December 26, 2024 • 29 mins
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Speaker 1 (00:01):
Welcome everybody to the Professionist Real Estate
Investing Podcast.
I'm with my compadre here, MrMarcus Harvey.
Yes, sir.
Speaker 2 (00:10):
How you doing man hey , happy birthday.
Speaker 1 (00:16):
How you doing today.
Oh, I'm doing good, I'm blessedJust another year that I made
it through.
I mean thank God.
You know Some people, you knowI tell people, you know they ask
me when I wake up in themorning and I see them and
everything like how am I doingtoday?
I said I'm doing good, you know, because some people don't wake
up in the morning.
Speaker 2 (00:33):
Man.
You got to thank God or whoeverthe man up above.
You got to wake up feelingblessed and thank the man up
above that you're healthy andhappy man for another day.
Speaker 1 (00:45):
Exactly, Amen, Amen.
So this podcast end of the yearis about five must-know tips,
knowing tips for real estateinvesting success.
Yes, so we're doing five tipsand we're going to expand on how
vital they are to your realestate investing journey, on how
vital they are to your realestate investing journey.
And especially, you know, 2025is coming up in no time.
(01:07):
So you know, got to get thisthing in order and everything
together Got to come out strong,especially with this next year.
I'm really amped for this nextyear coming up too.
Speaker 2 (01:15):
Man, I'm super excited for 2025.
I feel like it's just a lot ofplans.
I'm making, a lot of big thingswe're trying to make happen and
, yeah, I'm super excited about2025.
Speaker 1 (01:28):
Yeah, so the five things you need to know so the
first one we mentioned is it'sgoing to be mentioned is know
your market.
You want to know what type ofmarket that you're going to be
investing in.
Speaker 2 (01:40):
Yeah, absolutely.
That's like key to really theone of the first steps and key
to getting into real estate islike you have to analyze
whatever market you're in, orwhatever market I should say
you're you plan on investing inmarket, then you're going to be
(02:08):
kind of confused out there onwhat things cost and you're
going to be confused ondifferent pricing in the
different areas.
So know the market, yeah, knowthe market you're going to
invest in, for sure.
Speaker 1 (02:17):
And especially with knowing the market.
Also, you need to do your ownresearch, which is really vital
with investing, because you knowI always say you know, know
your market and what comes withthat is location, location,
location, absolutely so withthat you know, you got to study
the local trends, including, youknow, supply and demand, job
growth, population shifts, the,the median home prices.
(02:40):
That's all vital because youwant to know how much you gonna
be spending on your investmentproperty absolutely yes.
Speaker 2 (02:48):
You need to look at the neighborhood developments to
infrastructure and the schoolquality, identify up-and-coming
markets with growth potential.
That is like a must.
You like.
You've got to know all thesefactors when you're investing,
because you know you don't wantto get, you don't want to
overpay for anything and youwant to be right, in the same
(03:09):
price range as what things arebuying.
Speaker 1 (03:12):
And selling for yes.
And then the pro tip.
It says leverage, and these area couple of examples Leverage
online tools like Zillow,realtorcom and local government
databases to get market data.
The Zillow and the Realtorcomthose are just average ways to
(03:33):
go about doing things.
What is the one that people hitme up all the time?
Tony, I checked and seen thatthe Zillow.
Is it the Zillerator?
I'm about to know about howmuch they know what their house
is.
Uh, we're like a testament.
Speaker 2 (03:48):
They call it yeah.
Speaker 1 (03:50):
Yeah, and I was like that that's, that's not
consistent, I gotta go to theMLS.
That's more, that's morecredible right there.
But yeah, that's it's.
It's.
Yeah, it's a barometer that'sused, that people use, and
everything, cuz I mean noteverybody has access to the MLS,
right it's a range.
Speaker 2 (04:05):
Zillow will give you a range between one number and
another, but it seems to be kindof off for a lot of people,
especially investors.
I'm not trying to downplayZillow, but when you talk about
Zillow and investing, there'sother websites that you can use
to have a more accurate numberthan what Zillow has with their
(04:26):
information, you know yes numbertwo.
Speaker 1 (04:29):
Yes, sir, run the numbers.
And why run the numbers?
It says successful real estateinvestors make decisions based
on data, not by emotions,exactly because don't let the
emotions get the best of you,just like I think it was episode
I've had with Rocky mm-hmm, andwe was talking about that that
people there's a lot of peoplego by emotions.
(04:51):
They go by the way somethinglooks instead of checking out
the whole.
I call it the DNA of theproperty, right on everything
that, because you're not tryingto buy something and then you
down down the road find out thatthere was something wrong with
that property right exactly.
Speaker 2 (05:06):
You want to know everything up front.
You want to know before youeven buy anything like hey, I
got a word reports, I gotta runa search because it's just.
You know, the worst thing youcould do is being of being
investor and be in this game andnot do your proper due
diligence.
Speaker 1 (05:23):
You know so yes, amen to that.
So some of the key factors isthis to focus on when it runs
the numbers, it's going to becash on cash return, cap rate,
data service coverage ratio andoperating expenses.
Yeah, so the cash on cashreturn, that's how much return
you're making on the actual cashyou invest in the property.
(05:47):
Yes, sir, cap rate.
Cap rate is the rate of returnbased on the income that the
property is expected to generate.
That's what a lot of people,especially those who have a cash
on cash return and a cap rate,are huge.
And then there is the DSCR,which is that the debt service
coverage range ratio that'sensure that you can cover your
(06:09):
mortgage payments Mostdefinitely want to make sure you
get the payment sometime Right.
And then operating expenses,that's the taxes, insurance,
maintenance and management costs.
Those are the hidden, littlehidden ones that people don't
talk about that can actually putyou in a bind if you don't know
about it.
Oh yeah.
Speaker 2 (06:29):
Oh, yeah, for sure.
Like you got to stay up andmake sure those costs, you know,
stay low, but you know you gotto make sure you can be able to
afford those costs all and allincluded with everything.
