Is Your Money safe?

Is Your Money safe?

Episode Transcript

(00:00):
The following is a paid commercial programon ninety four to three WSC. The
views expressed by the host of thisprogram do not necessarily reflect the views of
iHeartMedia ninety four to three WSC.It's advertiser, sponsors or management. This
is The Real Estate Show with RickWillis. I show about home sales,
mortgage issues, investing in everything aboutthe American dream. And that means a

(00:22):
lot as someone who enjoys radio andreally enjoys your program and now The Real
Estate Show with Rin Willis on ninetyfour to three in WSC. Hello Charleston,
Good morning. My name is RickWillis, and I'm your host for
the Real Estate Show. Folks,those of you that don't know, this
show is been airing live, notlive, but it used to be live.

(00:44):
The show has been airing for overtwenty years here locally in the Charleston
area. I relocated here from thestate of Maryland in nineteen ninety eight to
the Low Country, and we startedthis show in the winner of two thousand
and three and we've been on theair ever since on Saturdays from noon to

(01:07):
one and we now replay on Sundaymorning from nine to ten am. A
lot of people think that this showis just a radio show that might be
originating from outside the area. ButI am an active, practicing real estate
broker here in the Greater Charleston area. My first property that I bought when

(01:30):
I lived here in the area wasin Berkeley County, right on the Charleston
County line if you know where theSeawee restaurant is. My wife and I
bought a property down Garon Bridge Roadon Drew Lane. We had two acres
that fronted on Garon Creek and thatwas our first home here and a couple

(01:53):
of years after living there, Igot back into the real estate business here
locally in Charleston from having been activein the state of Maryland, and we
relocated closer in in Mount Pleasant,where I currently now live. The home
that I'm currently living in will begoing on the market for sale very shortly.

(02:17):
I had a stroke in August ofthis year, and I live in
an elevated home where I have togo up a lot of stairs to get
to the first floor, and thenwe have a second level. My physical
condition from having the stroke really dictatesthat I live in a one story home.

(02:38):
So the home will be sold andwill be doing what is called downsizing.
Now, for a lot of youthat are listening, you may be
wondering is now a good time tosell? While the answer is absolutely,
particularly if you're a person who ismoved moving down in price point, you've

(03:02):
got a lot of equity you cansell your property, and where you might
still have a mortgage on your property, you have the ability to pay cash
for now for what you're looking tomove into. Now that being said,
I don't know that paying cash isyour best decision. If your age sixty

(03:22):
two or older. You see,if you have a lot of cash when
you sell your property, you mightwant to consider getting what is called a
reverse mortgage. And a reverse mortgageis where you might be able to put
as little as fifty percent down paymentand buy a home with a reverse mortgage,

(03:44):
and instead of paying all cash,put fifty or sixty percent down.
You won't have any monthly payments.A reverse mortgage has the interest accrue and
when the property is sold years fromnow, then the accrued principle and interest
is all paid at one time.And the reason I say don't pay it

(04:08):
all cash is if you paid let'ssay sixty percent down payment on whom you
were buying. You can use yourexcess cash to buy another property for investment,
one that's in a price range whereyou could pay all cash for it
and use the income for the qualityof your life. Folks, don't don't

(04:32):
believe that in a reverse mortgage,it's not your property, or when you
pass away, it goes to thebank or goes to the government. In
a reverse mortgage, you own it. If one of you pass away and
it's in both of your names,it goes to the other spouse. And

(04:53):
if both of you pass away,or one both of you pass away as
age sixty two or above, youeither have a trust or a will that
will dictate where your assets go.And you see, the kids can inherit
your property. And if you usethe cash to buy another property and pay

(05:15):
cash, then you have two propertiesthat are appreciating in value. But more
importantly, you have the income andthe cash flow from reinvesting some of the
proceeds from your sale to an allcash property. And remember, when you
buy an investment property, you neverhave to be the one to manage it.
Get a third party property management companyor individual to locate the tenant for

(05:41):
you, collect the rents and dealwith any property issues. Let them simply
deposit the money in your bank account. You need to learn how to be
a good business person. When you'rebuying and selling real estate. It should
not simply be an emotional decision.I meet people all the time that say,
well, I don't a reverse mortgage, I can pay cash. I

(06:02):
understand that. But if you understandmoney, and if you understand real estate,
it may not be your best move. So if you're moving down and
selling your house, consider the possibilityof using some of the cash to create
income. Now. The people thatare selling today, a number of them

