August 28, 2025 • 29 mins
In this special real estate episode of The Jimmy Rex Show, Jimmy sits down with longtime business partner and trusted real estate expert Tyler Bennett. Together, they break down the realities of today’s housing market, the mistakes many investors make, and the strategies they use to build strong portfolios for clients across the country.
Jimmy shares how he turned his entire real estate business over to Tyler in 2022, trusting him completely to run deals with honesty and client-first integrity. The two discuss why so many agents still push bad investments, why Utah stopped penciling out for rentals, and how they pivoted to research over 90 markets nationwide to find the best opportunities. They dive into how younger investors can still get into real estate despite rising costs, why patience and strategy matter more than ever, and the importance of saving and positioning yourself to act when the right opportunity comes.
From cash flow vs. equity, repositioning portfolios for stronger returns, and avoiding consumer debt traps, to creating long-term freedom through rental income, this episode is packed with practical insights. Whether you’re a first-time buyer or an experienced investor, Jimmy and Tyler outline exactly how to approach real estate today with confidence and clarity.
Jimmy shares how he turned his entire real estate business over to Tyler in 2022, trusting him completely to run deals with honesty and client-first integrity. The two discuss why so many agents still push bad investments, why Utah stopped penciling out for rentals, and how they pivoted to research over 90 markets nationwide to find the best opportunities. They dive into how younger investors can still get into real estate despite rising costs, why patience and strategy matter more than ever, and the importance of saving and positioning yourself to act when the right opportunity comes.
From cash flow vs. equity, repositioning portfolios for stronger returns, and avoiding consumer debt traps, to creating long-term freedom through rental income, this episode is packed with practical insights. Whether you’re a first-time buyer or an experienced investor, Jimmy and Tyler outline exactly how to approach real estate today with confidence and clarity.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:02):
Hello, and welcome to another episode of The Jimmy Rex
Show's gonna be a special real estate episode. It's been
a little time since I've done a real estate episode,
and part of the reason for that is, to be honest,
it's just I've been a little bit disengaged for a
couple of reasons on the real estate front. But a
lot of people don't know my background with real estate
what I do, And basically, in April twenty twenty two,
I turned my business over to Tyler Bennett. And Tyler
(00:25):
had been working with me for six or seven years.
We've been working together for close to ten or eleven
years total, had sold hundreds of homes together. And the
reason I was so excited to have Tyler on my
team is because he's the only human I've ever met
that cares more about the client than himself. Like I've
seen this dude bend over backwards every way possible, and
he's the most honest human I've ever met. And so
(00:47):
when I turned over my real estate business, we basically
just made a list of all of my leads or
contacts or whatever, and I get a percentage of every
house that sells if it's a lead, that came through
that I worked with in the past, and nobody would
ever turn over the business and not pay attention to
it like I have, except for with Tyler. Every single
month I get my email, I get checks. Dude just
shows me who clothes, who's buying homes. So my job
(01:09):
is a little bit more to be a centerpiece or
a mouthpiece and help connect people to Tyler. And one
thing that I love that we do is we do
a strategy session with any client that comes in and
wants to buy real estate. Because where people get in
trouble real estates, they don't have a plan, they don't
have a structure, they're just kind of going by the
whims of things. But I don't think anybody, or at
(01:29):
least recently, I've not seen anywhere where people explain how
to buy real estate the right way, and especially in
this market, it can be really confusing for people. So
we're still selling. We've sold over one hundred homes this
year between Tyler and I. Mostly Tyler, I say, but
you know, I put my part. But and so I
want to have him on in this real estate episode
because I wanted to get an update on the market,
(01:50):
talk about where things are at talk about how to
take advantage of this, because there is opportunity.
Speaker 2 (01:54):
In any market. But if you're not used to.
Speaker 1 (01:57):
A different market, I'll say I'm not good, not bad,
up and not down is just a different market than
you know. You can you can lose your money really fast,
and you can buy something you're gonna.
Speaker 2 (02:06):
End up break writing.
Speaker 1 (02:07):
And so I got Tyler on today and we're gonna
go over all the things real estate. I got some
questions that some people called in and asked me Tyler too.
I told a few po I was gonna interview you today.
It's dude, good to see.
Speaker 2 (02:16):
You, Jimmy.
Speaker 3 (02:17):
Good to be seeing, good to be here. Appreciate it
and appreciate the intro. I think you need to give
yourself a little bit more credit, folks. Jimmy actually is
more involved than he leads.
Speaker 2 (02:26):
On to believe.
Speaker 3 (02:27):
And he understands what we're doing, why we do it,
the strategy, and uh, he gets in the nuts and
bolts when he needs to, and just enough because he
knows what's going on, and so.
Speaker 1 (02:38):
Well, it's just my way to say that I just
truly do like trust you one hundred percent. And then
that's a rare thing. I mean, I you know, even
my own real estate. We just did a deal together,
and I mean you were pretty much did everything. I
just called you a confirm he doubled checks, some comms
and made sure our value was right.
Speaker 2 (02:54):
But other than that, you took it down.
Speaker 4 (02:56):
Cash a six figure check in there you go. But no,
I appreciate.
Speaker 3 (03:00):
But you know, one of the things I enjoyed most
that you said was the honesty and integrity and trust aspect.
You and I have both had many partnerships over the years,
and that seems to be a wedge that if it's
not there in the beginning, gets built over time. And
as markets shift, as income shifts, is business gets hard
gets easy. You know, things happen inside of business, and
(03:24):
sometimes people just look out for their own interest instead
of the partnership or the client's interests.
Speaker 4 (03:29):
And I'm just a big fan.
Speaker 3 (03:30):
If you take care of the client and you do
what's right, everything else just works itself out.
Speaker 4 (03:35):
And it may not happen tomorrow, but you know, I
believe down the road it always does. And same with partnerships.
You're your partner and things will just work out.
Speaker 1 (03:43):
We shifted from the Utah market so, for example, a
lot of people were still buying investment properties in Utah
when it no longer made sense financially, it didn't pencil out.
And me and you we had a real tough meeting
because we would make three times more money in Utah
as we had a full commission, whereas if we do
it and then the others we get a referral and
a little bit of a fee, but it's we'd make
about a third of what we do a same house
(04:04):
in Utah. And so we had this moment though we went, dude,
we can't in good faith try to pitch people that
need of these properties in Utah.
Speaker 2 (04:10):
They don't pencil anymore.
Speaker 1 (04:11):
And so we searched over ninety markets, found all the
best markets in the country. We've been doing this ever since.
And what's what I love the most, dude, is every
single client that's bought a home from us in the
last ten years as an investment has been happy about it.
And that's not the case for a lot of agents.
A lot of these people were still pushing. You know,
I got in trouble. I was speaking at a you'll
appreciate this, US speaking at a like a real estate event.
(04:33):
They invited me to come as a bunch of investors
and stuff, and it was sponsored by a local builder.
And this builder gets up and starts pitching five hundred
and seventy five thousand dollars town homes and how they
can help you with the first year rate and this
and that, and I literally got up after to give
my speech and I started with I am so sorry,
but I'm just gonna start with if you buy a
five hundred and seventy five thousand dollars town home, you
(04:53):
were a dumbass. And the guy hosting it called me
after He's like, yeah, I don't know, I'm gonna ge
that sponsor back. I'm like, well, they shouldn't be back
because they don't have your client's best interest in mind.
If I meet it, but that matters, dude, And people
don't care and they don't know. I remember when I
was younger, like, you don't know you're trying to do.
I feel bad for young people these days. Think about
(05:13):
this for a minute, Like when we were younger, when
we were in our early twenties mid TWENTIESKA, we were
both hustling, and were you knew if you saved up
fifteen grand ten grand You could buy a home, move
into it for a few months, move out, rent it out,
do it again, and there was a game plan and
you were like, yeah, this household cash ful, this is
what they tell us to do in the books, this
is how it goes. And it worked and you could
(05:35):
even make mistakes me and you made plenty. I made
a lot more than you. You could overcome them eventually
because there was enough goods business to still do. I
think one of the things that's frustrating for younger people
right now. I mean, they don't know, they don't have
a Tyler Bennett, they don't know how to still get
deals like this, and so they don't know where to turn.
And I think that's why you see online gambling so popular,
(05:56):
crypto like baseball cards, and because they're trying to gamble
to make money, like they realize this game is ricked.
I can't save up enough to buy homes now like
my dad could or my older brother could, and so
they're trying to gamble, but there's still a stratu It's
one of the reason I want to have you on
for that younger guy that's listening to he's in his
twenties and he's frustrated because I get it, like are
(06:17):
the boomers and like even our generation, like they've stolen
from the youth. Dude, Like they have made the game
so that they always have plenty of wealth, but it
is at the expense of these younger people. And so
I want to start Let's just start there, like how
can a younger person give them a little bit of
hope for how they.