Um, I like the pro tip for thisone where you know always
stress test your numbers, assumehigher vacancy rates and
expenses to see if the dealactually still works.
(06:51):
I love that, because you startoff high and you can't go higher
.
You want to be able to go lowerIf you stress test the numbers.
Yeah, you want to assume alittle bit higher than normal.
That way you're not.
I guess what you say will besurprised.
Speaker 1 (07:14):
Yeah, you won't be surprised that cushion not too
high, not too low.
Yes, sir yeah okay.
Number three build a strongnetwork.
The motto is your network isyour net worth, and this is why
it matters.
It says real estate.
It says real estate is a teamsport.
Your network of professionalscan help you find deals, solve
(07:39):
problems and navigate complexsituations.
Navigate complex situations?
Yes, and that's true, becausethere's a lot of people who are
into real estate and they havebeen through different
situations that other peoplehave never had.
So their information is vitalto and it's alert, all of its a
learning experience to you knowwhat they've gone through and
they're teaching you.
(07:59):
I mean, they're just they'refeeding you free game.
Speaker 2 (08:01):
Yeah, that's what I feed me what it Like.
That information is so valuable.
You just really you can't takeit for granted.
You can't take it for granted.
Speaker 1 (08:10):
Not at all.
And then it says with that, youknow, with your network, it
deals with these individuals.
Real estate agents for accessto off-market deals and expert
advice.
Estate agents for access tooff-market deals and expert
advice that's, that's huge.
Because, um, you know, with mebeing an agent and the brokerage
(08:31):
I'm with oh my goodness, I getoff-market deals every single
day.
Right, they have a network ofuh, it's called a sun workplace
for facebook.
It's just dealing with theagents, and they have actually
organizations that primarilyjust deal with off market and
that helps out.
That helps out a whole lot.
Speaker 2 (08:47):
Oh yeah, for sure, For sure.
Speaker 1 (08:50):
Another person on the team is mortgage brokers and
they help you to find the bestfinancing, and I'm glad they
said mortgage brokers, becausethere's so many different.
There is so many differentprograms that deal with
mortgages that I had no ideaabout.
I studied about it a little bitbecause I wanted to take my
test about it, but I'm justconcentrating more on the real
(09:11):
estate part, but there are somany different programs that
these mortgage lenders andmortgage brokers know about than
a typical person knows about atall.
Speaker 2 (09:20):
Yeah, and some of them, though.
You know that they advertise,obviously because they wanted to
be known that you can be ableto use a certain mortgage to
your advantage.
You know they advertise them tothe public, but at the same
time you can go into a brokeroffice and they'll tell you
about a program that you'venever heard about.
When did they start this?
Speaker 1 (09:42):
Yeah, right, right, when did they start?
Speaker 2 (09:43):
this financing program.
So, along with the mortgagebrokers, is property managers.
If you don't want to manage thetenants yourself, property
managers are very, extremelyimportant when you're doing
investing, and then thecontractors to handle repairs
and renovations also important.
You've got to be able to turnover your units when you need to
(10:03):
or be able to fix things whenyou need to.
And, yeah, attorneys and CPAs,you need that on your team for
legal advice and tax advice.
When it comes to making thingsright, I'm making sure you
you're operating legally and bythe law.
And then to make sure, withyour CPAs, you want to get the
(10:25):
best tax advice so you can takeadvantage of any tax write-offs
or any kind of thing anythingthat's going to help you have an
advantage tax-wise.
Speaker 1 (10:38):
Yeah, cpa is very good.
Me and Rocky had talked aboutthat before.
We'll probably talk about itagain before tax time comes up
in a matter of time, which willbe being a hot skip and a jump
when it comes back.
Yeah, did you know?
There's the H&R blocks, there's, you know, all different types
of programs when it comes to thetaxes.
But you want to go to a CPA, youwant to go somebody who is a
(11:01):
professional with taxes thatdeals with, uh, even when it
comes down, you know you're inyour own business.
You want to know that you'rethe write-offs and everything.
But you want to know somebodyalso who knows about the real
estate side, because a lot ofpeople, uh, especially in the
tax side, they don't know about,um, all the write-offs, um, you
(11:21):
know the appreciation, thedepreciation, um, can this be
written off?
Can this?
You need someone who'scertified, especially in the
real estate field of the CPA.
Agree, yep, and that will helpyou in the long run.
And then you know, because thething about it is it's like I
tell people we even talked aboutthis a long time ago.
The government allows this.
We didn't set these laws up.
(11:43):
The government says, hey, youdo such and such and such and
such you can get, can get, youknow, your taxes taken off.
If you make a, you know,passive income, you can get this
off.
You can, you can write this offyour taxes.
The government allows it.
Speaker 2 (11:59):
So you want to meet, you want to talk to the right
person to get into that, theniche of real estate investing
exactly, exactly because,exactly Because the whole point
of this is to be able to buildwealth, but with real estate
there's so many, not evendepending on what you're doing
(12:19):
but even if you're all the waydown to wholesaling, to flipping
to buy and hold, being just asales agent, there's so many tax
advantages with real estatethat that's like one of the main
parts of why people want to bein the real estate.
Not only can you make and buildextreme wealth but, um, you can
(12:40):
also just take advantage of thetaxes and what you can be able
to write off business wise andthen be able to uh of tax-wise
with real estate.
You know, because some of thosereal estate taxes you can't
apply it to just regularbusinesses.
You know it has to be realestate related, you know.
Speaker 1 (12:59):
Yes, so that's good advice right there.
And then the pro tip was attendlocal, you know real estate
meetups.
Join online forums, engage withthe industry professionals to
grow your network.
There's BiggerPockets the best.
To me, it's one of the bestmeetups you can be online for
(13:21):
real estate investing.
Speaker 2 (13:23):
Yeah, BiggerPockets, They've been around for a while
too.
Speaker 1 (13:25):
Yeah.
