November 30, 2023 • 31 mins
Curious about how real estate can grow your wealth? Get ready to have all your questions answered as we chat with Brandy Williams Harrington, a seasoned broker and investor with an impressive 15-year stint in the real estate industry. Her insights into different types of real estate investment - from residential properties to Airbnb rentals - are a goldmine for those eager to diversify their investment portfolio. With real estate promising better returns compared to traditional methods, there's a lot to gain from understanding the nitty-gritty of property investments.
Our conversation doesn't stop at that. We also delve into managing personal income in real estate investing and the steps you can take to kick start your journey. Emphasizing the importance of self-education, professional guidance, and realistic expectations, we aim to equip you with the knowledge to navigate the real estate market confidently. Plus, we share effective investment strategies, discussing everything from understanding the importance of numbers, partnering with seasoned agents, to considering property management. This episode is a rich resource for anyone looking to step into the world of real estate investing. Whether you're a novice or an experienced investor, there's something for everyone.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
Hello everyone.
My name is Carolyn.
Welcome to the Saving for yourFirst Home podcast.
I am the CEO of the FinancialMoment.
We offer money coaching forthose who are ready and willing
to make financial changes intheir lives.
For the most of us, there comesa point in time where we think
to ourselves it would be reallynice to own property, but it
(00:22):
sometimes can feel like a pipedream and not very easily
obtainable.
So I created this podcast togive you all the information and
tools you need to take thesteps forward toward home
ownership.
Take it from me my husband andI started our lives together,
working part-time jobs with ayoung child.
Fast forward, through manyhiccups and failures, we stepped
(00:43):
our feet into our very firsthome.
For us it was a pile of dirt,but eventually our family home
was built on that dirt.
Now we are in the midst ofgrowing our investment property
portfolio.
I created the savings for yourfirst home podcast to give you
easy, actionable tools for youto do the same.
If you have that same gutfeeling that I did and want to
(01:06):
create a life for yourself andyour growing family, but don't
know where to start, you are inthe right place.
Let's do this.
Hello everyone, welcome back tothe Saving for your First Home
podcast.
Now, today is kind of abittersweet day.
This is our 60th episode and weare going to making a shift in
(01:29):
our podcast.
I have enjoyed so muchproviding information on how you
can save for this big purchasethat comes around in your life,
and I hope you've enjoyed all ofthe information and the special
guests that I have brought onto the show to really give you
as much information to go aheadand start planning to purchase
(01:54):
that property.
But, like everything in life,sometimes we need a shift, and
so this will mark the lastepisode of what you know as the
saving for your first homepodcast.
I will still be continuing withthe podcast, it'll just have a
little bit of a different lookand flair.
(02:15):
So look forward to that nextThursday as we launch our new
series.
But I can't go out without abang.
So today I am excited to welcomeon another guest, and her name
is Brandy Williams Harrington,and she is a highly dedicated
(02:37):
investment broker, developer,real estate advocate with more
than 15 years of experience inthe real estate investment
industry.
Now, she's originally fromChicago, but Brandy's interest
in real estate was peaked bywatching her grandmother manage
rental properties.
Despite having no coaches ormentors, her first venture into
(03:00):
real estate investment led to aloss of her entire portfolio.
However, she reentered theindustry two years later with a
fresh mindset and strategy whichenabled her to invest and grow
her portfolio.
So now Brandy is well versed inbuying and flipping, owner
financing and wholesaling realestate investments.
(03:22):
So please welcome her to theshow.
I am so excited today to inviteBrandy onto the saving for your
first home podcast.
She is a broker and an investorand is going to drop some
serious knowledge for us.
So we got some questions forher and I'm super excited to
(03:42):
learn tons of stuff about thereal estate investing market.
We talk a lot about on thisshow buying your first home, but
you know, sometimes we need tolevel up right and think about
how we can actually improve ourinvestment portfolios, and so
Brandy is going to give us tonsof information about that.
Welcome, brandy.
Speaker 2 (04:02):
Thank you so much, carol, for having me on your
show.
I'm super excited to be here.
I'm excited to share with youall things investing, so
absolutely All right cool.
Speaker 1 (04:15):
So just give me an example or provide me with a
kind of an overview of realestate investing, and why should
people really add this as anaddition to their investment
portfolio?
Speaker 2 (04:27):
Well, it's a little stuff, and let's think about
real estate.
I know you do a lot withregards to first time home and
ownership and I think that's anamazing job, so thank you so
much for spreading moreattention to value there.
But let's just say, forwhatever reason, you are ready
to step up into the real estateinvestment market, and you're
like you know, I want todiversify.
You know things are not makingmy money.
(04:49):
Sitting in the bank is notnecessarily growing right, but
with real estate investing, youcan actually get a better ROI,
or return on investment when youare into real estate investing,
and it's been said that mostlyall your millionaires have some
form of real estate investment.
So guess what?
There is some truth in there.
So real estate investing is ahuge opportunity to grow your
(05:13):
network and your money and yourincome, and so this is one of
the ways to do it.
I like to tell people that,with regards to real estate
investment, obviously you haveyour traditional house that you
own, but when you're ininvesting, there's so many
things you can do from rentals,you can do wholesaling, you can
do flips, you can buy and hold.
There's a whole lot of otherdifferent things that can grow
your wealth while someone elseis actually helping you to build
(05:37):
, pay down that debt and orensure that you're able to do
more diversification within yourreal estate investing.
Speaker 1 (05:44):
Absolutely.
I mean, what kind of investmentcan you think of where someone
else is actually contributingtowards it?
Right?
Speaker 2 (05:52):
Exactly and all you have to do is just basically
just collect that money.
And it's really a cycle wherewe're seeing time and time again
, but it's tried and true, youdon't have to necessarily do
anything that has not been done.
And I think that's the realreason why real estate
investment works so well is thatwe've seen it and it's been an
(06:13):
investment that we know that youpretty much.
When I say real estate, it'sdefinitely something that's
constant.
Speaker 1 (06:20):
And if we think about real estate investing, are
there different types, like Iknow?
Like obviously we're talkingabout residential but there must
be other things that areinvolved.
Speaker 2 (06:30):
Absolutely.
I mean, there's obviouslyeveryone knows about the
residential side, which is thewhole.
The buy and flips, the Airbnb's, is another form of real estate
investment.
There is, obviously, the longand short term rentals as well,
but then there's commercial realestate investment.
There are things that you coulddo from a commercial standpoint
(06:50):
.
If you have People renting outcertain things within a
commercial space, you'reactually returning Money when
you do that as well, as there'sindustrial rental space as well
as Ritz, and so that is whenyou're actually allowing
companies to operate and financedifferent deals that they feel
are be very good for you, andit's really passive because you
don't get a chance to be morehands-on, but it definitely
(07:13):
helps bring in additional incomefor people who like that type
of real estate investment.
Speaker 1 (07:18):
That's good, because then we were hitting all the
spectrums right.