Speaker 2 (06:31):
Can still end up building a real estate portfolio.
Speaker 3 (06:34):
Yeah, And the first thing I want to say to that, Jimmy,
is patience. So I think that's one of the challenges
the younger generation has is they want instant gratification or
you know, crypto or online gambling or these It's like, hey,
I can make money quick, you can also lose it
really fast, right, And they don't understand risk tolerance and
(06:54):
all these different things. But it's understanding that, yeah, you
put a plan in place, but then you've got to
execute it and you've got to have patience and anything
worth doing takes a while.
Speaker 4 (07:06):
And that's that's what I would say in real estate, because.
Speaker 3 (07:10):
We have reality is we have clients that bought in
twenty three and twenty four and this year and the
market's been pretty flat since they've bought. And if they
just had a two year strategy, they would be disappointed
if they were trying.
Speaker 4 (07:21):
To flip a home and sell it right now, right.
Speaker 3 (07:23):
But we have a strategy and that the plan is
buy and hold five to ten years.
Speaker 4 (07:27):
And we know that real estate always goes up and
so well.
Speaker 1 (07:30):
And by the way, I partnered on I think fourteen
deals in twenty twenty two, twenty three. Yeah, but one
of the deals with I made with each partner was
is I get to decide when we sell, Like you
can't come to me in two years and say, hey,
we need to sell because I need some money. Like
that was in the agreement because it's like, guys, this
has to be a seven to ten year play for
us to really make money. And so to your point,
(07:51):
there is a mindset shift you have to have where
you have to go, Okay, this is going to be
a ten year plan that we can put inde.
Speaker 2 (07:57):
Yeah.
Speaker 3 (07:57):
And just like with stocks or the investments, you only sell,
you only lose.
Speaker 4 (08:03):
If you sell when it's down.
Speaker 3 (08:04):
Yeah, right, and so but it's it's having that that
the ability to hold when it's not up is the
powerful concept.
Speaker 4 (08:13):
And you do that from positive cash low.
Speaker 3 (08:15):
Right, if you have native cashlow and you're feeding some
investment every month and it's down, you just want unload
it because it just sucks to write a check every
single month. And so it's how do I get staying
power in this? And I think for the for the younger,
that twenty five year old that's saying how am I
going to own real estate?
Speaker 4 (08:32):
The biggest focus to me is.
Speaker 3 (08:37):
Figuring out how to stack your pennies, how to save money, right,
because that's where it all starts, because you need money
to play the game of real estate, whether you're buying
a primary residence that you're going to turn into your
first rental property down the road, or you're just looking
to get in investment properties. We help a lot of
people buy investment properties that have never owned real estate before,
because if you live in a market Utah included now
where real estate's just really expensive, you can buy an
(08:58):
investment property for the price you'd buy a primary residence for.
Speaker 4 (09:02):
So sometimes it just makes sense to start building your portfolio before.
Speaker 3 (09:05):
But more importantly, you have to be in a position
where you can act, so you have to save your money.
And I did a presentation a little while ago, and
I went through this cost of living right and as
a as a as a household, right, whether you're single,
you're married, whatever it is. As a household, your cost
of living has gone up significantly in the last.
Speaker 4 (09:25):
Three four or five years.
Speaker 3 (09:26):
So yeah, with inflation, right, And how many people's income
have kept pace with that? Not very many, some yes,
But the reality is is wages aren't growing as fast
as the cost of living, and if your spending habits
are the same, you don't have as much or you're
going backwards and you're digging a hole. And so it's
going through and doing this kind of inventory of what
(09:46):
what does my world look like and how do I
make sure I continue to get ahead?
Speaker 4 (09:50):
And it's of course, yeah, get more income, right, that's
the easy solution. But that is and you're.
Speaker 1 (09:55):
Spending Yeah, it's a kid, I mean, it's a two
headed monster, right, you have to do build things. Like
number one is is you got to learn how to
make more money. And like we are paid directly proportionate
to the amount of value we bring to the marketplace.
Speaker 2 (10:05):
Like memorize that, like think about that. It's why a
quarterback gets paid so much.
Speaker 1 (10:08):
There's twelve dudes on the planet that can do it
at an elite level, right, But it's also the reason
why a school teacher doesn't because there's millions of people
that do it. The same reason why you know, Like again,
we are paid directly proportionate to the amount of value
you bring to the marketplace. So if you're not making
as much money as you want, you got to learn
new skills. You've got to be doing that on your
extra time outside of work. You've got to start learning
(10:28):
how to just make more money more value. Yes, And
then the second part of that is you do have
to learn to live off less money than you make.
Speaker 2 (10:35):
I can't believe have you seen. Well, one of the
big problems we have right now.
Speaker 1 (10:38):
It's like this weird economy we're in because it feels
like there's still money. But what's happening is people before
they used to like if they got in trouble they overspent,
they would either sell their house and move in a
new one. They had equity there, they would do those
things right, or they would do a he lock on
their house. And the problem now that they're having is
they can't pull anything out of the house. They can't
move because the rates so low, and so consumer debt
(11:01):
is just going insane, and so people are but like
this concept of people are spending money on things with
like they don't have the money to buy them. That's
insane to me. It really is, dude, Like there's this
new thing. I don't know if you've seen this. I
think it's two out of three people that are going
to festivals, they're financing the festival. Yeah, these like festles,
all the younger people are going to. You can now
finance your like Chipotle on door dash. It's it's a problem, dude.
(11:25):
It's the number one is you've got to just understand that, like,
you cannot spend money that you do not have. Like
that has to be if you're serious about investing at
any level in real estate, that has to be number one.
Speaker 2 (11:35):
It's just you're done spending money you don't have.
Speaker 3 (11:37):
Yeah, and yeah, there's record credit card debt right now,
it's all time high.
Speaker 4 (11:41):
And it's the same thing for businesses.
Speaker 3 (11:43):
You look, I just googled it a little bit ago,
a couple of weeks ago that I think business bankruptcies
are up forty percent this year, and so how many
small businesses are doing the same sort of inventory of
Wait a second, my revenue's flat or it's down a
little bit.
Speaker 4 (11:57):
My cost of.
Speaker 3 (11:58):
Goods to deliver services or product is up. What do
I got to do?
Speaker 1 (12:03):
Well, we get fat when the market's good. Yeah, right,
you start really, Oh, I can invest in that, I'll
market I'll pay for that marketing piece.
Speaker 2 (12:09):
I'll hire this second assistant.
Speaker 4 (12:10):
Yeah, and you and I have both done that.
Speaker 2 (12:13):
I was using my own exams.
Speaker 3 (12:15):
Last year where it's like, wait a second, I cut
SEO spends, I cut some marketing dollars.
Speaker 4 (12:19):
I did all these things.
Speaker 3 (12:20):
My new client flow did not go down at all. Right,
so I wasn't getting a good ROI on that spend.
Speaker 4 (12:26):
But it took me.
Speaker 3 (12:29):
One I had to accept, Wait a second, I need
to dive in and fix this. Because the immediate solution
is fix expenses. Right, size your expenses based on what's
coming in now, go figure out how to make more right.
But we can't. You just can't be in a position.
You're never going to get started in real estate if
you can't figure out how to save enough money to
create a down payment, whether it's for a principal, primary
(12:50):
residence or investment properties.
Speaker 4 (12:51):
So that's where it.
Speaker 1 (12:52):
Starts fair enough, and so I guess to the again,
So somebody wants to start in real estate, they want
to start buying investment properties, How does what's the process
look like? I think I want to almost keep this
more basic than we normally would, because I think people
are used to it feeling so frustrating or high level
that they almost don't know where to start. So like,
(13:13):
maybe just take us through the basic part of like
what does that look like?
Speaker 3 (13:16):
Yeah, so very similar for a primary or investment. For me,
where it always starts is getting in touch with the
lending right with mortgage guy, Say where am I at
right now? Because they're going to go through and they're
going to tell you here's exactly what's coming in, here's
what's going out, here's what you qualify for, here's how
much money it would require to accomplish that. And then
(13:41):
you get to work backwards from there and say, okay,
based on that, do I need to make more money,
do I need to cut my expenses, do I need
to save more? Or am I actually in a position
where I can move forward? So to me, that's the
first round of feedback, see what can I do?
Speaker 4 (13:57):
And then you get to that, Okay, now what's my plan? Right?
Speaker 3 (14:00):
And this is where a lot of people fail because
it's like some mortgage guy says, hey, you can qualify
for X. They tell their real estate agent, hey, I
can qualify for X, and then they just start looking.