And then another one I wouldsay also, this is across the
country.
It's called I believe it'smeetupcom.
Yeah.
And then another one I will sayalso this is across the country
, is called Believe.
It's meet up, calm and youactually can put down Real
estate meetups, and it's allover.
It's all over the country youcan do.
A radius of believe is 25 milesup to 100 miles or even more,
(13:46):
and they actually are a goodsource when it comes to meetups,
because there's all differenttypes of meetups all over the
country Investors recognizingother investors and that's a
good way to build your networkand, who knows, you can
collaborate and syndicate a dealwith them.
Speaker 2 (14:03):
Yeah, yeah, and I was going to say along with that,
like I was just saying a fewminutes ago, biggerpockets has
been around.
But another platform I've seenkind of just taken off lately,
which is a really good platform,is InvestorLift.
I've been watching a lot ofpodcasts about it on
(14:31):
InvestorLift and been justwatching a lot of different
people talk about how you, howyou can use investor lift to
your advantage.
I'm not trying to sponsor themor anything like that, or just
I'm just saying their namebecause, like they, they pop in
right now.
Investor lift is uh one ofthose, uh one of those platforms
where they bring on um, as faras what I've seen on their
podcast, they bring on goodinformation, they bring on good
guests guests that we've allseen from you know, doing real
(14:56):
estate.
Just the information that theyhave and the people that they
know.
That's a really good coming upplatform InvestorLive.
Speaker 1 (15:07):
Is that okay?
You know I'm going to have tocheck that one out, because I
did not know about that oneright there.
Speaker 2 (15:11):
Yeah, I've been watching their channel on
YouTube and they've got a prettygood podcast.
Yeah, okay, it's pretty nice.
Speaker 1 (15:18):
Number four diversify your investments.
I always think of the DaveChappelle show when it says
Wontang was right there.
They said to diversify yourbonds.
Every time I see this, why itmatters is diversifying reduces
risk and increases the chancesof long-term success.
This is how to diversify.
(15:38):
It says different propertytypes.
You got the residential, yougot the commercial, you got the
multifamily or even industrialproperties.
Then geography diversifying too.
Invest in various locations tomaximize the impact of downtown,
of a downtown, a downturn,excuse me, in any one market.
Speaker 2 (16:01):
So that's another one , and then another one is also
investment strategies.
Speaker 1 (16:06):
Consider, you know, making buy whole property, flips
, short term rentals, airbnb andwholesaling.
I know you help wholesaling.
It's your bread and butter,right there.
Speaker 2 (16:16):
Right, yeah, yeah, that's something I think a lot
of us, a lot of people that getinto investing, try to start off
with this wholesaling, becauseit's just that low barrier to
getting in and everything andthat's one of the first uh
strategies people talk about.
When we're getting into realestate investing is wholesaling,
uh, one of the easiest ways toget in the deal.
Speaker 1 (16:37):
You know, yeah, so and that and this.
I want to make this one thingclear too when it comes to that,
that different type of uhproperty properties the
residential, commercial,multifamily the residential
you're going to have to dealwith your credit, the commercial
you're going to have to do notwith your credit.
(16:58):
It depends on, especially withmultifamily, it's basically how
much money is the property goingto make.
It's a whole other animal.
That's where a lot of people,especially with the commercial
multifamily people, especiallywith the commercial multi-family
they deal with the syndicationdeals right, yeah, yeah with
those type of deals.
Speaker 2 (17:15):
Yeah, the bank's going to want to either see good
credit, good credit, not goodcredit, but they're going to see
what the property produces oncommercial, and then they might
ask you for a schedule of assets, if you have it.
But if it's your first one andyou really don't have, you know,
yeah, no, yeah, you'll have nofoundation.
You'll have nothing to givethem really right off if it's
your first one.
But usually they're going toask for schedule of assets and
(17:38):
not even worry about your creditscore.
You know your personal creditscore.
They just want to know if theproperty is going to be able to
make money yeah, that's all itis.
Speaker 1 (17:46):
Know the banks are, they're all for making money and
we all know that.
Because that interest rate, man, interest rate and late fees,
yes, and number five, have along term mindset.
Man, mindset is huge.
I'll tell you that right now,because if you don't have the
mindset, then you just, you justblown in the wind then you just
(18:10):
you just blowing in the wind.
Speaker 2 (18:12):
Yeah, you're doing yourself a disservice by not
having the right mindset to keepgoing in this, in real estate
investing.
You know you got to keepgrowing, you got to keep
learning and you got to justkeep wanting to grow and keep
wanting to learn all thestrategies and you want to take
advantage of of everything thatyou can.
(18:32):
You don't want to be doing adeal and find out that, oh, I
could have did this strategy tomake me more money than the
strategy that I used.
You know, so you just want to.
Yeah, I agree my have thatlong-term mindset yeah.
Speaker 1 (18:48):
And why it matters is because it with a with a
long-term mindset yeah.
And why it matters is because,with a long-term investment,
success often requires patience.
Patience is a virtue, yeah, andespecially with real estate, a
lot of it deals with patience,oh, yeah.
And then you focus on steadygrowth.
You know you got to think aboutbuilding equity and cash flow
(19:08):
over time.
Then, rather than chasing theshort-term goals or gains, yeah.
And then you know, keep a thatI've heard about this too about
to keep the five to five to tenyear mindset.
Focus on how properties willperform long term.
And that depends if, if youwant to keep it that long, as
long as you've got the mindsetand you have the exit.
(19:30):
You have the exit of, like, allright, how long I'm going to
have this?
There's some people who ownproperties three to five years
and then they have that exitplan away and they're ready to
go into something bigger orsomething better their finances
or anything that you know.
Hey, can I accumulate more cashout of doing it this way?
It's just a whole month.
(19:50):
You just got to pick yourstrategy, how to go about going
to the next step.
Just don't stay, um, you know,just don't stay just average,
right, right, and don't stay ina hole or get comfortable.