We're putting people that arerisk-adverse and, you know, just
want to put your money in alittle gild dabble, and then
you're hitting people thatreally want to jump in full
force and Monitor and doeverything themselves.
So it really is a big Range oftype of investments that you can
actually think about.
Speaker 2 (07:39):
Yes, I think it's just for people who, depending
on how their risk tolerancelevel, it really is like I don't
know if I'm super ready to doall of this, but let me put my
foot in to your point and Ithink that's where the benefits
of real estate allows you thatflexibility.
People really have to thinkabout their risk tolerance
because, again, I will not saythat with real estate investment
(08:01):
there will not be guaranteesand there won't be any risk.
No one, I think whatever,should tell you that.
But if they've told you that,run number one, yeah, but never
to be in realistic.
That is a risk but at the end ofthe day your reward, depending
on the risk, outweighs.
You know the the hesitancy thatwe typically see with investing
.
Speaker 1 (08:23):
And now I think what also contributes to the risk is
market conditions, and so rightnow it's a really kind of an
interesting time that we're inright, and so how does that kind
of affect the real?
Speaker 2 (08:36):
So I'll be completely honest right now, being in that
real estate investment formarketing conditions is
impacting Obviously, no matterif you're a residential or
commercial.
We're seeing it on both sidesand it's impacting it greatly.
I'll be completely honest, andwe've seen what happened when
the interest rates was at a 2%Right right and the frenzy it
(08:59):
created and it did so much wherepeople were, everyone was super
excited.
It's like everyone gets a houseright but we weren't ready and
there's not enough inventory forthat type of Market conditions.
And now I get people are likewell, you know, I'm waiting for
those days to return.
Speaker 1 (09:16):
I Don't think we're gonna see yeah.
Speaker 2 (09:22):
I know people don't want to hear that, but no, that
in itself was a is a rarity.
Unfortunately, I just have toshare that with someone earlier
that I don't think we may seetwo and a half three percent the
market conditions based on whatwe're hearing.
We literally would again haveanother frenzy.
We're not prepared for where weare now, and so how can people
(09:43):
think that we're gonna see itagain when we weren't ready for
that?
Speaker 1 (09:47):
And so.
Speaker 2 (09:47):
I get.
People are ready to jump intothis investment market or buying
a purchase house, but so muchwent on with that that it be set
up you can't do that anymore.
But specifically now we'reseeing high interest rates.
So now everyone is like, oh,I'm not spending any money,
right, and I get that, and thenit reduces how much property and
things that you can buy.
(10:07):
So from our investmentstandpoint, we're seeing
investors like, do I really wantto do this?
Because again it's costing themmore money to borrow to do the
type of Investments as on youstart looking yet from a cap
rate and and those type of ratesthat your indicators are
Marking you to, and you're notseeing where you normally should
(10:28):
land.
It starts making people reallywonder if this real estate
investment is going to giveproduce the yield they really
want.
And that's a scary part,because real estate has always
been a more of a safe.
You know, done right, youshould be able to see the
returns.
So when you have high interestrates, you have all of these
different factors that goes intothe making Analysis for people
(10:50):
to be able to project their RRIsand their cap rate and I are
all these other different rateswe can go through and you're not
seeing that, because again itgets scary.
Then it makes some of ourinvestors start and say, hmm, I
wonder if I should do this, orlet me see if this is really
what I'm Going to yield.
So right now, I like to sell me, no matter what, if the
(11:10):
property is there and it meetseverything else While I get that
it is a little bit moreexpensive what you can always
refinance with that propertystill be there, though, and
that's what you have to thinkabout.
Speaker 1 (11:24):
Yeah, that's a really good point because you know an
investment is an investment.
If the numbers were working foryou, regardless of what the
industry currently is, thingswill change right, and so maybe
you're not making as much rightnow, but maybe there's a
potential to make more in thefuture.
So it's really about kind of,you know, mitigating your risks,
(11:45):
right?
So is there a specific way thatwe can?
Or?
I know you talked about some ofthe different indicators, but
is there something that weshould really look out for if
we're trying to mitigate risk?
Speaker 2 (11:58):
So that's gonna vary, but of course you definitely
can think of a couple indicators.
You gotta really think aboutmarket risk.
I mean, I think everyone knowsthat of course the market is
going to be what the market isgoing to do.
Now how do you mitigate marketrisk?
Well, a Crystal ball will tellyou, just by low and the time is
right.
But what if there's not thecourt case?
I think you really have to lookat diversifying your property
(12:19):
and those type of properties inorder to really help Understand
market conditions.
Maybe you don't put everythinginto, maybe commercial, maybe
the commercial industry is notdoing the best, maybe
residential is a little bit moresteady and have better ROI for
you.
So maybe from a marketconditions, you will look and
diversify that.
I think that helps you be ableto not Put everything in one
(12:40):
particular Component which wouldthen unfortunately give you
Some numbers that may not be thebest that you really would like
to you.
And I think you have to be ableto know from liquidity type of
avenue, what would that looklike for you?
What does that really look likefor you to be able to say you
know what, maybe after this holda little bit longer, maybe I
would have to be able to not geta higher buy-of-hand people
(13:03):
telling me why I need to producea 12 15% ROI on this.
I'm like you may not get thatthis year.
You may have to understand thatthat's just the reality of what
we're dealing with, because atthe end of the day, it's not
realistic because again, yourInterest rates is affecting that
and impacting that, and thenyou also have to think about
interest rate.
I think that's a different riskthat most people don't think
(13:24):
about, but again, that abilityto come and at a different time,
renegotiate lords that.
To help you understand that.
Okay, well, maybe I'm notseeing it, but in time I will be
able to get whatever thatnumber looks like, whatever your
Management team have yielded.
Then that may be something youneed to look into and maybe just
wait also something to thinkabout is the financing.
Speaker 1 (13:47):
Now for my listeners, I am sure they are super novice
and so they're think justthinking about how do I even get
into this Real estate investingsituation.
So what would be the advice youwould give to someone who's
fairly novice and Wants to getsome financing to do this type
(14:08):
of investment?
Speaker 2 (14:10):
So that's a great question.
I'm asked that pretty muchregularly like how do I start
right for people who are justtrying to get into the market?
And I think, again, I'm a realestate broker, so I'm gonna
start from what my knowledge isand how I got into it and then
we give you all the obviouslythe ways you can do this.
I really started with my ownincome and most people was like,
(14:32):
oh my gosh, you should never dothat.
Well, for me, I didn't know.
Again, I started.
I've gotten Licensed since, so Iknow a lot more, but at the
time I didn't really know how toget into the market.
So I use my own income, which,for novice Entry-level
individuals utilizing homeequity lines he locked lines,
that's your income that you have, maybe a savings account, using
(14:55):
that income to buy at leastyour first one right.
Start getting comfortable withunderstanding exactly what that
process looks like Understandingpurchasing or property repairs,
what your property managementfees all those things are gonna
come into knowing what you weredoing your first one.