(06:26):
are relocating to other parts of thecountry or other parts of South Carolina.
You should be also looking at doinga reverse mortgage when you buy in another
location. Those people that have alot of equity in your property. Right
now, when you sell and buyanother property, you don't want a seven

(06:51):
percent plus mortgage, So it mightbe to your advantage, particularly if you're
downsizing, to pay all cash foryour property. Now, also, who's
selling and should be selling. There'sa number of investors that own property that
have too much equity in the property. I help somebody the other day make

(07:14):
a decision to sell their property that'san investment property, and the property has
appreciated so much that they no longercan justify the rent that's coming through it.
So they should be selling their propertyand using the net proceeds to buy
a couple of smaller properties and payall cash for it and eliminate the mortgage

(07:36):
they have on it. So,those of you that are investors, there's
something called return on investment, andthere's something called return on equity. And
a lot of you listening right now, if you own a rental property,
you have way too much equity inthe property relative to the income that you

(07:57):
have coming through it. It wouldbe who of you to sell the property
and reallocate the equity where you canget more income or create some new tax
deductions if you've had it for along time. You see, when you
own income producing rental property, youhave the ability to depreciate it. I

(08:18):
know of several people listening that boughtproperty twenty twenty five thirty years ago that
still own the same property. You'vesince depreciated that property, and you're paying
way too much an income tax,Whereas if you sold it under what is
called a ten thirty one exchange,the irs would say, you don't have

(08:39):
to pay any income tax on yourgain, nothing, zero, nada,
And then you take the proceeds fromthat sale and you buy some additional property
or you'll probably generate more income thankeeping the one you have, and you
can start your depreciation schedule all overagain and offset some of your ordinary income

(09:03):
with a deduction called depreciation. Soanybody that's in that situation, please call
me so I can coach you onexactly what to do, how to do
it, and how to create moreincome than what you now have. Now,
there's also something new out there inthe marketplace that I want to tell

(09:26):
you about, and that has todo with real estate commissions. Right now,
there's a new effort underway in thereal estate business to change the way
that people pay for a real estateagent services. You see, the traditional
way in the past that we wouldget paid is that the seller would list

(09:50):
a property for a set amount,and it's always negotiable, never fixed amongst
real estate companies. But it usedto be that you'd find a lot of
five and six percent listings and itwould be customary, although not required,
that whatever that total commission was apart of it would go to the buyer
agent, a part of it wouldgo to the seller agent, and the

(10:15):
seller never really, for the mostpart, had a separate conversation about how
much was going to go to thelisting agent, how much to the buyer
agent. But now, for example, I had someone who's a past client
call us, my wife and Iabout selling their property, and we said

(10:37):
that based on the price of yourproperty, we would be happy to list
it for a two percent commission,and then you would tell us what you
want to pay to the buyer's agent. And that's a conversation that historically has

(10:58):
never occurred in the past. It'strue. Now, folks, reach out
to me Rick Willis eight four threethree two seven three zero one seven,
and reach out to me by wayof email Rickatrickwillis dot com. And you're
welcome to text me or email me, but don't buy or sell anything without

(11:18):
talking to me. It'd be abig mistake. You want to tap into
my experience, folks, I'll seeyou right after the break. Hello,
this is Rick Willis. I assumeyou've been listening to the Rick Willis Real
Estate Show. If so, areyou considering buying, selling, or investing
in real estate? If so,you want to make sure you request a

(11:41):
copy and read my special reports designedespecially for those people looking to buy,
or sell or invest in real estate. Special Report number one is about buying
real estate, and you'll discover howto get your best buy and avoid the
ten biggest mistakes home buyers make.Special Report number two is for those people

(12:05):
thinking of selling their property. You'lldiscover how to get your home sold quickly
and net the most money. Andif you're thinking of investing in real estate,
you'll discover why you want to ownincome producing property and what to buy
for the safest place to put yourmoney. You'll also discover how to use

(12:28):
your retirement account for a one Kand IRA without having to pay a penalty
to buy and own income producing property. Please note I'm saying income producing property,
I'm not simply saying investment property.To get a free copy of any
of the special reports I just mentionedabout buying, selling, or investing in

(12:50):
real estate, please text me ateight four three three two seven three oh
one seven or email me at RickAtilis dot com. Additionally, please visit
my website Atrickwilis dot com. You'lllearn about my background as well as accessing

