways a syndication or investment fund is taxed and also how the individual investors are taxed. Did you know it's possible to achieve a zero tax rate without being Jeff Bezos? I didn't but it certainly is and John discusses how that is possible amongst many other juicy tax strategies in this episode that you're not going to want to miss!
298 - How The Supply Chain Crisis Will Squeeze Investors
18:36Lately, I’m seeing signs of supply chain issues that could potentially impact the income I make from my rental properties and other real estate deals. In this episode, I break down what I am seeing as it pertains to labor and materials shortages and how that can impact all real estate investors worldwide. Don’t underestimate how the current and upcoming shortages can and will impact your business. I am hearing more and more reports daily from friends and colleagues who are having trouble finding even the most basic supplies to maintain their rentals or finish flips. Experts are saying the shortages will likely worsen before they get better so why not take a minute to access your position and take appropriate measures to protect yourself and your business.
297 - What Is An Equity Multiple
21:56The term equity multiple is used by syndicators/deal sponsors as a fancy way to discuss return on investment. Google Definition: Equity multiple is a metric that calculates the expected or achieved total return on an initial investment. It’s calculated through an equity multiple formula that divides the total dollars received by the total dollars invested. Equity Multiple = Total Distributions / Total Invested Capital Example 1: An investor purchases a property for $100,000; The property is sold for $200,000. The deal produces a 2x equity multiple. If the investor only receives $150,000 back, the deal delivers a 1.5x equity multiple. Example 2: An investor purchases a property for $100,000; The property pays $7,000 a year in net operating income; The investor sells the property for $165,000 after six years In this case, the equity multiple calculations would be $207,000 divided by the initial purchase price of $100,000, or a 2.07x equity multiple. Example 3: Leverage Example: An investor purchases a property for $100,000 The investor used a loan for $50,000 and put $50k down The property pays $7,000 a year in net operating income The annual interest payments on the loan of $2,500 The investor sells the property for $165,000 after six years In this case, the equity multiple would be 2.84x. While leverage can amplify returns because the cost of debt is cheaper than the cost of equity, it’s important to remember it can also destabilize a project and amplify losses. Equity multiple is an easy comparison tool because it provides a quick glimpse into the total profit investors can expect to earn on a particular investment, provided its successful. Keep in mind that it’s dangerous to put too much weight on this metric when deciding a go/no go decision because this metric does not factor time. Internal rate of return DOES consider time in the calculation yet like other metrics also has its shortfalls. True IRR cannot be considered unless the asset has already completed a given cycle of performance and has been exited.