So you need to be able tounderstanding, you have to
(15:16):
educate yourself.
You really have to know that.
This is super important.
It's not something just jumpingin.
I know people make it look soeasy.
But, you know how, that you knowand I learned all of these
things with, again, my ownincome and I would idea is just
take my own income and mademyself alone.
I use my own money as mycollateral to go to the bank to
(15:36):
say, hey, I want to borrowagainst my own money.
So I became my own bank.
So guess who's going to payyourself back first?
Speaker 1 (15:43):
You are Exactly.
Speaker 2 (15:45):
For me that work, and so that's how I started my
career.
So now there's obviously allkind of ways to be able to help
you do that without that, but ithelped me understand the value
of again what my money waslooking like, the value of all
the things that I wanted to do.
I had all these grandiose I had, and it's like you know, I'm
(16:05):
paying for this right and it's alittle bit, you know, different
when it's not just given to you.
Yes, I'm still paying it back,but again, how much money do I
personally have?
And then how do I be able tomaximize that based on me
putting my own money up and Ithink that was a good way for me
to be able to market but at thesame time, making sure that I
could be able to obviously paythe loan back.
(16:28):
But, more importantly, makesure I knew the dollar and how
it impacts what my decisionmaking skills will be.
And I think that's one thingthat people who need to know
from a novice standpoint isreally understanding those
different concepts from research, from education, making sure
you really are hiring people whohave been in the game, because
(16:48):
it changes and there's certainthings that you there are
constant, but there are certainthings you just have to know,
and if you're not just gettinginto real estate investment
while it does produce a lot ofdifferent things you have to
have a baseline and somewhere tohelp you understand.
Okay, following these worldsleads me to this success, and
that's one of the great thingsthat you'll learn when you do it
(17:09):
and you are utilizing your ownincome to get there.
Speaker 1 (17:13):
Yeah, you made a great point about the value of a
dollar right.
I think sometimes borrowedfunds can sometimes not feel
like it's tangible right, and sowhen you're only using your own
money and you work for it, it'syour income and you're putting
it on the line.
All of a sudden, now you'remore careful about how you spend
(17:33):
it, you're more careful aboutwhat you're going to do, and so
it's a great point, because weteach that not just real estate
investing, but even for your dayto day spending right.
Speaker 2 (17:45):
And I think the reality is start small.
I mean, people want to getthese.
Oh, I'm going to go out and buy20 houses.
Wait a minute, you know.
You know one goes because youmay not want to be that
aggressive and that hands on.
Maybe this was just like, hey,let me hurry up and make my
money back and not say, okay,let me get a more passive
approach.
But you will not, won't knowthat until you start small.
(18:08):
And I think that's one thingthat people I've told people all
the time don't think that youhave to go buy this four flex or
six plus eight plus right now,because you have to understand
that that four or six flex isnot funding or it's not
producing the right number, juststuck with that huge debt that
you've taken on.
I understand there's so manydifferent creative financing
terms thrown out to people, butyou all still think about the
(18:30):
mortgage has to be paid.
Speaker 1 (18:32):
Absolutely.
Speaker 2 (18:33):
People don't think about these things.
They just think, oh, I can makeX amount when I get it up and
running.
Yes, when it's up and running,mm.
Hmm, when it's running, exactly.
I still think about it has tobe up and running.
How is going to cost per unit?
What is that looking like?
How long is the contract aregoing to be in there?
What materials are going to do?
(18:54):
What is that paint costing you?
I mean, I can go on and on andyou're like what?
Yeah, and it is going to cost Xamount.
And if you're, you put thismoney, think about it.
Where is that money coming from?
You purchase it, repair it,exactly the return, and people
don't hear all of thosedifferent things.
No, you don't understand thenuances of what that may look
(19:16):
like and I think we don'toverstate that enough.
Speaker 1 (19:20):
I'm not hearing people.
Speaker 2 (19:21):
I'm saying be very much aware of it.
Don't think, because you closeMonday, that you have this huge
amount of money that's going tocome on on two weeks from now.
Speaker 1 (19:33):
Exactly.
Speaker 2 (19:34):
You still have to market.
You still have to do background.
Your property managers stillhave to do their due diligence.
It's still so many other thingsthat goes into this particular
arena that most people overlookand it gloss over their like
influences here on thisparticular market.
Oh yes, you're going to makeall this money.
Speaker 1 (19:54):
No.
Speaker 2 (19:55):
Not yet, exactly Not yet, but that's great.
So that's that's my best advicefor people.
Speaker 1 (20:02):
No, it's so true because unrealistic expectations
, right, because they see thesethings online and you think, wow
, if I get into it, you knownext month I'm going to be like
raking it in and it just doesn'thappen.
It's actually probably going tobe the opposite, because most
of the cost come up front, right, just like you said.
So it's a great point taken.
(20:23):
So, having said that, do youpersonally have any stories
could be about good or bad thatyou want to share?
That would get a give a lighton how this can go down in a
good way or bad way it can beeither.
Speaker 2 (20:40):
You know what I'll tell you about.
When I first got into a realestate investment, it was a bad
and I like to share this becauseI, like people, know this is
the real, the reality of whatcan happen.
So this is my second time intothe real estate investment world
and my first time was because Idid got into real estate
investment.
I was super green, didn't knowanything and I just bought up
(21:01):
all these properties.
I was under the impression like, oh, these are great numbers
and this is a great deal in thishouse, not doing my due
diligence and research.
So I had several propertiesthat I took on ownership of and
in doing that, they were theproperties were over inflated.
Speaker 1 (21:19):
Okay.
Speaker 2 (21:21):
So I had mortgages on each one of these properties
and this was the crash of 08.
And then when people started tomove out of the properties, of
course I was trying to work toget these properties back, like
a loan modification.
I was working through thosedifferent steps but guess what,
(21:43):
when they went out to do theappraisals, they were like these
numbers are not real, they'renot there.
And so when one or two peoplestarted moving out again I have
mortgages.
I still was not generatingenough to cover when those
tenants moved out and it's likea domino effect and I was like
(22:03):
what happened here and it wasjust in the blink of an eye.
And again I was like mostpeople.
I jumped in here first of alllike three or four or five
properties at one time, likethey're good, they're cash
flowing and they were goingreally well and then it just
stopped and there was no wellagain.
There was an OA crash.
But once I went through that Ilost my entire portfolio and I
was like I'm done with realestate.
(22:23):
My credit plummeted it.
I just was very upset.
I just thought life would haveended faithfully, because I was
like oh my gosh, how did I getin here?
And I vowed never to get backinto real estate investment Wow.
Here you are Now here.
I am back and I'm happy to tellpeople I own multiple properties
(22:46):
.
I now have redone everythingbecause again I understand now
the value of that, starting withone again.
but I didn't get a differentmindset.
I did a different approach andin doing so now, on multiple
properties and about 60 acres ofland, we're doing some
commercials, things that theportfolio is really great now.