(13:11):
multiple listing. Again, I repeat, please, don't buy, sell,
or invest in real estate without requestingand reading your special report on buying,
selling, or investing in real estate. Text eight four three three two seven
three zero one seven or email Rickatrequilis dot com. When you text or

(13:33):
email me, please make sure yourequest a very specific special report on buying,
selling, or investing, and Iwill turn around and email you the
special report. Thank you. Welcomeback, Welcome back to the second segment

(13:56):
of today's recuill It's Real Estate Show. Folks. As I mentioned earlier,
we've been on the air now fortwenty plus years here in the Greater Charleston
area, and I know I havea lot of people that tune in and
listen each and every week. Idon't want to be labor it, but
I have many people that heard myshow last week that said, Rick,
you don't sound the same. Well, I had a stroke in the month

(14:20):
of August of this year, soI'm recuperating from the stroke. Those of
you that are not aware of whata stroke is and how it affects people,
it was something It was a clogin an artery in the brain,
and it basically immobilized all of theleft side of my body, relearning how

(14:41):
to walk and relearning how to usemy left arm and hand. So it's
quite a challenge. But with God, all things are possible, and I'm
recovering. Thank all of you foryour prayers, and thank all of you
for your reaching out to me thathave heard me in the past. I'm

(15:05):
going to continue doing the radio showas best I can, and please always
feel free to call me. Peoplethink they're imposing on me, well,
I have people that visit me atmy house all the time and talk about
real estate. You see, it'syou might I might have an issue with
a stroke, but I'm not deadand my brain works perfectly. And if

(15:28):
I need to go out and helpsomebody buy or sell, I have my
wife to work with me, who'sa licensed agent. Sometimes I'm out in
the car when we go to aproperty, and sometimes she's just the one
that shows the buyer the property andwe team up and we are offering this
still the best service out there forpeople looking to buy or sell real estate.

(15:50):
But let's continue the show if wecan. Last week, we talked
about who should be buying and whois buying, and I mentioned that first
time buyers are buying now. Thoseof you that are listening that are not
buyers, or those of you listeningwho are parents or grandparents of kids or

(16:12):
grandkids who are renting, should belooking to buy even though it's seven percent
plus in interest rates. And folks, the interest rate market has declined in
the last week and ten days.You don't care why, just know that
it's come back down a little bit. And if you take what the prices

(16:34):
are today and you look at whatthe total monthly payment will be, it's
probably significantly higher for many of youthan what you'd be paying in rent.
However, even though interest rates areup, property values are still going up.
And as a rule of thumb,if you look at what your total

(16:57):
monthly payment is in owning, youneed to subtract about forty percent of that
cost as compare it to rent,because when you have a mortgage payment,
a part of your payment is principalwhere you're paying your loan down. And

(17:18):
also the property is still going upin value. Now there might be a
I can't promise continued appreciation, butthere is still a shortage of housing units
out there. As of this morning, there was three thousand, one hundred
and sixty two active residential listings.Now, that's up from last week,

(17:42):
and it's important to note that it'sthe more expensive properties that are staying on
the market longer, and what wecall the entry level or starter homes are
still selling rather rapidly. Of course, they still need to be price rate.
But going back to the first timebuyer or those of you renting,

(18:06):
you can justify paying a higher priceif you look at your home as an
investment, not just a place tolive, because the combination of equity build
up from your principle and the appreciationis still going to put you in a
better place than if you waited.People say, yeah, but the rates

(18:26):
will probably come down next year,and I agree with that. That being
said, if you buy now atan interest rate higher than what you want
to pay, you can always refinanceyour mortgage to a lower rate, but
you're going to pay more for theproperty if you wait. So I don't
suggest that you wait now. Someof you that are buying are going to

(18:52):
be moving down in price point.You have a lot of equity in your
house, and for those of youthat want to have a lot of equity
in a safer place when you movedown in price point ought to be paying
and ought to be paying for yourproperty in cash. If you've got a

(19:14):
lot of equity in moving down inprice point and use your excess cash to
put it in a safer place otherthan the bank. You see in the
bank today you can get five percentinterest, not bad compared to what it
was a short time ago. Butif you put your same money in real
estate, you can easily get tento fifteen percent annual return on your money

(19:41):
when you combine the cash flow withthe growth of the property, and in
the case of investment property, youget what it's called depreciation to write off
on your tax return. You see, for every hundred thousand dollar that you