Speaker 2 (20:02):
You know, always expand right exactly along with
that real quick.
It's something I heard Cardonesay.
He said just keep on trying todo your deals to where, when
you're in the acquisitionprocess or the buying process of
the deals, already know whatyour exit strategy is going to
(20:24):
be.
That's true While you're inthat buying process and that
acquisition process of getting adeal already kind of have that,
hey, we get this deal.
Speaker 1 (20:34):
This is how we're going to get rid of it in five
years or 10 years, or this iswho it's going to go to this
type of person.
And that's why I like thesyndication ones, because with
the portfolio from Jump Street,from the first day on, they
already have how much personneeds to.
Each person needs to contributewhere the money's gonna go to
(20:54):
and they have an exit plan date,basically, of how long they're
gonna keep the property.
Speaker 2 (20:59):
Yeah, yeah, that's, that's that's good research
right there, because thosehaving all that information is
so important when, when, whenyou're buying, and some people,
you know, some investors thatare starting off, don't think
about that.
They don't think about like,hey, what's going to be if I buy
this thing, what's going to bemy exit strategy and how long am
I going to hold this thing?
(21:19):
And yeah, you got to have thosedates in mind of, hey, I'm
going to keep it till 20,whatever, 2020 something or
whatever you know you have to.
Speaker 1 (21:28):
Yeah, you have to think about it, you know and
then the pro tip of that it saysavoid the temptation of
flipping properties too quicklyunless you're in a experienced
investor in a hot market.
Yes, sir, yeah, I agree withthat that's a good pro tip right
there.
Speaker 2 (21:45):
Just avoid that.
Avoid trying to just get intoflipping too quick because, um,
everything that I've beenlearning, um just in these few
years about between likeflipping and maybe trying to do
new construction and, um, youknow, from wholesaling and I've
just been, you know, hearing thepros and cons, you know of it
(22:07):
all.
So you really want to.
When you're doing especially aflip, you want to make sure
you're doing it at the righttime, you're buying it at the
right price.
You know that's just with anydeal.
But you know, the latest thingI was telling you about flipping
is hey, you don't know what'sbehind those walls?
No, but a new construction.
(22:28):
You know what's behind thosewalls?
Speaker 1 (22:29):
No, but a new construction you know, what's
behind those walls, because youknow it's brand new, exactly,
yeah, you're right.
Well, I want to thank all thelisteners out there for this one
.
The five must know tips in realestate investing.
Break it down again it is knowyour market, run the numbers,
build a strong network,diversify your investments and
(22:52):
have a long term mindset.
And I want to say, off top, Iwant to thank my boy Rocky and
my brother Marcus over here forhelping me out with the podcast,
especially last year.
Oh for sure, it was great,especially on the podcast,
(23:14):
because I got through Buzzsprout.
The podcast grew 35% from lastyear.
It got into 11 differentcountries.
The number one episode out ofit was Building Wealth, section
8, insights of Crafting aResident Income Stream in Real
Estate, and that was with you.
(23:34):
Yes, sir, estate, and that waswith you.
Uh, that was a great episode.
Yeah, that was great,especially with the section
eight, because a lot of peopledon't know, uh, um, how to
navigate with the section eight,with real estate investing.
Um, yeah, I'm just, I'm justamazed at how far we've come.
We've done over 25 episodesDoing shorts.
(23:55):
Next month going full throttle.
I have six interviews coming upof all different types of
investors all over the country.
Nice, you can follow theProfessionalist Real Estate
Investing Podcast on YouTube.
I'm going to be putting a lotmore shorts out and a lot of the
(24:16):
it's going to be the audio inthe video.
You can check out on Apple andSpotify also.
And, yeah, if anyone wants tojoin, just let me know the email
address is.
I mean, I got so many differentones, but I got to remember
this one Real estate investingat the professionalist info.
(24:42):
You can hit me up there or, youknow, just even in the comments
or anything like that.
It's fine, but it's come a longways and I'm ready to branch
this out.
I know you're on the coast, butanytime you come into town I'm
definitely going to hit you upand everything.
Oh, yeah, yeah.
Speaker 2 (24:59):
You got to just keep this thing going and I think
what's the next episode?
You give me a heads up on whatmaybe the next episode is going
to be.
I think, since we've talkedabout it, it and I know
definitely, you, you started umstudying about it, I think the
new construction okay, yeah,we're going to touch on that.
New construction for 2025, um,something I think we really
(25:20):
haven't talked about yet.
No, so I think that'll be agood topic, um, and then, uh,
yeah, we could take it fromthere and just um, you know,
just, like I said, give you guysa heads up.
Speaker 1 (25:30):
That'll probably be the next episode.
Yeah, new construction.
So, yeah, everybody, yeah,subscribe.
I'm going to make sure that Iput everything out there.
I know, like this next year I'mgoing to probably need an
assistant because things aregoing to start getting real
thick around here.
Yeah, so, but I love enjoyingit.
I love talking to people, andespecially with this, navigating
(25:55):
on our careers in real estate,investing with you and with
Rocky.
He has some insight, he's readyto invest too, already this
next coming year, and everything, yeah.
Speaker 2 (26:05):
Me, you and Rocky got to do an episode.
I got to meet Rocky already,man, I got to.
Speaker 1 (26:11):
Yeah, it needs to be three.
I got enough equipment to getall three of us on here.
That would be amazing, becauseI mean we'd probably be doing
Joe Rogan's time like two hourson one.
Speaker 2 (26:23):
Man, get all three of us on here.
Speaker 1 (26:25):
man, we're going to do numbers on the views and
everything, exactly exactly Allthe views and everything,
exactly exactly all theinformation and everything that
we have coming to the table.
Yes, indeed right right allright, just so.
Yeah, everybody you know, keepon following us, subscribe, you
know?
Hey, 2025 is about to be here.
Y'all have a blessed day.
I'm gonna have a blessedbirthday, and we'll see you on
(26:47):
the flip side success andnothing less.