(23:08):
But again it started from thatone of getting back into the
investment arena but making sureI understood my numbers,
understanding the value of againthat dog that we talked about
earlier and how to be able to dothat in a manner where it makes
sense.
It's not unrealistic to be ableto get a return now that may be
(23:30):
a little lower than Ianticipated, but over time it
grows, it definitely gets betterand so I think that's one of
the great things.
That was in terms of a storywhere it could have went either
way but thankfully it turned.
But again it calls me notknowing my numbers, not
understanding my capital, notunderstanding how to get into
(23:51):
the entry.
How much am I spending for thisproperty?
What does that really look like?
How can I track and monitor myexpenses and repairs, property
management fees, et cetera, andstuff like that.
So those things differentlymatters numbers, numbers,
numbers.
One plus one is always going tobe two guys.
I don't care what people say Ifone plus one is never three,
meaning you're not going toexponentiate and grow in 12
(24:13):
months.
It's just not going to happen.
Not that.
So that's what I'd like to tellyou.
Speaker 1 (24:17):
It's a great lesson, because really knowing your
numbers is going to kid, tip youthe right way and the wrong way
.
If you ignore them, it's goingto tip you the wrong way, and if
you understand them, you knowwhat you're getting into, and so
that's a really good point andI'm glad to hear you got back in
.
Speaker 2 (24:36):
I was like I'm done.
But when he was like no, you'renot, I think it really just
stems from my upbringing andjust being around it so much and
saying you know, it's like youjust didn't know what you didn't
know, but it does help peopleunderstand that, even if you
have at moment, it doesn't lastforever and, at the same time,
(24:57):
realizing that things happeneven to good people who do
everything right.
But it means that you learn fromit, and that's one of the
things that no one can ever takefrom me.
More importantly, it helps mebe able to help have this real
list of conversation withinvestors and people who want to
get into this industry and bevery transparent about it and
help them understand the valuethat it exists with.
(25:19):
If it doesn't go this way, it'sokay too, but guess what?
We can bounce back, and we justlearned to pivot and make the
next step the better one,because now we have all the
information on how to be able tospend from this and take this
one moment in time where itwasn't the best, but what we can
do to make it better if wedecide to get back on this horse
again and decide to do back inthe real estate investing
(25:41):
Absolutely, absolutely.
Speaker 1 (25:43):
So, which also leads me to your expertise.
Like how do you find you?
You know what I mean.
Like, how do you reach out andget this information?
Again, the listeners are prettymuch novice, so what do we do?
Speaker 2 (25:57):
So, in general, I would tell you to partner with a
good real estate agent orbroker in your area who is well
versed in real estate investing.
I think that's really the bestway.
There's obviously severalYouTube, Google it's like Dr
Google, right and they're good.
The reason why I like to sayhave someone in your local area
(26:18):
and markets, because you can getthe expertise from someone
who's local.
I think that's super critical.
I think there's so many thingsthat you could put on online.
That sounds good and it mightbe.
I'm not saying it's not, but isit?
You know, can you validatethose numbers in your market?
Are those numbers realistic inyour market?
(26:38):
Because at my market is thebest, but my price point to
entry is, let's say, inCalifornia, $600,000.
Right, you know is that numberrealistic?
If you get this property right,like let's just start there,
would you yield the type ofresults I think people have to
really stop listening to notsaying.
Stop listening to people, butstop listening to people that
(27:00):
may not be in their market, fortheir number only and not say,
okay, that is a number I couldprobably show.
That's what I strive for.
But is this realistic in mymarket or for the market that
I'm going to invest in?
And I think that helps you bemore knowledgeable because you
can see that it's possible.
But if you're not going to dodue diligence to hire the right
property managers in thatparticular market, if you have
(27:22):
the same different experienceswith the contractors and the
different nuances that goes withpermits and stuff, you may not
see that are a lot.
Maybe they have enough peopleon the grounds to do that.
You have to grow into that,especially when you have these
huge portfolios and they canleverage certain things.
I think you just have to berealistic with that and knowing
that you in your market, this iswhere you're going to be.
(27:42):
What is realistic that I can beable to expect from a return if
I was to invest in your market?
Speaker 1 (27:50):
Yeah, and also, you know people tend to invest or
want to invest where they live,which could be a city center,
but maybe that's not a practicalplace to invest because, like
you said, places that are in bigcities tend to be a lot more
expensive, and so right.
And then they think, okay, well, I'll just go a little bit
outside the city now.
(28:10):
But then there's so many otherfactors.
Do you have a property manager?
Do you have?
You know the contractors?
Do you know the area?
You know?
What about a renter?
Is it going to be difficult tofind renters in that
neighborhood?
Speaker 2 (28:22):
And I think people really have to understand that
from a property management side,we own a property management
company, but I have investorsthat call and their expectations
is that we just do all thesethings and we're producing all
these things for people and it'sjust going to happen overnight.
I'm like whoa, it doesn't quitework that way.
And I think to your point.
Like you said, you have torealize that a lot of time and
(28:44):
expertise goes into this.
This is it's a skill set, butat the same time, we want to
make sure that you're gettingwhat you're wanting in terms of
your monthly income.
But we need to be able to havea product and service that be
able to give these tenants theassurance that they want to stay
in.
Your unit is well kept, you dothe repairs, and so there's that
balance there, right, and youhave to pay for that service.
(29:06):
And I think when you're startinga real estate investment, you
have to realize you have toaccount for that service and
really properly pay and screenthat property management company
to give you that type of red.
They're rolling out their redcarpet service.
Yeah, get that return.
And I think that's one thingpeople have to realize because
if you self-manage and you don'tknow what you're doing.
(29:26):
You could literally, oh mygoodness, get in trouble with
Rental laws and do certainthings that people don't even
think about, like, oh, I'msupposed to do this.
Yeah, I think that's justsomething people have to think
about after you know whathappens after I buy the
investment sale.
That's something people need toresearch as well, and having the
(29:46):
person in local who can helpthem will be a huge plus to get
that information as well.
Speaker 1 (29:52):
Oh, my goodness, this has been so great.
You have shed so much light onthis topic that people are not
really that familiar with, so Ido appreciate you coming on the
show and providing all yourknowledge, and we will
definitely drop your link in ourshow notes.
So if anybody wants to reachout to Brandy, please do.
(30:12):
She is exceptional when itcomes to her knowledge and her
expertise.
Speaker 2 (30:18):
Oh, you're welcome.
Thank you so very much forhaving me.
I'm super excited.
Again, I can say I just want tobe able to get people a fair
and balanced and a realisticapproach.
So if I can be of any service,please let me know.
So thank you again for havingme on your show.
Speaker 1 (30:32):
Absolutely.
Thank you again.
Speaker 2 (30:34):
You're welcome, thank you.
Speaker 1 (30:36):
All right, take care Bye.
Speaker 2 (30:38):
Bye.
Speaker 1 (30:39):
Well, there you have it.
That wraps up the saving foryour first home podcast.