(20:03):
might put into a property, you'regoing to be getting anywhere from seven four
to seven percent cash return. Andthen on top of that four to seven
percent cash return, you're going tobe getting the appreciation, which can't be
promised, but I would project thatif it's three to four percent over the

(20:26):
next five years, and you arebuying real estate, that combined with the
cash flow, combined with the taxdeduction, makes it very worthwhile for you
to be buying something in addition toyour own residence. I'm going to switch

(20:47):
gears right now and talk to youabout something that most of you have never
heard about before. But for anyone of you that any of you that
are listening that have money in thebank and a savings count in a brokerage
account, or have money in afour to oh one k or IRA,

(21:07):
please listen up. All of youshould consider being a private mortgage lender.
For people that are really in theknow in the real estate business, what
they know is that there's two placesthat you want to have your money.
You want to have your money inequity in real estate, and you want

(21:33):
to have your money in private mortgages. I have an individual that I've worked
with that has put their money inboth places, and this is a very
smart individual. They own income producingproperty to take advantage of the tax benefits
as well as the appreciation, andthey also have a portion of their assets

(21:59):
in private mortgages. Now, privatemortgages are typically things that only the very
wealthy people even get exposed to.But I'm exposing you to something right now
that most of you don't have anopportunity to take advantage of. For example,
when you've got interest rates in theseven percent plus category, for homeowner

(22:22):
occupants or eight percent plus for investors. You may you might want to be
the person that is also lending themoney there, So how would you like
to get eight percent on your money, ten percent on your money, twelve
percent on your money. Now,to the average person who's uninformed, you'd

(22:45):
think, gee, why would somebodywant to pay eight, ten and twelve
percent. Well, the answer isthey have a need for the money.
And in one case, I hada gentleman that was in the trucking business
and he had a couple of trucksthat needed repair. He didn't have the
money to repair his trucks. Butif he had the money to repair his

(23:08):
trucks, he could be making alot of money with using his trucks for
income. So I went out toa private investor and he paid happily ten
percent interest and secured by a mortgageon his personal residence. The investor is
getting ten percent return with a monthlycheck each month, and the individual that

(23:33):
got the money fixed his trucks andis out making several thousand dollars a month
he wouldn't have made had he notborrowed the money from the private investor.
Who else borrows money from private individuals. Answer, people that are buying property
land for real estate development builders,and people that are flipping houses. They'll

(24:00):
go out and borrow money from privateindividuals to buy the house, turn around,
put money in it, flip itand resell it. And as an
individual that has some opportunities some cash, you might be just the mortgage lender,
secured by a mortgage or you mighteven get an equity position. There,

(24:22):
folks, my time is up forthis segment, so I'm going to
take a break and be right back. Hello, this is Rick Willis.
I assume you've been listening to theRick Willis Real Estate Show. If so,
are you considering buying, selling,or investing in real estate? If
so, you want to make sureyou request a copy and read my special

(24:48):
reports designed especially for those people lookingto buy or sell or invest in real
estate. Special Report number one isabout buying real estate and you'll discover how
to get your best buy and avoidthe ten biggest mistakes home buyers make.
Special Report number two is for thosepeople thinking of selling their property. You'll

(25:11):
discover how to get your home soldquickly and net the most money. And
if you're thinking of investing in realestate, you'll discover why you want to
own income producing property and what tobuy for the safest place to put your
money. You'll also discover how touse your retirement account for a one K

(25:33):
in IRA without having to pay apenalty to buy and own income producing property.
Please note I'm saying income producing property, I'm not simply saying investment property.
To get a free copy of anyof the special reports I just mentioned
about buying, selling, or investingin real estate, please text me at

(25:56):
eight four three three two seven threeoh one seven or email me at Rickatrickwilis
dot com. Additionally, please visitmy website at Rickwilis dot com. You'll
learn about my background as well asaccessing multiple listing. Again, I repeat,

(26:18):
please, don't buy, sell,or invest in real estate without requesting
and reading your special report on buying, selling, or investing in real estate.
Text eight four three three two seventhree zero one seven or email Rick
Atriquilis dot com. When you textor email me, please make sure you

(26:40):
request a very specific special report onbuying, selling, or investing, and
I will turn around and email youthe special report. Thank you. Welcome
back to Charleston. Welcome back tothe Rick Willis Real Estate Show third segment.