But there's no strategy right.
Speaker 1 (14:11):
And you don't even understand how that's going to work
into the rents and the cash flows and everything.
Speaker 3 (14:16):
And then emotions just start flowing, and then emotions start
taking over the decision making process when it's no, I
have a plan.
Speaker 1 (14:22):
So going to that a little bit like, how do
you help people create a strategy're a plan when that
come to ye?
Speaker 4 (14:27):
Yeah, So I like to I like to kind of position.
Speaker 3 (14:32):
Myself as I'm kind of a consultant. I just use
real estate as a vehicle, so we look at everything, right.
And again, if somebody wants to come and buy an
investment property and they need the three hundred dollars a
month cash flow to put food on their table, and
they're spending the last seventy five thousand dollars they have,
you're probably not you should price should wait. Let's hold
(14:52):
off for a second, and let's make sure you have enough.
You know, sleep well at night, savings, emergencies, all these
different things.
Speaker 4 (14:59):
Or you know, if you have a family with four.
Speaker 3 (15:01):
Kids and you don't have any term life insurance and
you're trying to save thirty three dollars a month, but
you're looking at buying an upgrading your house, like, hold
on a second, Like, let's look at this big picture
and really figure out what makes sense, what's the right
sequence or order of all this, and let's make sure
we have the right foundation, and now let's start building right,
let's build up from there, and that's where you start
(15:23):
to insert you know, real estate, investment properties, all of that.
So really, for me, that's a strategy is honestly, it's
let's get organized, because most people aren't super organized. It's like, hey,
what do you got, what do you have going on?
What is your strategy with all of this? What's your
time frame, what's your goals? What's your risk tolerance?
Speaker 4 (15:42):
Right?
Speaker 3 (15:42):
Like all of that and the way people are structured financially,
there should be strategy and everything.
Speaker 4 (15:49):
So one is.
Speaker 3 (15:50):
Helping identify what do we have to work with and
why are you doing what you're currently doing, And half
the time is helping people get clear on why they're
doing what they're doing.
Speaker 4 (15:58):
Is there any tweaks that need to be made? Now,
let's start plant from there.
Speaker 2 (16:01):
And so how have you adjusted?
Speaker 1 (16:02):
Like, you know, obviously it's much different today than it
was even a couple of years ago. So how did
these current market conditions with both rates and just prices
and everything else.
Speaker 2 (16:11):
How's that affecting your strategy?
Speaker 3 (16:12):
Yeah, so fortunately for our business because it's not really
dependent upon timing the market. Right, it's time in the market.
We've both said that a lot, and that's applicable for
a lot of different investments.
Speaker 2 (16:24):
Right.
Speaker 3 (16:24):
If you're trying to time the market, there's a high
emphasis on speculation, and if you speculate.
Speaker 4 (16:30):
Wrong, which is more likely than not, then you can lose.
Speaker 3 (16:35):
Where you eliminate the speculation and say no, no, no, this
is just a sound investment strategy. And I know over
time it always works. It always has in the past,
it always will. And so buying today versus buying three
years ago. There's less cash flow today because interest rates
are higher, but there's deals to be had, right, Sellers
are motivated, builders are motivated, there's incentives. So we're utilizing
(16:58):
we're getting good deals, we're getting good buy. But the
cash flow is a little bit lower today, but we're
paying less for the property. So when you fast forward
three years, four years, I would rather pay twenty five
grand less for a property and I have one hundred
dollars less cash flow. And then if rates go down,
and I don't think it's if it's when right, rates
are trickling down right now?
Speaker 1 (17:18):
Yeah, I mean they're going to get their fed guy
out by next year worst case.
Speaker 4 (17:22):
Yeah, and they'll go down. I don't think super fast
because they're worried about inflation, and rightfully so. But they'll
go down. And as rates go down, prices are going
to go back up because people shop.
Speaker 1 (17:32):
Mortgages based off That's kind of the fear though, right
is if they drop rates too much right now, prices
will just shoot back, right.
Speaker 4 (17:38):
And so they're worried about that. So, okay, how do
we make housing more affordable? Right?
Speaker 3 (17:43):
So it's trickling rates down so people can afford, but
not causing a reaction where prices go way up.
Speaker 2 (17:48):
But I heard an idea. This is just random.
Speaker 1 (17:51):
They'll never do it, but if they let One way
they could fix the housing stagnation problem.
Speaker 2 (17:56):
Right now is if they let you keep your rate
and you just move to the new house.
Speaker 4 (18:01):
Well, yeah, that would literally solve the problem. I was like,
that's actually pretty brilliant. Bank would ever allow.
Speaker 2 (18:07):
I'm seeing the government could. They're all the government back loans.
They'd have to Like if the government just said this
is anyway, I just thought I was.
Speaker 3 (18:12):
An interesting you don't want these school though along red
lines is the grandson of the Pulti Eye Pulti Homes right,
one of the biggest home builders in the country, is
now the head of the Housing Authority or whatever it is.
Speaker 4 (18:24):
Point Trump put him in and.
Speaker 3 (18:27):
One of his biggest goals is how do I he
can't control rates so that it is what it is,
but how do I make housing more affordable? So he's
looking at how do we get more aggressive and lending,
how do we loosen lending up, how do we do
longer ammorization schedules, or there's all kinds of different ideas
he's kind of throwing around out there to say, how
do we make this, you know.
Speaker 1 (18:45):
More affordable and so Well, one of the things that
was really helpful for me because I, you know, five
six years ago, I got some money from a different investment,
and I was looking at where to put it, and
you and I sat down, I did my own strategy
session with you, and I ended up buying I don't know,
fourteen fifteen places or something like that, and every one
of them is more than doubled in value. They're all
(19:06):
amazing properties and everything else. But even with that, I've
decided to sell a few things to then take that
money and put it into.
Speaker 2 (19:14):
Multiple other investments.
Speaker 1 (19:15):
And that's something that I think that you do a
lot with people, as the mistake the a lot of
people make is they sell that property. I actually was
literally talking to a guy today, a guy that I coached,
and he sold his primary residence, and he said, we're
just going to rent for the next word a.
Speaker 2 (19:29):
While while prices go down.
Speaker 1 (19:30):
And I'm like, oh, man, like, prices aren't probably going down,
and so he's sitting out the market and paying thirty
eight hundred bucks a month to rent, And I kind
of was just like, I don't know, how do I
tell him that. I don't think that's a good idea.
But what you've done really well and helped me to
do is like when you do sell a real estate investment,
you go buy two more as part of the strategy
that we use.
Speaker 3 (19:48):
Yeah, And one of the biggest benefits of building a
real estate portfolio over.
Speaker 4 (19:53):
Time is it gives you options.
Speaker 3 (19:56):
Because the more equity you have inside of that real estate,
the more options you have, the more liquidity you can create,
and you don't even have to create it by selling right.
One of the strategies I utilize is I own a
lot of my rental properties free and clear, there's no
mortgages on them. I know that's one thing you're working
on right now too, is how do I boost up.
Speaker 4 (20:12):
My cash flow?
Speaker 3 (20:13):
Well, eliminate the debt is a really good reason to
do that right, and your cash flow goes up. But
one of the downsides of real estate is this not
super liquid. You can sell stocks and have money tomorrow
if you needed it for something. You can't do that
inside of real estate. So I go and I secure
a line of credit, use my real estate as collateral.
So I have millions of dollars in lines of credit,
zero balance. It doesn't cost me anything. But if I
(20:34):
need access to capital, I can get it. If it's
not the right time to sell, or I don't want
to sell right. So again, it puts me in control.
But really it comes down to the more properties that
you have, more cash flow, more appreciation, more tax benefits,
all those things. But the more options you have because
I have clients. I have a client right now that
came to us. He has about a dozen houses with us,
(20:56):
and he said, Tyler, I'm raising some more capital for
the software thing. I'm starting up on the side doing
another series. I don't want to dilute my equity as much.
I need about five hundred thousand dollars. Can you go
through my portfolio and analyze and tell me which homes
make the most sense to sell. I know I'm gonna
take a tax hit and all those things, but it's
what I need to do right now to create five
(21:18):
hundred thousand dollars so I can put that in for the.
Speaker 4 (21:21):
Capitalis I'm doing right? And so we go through and
we do that, and then ninety days he'll have his
five hundred thousand dollars.
Speaker 3 (21:26):
And you know, if you have a dozen houses, we
only have to sell one or two houses, and we
can create that for him, and he has options and
we can pick the right properties to sell right Versus
you're in a panic and.
Speaker 4 (21:37):
You just have to sell the one you have.