Again, it has been my pleasureto bring you all the information
you need to buy your first home, but don't leave us just yet,
because it's time to elevateyour paycheck.
That is the name of our newpodcast Elevate your paycheck.
(31:03):
It is going to be filled withtips and hacks and ways that you
can really maximize your money.
So tell a friend to tell afriend to tell their friend that
it is time to elevate yourpaycheck at the same time and
the same place.
See you soon.
Thank you for listening.
(31:23):
We are committed to helping youplace your very first steps
into your new home.
See you next time.
Hello everyone.
My name is Carolyn.
Welcome to the Saving for yourFirst Home podcast.
I am the CEO of the FinancialMoment.
We offer money coaching forthose who are ready and willing
to make financial changes intheir lives.
For the most of us, there comesa point in time where we think
to ourselves it would be reallynice to own property, but it
(00:22):
sometimes can feel like a pipedream and not very easily
obtainable.
So I created this podcast togive you all the information and
tools you need to take thesteps forward toward home
ownership.
Take it from me my husband andI started our lives together,
working part-time jobs with ayoung child.
Fast forward, through manyhiccups and failures, we stepped
(00:43):
our feet into our very firsthome.
For us it was a pile of dirt,but eventually our family home
was built on that dirt.
Now we are in the midst ofgrowing our investment property
portfolio.
I created the savings for yourfirst home podcast to give you
easy, actionable tools for youto do the same.
If you have that same gutfeeling that I did and want to
(01:06):
create a life for yourself andyour growing family, but don't
know where to start, you are inthe right place.
Let's do this.
Hello everyone, welcome back tothe Saving for your First Home
podcast.
Now, today is kind of abittersweet day.
This is our 60th episode and weare going to making a shift in
(01:29):
our podcast.
I have enjoyed so muchproviding information on how you
can save for this big purchasethat comes around in your life,
and I hope you've enjoyed all ofthe information and the special
guests that I have brought onto the show to really give you
as much information to go aheadand start planning to purchase
(01:54):
that property.
But, like everything in life,sometimes we need a shift, and
so this will mark the lastepisode of what you know as the
saving for your first homepodcast.
I will still be continuing withthe podcast, it'll just have a
little bit of a different lookand flair.
(02:15):
So look forward to that nextThursday as we launch our new
series.
But I can't go out without abang.
So today I am excited to welcomeon another guest, and her name
is Brandy Williams Harrington,and she is a highly dedicated
(02:37):
investment broker, developer,real estate advocate with more
than 15 years of experience inthe real estate investment
industry.
Now, she's originally fromChicago, but Brandy's interest
in real estate was peaked bywatching her grandmother manage
rental properties.
Despite having no coaches ormentors, her first venture into
(03:00):
real estate investment led to aloss of her entire portfolio.
However, she reentered theindustry two years later with a
fresh mindset and strategy whichenabled her to invest and grow
her portfolio.
So now Brandy is well versed inbuying and flipping, owner
financing and wholesaling realestate investments.
(03:22):
So please welcome her to theshow.
I am so excited today to inviteBrandy onto the saving for your
first home podcast.
She is a broker and an investorand is going to drop some
serious knowledge for us.
So we got some questions forher and I'm super excited to
(03:42):
learn tons of stuff about thereal estate investing market.
We talk a lot about on thisshow buying your first home, but
you know, sometimes we need tolevel up right and think about
how we can actually improve ourinvestment portfolios, and so
Brandy is going to give us tonsof information about that.
Welcome, brandy.
Speaker 2 (04:02):
Thank you so much, carol, for having me on your
show.
I'm super excited to be here.
I'm excited to share with youall things investing, so
absolutely All right cool.
Speaker 1 (04:15):
So just give me an example or provide me with a
kind of an overview of realestate investing, and why should
people really add this as anaddition to their investment
portfolio?
Speaker 2 (04:27):
Well, it's a little stuff, and let's think about
real estate.
I know you do a lot withregards to first time home and
ownership and I think that's anamazing job, so thank you so
much for spreading moreattention to value there.
But let's just say, forwhatever reason, you are ready
to step up into the real estateinvestment market, and you're
like you know, I want todiversify.
You know things are not makingmy money.
(04:49):
Sitting in the bank is notnecessarily growing right, but
with real estate investing, youcan actually get a better ROI,
or return on investment when youare into real estate investing,
and it's been said that mostlyall your millionaires have some
form of real estate investment.
So guess what?
There is some truth in there.
So real estate investing is ahuge opportunity to grow your
(05:13):
network and your money and yourincome, and so this is one of
the ways to do it.
I like to tell people that,with regards to real estate
investment, obviously you haveyour traditional house that you
own, but when you're ininvesting, there's so many
things you can do from rentals,you can do wholesaling, you can
do flips, you can buy and hold.
There's a whole lot of otherdifferent things that can grow
your wealth while someone elseis actually helping you to build
(05:37):
, pay down that debt and orensure that you're able to do
more diversification within yourreal estate investing.
Speaker 1 (05:44):
Absolutely.
I mean, what kind of investmentcan you think of where someone
else is actually contributingtowards it?
Right?
Speaker 2 (05:52):
Exactly and all you have to do is just basically
just collect that money.
And it's really a cycle wherewe're seeing time and time again
, but it's tried and true, youdon't have to necessarily do
anything that has not been done.
And I think that's the realreason why real estate
investment works so well is thatwe've seen it and it's been an
(06:13):
investment that we know that youpretty much.
When I say real estate, it'sdefinitely something that's
constant.
Speaker 1 (06:20):
And if we think about real estate investing, are
there different types, like Iknow?
Like obviously we're talkingabout residential but there must
be other things that areinvolved.
Speaker 2 (06:30):
Absolutely.
I mean, there's obviouslyeveryone knows about the
residential side, which is thewhole.
The buy and flips, the Airbnb's, is another form of real estate
investment.
There is, obviously, the longand short term rentals as well,
but then there's commercial realestate investment.
There are things that you coulddo from a commercial standpoint
(06:50):
.
If you have People renting outcertain things within a
commercial space, you'reactually returning Money when
you do that as well, as there'sindustrial rental space as well
as Ritz, and so that is whenyou're actually allowing
companies to operate and financedifferent deals that they feel
are be very good for you, andit's really passive because you
don't get a chance to be morehands-on, but it definitely
(07:13):
helps bring in additional incomefor people who like that type
of real estate investment.
Speaker 1 (07:18):
That's good, because then we were hitting all the
spectrums right.
We're putting people that arerisk-adverse and, you know, just
want to put your money in alittle gild dabble, and then
you're hitting people thatreally want to jump in full
force and Monitor and doeverything themselves.
So it really is a big Range oftype of investments that you can
actually think about.
Speaker 2 (07:39):
Yes, I think it's just for people who, depending
on how their risk tolerancelevel, it really is like I don't
know if I'm super ready to doall of this, but let me put my
foot in to your point and Ithink that's where the benefits
of real estate allows you thatflexibility.