(27:04):
Folks, you're welcome to any timeto call me, email me,
or text me with any question thatyou'd like me to handle on the show.
When I do my show, Ipre record my show and I'm pre
recording it right now in the Foxstudios here in North Charleston. So any
of you that are looking for anythingto do with music pianos is there specialty,

(27:27):
but anything to do with music,You're going to find them on Dorchester
Road, just inside the five twentysix. I would highly recommend them to
you. Very good facility and verynice people here. So if you're in
the market for anything to do withmusic, make sure you look them up
Fox Music. And that being said, I have a question for you.

(27:55):
Where do you have your money andhow safe is it? Do you have
it in the bank? Yes,I would say to you it's probably safe
in the bank, but you're notnearly maximizing what you could be getting by
way of return on investment. Isee television commercials that say you know how

(28:18):
to maximize your annuity. Well,if you really understand annuities, you don't
want your money there either. Isee other commercials that say you know,
in this time of inflation and massivedebt and money printing, you want to

(28:40):
own gold or silver. I havea question for you, how much money
do you make while you own yourgold and own your silver. The answer
is nothing. You have to sellit and it has to go up in
value. I'm going to suggest toyou that that's not an investment. That's
suspectation. Just like the stock market. Now, it's important that you recognize

(29:04):
the difference between speculating and investing.When you're speculating, whatever you own needs
to go up in value and youneed to resell it. When you're investing,
you're going to get income coming inwhile you own it. And that's
one of the criterias of very smartpeople with money. They don't want to

(29:27):
put their money in a place thathas to go up in value in order
to make money. They want tomake money while they own the asset.
And real estate is one of thoseplaces. When I have people come to
me and talk to me about owningreal estate, most people think in terms

(29:47):
of I want a nice home anda nice area, good school system,
etc. That it's going to appreciatein value. And immediately when I hear
that, I know I'm dealing witha rookie and an inexperienced individual. You
see people that really understand real estate, and I'm going to give you a

(30:08):
stoke quick story here based on whatI do for a living. I have
a lot of people send me thingsby way of email and sometimes it's to
a real estate conference. Last yearI attended a real estate conference where people
were there from all over the UnitedStates. And what was interesting about the

(30:33):
people that were there. A highpercentage of the people that were at this
real estate investor conference they make theirliving every day through buying, selling,
and owning income producing real estate.And something else I thought was surprising A
high percentage of these people were intheir thirties and forties in age group.

(30:53):
They weren't the old timers. Theywere reasonably young by my standard. They
came from all over the United States. And when we had a break and
when we had breakfast, lunch,and dinner at this conference, I would
be asking these people, well,where are you from and what kind of
property do you own and where doyou own it? And what's interesting is

(31:18):
people that actually are real investors,as in that's how they make their living
in real estate investing. They don'tstart off with a nice neighborhood, a
nice area and school system. Theylook exclusively for where is the income,
and for most of these people,it's not where they live. I meet

(31:41):
people from California, I meet peoplefrom State of Washington, from New York,
from Illinois, and most of thesepeople are buying property outside of their
immediate market area. It doesn't occurto them that they have to manage the
property. They're starting from the pointof view of where and I generate the

(32:01):
most income for my dollar, AndI think that would be the valid way
of looking at it. If you'rean investor, and those people that come
to me, that's what I askthem about. Are you looking for income?
And those of you that are retiredright now or are planning for retirement,

(32:21):
what you don't want when you retireis several million dollars in an account
somewhere, because you don't want tospend that money on your retirement and you
don't want to use that money foryour living expenses. You want to take
the money that you have when youretire and you start looking for a place
to put it to generate income wellrather than waiting until you retire. If

(32:46):
you're in your thirties, forties,fifties or sixties, why not start with
putting it in a place where you'regoing to have income. Why buy property
at the values that you're going tohave when you retire. When you can
buy it now and have income comingin when you retire, it'll be income

(33:07):
will be waiting for you when youretire, and you won't have to put
it in the stock market. Yousee, you can move your money out
of the stock market today. Youcan move it out of a four to
oh one k, out of anIRA and own income producing real estate in
your retirement account, and the assetwill bring you in income that's tax free.