Speaker 2 (21:39):
YEA, that makes sense.
Speaker 1 (21:40):
What U One of the things that I always tell
people if they're trying to, you know, decide what realtor
to work with, for example, because I mean people listening
to this right now, I was like, Oh, my roaltor
didn't do that. Nobody does this, Like nobody else I've
ever met does this. I teach you to other realtors.
I still don't do this, like doing these strategy sessions.
But one of the questions I asked him to, you know,
always ask you roultors, let me see your portfolio, and
(22:00):
I know how many properties you have. I know how
many properties I have, but twentys we have almost one
hundred properties, and I bet we have over fifty percent
total equity in all of them, right, And so you
really want to find out And so I guess one
question I would say is like, what are you what's
your current personal strategy right now that you're using for
the rest of twenty twenty five, twenty six as far
as investing goes.
Speaker 3 (22:19):
Yeah, So what I like to do with people a lot,
I do it on my own portfolio. So first and foremost,
what you just said, we practice what we preach I
own properties in all the markets. You own properties in
all the markets, and I do exactly what I help
teach and help create for other people. First and foremost,
But then second is portfolio positioning or repositioning. So just
(22:45):
like a stock portfolio, right, if somebody's managing my stock portfolio,
I expect them to be in tune with the market.
What's going on? What percentage do we have in tech
versus healthcare? Hey, there's a huge push on AI. There's
upside there are we reallocating more?
Speaker 4 (23:00):
We're into tech? Right, Like I pay people to do
that for me. I don't want to do that. I'm
not an expert. I'm not qualified to do that. But
that's what we do in real estate.
Speaker 3 (23:09):
So a lot of it is a lot of our
clients have existing rental properties. You just sent me somebody
just last month and they have a four plex here,
they're looking at selling it, and he said.
Speaker 4 (23:18):
Well what would I go do with it? Right?
Speaker 3 (23:20):
And so we jump in and say, well, look, you
could sell this, you could go buy four houses. And
the markets that we work in in Arkansas and Florida, Tennessee,
and we're literally going to two point five x the
amount of rent he gets per dollar, And so you
look at that as a small business, like, Okay, have
this little business.
Speaker 4 (23:38):
I have this four plex.
Speaker 3 (23:39):
It's worth nine hundred thousand, it's bringing in twenty eight
hundred dollars a month of net cash flow, and I
could sell it and buy houses for nine hundred thousand
dollars and I could bring it over five thousand dollars
a month in net cash flow. So what business owner
wouldn't reposition their business to get twice as much net
income right or profit.
Speaker 1 (24:00):
It feels like a lot of work for people. But
that's one of the things that's nice about working with
us is we make sure we just do it.
Speaker 2 (24:04):
All for you.
Speaker 3 (24:05):
Because if he sold a four plex in Utah and
bought a four plex in Utah, he's not gonna he's
not gonna be better off.
Speaker 4 (24:10):
In fact, he's gonna go backwards because it costs money
to transactor. Else.
Speaker 1 (24:13):
Yeah, he's gonna have to pay the fees, plus he
can have a worse rate. So it's not and that's
why people aren't doing it. They don't even know there
is a good option for it exactly.
Speaker 3 (24:19):
And so that's that's kind of one of the components
we bring to the table is just just like a stockbroker, right,
you get access to the whole domestic, international market. There's
not very many real estate companies out there that give
people access to the whole market where we can yield
the best return for our clients. Yet the clients are
still building their own portfolio.
Speaker 1 (24:38):
So if people do like somebody's listening to this, or like, Okay,
I want to meet with you guys. Because one of
the things I love too is when I have people
reach out to me on Instagram all the time or whatever,
I just send them to you and I say, hey,
set up a strategy session.
Speaker 2 (24:48):
Let's see if it's a good fit.
Speaker 1 (24:49):
So somebody that has some money, you got to have
a minimum probably what sixty seventy thousand right now.
Speaker 4 (24:53):
Thousand dollars to get you in investment property here, yeah.
Speaker 2 (24:56):
And then reach out to you, set up a strategy session.
What's the best way for them to get in touch
with you or whatever?
Speaker 3 (25:00):
Literally to shoot me a text to my cell phone
A zero one two three four zero eight seven zero.
Speaker 4 (25:06):
I just mentioned you listen to this podcast and we'll
bump you.
Speaker 3 (25:10):
The front of the line VIP and and yeah, and
sit down and just explore, because for me, it's it's
if I can just educate and show options.
Speaker 4 (25:19):
Whenever I make a financial decision, I I'm.
Speaker 3 (25:22):
Never comfortable unless I understand all the different options, and
then once I pick one, I never looked back because
I feel like I understood the options.
Speaker 4 (25:28):
And I'm moving forward and I know why. So for me,
that's what it's all about.
Speaker 2 (25:32):
Well, for me, this is what I needed when I
was younger. I needed to have the strategies. I need
to have somebody that knew more than I did. Dude.
Speaker 1 (25:37):
I remember, like my brokers, I go buy those piness
and nobody knew what the hell they were doing, and
I got in trouble on so many properties. And if
I would have had somebody that, no, dude, this is
what you need to buy. Here's how you buy it.
And it's not like you're paying anymore. You just have
great railtors that are like going to work for you.
Speaker 2 (25:50):
And it's been cool.
Speaker 1 (25:51):
I've been able to send you, you know, some of
my NFL football player buddies, some of the wealthiest guys here.
And it doesn't matter who it is, like everybody has
the same experience, whether you're a brand new investorent's your
first property, You've bought a hundred with this, and so
at the end of the day, it's it's been a
really cool part of our business. It's been cool to
like be able to offer people something I know is
good when it's so hard to find that and there's
(26:13):
just not as much opportunity right now. Like five years ago,
any idiot could buy something and you'd be fine. The
rates were two point two percent, you know.
Speaker 3 (26:19):
Yeah, and you say when you were younger, Jimmy, But
the reality is we work with a lot of people
in their forties and their fifties that have four to
one k's or have different things, and they're looking at, hey,
I'm ten or fifteen years from retirement and the way
that I'm tracking, yeah.
Speaker 4 (26:33):
I'm way above average.
Speaker 3 (26:35):
But if you have a million dollars in your four
one K and that's you want that to sustain one
hundred and fifty thousand dollars a year lifestyle forever, that's
just not going to happen, right, And so we were
with a lot of people looking at, Okay, well, how
can we shift the emphasis to cash flow because that's
what everybody needs that's what everybody longs for in retirement
because that's what gives them permission to control their time.
Speaker 4 (26:54):
And for me, that's what this is all about.
Speaker 3 (26:57):
It's people trade so much time for dollars right throughout
their career. It's what can we have work in when
they're sleeping behind the scenes that one day they wake
up and they can flip a switch and say, holy shit,
look how much cash flow I have coming in. That's
enough to give me permission to stop working or shift
careers to something I'm passionate about and actually enjoy doing.
Speaker 2 (27:19):
What's a process?
Speaker 1 (27:20):
Whatever the process I'm in right now is where I'm like,
I'm just paying off my main house. It was all
real estate investments in bitcoin, and then I'm paying off
a couple rental properties will bring in I'll have seven
rand a month coming in just and I don't have
to I mean, I'll have that by next year, and
I can kind of not that I'm going to, but
I can do whatever the hell I want basically, you know.
Speaker 3 (27:40):
And for me, that's put you in a because most
people aren't just going to sit idle.
Speaker 4 (27:44):
If they have enough residio for.
Speaker 2 (27:47):
A couple of hours. It's nice to be able to.
Speaker 3 (27:49):
I know, my son just got home from doing summer sales.
Yea home Saturday night, and I'm like, all right, dude,
you got three days like chill for three days and
then you got to figure.
Speaker 4 (27:56):
Out what you're doing right.
Speaker 3 (27:58):
But really it's just if you're in that mindset, the
decisions you make are gonna be so much better.
Speaker 4 (28:05):
You're gonna be so much more clear.
Speaker 1 (28:07):
You're not chasing, you're not trying to you know, shorten
the process, you're not trying to get greedy.
Speaker 2 (28:11):
You're just doing it the right way.
Speaker 3 (28:13):
And you're doing it for the right reason, which in
my experience, is actually gonna yield a.
Speaker 4 (28:18):
Higher return on your time.
Speaker 3 (28:19):
You're gonna end up making more money because you're doing
it for the right reason, not because you're doing it because.
Speaker 4 (28:23):
You feel like it's gonna make it the most fun
percent you know, all right.
Speaker 1 (28:25):
Dud Well, I appreciate you, man. Yeah, it's gonna be
keep closing deils every day and it's fun, man.