People really have to thinkabout their risk tolerance
because, again, I will not saythat with real estate investment
(08:01):
there will not be guaranteesand there won't be any risk.
No one, I think whatever,should tell you that.
But if they've told you that,run number one, yeah, but never
to be in realistic.
That is a risk but at the end ofthe day your reward, depending
on the risk, outweighs.
You know the the hesitancy thatwe typically see with investing
.
Speaker 1 (08:23):
And now I think what also contributes to the risk is
market conditions, and so rightnow it's a really kind of an
interesting time that we're inright, and so how does that kind
of affect the real?
Speaker 2 (08:36):
So I'll be completely honest right now, being in that
real estate investment formarketing conditions is
impacting Obviously, no matterif you're a residential or
commercial.
We're seeing it on both sidesand it's impacting it greatly.
I'll be completely honest, andwe've seen what happened when
the interest rates was at a 2%Right right and the frenzy it
(08:59):
created and it did so much wherepeople were, everyone was super
excited.
It's like everyone gets a houseright but we weren't ready and
there's not enough inventory forthat type of Market conditions.
And now I get people are likewell, you know, I'm waiting for
those days to return.
Speaker 1 (09:16):
I Don't think we're gonna see yeah.
Speaker 2 (09:22):
I know people don't want to hear that, but no, that
in itself was a is a rarity.
Unfortunately, I just have toshare that with someone earlier
that I don't think we may seetwo and a half three percent the
market conditions based on whatwe're hearing.
We literally would again haveanother frenzy.
We're not prepared for where weare now, and so how can people
(09:43):
think that we're gonna see itagain when we weren't ready for
that?
Speaker 1 (09:47):
And so.
Speaker 2 (09:47):
I get.
People are ready to jump intothis investment market or buying
a purchase house, but so muchwent on with that that it be set
up you can't do that anymore.
But specifically now we'reseeing high interest rates.
So now everyone is like, oh,I'm not spending any money,
right, and I get that, and thenit reduces how much property and
things that you can buy.
(10:07):
So from our investmentstandpoint, we're seeing
investors like, do I really wantto do this?
Because again it's costing themmore money to borrow to do the
type of Investments as on youstart looking yet from a cap
rate and and those type of ratesthat your indicators are
Marking you to, and you're notseeing where you normally should
(10:28):
land.
It starts making people reallywonder if this real estate
investment is going to giveproduce the yield they really
want.
And that's a scary part,because real estate has always
been a more of a safe.
You know, done right, youshould be able to see the
returns.
So when you have high interestrates, you have all of these
different factors that goes intothe making Analysis for people
(10:50):
to be able to project their RRIsand their cap rate and I are
all these other different rateswe can go through and you're not
seeing that, because again itgets scary.
Then it makes some of ourinvestors start and say, hmm, I
wonder if I should do this, orlet me see if this is really
what I'm Going to yield.
So right now, I like to sell me, no matter what, if the
(11:10):
property is there and it meetseverything else While I get that
it is a little bit moreexpensive what you can always
refinance with that propertystill be there, though, and
that's what you have to thinkabout.
Speaker 1 (11:24):
Yeah, that's a really good point because you know an
investment is an investment.
If the numbers were working foryou, regardless of what the
industry currently is, thingswill change right, and so maybe
you're not making as much rightnow, but maybe there's a
potential to make more in thefuture.
So it's really about kind of,you know, mitigating your risks,
(11:45):
right?
So is there a specific way thatwe can?
Or?
I know you talked about some ofthe different indicators, but
is there something that weshould really look out for if
we're trying to mitigate risk?
Speaker 2 (11:58):
So that's gonna vary, but of course you definitely
can think of a couple indicators.
You gotta really think aboutmarket risk.
I mean, I think everyone knowsthat of course the market is
going to be what the market isgoing to do.
Now how do you mitigate marketrisk?
Well, a Crystal ball will tellyou, just by low and the time is
right.
But what if there's not thecourt case?
I think you really have to lookat diversifying your property
(12:19):
and those type of properties inorder to really help Understand
market conditions.
Maybe you don't put everythinginto, maybe commercial, maybe
the commercial industry is notdoing the best, maybe
residential is a little bit moresteady and have better ROI for
you.
So maybe from a marketconditions, you will look and
diversify that.
I think that helps you be ableto not Put everything in one
(12:40):
particular Component which wouldthen unfortunately give you
Some numbers that may not be thebest that you really would like
to you.
And I think you have to be ableto know from liquidity type of
avenue, what would that looklike for you?
What does that really look likefor you to be able to say you
know what, maybe after this holda little bit longer, maybe I
would have to be able to not geta higher buy-of-hand people
(13:03):
telling me why I need to producea 12 15% ROI on this.
I'm like you may not get thatthis year.
You may have to understand thatthat's just the reality of what
we're dealing with, because atthe end of the day, it's not
realistic because again, yourInterest rates is affecting that
and impacting that, and thenyou also have to think about
interest rate.
I think that's a different riskthat most people don't think
(13:24):
about, but again, that abilityto come and at a different time,
renegotiate lords that.
To help you understand that.
Okay, well, maybe I'm notseeing it, but in time I will be
able to get whatever thatnumber looks like, whatever your
Management team have yielded.
Then that may be something youneed to look into and maybe just
wait also something to thinkabout is the financing.
Speaker 1 (13:47):
Now for my listeners, I am sure they are super novice
and so they're think justthinking about how do I even get
into this Real estate investingsituation.
So what would be the advice youwould give to someone who's
fairly novice and Wants to getsome financing to do this type
(14:08):
of investment?
Speaker 2 (14:10):
So that's a great question.
I'm asked that pretty muchregularly like how do I start
right for people who are justtrying to get into the market?
And I think, again, I'm a realestate broker, so I'm gonna
start from what my knowledge isand how I got into it and then
we give you all the obviouslythe ways you can do this.
I really started with my ownincome and most people was like,
(14:32):
oh my gosh, you should never dothat.
Well, for me, I didn't know.
Again, I started.
I've gotten Licensed since, so Iknow a lot more, but at the
time I didn't really know how toget into the market.
So I use my own income, which,for novice Entry-level
individuals utilizing homeequity lines he locked lines,
that's your income that you have, maybe a savings account, using
(14:55):
that income to buy at leastyour first one right.
Start getting comfortable withunderstanding exactly what that
process looks like Understandingpurchasing or property repairs,
what your property managementfees all those things are gonna
come into knowing what you weredoing your first one.
So you need to be able tounderstanding, you have to
(15:16):
educate yourself.
You really have to know that.
This is super important.
It's not something just jumpingin.
I know people make it look soeasy.
But, you know how, that you knowand I learned all of these
things with, again, my ownincome and I would idea is just
take my own income and mademyself alone.
I use my own money as mycollateral to go to the bank to
(15:36):
say, hey, I want to borrowagainst my own money.
So I became my own bank.
So guess who's going to payyourself back first?
Speaker 1 (15:43):
You are Exactly.