Welcome everybody to the Professionist Real Estate
Investing Podcast.
I'm with my compadre here, MrMarcus Harvey.
Yes, sir.
Speaker 2 (00:10):
How you doing man hey , happy birthday.
Speaker 1 (00:16):
How you doing today.
Oh, I'm doing good, I'm blessedJust another year that I made
it through.
I mean thank God.
You know Some people, you knowI tell people, you know they ask
me when I wake up in themorning and I see them and
everything like how am I doingtoday?
I said I'm doing good, you know, because some people don't wake
up in the morning.
Speaker 2 (00:33):
Man.
You got to thank God or whoeverthe man up above.
You got to wake up feelingblessed and thank the man up
above that you're healthy andhappy man for another day.
Speaker 1 (00:45):
Exactly, Amen, Amen.
So this podcast end of the yearis about five must-know tips,
knowing tips for real estateinvesting success.
Yes, so we're doing five tipsand we're going to expand on how
vital they are to your realestate investing journey, on how
vital they are to your realestate investing journey.
And especially, you know, 2025is coming up in no time.
(01:07):
So you know, got to get thisthing in order and everything
together Got to come out strong,especially with this next year.
I'm really amped for this nextyear coming up too.
Speaker 2 (01:15):
Man, I'm super excited for 2025.
I feel like it's just a lot ofplans.
I'm making, a lot of big thingswe're trying to make happen and
, yeah, I'm super excited about2025.
Speaker 1 (01:28):
Yeah, so the five things you need to know so the
first one we mentioned is it'sgoing to be mentioned is know
your market.
You want to know what type ofmarket that you're going to be
investing in.
Speaker 2 (01:40):
Yeah, absolutely.
That's like key to really theone of the first steps and key
to getting into real estate islike you have to analyze
whatever market you're in, orwhatever market I should say
you're you plan on investing inmarket, then you're going to be
(02:08):
kind of confused out there onwhat things cost and you're
going to be confused ondifferent pricing in the
different areas.
So know the market, yeah, knowthe market you're going to
invest in, for sure.
Speaker 1 (02:17):
And especially with knowing the market.
Also, you need to do your ownresearch, which is really vital
with investing, because you knowI always say you know, know
your market and what comes withthat is location, location,
location, absolutely so withthat you know, you got to study
the local trends, including, youknow, supply and demand, job
growth, population shifts, the,the median home prices.
(02:40):
That's all vital because youwant to know how much you gonna
be spending on your investmentproperty absolutely yes.
Speaker 2 (02:48):
You need to look at the neighborhood developments to
infrastructure and the schoolquality, identify up-and-coming
markets with growth potential.
That is like a must.
You like.
You've got to know all thesefactors when you're investing,
because you know you don't wantto get, you don't want to
overpay for anything and youwant to be right, in the same
(03:09):
price range as what things arebuying.
Speaker 1 (03:12):
And selling for yes.
And then the pro tip.
It says leverage, and these area couple of examples Leverage
online tools like Zillow,realtorcom and local government
databases to get market data.
The Zillow and the Realtorcomthose are just average ways to
(03:33):
go about doing things.
What is the one that people hitme up all the time?
Tony, I checked and seen thatthe Zillow.
Is it the Zillerator?
I'm about to know about howmuch they know what their house
is.
Uh, we're like a testament.
Speaker 2 (03:48):
They call it yeah.
Speaker 1 (03:50):
Yeah, and I was like that that's, that's not
consistent, I gotta go to theMLS.
That's more, that's morecredible right there.
But yeah, that's it's.
It's.
Yeah, it's a barometer that'sused, that people use, and
everything, cuz I mean noteverybody has access to the MLS,
right it's a range.
Speaker 2 (04:05):
Zillow will give you a range between one number and
another, but it seems to be kindof off for a lot of people,
especially investors.
I'm not trying to downplayZillow, but when you talk about
Zillow and investing, there'sother websites that you can use
to have a more accurate numberthan what Zillow has with their
(04:26):
information, you know yes numbertwo.
Speaker 1 (04:29):
Yes, sir, run the numbers.
And why run the numbers?
It says successful real estateinvestors make decisions based
on data, not by emotions,exactly because don't let the
emotions get the best of you,just like I think it was episode
I've had with Rocky mm-hmm, andwe was talking about that that
people there's a lot of peoplego by emotions.
(04:51):
They go by the way somethinglooks instead of checking out
the whole.
I call it the DNA of theproperty, right on everything
that, because you're not tryingto buy something and then you
down down the road find out thatthere was something wrong with
that property right exactly.
Speaker 2 (05:06):
You want to know everything up front.
You want to know before youeven buy anything like hey, I
got a word reports, I gotta runa search because it's just.
You know, the worst thing youcould do is being of being
investor and be in this game andnot do your proper due
diligence.
Speaker 1 (05:23):
You know so yes, amen to that.
So some of the key factors isthis to focus on when it runs
the numbers, it's going to becash on cash return, cap rate,
data service coverage ratio andoperating expenses.
Yeah, so the cash on cashreturn, that's how much return
you're making on the actual cashyou invest in the property.
(05:47):
Yes, sir, cap rate.
Cap rate is the rate of returnbased on the income that the
property is expected to generate.
That's what a lot of people,especially those who have a cash
on cash return and a cap rate,are huge.
And then there is the DSCR,which is that the debt service
coverage range ratio that'sensure that you can cover your
(06:09):
mortgage payments Mostdefinitely want to make sure you
get the payment sometime Right.
And then operating expenses,that's the taxes, insurance,
maintenance and management costs.
Those are the hidden, littlehidden ones that people don't
talk about that can actually putyou in a bind if you don't know
about it.
Oh yeah.
Speaker 2 (06:29):
Oh, yeah, for sure.
Like you got to stay up andmake sure those costs, you know,
stay low, but you know you gotto make sure you can be able to
afford those costs all and allincluded with everything.