Speaker 2 (28:30):
Thanks Jamy, Thanks brother.
Speaker 1 (28:32):
Yep, thank you again for listening to the Jimmy Rex Show.
And if you liked what you heard, please like and subscribe.
It really helps me to get better guests, to be
able to get the type of people on this podcast.
Speaker 2 (28:42):
It's going to make it the most interesting.
Speaker 1 (28:44):
Also, want to tell everybody about my podcast studio, The
Rookery Studios, now available in Salt Lake City and or
in Utah. If you live in Utah and want to
produce your own podcast, we take all of the guests,
work out of it for you.
Speaker 2 (28:58):
And make it so simple all you do.
Speaker 1 (29:00):
So as you come in, you sit down, you talk,
and leave, We record it, edit it, even post it
for you. If interested in doing your own podcast, visit
our Instagram and send us a DM Rookery Studios, or
go to our website, The Rookery Studios dot com
Hello, and welcome to another episode of The Jimmy Rex
Show's gonna be a special real estate episode. It's been
a little time since I've done a real estate episode,
and part of the reason for that is, to be honest,
it's just I've been a little bit disengaged for a
couple of reasons on the real estate front. But a
lot of people don't know my background with real estate
what I do, And basically, in April twenty twenty two,
I turned my business over to Tyler Bennett. And Tyler
(00:25):
had been working with me for six or seven years.
We've been working together for close to ten or eleven
years total, had sold hundreds of homes together. And the
reason I was so excited to have Tyler on my
team is because he's the only human I've ever met
that cares more about the client than himself. Like I've
seen this dude bend over backwards every way possible, and
he's the most honest human I've ever met. And so
(00:47):
when I turned over my real estate business, we basically
just made a list of all of my leads or
contacts or whatever, and I get a percentage of every
house that sells if it's a lead, that came through
that I worked with in the past, and nobody would
ever turn over the business and not pay attention to
it like I have, except for with Tyler. Every single
month I get my email, I get checks. Dude just
shows me who clothes, who's buying homes. So my job
(01:09):
is a little bit more to be a centerpiece or
a mouthpiece and help connect people to Tyler. And one
thing that I love that we do is we do
a strategy session with any client that comes in and
wants to buy real estate. Because where people get in
trouble real estates, they don't have a plan, they don't
have a structure, they're just kind of going by the
whims of things. But I don't think anybody, or at
(01:29):
least recently, I've not seen anywhere where people explain how
to buy real estate the right way, and especially in
this market, it can be really confusing for people. So
we're still selling. We've sold over one hundred homes this
year between Tyler and I. Mostly Tyler, I say, but
you know, I put my part. But and so I
want to have him on in this real estate episode
because I wanted to get an update on the market,
(01:50):
talk about where things are at talk about how to
take advantage of this, because there is opportunity.
Speaker 2 (01:54):
In any market. But if you're not used to.
Speaker 1 (01:57):
A different market, I'll say I'm not good, not bad,
up and not down is just a different market than
you know. You can you can lose your money really fast,
and you can buy something you're gonna.
Speaker 2 (02:06):
End up break writing.
Speaker 1 (02:07):
And so I got Tyler on today and we're gonna
go over all the things real estate. I got some
questions that some people called in and asked me Tyler too.
I told a few po I was gonna interview you today.
It's dude, good to see.
Speaker 2 (02:16):
You, Jimmy.
Speaker 3 (02:17):
Good to be seeing, good to be here. Appreciate it
and appreciate the intro. I think you need to give
yourself a little bit more credit, folks. Jimmy actually is
more involved than he leads.
Speaker 2 (02:26):
On to believe.
Speaker 3 (02:27):
And he understands what we're doing, why we do it,
the strategy, and uh, he gets in the nuts and
bolts when he needs to, and just enough because he
knows what's going on, and so.
Speaker 1 (02:38):
Well, it's just my way to say that I just
truly do like trust you one hundred percent. And then
that's a rare thing. I mean, I you know, even
my own real estate. We just did a deal together,
and I mean you were pretty much did everything. I
just called you a confirm he doubled checks, some comms
and made sure our value was right.
Speaker 2 (02:54):
But other than that, you took it down.
Speaker 4 (02:56):
Cash a six figure check in there you go. But no,
I appreciate.
Speaker 3 (03:00):
But you know, one of the things I enjoyed most
that you said was the honesty and integrity and trust aspect.
You and I have both had many partnerships over the years,
and that seems to be a wedge that if it's
not there in the beginning, gets built over time. And
as markets shift, as income shifts, is business gets hard
gets easy. You know, things happen inside of business, and
(03:24):
sometimes people just look out for their own interest instead
of the partnership or the client's interests.
Speaker 4 (03:29):
And I'm just a big fan.
Speaker 3 (03:30):
If you take care of the client and you do
what's right, everything else just works itself out.
Speaker 4 (03:35):
And it may not happen tomorrow, but you know, I
believe down the road it always does. And same with partnerships.
You're your partner and things will just work out.
Speaker 1 (03:43):
We shifted from the Utah market so, for example, a
lot of people were still buying investment properties in Utah
when it no longer made sense financially, it didn't pencil out.
And me and you we had a real tough meeting
because we would make three times more money in Utah
as we had a full commission, whereas if we do
it and then the others we get a referral and
a little bit of a fee, but it's we'd make
about a third of what we do a same house
(04:04):
in Utah. And so we had this moment though we went, dude,
we can't in good faith try to pitch people that
need of these properties in Utah.
Speaker 2 (04:10):
They don't pencil anymore.
Speaker 1 (04:11):
And so we searched over ninety markets, found all the
best markets in the country. We've been doing this ever since.
And what's what I love the most, dude, is every
single client that's bought a home from us in the
last ten years as an investment has been happy about it.
And that's not the case for a lot of agents.
A lot of these people were still pushing. You know,
I got in trouble. I was speaking at a you'll
appreciate this, US speaking at a like a real estate event.
(04:33):
They invited me to come as a bunch of investors
and stuff, and it was sponsored by a local builder.
And this builder gets up and starts pitching five hundred
and seventy five thousand dollars town homes and how they
can help you with the first year rate and this
and that, and I literally got up after to give
my speech and I started with I am so sorry,
but I'm just gonna start with if you buy a
five hundred and seventy five thousand dollars town home, you
(04:53):
were a dumbass. And the guy hosting it called me
after He's like, yeah, I don't know, I'm gonna ge
that sponsor back. I'm like, well, they shouldn't be back
because they don't have your client's best interest in mind.
If I meet it, but that matters, dude, And people
don't care and they don't know. I remember when I
was younger, like, you don't know you're trying to do.
I feel bad for young people these days. Think about
(05:13):
this for a minute, Like when we were younger, when
we were in our early twenties mid TWENTIESKA, we were
both hustling, and were you knew if you saved up
fifteen grand ten grand You could buy a home, move
into it for a few months, move out, rent it out,
do it again, and there was a game plan and
you were like, yeah, this household cash ful, this is
what they tell us to do in the books, this
is how it goes. And it worked and you could
(05:35):
even make mistakes me and you made plenty. I made
a lot more than you. You could overcome them eventually
because there was enough goods business to still do. I
think one of the things that's frustrating for younger people
right now. I mean, they don't know, they don't have
a Tyler Bennett, they don't know how to still get
deals like this, and so they don't know where to turn.
And I think that's why you see online gambling so popular,
(05:56):
crypto like baseball cards, and because they're trying to gamble
to make money, like they realize this game is ricked.
I can't save up enough to buy homes now like
my dad could or my older brother could, and so
they're trying to gamble, but there's still a stratu It's
one of the reason I want to have you on
for that younger guy that's listening to he's in his
twenties and he's frustrated because I get it, like are
(06:17):
the boomers and like even our generation, like they've stolen
from the youth. Dude, Like they have made the game
so that they always have plenty of wealth, but it
is at the expense of these younger people. And so
I want to start Let's just start there, like how
can a younger person give them a little bit of
hope for how they.
Speaker 2 (06:31):
Can still end up building a real estate portfolio.
Speaker 3 (06:34):
Yeah, And the first thing I want to say to that, Jimmy,
is patience. So I think that's one of the challenges
the younger generation has is they want instant gratification or
you know, crypto or online gambling or these It's like, hey,
I can make money quick, you can also lose it
really fast, right, And they don't understand risk tolerance and
(06:54):
all these different things. But it's understanding that, yeah, you
put a plan in place, but then you've got to
execute it and you've got to have patience and anything
worth doing takes a while.
Speaker 4 (07:06):
And that's that's what I would say in real estate, because.