Speaker 2 (15:45):
For me that work, and so that's how I started my
career.
So now there's obviously allkind of ways to be able to help
you do that without that, but ithelped me understand the value
of again what my money waslooking like, the value of all
the things that I wanted to do.
I had all these grandiose I had, and it's like you know, I'm
(16:05):
paying for this right and it's alittle bit, you know, different
when it's not just given to you.
Yes, I'm still paying it back,but again, how much money do I
personally have?
And then how do I be able tomaximize that based on me
putting my own money up and Ithink that was a good way for me
to be able to market but at thesame time, making sure that I
could be able to obviously paythe loan back.
(16:28):
But, more importantly, makesure I knew the dollar and how
it impacts what my decisionmaking skills will be.
And I think that's one thingthat people who need to know
from a novice standpoint isreally understanding those
different concepts from research, from education, making sure
you really are hiring people whohave been in the game, because
(16:48):
it changes and there's certainthings that you there are
constant, but there are certainthings you just have to know,
and if you're not just gettinginto real estate investment
while it does produce a lot ofdifferent things you have to
have a baseline and somewhere tohelp you understand.
Okay, following these worldsleads me to this success, and
that's one of the great thingsthat you'll learn when you do it
(17:09):
and you are utilizing your ownincome to get there.
Speaker 1 (17:13):
Yeah, you made a great point about the value of a
dollar right.
I think sometimes borrowedfunds can sometimes not feel
like it's tangible right, and sowhen you're only using your own
money and you work for it, it'syour income and you're putting
it on the line.
All of a sudden, now you'remore careful about how you spend
(17:33):
it, you're more careful aboutwhat you're going to do, and so
it's a great point, because weteach that not just real estate
investing, but even for your dayto day spending right.
Speaker 2 (17:45):
And I think the reality is start small.
I mean, people want to getthese.
Oh, I'm going to go out and buy20 houses.
Wait a minute, you know.
You know one goes because youmay not want to be that
aggressive and that hands on.
Maybe this was just like, hey,let me hurry up and make my
money back and not say, okay,let me get a more passive
approach.
But you will not, won't knowthat until you start small.
(18:08):
And I think that's one thingthat people I've told people all
the time don't think that youhave to go buy this four flex or
six plus eight plus right now,because you have to understand
that that four or six flex isnot funding or it's not
producing the right number, juststuck with that huge debt that
you've taken on.
I understand there's so manydifferent creative financing
terms thrown out to people, butyou all still think about the
(18:30):
mortgage has to be paid.
Speaker 1 (18:32):
Absolutely.
Speaker 2 (18:33):
People don't think about these things.
They just think, oh, I can makeX amount when I get it up and
running.
Yes, when it's up and running,mm.
Hmm, when it's running, exactly.
I still think about it has tobe up and running.
How is going to cost per unit?
What is that looking like?
How long is the contract aregoing to be in there?
What materials are going to do?
(18:54):
What is that paint costing you?
I mean, I can go on and on andyou're like what?
Yeah, and it is going to cost Xamount.
And if you're, you put thismoney, think about it.
Where is that money coming from?
You purchase it, repair it,exactly the return, and people
don't hear all of thosedifferent things.
No, you don't understand thenuances of what that may look
(19:16):
like and I think we don'toverstate that enough.
Speaker 1 (19:20):
I'm not hearing people.
Speaker 2 (19:21):
I'm saying be very much aware of it.
Don't think, because you closeMonday, that you have this huge
amount of money that's going tocome on on two weeks from now.
Speaker 1 (19:33):
Exactly.
Speaker 2 (19:34):
You still have to market.
You still have to do background.
Your property managers stillhave to do their due diligence.
It's still so many other thingsthat goes into this particular
arena that most people overlookand it gloss over their like
influences here on thisparticular market.
Oh yes, you're going to makeall this money.
Speaker 1 (19:54):
No.
Speaker 2 (19:55):
Not yet, exactly Not yet, but that's great.
So that's that's my best advicefor people.
Speaker 1 (20:02):
No, it's so true because unrealistic expectations
, right, because they see thesethings online and you think, wow
, if I get into it, you knownext month I'm going to be like
raking it in and it just doesn'thappen.
It's actually probably going tobe the opposite, because most
of the cost come up front, right, just like you said.
So it's a great point taken.
(20:23):
So, having said that, do youpersonally have any stories
could be about good or bad thatyou want to share?
That would get a give a lighton how this can go down in a
good way or bad way it can beeither.
Speaker 2 (20:40):
You know what I'll tell you about.
When I first got into a realestate investment, it was a bad
and I like to share this becauseI, like people, know this is
the real, the reality of whatcan happen.
So this is my second time intothe real estate investment world
and my first time was because Idid got into real estate
investment.
I was super green, didn't knowanything and I just bought up
(21:01):
all these properties.
I was under the impression like, oh, these are great numbers
and this is a great deal in thishouse, not doing my due
diligence and research.
So I had several propertiesthat I took on ownership of and
in doing that, they were theproperties were over inflated.
Speaker 1 (21:19):
Okay.
Speaker 2 (21:21):
So I had mortgages on each one of these properties
and this was the crash of 08.
And then when people started tomove out of the properties, of
course I was trying to work toget these properties back, like
a loan modification.
I was working through thosedifferent steps but guess what,
(21:43):
when they went out to do theappraisals, they were like these
numbers are not real, they'renot there.
And so when one or two peoplestarted moving out again I have
mortgages.
I still was not generatingenough to cover when those
tenants moved out and it's likea domino effect and I was like
(22:03):
what happened here and it wasjust in the blink of an eye.
And again I was like mostpeople.
I jumped in here first of alllike three or four or five
properties at one time, likethey're good, they're cash
flowing and they were goingreally well and then it just
stopped and there was no wellagain.
There was an OA crash.
But once I went through that Ilost my entire portfolio and I
was like I'm done with realestate.
(22:23):
My credit plummeted it.
I just was very upset.
I just thought life would haveended faithfully, because I was
like oh my gosh, how did I getin here?
And I vowed never to get backinto real estate investment Wow.
Here you are Now here.
I am back and I'm happy to tellpeople I own multiple properties
(22:46):
.
I now have redone everythingbecause again I understand now
the value of that, starting withone again.
but I didn't get a differentmindset.
I did a different approach andin doing so now, on multiple
properties and about 60 acres ofland, we're doing some
commercials, things that theportfolio is really great now.
(23:08):
But again it started from thatone of getting back into the
investment arena but making sureI understood my numbers,
understanding the value of againthat dog that we talked about
earlier and how to be able to dothat in a manner where it makes
sense.
It's not unrealistic to be ableto get a return now that may be
(23:30):
a little lower than Ianticipated, but over time it
grows, it definitely gets betterand so I think that's one of
the great things.
That was in terms of a storywhere it could have went either
way but thankfully it turned.
But again it calls me notknowing my numbers, not
understanding my capital, notunderstanding how to get into
(23:51):
the entry.