(33:32):
You see, in the world ofreal estate, you don't ever have
to manage it. I meet somany people that say, I don't want
to deal with a tenant. Idon't ever want to deal with a call
in the night that says my hotwater heater broke. Well, you don't

(33:52):
need to. When you got yourmoney in a retirement account, you're paying
someone else to manage it, aren'tyou. Well, the same thing is
true with real estate, except youonly pay in real estate when you're making
money. If those of you thathave a four to oh one k or
I are a look back over thelast decade, how much money you've paid

(34:14):
in fees for somebody else to quotemanage your property or manage your asset.
They're getting paid even when the stockgoes down. In real estate, you
only pay people to manage it whenthey bring income in. So you want
to rely on other people to manageyour asset For a lot of you,

(34:37):
you'll say, yeah, but thattakes money out of my return on investment.
Well, what might take money outof your return on investment is you
managing it because you probably don't knowwhat you're doing, and you're going to
be way too nice. You see, when you have somebody manage your property
for you, you want to havesomebody that has ice in their veins.

(34:58):
And there's a time and a placeto be here human with tenants, and
a time to be nice. Butyou also have to know when not to
do that. So again, don'tavoid real estate because you don't want to
deal with a tenant. Now,the people that I met at this conference,
they're buying property in the central partof the US, and they're buying

(35:23):
property in the South, And we'rein a very good spot right here in
the low Country, and that withinan hour or two of where we are,
you have a lot of opportunities tocreate income. I sent an email
out yesterday to several investors. It'ssaid, Hey, here's a property that

(35:44):
just came on the market that Ihaven't seen as much income for the price
in a long time. And there'ssomething called income to price ratio that I
want to educate you on. Yousee a lot of you are going going
out there not knowing how to comparea good deal from a bad deal.

(36:05):
Well, this particular property was afour unit property, and it had four
units that are bringing in over threethousand dollars per month in income, and
that's called a good deal. Infact, in the real estate business,
as a rule of thumb, there'ssomething called the one percent rule. If

(36:30):
you take the price of a propertyand you multiply it by one percent,
can you get that much per month? Most of the time in this day
and age, the answer is no. But it's a way of comparing,
and anytime you can find something thatmeets the one percent rule, it usually

(36:51):
is a great deal. Well,I'm the guy that can get you that
great deal if I know who youare. And what you're looking for.
So, for those of you listeningthat are looking to invest, possibly in
a private mortgage or real estate,you want to make sure you get to
know me. You want to shakemy hand, I want to shake your

(37:12):
hand. We want to meet eyeballto eyeball so I can get a profile
of what your assets are and whatyour goals and objectives are and help you
build your portfolio of real estate.You see the financial advisor talks about your
portfolio, but you know what theirportfolio is not about a tangible investment in

(37:36):
real estate, and if it is, it's a crowdfunding or it's another type
of joint ownership situation with other people. You want to own a high percentage
of your real estate in your ownname or an LLC, a limited liability
company, so you can make theindividual decisions that are best for yourself and

(37:59):
your family. And your people say, well, do I not want to
own real estate in my limited liabilitycompany and not my own name? Well,
it depends are you getting financing orpaying cash. If you're getting financing,
you don't get the best interest rateand type of loan in a limited

(38:19):
liability company, But it might beyou could buy it in your name and
then quit claim deed it into anLLC. If that's your goal and that's
your objective. There's what is calledincome property, and then there's investment property.
Make sure if you're looking for investmentproperty that the primary consideration is income

(38:44):
and folks, it may not bea single family detached residence. I had
someone reach out to me again inthe last several weeks sent me an email
said they were selling some property inanother state and they were doing a ten
thirty one exchange where they would avoidall income tax on the gain if they

(39:07):
followed the regulations. And we reviewedtogether the regulations. So if you sell
a property that you have a gainon, you can avoid any income tax
at all, or shall I say, defer any income tax at all by
reinvesting the proceeds if you follow theIRS guidelines. And the IRS guidelines are

(39:32):
that when you sell a property that'sgot a lot of equity and profit,
that the money has to be goto what is called a third party intermediary,
someone who's approved by the Internal RevenueService. That money stays in their
account and you have to designate whatis called replacement property that you're going to

(39:55):
reinvest that property in within a certainperiod of time, and if you follow
their guidelines, then you don't payany income tax on that you defer it
until down the road. But youcan defer it down the road until you
pass away, in which case yourerrors pay no income tax on that gain.