Um, I like the pro tip for thisone where you know always
stress test your numbers, assumehigher vacancy rates and
expenses to see if the dealactually still works.
(06:51):
I love that, because you startoff high and you can't go higher
.
You want to be able to go lowerIf you stress test the numbers.
Yeah, you want to assume alittle bit higher than normal.
That way you're not.
I guess what you say will besurprised.
Speaker 1 (07:14):
Yeah, you won't be surprised that cushion not too
high, not too low.
Yes, sir yeah okay.
Number three build a strongnetwork.
The motto is your network isyour net worth, and this is why
it matters.
It says real estate.
It says real estate is a teamsport.
Your network of professionalscan help you find deals, solve
(07:39):
problems and navigate complexsituations.
Navigate complex situations?
Yes, and that's true, becausethere's a lot of people who are
into real estate and they havebeen through different
situations that other peoplehave never had.
So their information is vitalto and it's alert, all of its a
learning experience to you knowwhat they've gone through and
they're teaching you.
(07:59):
I mean, they're just they'refeeding you free game.
Speaker 2 (08:01):
Yeah, that's what I feed me what it Like.
That information is so valuable.
You just really you can't takeit for granted.
You can't take it for granted.
Speaker 1 (08:10):
Not at all.
And then it says with that, youknow, with your network, it
deals with these individuals.
Real estate agents for accessto off-market deals and expert
advice.
Estate agents for access tooff-market deals and expert
advice that's, that's huge.
Because, um, you know, with mebeing an agent and the brokerage
(08:31):
I'm with oh my goodness, I getoff-market deals every single
day.
Right, they have a network ofuh, it's called a sun workplace
for facebook.
It's just dealing with theagents, and they have actually
organizations that primarilyjust deal with off market and
that helps out.
That helps out a whole lot.
Speaker 2 (08:47):
Oh yeah, for sure, For sure.
Speaker 1 (08:50):
Another person on the team is mortgage brokers and
they help you to find the bestfinancing, and I'm glad they
said mortgage brokers, becausethere's so many different.
There is so many differentprograms that deal with
mortgages that I had no ideaabout.
I studied about it a little bitbecause I wanted to take my
test about it, but I'm justconcentrating more on the real
(09:11):
estate part, but there are somany different programs that
these mortgage lenders andmortgage brokers know about than
a typical person knows about atall.
Speaker 2 (09:20):
Yeah, and some of them, though.
You know that they advertise,obviously because they wanted to
be known that you can be ableto use a certain mortgage to
your advantage.
You know they advertise them tothe public, but at the same
time you can go into a brokeroffice and they'll tell you
about a program that you'venever heard about.
When did they start this?
Speaker 1 (09:42):
Yeah, right, right, when did they start?
Speaker 2 (09:43):
this financing program.
So, along with the mortgagebrokers, is property managers.
If you don't want to manage thetenants yourself, property
managers are very, extremelyimportant when you're doing
investing, and then thecontractors to handle repairs
and renovations also important.
You've got to be able to turnover your units when you need to
(10:03):
or be able to fix things whenyou need to.
And, yeah, attorneys and CPAs,you need that on your team for
legal advice and tax advice.
When it comes to making thingsright, I'm making sure you
you're operating legally and bythe law.
And then to make sure, withyour CPAs, you want to get the
(10:25):
best tax advice so you can takeadvantage of any tax write-offs
or any kind of thing anythingthat's going to help you have an
advantage tax-wise.
Speaker 1 (10:38):
Yeah, cpa is very good.
Me and Rocky had talked aboutthat before.
We'll probably talk about itagain before tax time comes up
in a matter of time, which willbe being a hot skip and a jump
when it comes back.
Yeah, did you know?
There's the H&R blocks, there's, you know, all different types
of programs when it comes to thetaxes.
But you want to go to a CPA, youwant to go somebody who is a
(11:01):
professional with taxes thatdeals with, uh, even when it
comes down, you know you're inyour own business.
You want to know that you'rethe write-offs and everything.
But you want to know somebodyalso who knows about the real
estate side, because a lot ofpeople, uh, especially in the
tax side, they don't know about,um, all the write-offs, um, you
(11:21):
know the appreciation, thedepreciation, um, can this be
written off?
Can this?
You need someone who'scertified, especially in the
real estate field of the CPA.
Agree, yep, and that will helpyou in the long run.
And then you know, because thething about it is it's like I
tell people we even talked aboutthis a long time ago.
The government allows this.
We didn't set these laws up.
(11:43):
The government says, hey, youdo such and such and such and
such you can get, can get, youknow, your taxes taken off.
If you make a, you know,passive income, you can get this
off.
You can, you can write this offyour taxes.
The government allows it.
Speaker 2 (11:59):
So you want to meet, you want to talk to the right
person to get into that, theniche of real estate investing
exactly, exactly because,exactly Because the whole point
of this is to be able to buildwealth, but with real estate
there's so many, not evendepending on what you're doing
(12:19):
but even if you're all the waydown to wholesaling, to flipping
to buy and hold, being just asales agent, there's so many tax
advantages with real estatethat that's like one of the main
parts of why people want to bein the real estate.
Not only can you make and buildextreme wealth but, um, you can
(12:40):
also just take advantage of thetaxes and what you can be able
to write off business wise andthen be able to uh of tax-wise
with real estate.
You know, because some of thosereal estate taxes you can't
apply it to just regularbusinesses.
You know it has to be realestate related, you know.
Speaker 1 (12:59):
Yes, so that's good advice right there.
And then the pro tip was attendlocal, you know real estate
meetups.
Join online forums, engage withthe industry professionals to
grow your network.
There's BiggerPockets the best.
To me, it's one of the bestmeetups you can be online for
(13:21):
real estate investing.
Speaker 2 (13:23):
Yeah, BiggerPockets, They've been around for a while
too.
Speaker 1 (13:25):
Yeah.
And then another one I wouldsay also, this is across the
country.