Speaker 3 (07:10):
We have reality is we have clients that bought in
twenty three and twenty four and this year and the
market's been pretty flat since they've bought. And if they
just had a two year strategy, they would be disappointed
if they were trying.
Speaker 4 (07:21):
To flip a home and sell it right now, right.
Speaker 3 (07:23):
But we have a strategy and that the plan is
buy and hold five to ten years.
Speaker 4 (07:27):
And we know that real estate always goes up and
so well.
Speaker 1 (07:30):
And by the way, I partnered on I think fourteen
deals in twenty twenty two, twenty three. Yeah, but one
of the deals with I made with each partner was
is I get to decide when we sell, Like you
can't come to me in two years and say, hey,
we need to sell because I need some money. Like
that was in the agreement because it's like, guys, this
has to be a seven to ten year play for
us to really make money. And so to your point,
(07:51):
there is a mindset shift you have to have where
you have to go, Okay, this is going to be
a ten year plan that we can put inde.
Speaker 2 (07:57):
Yeah.
Speaker 3 (07:57):
And just like with stocks or the investments, you only sell,
you only lose.
Speaker 4 (08:03):
If you sell when it's down.
Speaker 3 (08:04):
Yeah, right, and so but it's it's having that that
the ability to hold when it's not up is the
powerful concept.
Speaker 4 (08:13):
And you do that from positive cash low.
Speaker 3 (08:15):
Right, if you have native cashlow and you're feeding some
investment every month and it's down, you just want unload
it because it just sucks to write a check every
single month. And so it's how do I get staying
power in this? And I think for the for the younger,
that twenty five year old that's saying how am I
going to own real estate?
Speaker 4 (08:32):
The biggest focus to me is.
Speaker 3 (08:37):
Figuring out how to stack your pennies, how to save money, right,
because that's where it all starts, because you need money
to play the game of real estate, whether you're buying
a primary residence that you're going to turn into your
first rental property down the road, or you're just looking
to get in investment properties. We help a lot of
people buy investment properties that have never owned real estate before,
because if you live in a market Utah included now
where real estate's just really expensive, you can buy an
(08:58):
investment property for the price you'd buy a primary residence for.
Speaker 4 (09:02):
So sometimes it just makes sense to start building your portfolio before.
Speaker 3 (09:05):
But more importantly, you have to be in a position
where you can act, so you have to save your money.
And I did a presentation a little while ago, and
I went through this cost of living right and as
a as a as a household, right, whether you're single,
you're married, whatever it is. As a household, your cost
of living has gone up significantly in the last.
Speaker 4 (09:25):
Three four or five years.
Speaker 3 (09:26):
So yeah, with inflation, right, And how many people's income
have kept pace with that? Not very many, some yes,
But the reality is is wages aren't growing as fast
as the cost of living, and if your spending habits
are the same, you don't have as much or you're
going backwards and you're digging a hole. And so it's
going through and doing this kind of inventory of what
(09:46):
what does my world look like and how do I
make sure I continue to get ahead?
Speaker 4 (09:50):
And it's of course, yeah, get more income, right, that's
the easy solution. But that is and you're.
Speaker 1 (09:55):
Spending Yeah, it's a kid, I mean, it's a two
headed monster, right, you have to do build things. Like
number one is is you got to learn how to
make more money. And like we are paid directly proportionate
to the amount of value we bring to the marketplace.
Speaker 2 (10:05):
Like memorize that, like think about that. It's why a
quarterback gets paid so much.
Speaker 1 (10:08):
There's twelve dudes on the planet that can do it
at an elite level, right, But it's also the reason
why a school teacher doesn't because there's millions of people
that do it. The same reason why you know, Like again,
we are paid directly proportionate to the amount of value
you bring to the marketplace. So if you're not making
as much money as you want, you got to learn
new skills. You've got to be doing that on your
extra time outside of work. You've got to start learning
(10:28):
how to just make more money more value. Yes, And
then the second part of that is you do have
to learn to live off less money than you make.
Speaker 2 (10:35):
I can't believe have you seen. Well, one of the
big problems we have right now.
Speaker 1 (10:38):
It's like this weird economy we're in because it feels
like there's still money. But what's happening is people before
they used to like if they got in trouble they overspent,
they would either sell their house and move in a
new one. They had equity there, they would do those
things right, or they would do a he lock on
their house. And the problem now that they're having is
they can't pull anything out of the house. They can't
move because the rates so low, and so consumer debt
(11:01):
is just going insane, and so people are but like
this concept of people are spending money on things with
like they don't have the money to buy them. That's
insane to me. It really is, dude, Like there's this
new thing. I don't know if you've seen this. I
think it's two out of three people that are going
to festivals, they're financing the festival. Yeah, these like festles,
all the younger people are going to. You can now
finance your like Chipotle on door dash. It's it's a problem, dude.
(11:25):
It's the number one is you've got to just understand that, like,
you cannot spend money that you do not have. Like
that has to be if you're serious about investing at
any level in real estate, that has to be number one.
Speaker 2 (11:35):
It's just you're done spending money you don't have.
Speaker 3 (11:37):
Yeah, and yeah, there's record credit card debt right now,
it's all time high.
Speaker 4 (11:41):
And it's the same thing for businesses.
Speaker 3 (11:43):
You look, I just googled it a little bit ago,
a couple of weeks ago that I think business bankruptcies
are up forty percent this year, and so how many
small businesses are doing the same sort of inventory of
Wait a second, my revenue's flat or it's down a
little bit.
Speaker 4 (11:57):
My cost of.
Speaker 3 (11:58):
Goods to deliver services or product is up. What do
I got to do?
Speaker 1 (12:03):
Well, we get fat when the market's good. Yeah, right,
you start really, Oh, I can invest in that, I'll
market I'll pay for that marketing piece.
Speaker 2 (12:09):
I'll hire this second assistant.
Speaker 4 (12:10):
Yeah, and you and I have both done that.
Speaker 2 (12:13):
I was using my own exams.
Speaker 3 (12:15):
Last year where it's like, wait a second, I cut
SEO spends, I cut some marketing dollars.
Speaker 4 (12:19):
I did all these things.
Speaker 3 (12:20):
My new client flow did not go down at all. Right,
so I wasn't getting a good ROI on that spend.
Speaker 4 (12:26):
But it took me.
Speaker 3 (12:29):
One I had to accept, Wait a second, I need
to dive in and fix this. Because the immediate solution
is fix expenses. Right, size your expenses based on what's
coming in now, go figure out how to make more right.
But we can't. You just can't be in a position.
You're never going to get started in real estate if
you can't figure out how to save enough money to
create a down payment, whether it's for a principal, primary
(12:50):
residence or investment properties.
Speaker 4 (12:51):
So that's where it.
Speaker 1 (12:52):
Starts fair enough, and so I guess to the again,
So somebody wants to start in real estate, they want
to start buying investment properties, How does what's the process
look like? I think I want to almost keep this
more basic than we normally would, because I think people
are used to it feeling so frustrating or high level
that they almost don't know where to start. So like,
(13:13):
maybe just take us through the basic part of like
what does that look like?
Speaker 3 (13:16):
Yeah, so very similar for a primary or investment. For me,
where it always starts is getting in touch with the
lending right with mortgage guy, Say where am I at
right now? Because they're going to go through and they're
going to tell you here's exactly what's coming in, here's
what's going out, here's what you qualify for, here's how
much money it would require to accomplish that. And then
(13:41):
you get to work backwards from there and say, okay,
based on that, do I need to make more money,
do I need to cut my expenses, do I need
to save more? Or am I actually in a position
where I can move forward? So to me, that's the
first round of feedback, see what can I do?
Speaker 4 (13:57):
And then you get to that, Okay, now what's my plan? Right?
Speaker 3 (14:00):
And this is where a lot of people fail because
it's like some mortgage guy says, hey, you can qualify
for X. They tell their real estate agent, hey, I
can qualify for X, and then they just start looking.
But there's no strategy right.
Speaker 1 (14:11):
And you don't even understand how that's going to work
into the rents and the cash flows and everything.
Speaker 3 (14:16):
And then emotions just start flowing, and then emotions start
taking over the decision making process when it's no, I
have a plan.
Speaker 1 (14:22):
So going to that a little bit like, how do
you help people create a strategy're a plan when that
come to ye?
Speaker 4 (14:27):
Yeah, So I like to I like to kind of position.
Speaker 3 (14:32):
Myself as I'm kind of a consultant. I just use
real estate as a vehicle, so we look at everything, right.
And again, if somebody wants to come and buy an
investment property and they need the three hundred dollars a
month cash flow to put food on their table, and
they're spending the last seventy five thousand dollars they have,
you're probably not you should price should wait. Let's hold
(14:52):
off for a second, and let's make sure you have enough.