(40:17):
Or you decide you're going to keepthe property, get it paid off,
and your estate will inherit paid offproperty with guaranteed income coming through it.
Now, when I say guaranteed income, please understand, I'm assuming that
you've got income producing property and somebodyelse is managing it, or you're managing
it where you do have income.Folks, please reach out to me personally

(40:44):
Rick Willis eight four three three twoseven three zero one seven, or email
me Rickatrickwillis dot com and just sayRick one is a good time for us
to talk about investing in real estate, and we can meet over the phone,
we can meet in person, andI will educate you for your individual

(41:06):
situation and help you determine a gameplan to accomplish what you want to accomplish.
Folks, you need to make sureyou're working with somebody who's very experienced
in the world of income property,which is not very many real estate agents.
I've done this since the early seventies. I've owned over one hundred income

(41:30):
producing properties. I've owned single familyhomes, multifamily, mobile home parks,
vacant land, you name it,I've probably owned it. So reach out
to somebody who has not book knowledge, but experiential knowledge. I look forward
to speaking with you right after thisbreak. We'll come back and finish up.

(41:53):
Hello, this is Rick Willis.I assume you've been listening to the
Rick Willis Real Estate Show. Ifso, are you considering buying, selling,
or investing in real estate? Ifso, you want to make sure
you request a copy and read myspecial reports designed especially for those people looking

(42:15):
to buy or sell or invest inreal estate. Special Report number one is
about buying real estate, and you'lldiscover how to get your best buy and
avoid the ten biggest mistakes home buyersmake. Special Report number two is for
those people thinking of selling their property. You'll discover how to get your home

(42:37):
sold quickly and net the most money. And if you're thinking of investing in
real estate, you'll discover why youwant to own income producing property and what
to buy for the safest place toput your money. You'll also discover how
to use your retirement account for aone K and IRA without having to pay

(43:00):
a penalty to buy and own incomeproducing property. Please note I'm saying income
producing property, I'm not simply sayinginvestment property. To get a free copy
of any of the special reports Ijust mentioned about buying, selling, or
investing in real estate, please textme at eight four three three two seven

(43:23):
three oh one seven or email meat Rickatrickwillis dot com. Additionally, please
visit my website at Rickwillis dot com. You'll learn about my background as well
as accessing multiple listing. Again,I repeat, please, don't buy,

(43:45):
sell, or invest in real estatewithout requesting and reading your special report on
buying, selling, or investing inreal estate. Text eight four three three
two seven three zero one seven oremail Rick at. When you text or
email me, please make sure yourequest a very specific special report on buying,

(44:08):
selling, or investing, and Iwill turn around and email you the
special report. Thank you. Welcomeback, Welcome back to Charleston. Welcome
back to the final segment of today'sBrick Willis Real Estate Show. Well,

(44:29):
folks will talk to you about sellingreal estate. We talk to you about
buying real estate. I'll talk withyou about the opportunities for you to be
a private mortgage lender secured by amortgage. And we've talked about investing in
real estate. And please remember whatI said in the last segment that you

(44:50):
can speculate in real estate, oryou can invest in real estate. When
you invest, you have income andcash flow. When you speculate, your
relying on external circumstances to make sureyour property value goes up and you never
make a profit until you resell it. You want to make sure you have
income along the way. Now I'vetalked to you about this in the past,

(45:15):
I'm going to repeat it again today. For those of you that are
listening that have a retirement account fouroh one k or ira. You want
to make sure you move your moneyout of wherever you have it now and
you move it to the safest placepossible and you don't have to guess whether

(45:36):
the stock market long term or shortterm is going to go up or down.
Stock market is volatile and there aretoo many circumstances outside of your control.
You want to make sure you moveit from a paper asset, which
is what you have when you ownstocks to a tangible asset like real estate.

(45:59):
And how you do that is this. Let's make an assumption that you
have your account with Vanguard. Justas an example, if you went to
Vanguard and said, I heard aguy on a radio show say I could
use my money and buy an individualpiece of real estate for investment. Can
you help me do it? YourVanguard representatives going to say no, that

(46:23):
can't be done. What he reallymeans is they can't do it. They're
not going to tell you that otherpeople can do it, and he may
not even know it can be done. You see, you have to switch
custodians, change custodians to what iscalled a self directed custodian. And should

(46:43):
you google the term self directed custodian, self directed retirement account, you'll find
lots of tutorials on this. Ihave my own personal recommendations of which company
that you should work with, andshould you contact me, I'd be happy
to give you my inside information onwhich company to work with that has the