It's called I believe it'smeetupcom.
Yeah.
And then another one I will sayalso this is across the country
, is called Believe.
It's meet up, calm and youactually can put down Real
estate meetups, and it's allover.
It's all over the country youcan do.
A radius of believe is 25 milesup to 100 miles or even more,
(13:46):
and they actually are a goodsource when it comes to meetups,
because there's all differenttypes of meetups all over the
country Investors recognizingother investors and that's a
good way to build your networkand, who knows, you can
collaborate and syndicate a dealwith them.
Speaker 2 (14:03):
Yeah, yeah, and I was going to say along with that,
like I was just saying a fewminutes ago, biggerpockets has
been around.
But another platform I've seenkind of just taken off lately,
which is a really good platform,is InvestorLift.
I've been watching a lot ofpodcasts about it on
(14:31):
InvestorLift and been justwatching a lot of different
people talk about how you, howyou can use investor lift to
your advantage.
I'm not trying to sponsor themor anything like that, or just
I'm just saying their namebecause, like they, they pop in
right now.
Investor lift is uh one ofthose, uh one of those platforms
where they bring on um, as faras what I've seen on their
podcast, they bring on goodinformation, they bring on good
guests guests that we've allseen from you know, doing real
(14:56):
estate.
Just the information that theyhave and the people that they
know.
That's a really good coming upplatform InvestorLive.
Speaker 1 (15:07):
Is that okay?
You know I'm going to have tocheck that one out, because I
did not know about that oneright there.
Speaker 2 (15:11):
Yeah, I've been watching their channel on
YouTube and they've got a prettygood podcast.
Yeah, okay, it's pretty nice.
Speaker 1 (15:18):
Number four diversify your investments.
I always think of the DaveChappelle show when it says
Wontang was right there.
They said to diversify yourbonds.
Every time I see this, why itmatters is diversifying reduces
risk and increases the chancesof long-term success.
This is how to diversify.
(15:38):
It says different propertytypes.
You got the residential, yougot the commercial, you got the
multifamily or even industrialproperties.
Then geography diversifying too.
Invest in various locations tomaximize the impact of downtown,
of a downtown, a downturn,excuse me, in any one market.
Speaker 2 (16:01):
So that's another one , and then another one is also
investment strategies.
Speaker 1 (16:06):
Consider, you know, making buy whole property, flips
, short term rentals, airbnb andwholesaling.
I know you help wholesaling.
It's your bread and butter,right there.
Speaker 2 (16:16):
Right, yeah, yeah, that's something I think a lot
of us, a lot of people that getinto investing, try to start off
with this wholesaling, becauseit's just that low barrier to
getting in and everything andthat's one of the first uh
strategies people talk about.
When we're getting into realestate investing is wholesaling,
uh, one of the easiest ways toget in the deal.
Speaker 1 (16:37):
You know, yeah, so and that and this.
I want to make this one thingclear too when it comes to that,
that different type of uhproperty properties the
residential, commercial,multifamily the residential
you're going to have to dealwith your credit, the commercial
you're going to have to do notwith your credit.
(16:58):
It depends on, especially withmultifamily, it's basically how
much money is the property goingto make.
It's a whole other animal.
That's where a lot of people,especially with the commercial
multifamily people, especiallywith the commercial multi-family
they deal with the syndicationdeals right, yeah, yeah with
those type of deals.
Speaker 2 (17:15):
Yeah, the bank's going to want to either see good
credit, good credit, not goodcredit, but they're going to see
what the property produces oncommercial, and then they might
ask you for a schedule of assets, if you have it.
But if it's your first one andyou really don't have, you know,
yeah, no, yeah, you'll have nofoundation.
You'll have nothing to givethem really right off if it's
your first one.
But usually they're going toask for schedule of assets and
(17:38):
not even worry about your creditscore.
You know your personal creditscore.
They just want to know if theproperty is going to be able to
make money yeah, that's all itis.
Speaker 1 (17:46):
Know the banks are, they're all for making money and
we all know that.
Because that interest rate, man, interest rate and late fees,
yes, and number five, have along term mindset.
Man, mindset is huge.
I'll tell you that right now,because if you don't have the
mindset, then you just, you justblown in the wind then you just
(18:10):
you just blowing in the wind.
Speaker 2 (18:12):
Yeah, you're doing yourself a disservice by not
having the right mindset to keepgoing in this, in real estate
investing.
You know you got to keepgrowing, you got to keep
learning and you got to justkeep wanting to grow and keep
wanting to learn all thestrategies and you want to take
advantage of of everything thatyou can.
(18:32):
You don't want to be doing adeal and find out that, oh, I
could have did this strategy tomake me more money than the
strategy that I used.
You know, so you just want to.
Yeah, I agree my have thatlong-term mindset yeah.
Speaker 1 (18:48):
And why it matters is because it with a with a
long-term mindset yeah.
And why it matters is because,with a long-term investment,
success often requires patience.
Patience is a virtue, yeah, andespecially with real estate, a
lot of it deals with patience,oh, yeah.
And then you focus on steadygrowth.
You know you got to think aboutbuilding equity and cash flow
(19:08):
over time.
Then, rather than chasing theshort-term goals or gains, yeah.
And then you know, keep a thatI've heard about this too about
to keep the five to five to tenyear mindset.
Focus on how properties willperform long term.
And that depends if, if youwant to keep it that long, as
long as you've got the mindsetand you have the exit.
(19:30):
You have the exit of, like, allright, how long I'm going to
have this?
There's some people who ownproperties three to five years
and then they have that exitplan away and they're ready to
go into something bigger orsomething better their finances
or anything that you know.
Hey, can I accumulate more cashout of doing it this way?
It's just a whole month.
(19:50):
You just got to pick yourstrategy, how to go about going
to the next step.
Just don't stay, um, you know,just don't stay just average,
right, right, and don't stay ina hole or get comfortable.