You know, sleep well at night, savings, emergencies, all these
different things.
Speaker 4 (14:59):
Or you know, if you have a family with four.
Speaker 3 (15:01):
Kids and you don't have any term life insurance and
you're trying to save thirty three dollars a month, but
you're looking at buying an upgrading your house, like, hold
on a second, Like, let's look at this big picture
and really figure out what makes sense, what's the right
sequence or order of all this, and let's make sure
we have the right foundation, and now let's start building right,
let's build up from there, and that's where you start
(15:23):
to insert you know, real estate, investment properties, all of that.
So really, for me, that's a strategy is honestly, it's
let's get organized, because most people aren't super organized. It's like, hey,
what do you got, what do you have going on?
What is your strategy with all of this? What's your
time frame, what's your goals? What's your risk tolerance?
Speaker 4 (15:42):
Right?
Speaker 3 (15:42):
Like all of that and the way people are structured financially,
there should be strategy and everything.
Speaker 4 (15:49):
So one is.
Speaker 3 (15:50):
Helping identify what do we have to work with and
why are you doing what you're currently doing, And half
the time is helping people get clear on why they're
doing what they're doing.
Speaker 4 (15:58):
Is there any tweaks that need to be made? Now,
let's start plant from there.
Speaker 2 (16:01):
And so how have you adjusted?
Speaker 1 (16:02):
Like, you know, obviously it's much different today than it
was even a couple of years ago. So how did
these current market conditions with both rates and just prices
and everything else.
Speaker 2 (16:11):
How's that affecting your strategy?
Speaker 3 (16:12):
Yeah, so fortunately for our business because it's not really
dependent upon timing the market. Right, it's time in the market.
We've both said that a lot, and that's applicable for
a lot of different investments.
Speaker 2 (16:24):
Right.
Speaker 3 (16:24):
If you're trying to time the market, there's a high
emphasis on speculation, and if you speculate.
Speaker 4 (16:30):
Wrong, which is more likely than not, then you can lose.
Speaker 3 (16:35):
Where you eliminate the speculation and say no, no, no, this
is just a sound investment strategy. And I know over
time it always works. It always has in the past,
it always will. And so buying today versus buying three
years ago. There's less cash flow today because interest rates
are higher, but there's deals to be had, right, Sellers
are motivated, builders are motivated, there's incentives. So we're utilizing
(16:58):
we're getting good deals, we're getting good buy. But the
cash flow is a little bit lower today, but we're
paying less for the property. So when you fast forward
three years, four years, I would rather pay twenty five
grand less for a property and I have one hundred
dollars less cash flow. And then if rates go down,
and I don't think it's if it's when right, rates
are trickling down right now?
Speaker 1 (17:18):
Yeah, I mean they're going to get their fed guy
out by next year worst case.
Speaker 4 (17:22):
Yeah, and they'll go down. I don't think super fast
because they're worried about inflation, and rightfully so. But they'll
go down. And as rates go down, prices are going
to go back up because people shop.
Speaker 1 (17:32):
Mortgages based off That's kind of the fear though, right
is if they drop rates too much right now, prices
will just shoot back, right.
Speaker 4 (17:38):
And so they're worried about that. So, okay, how do
we make housing more affordable? Right?
Speaker 3 (17:43):
So it's trickling rates down so people can afford, but
not causing a reaction where prices go way up.
Speaker 2 (17:48):
But I heard an idea. This is just random.
Speaker 1 (17:51):
They'll never do it, but if they let One way
they could fix the housing stagnation problem.
Speaker 2 (17:56):
Right now is if they let you keep your rate
and you just move to the new house.
Speaker 4 (18:01):
Well, yeah, that would literally solve the problem. I was like,
that's actually pretty brilliant. Bank would ever allow.
Speaker 2 (18:07):
I'm seeing the government could. They're all the government back loans.
They'd have to Like if the government just said this
is anyway, I just thought I was.
Speaker 3 (18:12):
An interesting you don't want these school though along red
lines is the grandson of the Pulti Eye Pulti Homes right,
one of the biggest home builders in the country, is
now the head of the Housing Authority or whatever it is.
Speaker 4 (18:24):
Point Trump put him in and.
Speaker 3 (18:27):
One of his biggest goals is how do I he
can't control rates so that it is what it is,
but how do I make housing more affordable? So he's
looking at how do we get more aggressive and lending,
how do we loosen lending up, how do we do
longer ammorization schedules, or there's all kinds of different ideas
he's kind of throwing around out there to say, how
do we make this, you know.
Speaker 1 (18:45):
More affordable and so Well, one of the things that
was really helpful for me because I, you know, five
six years ago, I got some money from a different investment,
and I was looking at where to put it, and
you and I sat down, I did my own strategy
session with you, and I ended up buying I don't know,
fourteen fifteen places or something like that, and every one
of them is more than doubled in value. They're all
(19:06):
amazing properties and everything else. But even with that, I've
decided to sell a few things to then take that
money and put it into.
Speaker 2 (19:14):
Multiple other investments.
Speaker 1 (19:15):
And that's something that I think that you do a
lot with people, as the mistake the a lot of
people make is they sell that property. I actually was
literally talking to a guy today, a guy that I coached,
and he sold his primary residence, and he said, we're
just going to rent for the next word a.
Speaker 2 (19:29):
While while prices go down.
Speaker 1 (19:30):
And I'm like, oh, man, like, prices aren't probably going down,
and so he's sitting out the market and paying thirty
eight hundred bucks a month to rent, And I kind
of was just like, I don't know, how do I
tell him that. I don't think that's a good idea.
But what you've done really well and helped me to
do is like when you do sell a real estate investment,
you go buy two more as part of the strategy
that we use.
Speaker 3 (19:48):
Yeah, And one of the biggest benefits of building a
real estate portfolio over.
Speaker 4 (19:53):
Time is it gives you options.
Speaker 3 (19:56):
Because the more equity you have inside of that real estate,
the more options you have, the more liquidity you can create,
and you don't even have to create it by selling right.
One of the strategies I utilize is I own a
lot of my rental properties free and clear, there's no
mortgages on them. I know that's one thing you're working
on right now too, is how do I boost up.
Speaker 4 (20:12):
My cash flow?
Speaker 3 (20:13):
Well, eliminate the debt is a really good reason to
do that right, and your cash flow goes up. But
one of the downsides of real estate is this not
super liquid. You can sell stocks and have money tomorrow
if you needed it for something. You can't do that
inside of real estate. So I go and I secure
a line of credit, use my real estate as collateral.
So I have millions of dollars in lines of credit,
zero balance. It doesn't cost me anything. But if I
(20:34):
need access to capital, I can get it. If it's
not the right time to sell, or I don't want
to sell right. So again, it puts me in control.
But really it comes down to the more properties that
you have, more cash flow, more appreciation, more tax benefits,
all those things. But the more options you have because
I have clients. I have a client right now that
came to us. He has about a dozen houses with us,
(20:56):
and he said, Tyler, I'm raising some more capital for
the software thing. I'm starting up on the side doing
another series. I don't want to dilute my equity as much.
I need about five hundred thousand dollars. Can you go
through my portfolio and analyze and tell me which homes
make the most sense to sell. I know I'm gonna
take a tax hit and all those things, but it's
what I need to do right now to create five
(21:18):
hundred thousand dollars so I can put that in for the.
Speaker 4 (21:21):
Capitalis I'm doing right? And so we go through and
we do that, and then ninety days he'll have his
five hundred thousand dollars.
Speaker 3 (21:26):
And you know, if you have a dozen houses, we
only have to sell one or two houses, and we
can create that for him, and he has options and
we can pick the right properties to sell right Versus
you're in a panic and.
Speaker 4 (21:37):
You just have to sell the one you have.
Speaker 2 (21:39):
YEA, that makes sense.
Speaker 1 (21:40):
What U One of the things that I always tell
people if they're trying to, you know, decide what realtor
to work with, for example, because I mean people listening
to this right now, I was like, Oh, my roaltor
didn't do that. Nobody does this, Like nobody else I've
ever met does this. I teach you to other realtors.
I still don't do this, like doing these strategy sessions.
But one of the questions I asked him to, you know,
always ask you roultors, let me see your portfolio, and
(22:00):
I know how many properties you have. I know how
many properties I have, but twentys we have almost one
hundred properties, and I bet we have over fifty percent
total equity in all of them, right, And so you
really want to find out And so I guess one
question I would say is like, what are you what's
your current personal strategy right now that you're using for
the rest of twenty twenty five, twenty six as far
as investing goes.