How much am I spending for thisproperty?
What does that really look like?
How can I track and monitor myexpenses and repairs, property
management fees, et cetera, andstuff like that.
So those things differentlymatters numbers, numbers,
numbers.
One plus one is always going tobe two guys.
I don't care what people say Ifone plus one is never three,
meaning you're not going toexponentiate and grow in 12
(24:13):
months.
It's just not going to happen.
Not that.
So that's what I'd like to tellyou.
Speaker 1 (24:17):
It's a great lesson, because really knowing your
numbers is going to kid, tip youthe right way and the wrong way
.
If you ignore them, it's goingto tip you the wrong way, and if
you understand them, you knowwhat you're getting into, and so
that's a really good point andI'm glad to hear you got back in
.
Speaker 2 (24:36):
I was like I'm done.
But when he was like no, you'renot, I think it really just
stems from my upbringing andjust being around it so much and
saying you know, it's like youjust didn't know what you didn't
know, but it does help peopleunderstand that, even if you
have at moment, it doesn't lastforever and, at the same time,
(24:57):
realizing that things happeneven to good people who do
everything right.
But it means that you learn fromit, and that's one of the
things that no one can ever takefrom me.
More importantly, it helps mebe able to help have this real
list of conversation withinvestors and people who want to
get into this industry and bevery transparent about it and
help them understand the valuethat it exists with.
(25:19):
If it doesn't go this way, it'sokay too, but guess what?
We can bounce back, and we justlearned to pivot and make the
next step the better one,because now we have all the
information on how to be able tospend from this and take this
one moment in time where itwasn't the best, but what we can
do to make it better if wedecide to get back on this horse
again and decide to do back inthe real estate investing
(25:41):
Absolutely, absolutely.
Speaker 1 (25:43):
So, which also leads me to your expertise.
Like how do you find you?
You know what I mean.
Like, how do you reach out andget this information?
Again, the listeners are prettymuch novice, so what do we do?
Speaker 2 (25:57):
So, in general, I would tell you to partner with a
good real estate agent orbroker in your area who is well
versed in real estate investing.
I think that's really the bestway.
There's obviously severalYouTube, Google it's like Dr
Google, right and they're good.
The reason why I like to sayhave someone in your local area
(26:18):
and markets, because you can getthe expertise from someone
who's local.
I think that's super critical.
I think there's so many thingsthat you could put on online.
That sounds good and it mightbe.
I'm not saying it's not, but isit?
You know, can you validatethose numbers in your market?
Are those numbers realistic inyour market?
(26:38):
Because at my market is thebest, but my price point to
entry is, let's say, inCalifornia, $600,000.
Right, you know is that numberrealistic?
If you get this property right,like let's just start there,
would you yield the type ofresults I think people have to
really stop listening to notsaying.
Stop listening to people, butstop listening to people that
(27:00):
may not be in their market, fortheir number only and not say,
okay, that is a number I couldprobably show.
That's what I strive for.
But is this realistic in mymarket or for the market that
I'm going to invest in?
And I think that helps you bemore knowledgeable because you
can see that it's possible.
But if you're not going to dodue diligence to hire the right
property managers in thatparticular market, if you have
(27:22):
the same different experienceswith the contractors and the
different nuances that goes withpermits and stuff, you may not
see that are a lot.
Maybe they have enough peopleon the grounds to do that.
You have to grow into that,especially when you have these
huge portfolios and they canleverage certain things.
I think you just have to berealistic with that and knowing
that you in your market, this iswhere you're going to be.
(27:42):
What is realistic that I can beable to expect from a return if
I was to invest in your market?
Speaker 1 (27:50):
Yeah, and also, you know people tend to invest or
want to invest where they live,which could be a city center,
but maybe that's not a practicalplace to invest because, like
you said, places that are in bigcities tend to be a lot more
expensive, and so right.
And then they think, okay, well, I'll just go a little bit
outside the city now.
(28:10):
But then there's so many otherfactors.
Do you have a property manager?
Do you have?
You know the contractors?
Do you know the area?
You know?
What about a renter?
Is it going to be difficult tofind renters in that
neighborhood?
Speaker 2 (28:22):
And I think people really have to understand that
from a property management side,we own a property management
company, but I have investorsthat call and their expectations
is that we just do all thesethings and we're producing all
these things for people and it'sjust going to happen overnight.
I'm like whoa, it doesn't quitework that way.
And I think to your point.
Like you said, you have torealize that a lot of time and
(28:44):
expertise goes into this.
This is it's a skill set, butat the same time, we want to
make sure that you're gettingwhat you're wanting in terms of
your monthly income.
But we need to be able to havea product and service that be
able to give these tenants theassurance that they want to stay
in.
Your unit is well kept, you dothe repairs, and so there's that
balance there, right, and youhave to pay for that service.
(29:06):
And I think when you're startinga real estate investment, you
have to realize you have toaccount for that service and
really properly pay and screenthat property management company
to give you that type of red.
They're rolling out their redcarpet service.
Yeah, get that return.
And I think that's one thingpeople have to realize because
if you self-manage and you don'tknow what you're doing.
(29:26):
You could literally, oh mygoodness, get in trouble with
Rental laws and do certainthings that people don't even
think about, like, oh, I'msupposed to do this.
Yeah, I think that's justsomething people have to think
about after you know whathappens after I buy the
investment sale.
That's something people need toresearch as well, and having the
(29:46):
person in local who can helpthem will be a huge plus to get
that information as well.
Speaker 1 (29:52):
Oh, my goodness, this has been so great.
You have shed so much light onthis topic that people are not
really that familiar with, so Ido appreciate you coming on the
show and providing all yourknowledge, and we will
definitely drop your link in ourshow notes.
So if anybody wants to reachout to Brandy, please do.
(30:12):
She is exceptional when itcomes to her knowledge and her
expertise.
Speaker 2 (30:18):
Oh, you're welcome.
Thank you so very much forhaving me.
I'm super excited.
Again, I can say I just want tobe able to get people a fair
and balanced and a realisticapproach.
So if I can be of any service,please let me know.
So thank you again for havingme on your show.
Speaker 1 (30:32):
Absolutely.
Thank you again.
Speaker 2 (30:34):
You're welcome, thank you.
Speaker 1 (30:36):
All right, take care Bye.
Speaker 2 (30:38):
Bye.
Speaker 1 (30:39):
Well, there you have it.
That wraps up the saving foryour first home podcast.
Again, it has been my pleasureto bring you all the information
you need to buy your first home, but don't leave us just yet,
because it's time to elevateyour paycheck.
That is the name of our newpodcast Elevate your paycheck.
(31:03):
It is going to be filled withtips and hacks and ways that you
can really maximize your money.
So tell a friend to tell afriend to tell their friend that
it is time to elevate yourpaycheck at the same time and
the same place.
See you soon.
Thank you for listening.
(31:23):
We are committed to helping youplace your very first steps
into your new home.
See you next time.
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