(47:07):
lowest fees and it helps you facilitateeasily investing in real estate. So your
money gets moved from Vanguard by wayof this third party self directed company and
it gets put in the local bankhere in the Greater Charleston area. You

(47:27):
set up an account. First ofall, you have a limited liability company
that you set up, and thenthe money goes into that bank account of
the limited liability company. And theonly thing that company does is invest your
money. But you get to decide. It's called self directed. You don't
have somebody else telling you where yourmoney's going to go. You're telling the

(47:52):
custodian of your account where your moneyis going to go. Can you still
buy mutual funds, Yes you can, but now you have the whole world
open to you of other alternative assets. And by the way, the wealthy
people usually invest the majority of theirmoney in alternative assets. Alternative means it's

(48:14):
not stocks, it's not bonds,it's not mutual funds. So you can
invest in gold and silver if youchoose to. You can invest in a
private mortgage from your retirement account andthe income will come in tax free into
your retirement account. You can buyan individual piece of real estate with your

(48:37):
retirement account and the money again comesin tax free into your account. And
when you become of age to withdrawyour money. If you have a four
to oho one k or an ira. You've got compounding of interest that's going
to be obtained there, the essenceof compounding because you've got the property appreciating

(49:00):
value combined with the income that's comingin from the rental income. And again,
third party can manage this for you. You don't have to do it
better that you don't do it now. When it comes time to buying individual
real estate, most people think interms of a single family detached residents because

(49:22):
that's what they've done in the past, or that's all they know. I'm
going to suggest to you that that'sokay to do that, but you oftentimes
get a better income stream with somesmall multifamily properties. Maybe you buy a
duplex two units, maybe you buythree units, or a quadruplex four units,

(49:46):
and that property will increase in value, not because of inflation, and
it's not appreciating necessarily based on appreciationbecause somebody's going to live in it.
As the income goes up, thevalue goes up. And what you'll discover

(50:07):
is there's a whole lot of peoplerenting now, so the pressure on rentals
is just as strong as it ison sales, maybe even more so.
And if you're buying property. It'sthen what I call the affordable price zone
load to medium rents. You alwayshave a rental pool, a deep pool

(50:28):
of people that want to rent yourproperty. And if you're not buying a
single family home or multifamily, maybeyou're going to buy a commercial property.
Have you heard of these things calledfamily dollar or dollar General. Well,
those are usually all privately owned,and the individual that owns those is getting

(50:50):
what is called a triple net lease, or at least a double net lease,
which means that if there's an increasein the rent, in the taxes,
the tenant pays, the insurance goesup, the tenant pays, if
there's a repair into building, thetenant pays, and you're getting guaranteed corporate

(51:12):
guarantees of rent increases. Also,so it doesn't always have to be a
residential property. Sometimes people prefer acommercial property. And by the way,
sometimes it's not in your own backyard. There's nothing wrong with going outside of
the greater Charleston area to buy something, and I know where those areas are.

(51:35):
Sometimes in the smaller towns around theCharleston area, you can get a
better deal. Why because less peopleare looking there. Remember you don't need
to manage it yourself. You canhave a third party do that management on
your behalf. And it might bebest thing for you not to manage your
own property because you probably don't knowwhat you're doing anyway. So I'm gonna

(51:59):
see just to you that you reachout to me and let's have a private
conversation about your personal situation. Areyou looking to buy your own primary residents
to live in. Let my wifeand I help you do that. Let
us counsel you, let us giveyou a consultation. Are you thinking of
selling. We'd be happy to talkwith you about a discounted real estate commission

(52:23):
for the sale of your property.Please reach out to me so we can
have that conversation and make sure wealso tell you what you can do to
maximize the price that you get foryour home. For some of you that
need fix up on your property,I have access to private investors that will
advance the money to fix your propertyup and get paid when the property closes,

(52:47):
So don't think you have to sellit in as is condition. And
for those of you that might wantto consider a private mortgage anywhere from eight
to twelve percent, reach out tome so I can put you in my
database and know when to contact you. These private mortgages, you have title

(53:08):
insurance and an attorney that handles allthe legal work for you, just as
if you were Bank of America.SO and those of you that again may
want to talk about investing in individualproperties and how to use your retirement account
to accomplish that, reach out tome Rick Willis, call me directly,

(53:30):
text met eight four three three twoseven three zero one seven, or email
me Rickatrickwillis dot com. Thanks forlistening and hope to talk with you soon