Speaker 3 (22:19):
Yeah, So what I like to do with people a lot,
I do it on my own portfolio. So first and foremost,
what you just said, we practice what we preach I
own properties in all the markets. You own properties in
all the markets, and I do exactly what I help
teach and help create for other people. First and foremost,
But then second is portfolio positioning or repositioning. So just
(22:45):
like a stock portfolio, right, if somebody's managing my stock portfolio,
I expect them to be in tune with the market.
What's going on? What percentage do we have in tech
versus healthcare? Hey, there's a huge push on AI. There's
upside there are we reallocating more?
Speaker 4 (23:00):
We're into tech? Right, Like I pay people to do
that for me. I don't want to do that. I'm
not an expert. I'm not qualified to do that. But
that's what we do in real estate.
Speaker 3 (23:09):
So a lot of it is a lot of our
clients have existing rental properties. You just sent me somebody
just last month and they have a four plex here,
they're looking at selling it, and he said.
Speaker 4 (23:18):
Well what would I go do with it? Right?
Speaker 3 (23:20):
And so we jump in and say, well, look, you
could sell this, you could go buy four houses. And
the markets that we work in in Arkansas and Florida, Tennessee,
and we're literally going to two point five x the
amount of rent he gets per dollar, And so you
look at that as a small business, like, Okay, have
this little business.
Speaker 4 (23:38):
I have this four plex.
Speaker 3 (23:39):
It's worth nine hundred thousand, it's bringing in twenty eight
hundred dollars a month of net cash flow, and I
could sell it and buy houses for nine hundred thousand
dollars and I could bring it over five thousand dollars
a month in net cash flow. So what business owner
wouldn't reposition their business to get twice as much net
income right or profit.
Speaker 1 (24:00):
It feels like a lot of work for people. But
that's one of the things that's nice about working with
us is we make sure we just do it.
Speaker 2 (24:04):
All for you.
Speaker 3 (24:05):
Because if he sold a four plex in Utah and
bought a four plex in Utah, he's not gonna he's
not gonna be better off.
Speaker 4 (24:10):
In fact, he's gonna go backwards because it costs money
to transactor. Else.
Speaker 1 (24:13):
Yeah, he's gonna have to pay the fees, plus he
can have a worse rate. So it's not and that's
why people aren't doing it. They don't even know there
is a good option for it exactly.
Speaker 3 (24:19):
And so that's that's kind of one of the components
we bring to the table is just just like a stockbroker, right,
you get access to the whole domestic, international market. There's
not very many real estate companies out there that give
people access to the whole market where we can yield
the best return for our clients. Yet the clients are
still building their own portfolio.
Speaker 1 (24:38):
So if people do like somebody's listening to this, or like, Okay,
I want to meet with you guys. Because one of
the things I love too is when I have people
reach out to me on Instagram all the time or whatever,
I just send them to you and I say, hey,
set up a strategy session.
Speaker 2 (24:48):
Let's see if it's a good fit.
Speaker 1 (24:49):
So somebody that has some money, you got to have
a minimum probably what sixty seventy thousand right now.
Speaker 4 (24:53):
Thousand dollars to get you in investment property here, yeah.
Speaker 2 (24:56):
And then reach out to you, set up a strategy session.
What's the best way for them to get in touch
with you or whatever?
Speaker 3 (25:00):
Literally to shoot me a text to my cell phone
A zero one two three four zero eight seven zero.
Speaker 4 (25:06):
I just mentioned you listen to this podcast and we'll
bump you.
Speaker 3 (25:10):
The front of the line VIP and and yeah, and
sit down and just explore, because for me, it's it's
if I can just educate and show options.
Speaker 4 (25:19):
Whenever I make a financial decision, I I'm.
Speaker 3 (25:22):
Never comfortable unless I understand all the different options, and
then once I pick one, I never looked back because
I feel like I understood the options.
Speaker 4 (25:28):
And I'm moving forward and I know why. So for me,
that's what it's all about.
Speaker 2 (25:32):
Well, for me, this is what I needed when I
was younger. I needed to have the strategies. I need
to have somebody that knew more than I did. Dude.
Speaker 1 (25:37):
I remember, like my brokers, I go buy those piness
and nobody knew what the hell they were doing, and
I got in trouble on so many properties. And if
I would have had somebody that, no, dude, this is
what you need to buy. Here's how you buy it.
And it's not like you're paying anymore. You just have
great railtors that are like going to work for you.
Speaker 2 (25:50):
And it's been cool.
Speaker 1 (25:51):
I've been able to send you, you know, some of
my NFL football player buddies, some of the wealthiest guys here.
And it doesn't matter who it is, like everybody has
the same experience, whether you're a brand new investorent's your
first property, You've bought a hundred with this, and so
at the end of the day, it's it's been a
really cool part of our business. It's been cool to
like be able to offer people something I know is
good when it's so hard to find that and there's
(26:13):
just not as much opportunity right now. Like five years ago,
any idiot could buy something and you'd be fine. The
rates were two point two percent, you know.
Speaker 3 (26:19):
Yeah, and you say when you were younger, Jimmy, But
the reality is we work with a lot of people
in their forties and their fifties that have four to
one k's or have different things, and they're looking at, hey,
I'm ten or fifteen years from retirement and the way
that I'm tracking, yeah.
Speaker 4 (26:33):
I'm way above average.
Speaker 3 (26:35):
But if you have a million dollars in your four
one K and that's you want that to sustain one
hundred and fifty thousand dollars a year lifestyle forever, that's
just not going to happen, right, And so we were
with a lot of people looking at, Okay, well, how
can we shift the emphasis to cash flow because that's
what everybody needs that's what everybody longs for in retirement
because that's what gives them permission to control their time.
Speaker 4 (26:54):
And for me, that's what this is all about.
Speaker 3 (26:57):
It's people trade so much time for dollars right throughout
their career. It's what can we have work in when
they're sleeping behind the scenes that one day they wake
up and they can flip a switch and say, holy shit,
look how much cash flow I have coming in. That's
enough to give me permission to stop working or shift
careers to something I'm passionate about and actually enjoy doing.
Speaker 2 (27:19):
What's a process?
Speaker 1 (27:20):
Whatever the process I'm in right now is where I'm like,
I'm just paying off my main house. It was all
real estate investments in bitcoin, and then I'm paying off
a couple rental properties will bring in I'll have seven
rand a month coming in just and I don't have
to I mean, I'll have that by next year, and
I can kind of not that I'm going to, but
I can do whatever the hell I want basically, you know.
Speaker 3 (27:40):
And for me, that's put you in a because most
people aren't just going to sit idle.
Speaker 4 (27:44):
If they have enough residio for.
Speaker 2 (27:47):
A couple of hours. It's nice to be able to.
Speaker 3 (27:49):
I know, my son just got home from doing summer sales.
Yea home Saturday night, and I'm like, all right, dude,
you got three days like chill for three days and
then you got to figure.
Speaker 4 (27:56):
Out what you're doing right.
Speaker 3 (27:58):
But really it's just if you're in that mindset, the
decisions you make are gonna be so much better.
Speaker 4 (28:05):
You're gonna be so much more clear.
Speaker 1 (28:07):
You're not chasing, you're not trying to you know, shorten
the process, you're not trying to get greedy.
Speaker 2 (28:11):
You're just doing it the right way.
Speaker 3 (28:13):
And you're doing it for the right reason, which in
my experience, is actually gonna yield a.
Speaker 4 (28:18):
Higher return on your time.
Speaker 3 (28:19):
You're gonna end up making more money because you're doing
it for the right reason, not because you're doing it because.
Speaker 4 (28:23):
You feel like it's gonna make it the most fun
percent you know, all right.
Speaker 1 (28:25):
Dud Well, I appreciate you, man. Yeah, it's gonna be
keep closing deils every day and it's fun, man.
Speaker 2 (28:30):
Thanks Jamy, Thanks brother.
Speaker 1 (28:32):
Yep, thank you again for listening to the Jimmy Rex Show.
And if you liked what you heard, please like and subscribe.
It really helps me to get better guests, to be
able to get the type of people on this podcast.
Speaker 2 (28:42):
It's going to make it the most interesting.
Speaker 1 (28:44):
Also, want to tell everybody about my podcast studio, The
Rookery Studios, now available in Salt Lake City and or
in Utah. If you live in Utah and want to
produce your own podcast, we take all of the guests,
work out of it for you.
Speaker 2 (28:58):
And make it so simple all you do.
Speaker 1 (29:00):
So as you come in, you sit down, you talk,
and leave, We record it, edit it, even post it
for you. If interested in doing your own podcast, visit
our Instagram and send us a DM Rookery Studios, or
go to our website, The Rookery Studios dot com
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