Speaker 2 (20:02):
You know, always expand right exactly along with
that real quick.
It's something I heard Cardonesay.
He said just keep on trying todo your deals to where, when
you're in the acquisitionprocess or the buying process of
the deals, already know whatyour exit strategy is going to
(20:24):
be.
That's true While you're inthat buying process and that
acquisition process of getting adeal already kind of have that,
hey, we get this deal.
Speaker 1 (20:34):
This is how we're going to get rid of it in five
years or 10 years, or this iswho it's going to go to this
type of person.
And that's why I like thesyndication ones, because with
the portfolio from Jump Street,from the first day on, they
already have how much personneeds to.
Each person needs to contributewhere the money's gonna go to
(20:54):
and they have an exit plan date,basically, of how long they're
gonna keep the property.
Speaker 2 (20:59):
Yeah, yeah, that's, that's that's good research
right there, because thosehaving all that information is
so important when, when, whenyou're buying, and some people,
you know, some investors thatare starting off, don't think
about that.
They don't think about like,hey, what's going to be if I buy
this thing, what's going to bemy exit strategy and how long am
I going to hold this thing?
(21:19):
And yeah, you got to have thosedates in mind of, hey, I'm
going to keep it till 20,whatever, 2020 something or
whatever you know you have to.
Speaker 1 (21:28):
Yeah, you have to think about it, you know and
then the pro tip of that it saysavoid the temptation of
flipping properties too quicklyunless you're in a experienced
investor in a hot market.
Yes, sir, yeah, I agree withthat that's a good pro tip right
there.
Speaker 2 (21:45):
Just avoid that.
Avoid trying to just get intoflipping too quick because, um,
everything that I've beenlearning, um just in these few
years about between likeflipping and maybe trying to do
new construction and, um, youknow, from wholesaling and I've
just been, you know, hearing thepros and cons, you know of it
(22:07):
all.
So you really want to.
When you're doing especially aflip, you want to make sure
you're doing it at the righttime, you're buying it at the
right price.
You know that's just with anydeal.
But you know, the latest thingI was telling you about flipping
is hey, you don't know what'sbehind those walls?
No, but a new construction.
(22:28):
You know what's behind thosewalls?
Speaker 1 (22:29):
No, but a new construction you know, what's
behind those walls, because youknow it's brand new, exactly,
yeah, you're right.
Well, I want to thank all thelisteners out there for this one
.
The five must know tips in realestate investing.
Break it down again it is knowyour market, run the numbers,
build a strong network,diversify your investments and
(22:52):
have a long term mindset.
And I want to say, off top, Iwant to thank my boy Rocky and
my brother Marcus over here forhelping me out with the podcast,
especially last year.
Oh for sure, it was great,especially on the podcast,
(23:14):
because I got through Buzzsprout.
The podcast grew 35% from lastyear.
It got into 11 differentcountries.
The number one episode out ofit was Building Wealth, section
8, insights of Crafting aResident Income Stream in Real
Estate, and that was with you.
(23:34):
Yes, sir, estate, and that waswith you.
Uh, that was a great episode.
Yeah, that was great,especially with the section
eight, because a lot of peopledon't know, uh, um, how to
navigate with the section eight,with real estate investing.
Um, yeah, I'm just, I'm justamazed at how far we've come.
We've done over 25 episodesDoing shorts.
(23:55):
Next month going full throttle.
I have six interviews coming upof all different types of
investors all over the country.
Nice, you can follow theProfessionalist Real Estate
Investing Podcast on YouTube.
I'm going to be putting a lotmore shorts out and a lot of the
(24:16):
it's going to be the audio inthe video.
You can check out on Apple andSpotify also.
And, yeah, if anyone wants tojoin, just let me know the email
address is.
I mean, I got so many differentones, but I got to remember
this one Real estate investingat the professionalist info.
(24:42):
You can hit me up there or, youknow, just even in the comments
or anything like that.
It's fine, but it's come a longways and I'm ready to branch
this out.
I know you're on the coast, butanytime you come into town I'm
definitely going to hit you upand everything.
Oh, yeah, yeah.
Speaker 2 (24:59):
You got to just keep this thing going and I think
what's the next episode?
You give me a heads up on whatmaybe the next episode is going
to be.
I think, since we've talkedabout it, it and I know
definitely, you, you started umstudying about it, I think the
new construction okay, yeah,we're going to touch on that.
New construction for 2025, um,something I think we really
(25:20):
haven't talked about yet.
No, so I think that'll be agood topic, um, and then, uh,
yeah, we could take it fromthere and just um, you know,
just, like I said, give you guysa heads up.
Speaker 1 (25:30):
That'll probably be the next episode.
Yeah, new construction.
So, yeah, everybody, yeah,subscribe.
I'm going to make sure that Iput everything out there.
I know, like this next year I'mgoing to probably need an
assistant because things aregoing to start getting real
thick around here.
Yeah, so, but I love enjoyingit.
I love talking to people, andespecially with this, navigating
(25:55):
on our careers in real estate,investing with you and with
Rocky.
He has some insight, he's readyto invest too, already this
next coming year, and everything, yeah.
Speaker 2 (26:05):
Me, you and Rocky got to do an episode.
I got to meet Rocky already,man, I got to.
Speaker 1 (26:11):
Yeah, it needs to be three.
I got enough equipment to getall three of us on here.
That would be amazing, becauseI mean we'd probably be doing
Joe Rogan's time like two hourson one.
Speaker 2 (26:23):
Man, get all three of us on here.
Speaker 1 (26:25):
man, we're going to do numbers on the views and
everything, exactly exactly Allthe views and everything,
exactly exactly all theinformation and everything that
we have coming to the table.
Yes, indeed right right allright, just so.
Yeah, everybody you know, keepon following us, subscribe, you
know?
Hey, 2025 is about to be here.
Y'all have a blessed day.
I'm gonna have a blessedbirthday, and we'll see you on
(26:47):
the flip side success andnothing less.
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