056: State of Humanity and the Economy During the COVID-19 Pandemic

 

Today, I have the pleasure of talking with fellow mastermind, Cory Boatright. We talk about the COVID-19 pandemic and what it means to the health of the world and to the economy as a whole. 

Cory talks about some important practical things you can do with your company and your team whether they are in the office panicking or if they are working from home and panicking. We are in the midst of a storm but we can weather it together if we remember to be safe, be healthy, and take this seriously.

Minute Markers:

00:23 – Introduction 

01:10 – Cory on COVID-19 and the economy

05:51 – How do we lead in the midst of a storm

08:10 – Practical things you can do with your organization

13:58 – Summary of important key points

15:45 – Assets and opportunities

24:45 – COVID-19, a regular flu or worse?

30:00 – Shelter in place

32:09 – This is a humanity issue first

34:00 – Finishing on a positive note

35:41 – Thank you for listening to the Big Mike Fund Podcast

Quotes:

“My mentor told me a long time ago that whenever you have a headache, it sucks for you, but fantastic for Tylenol.” – Cory Boatright

“You need to overcommunicate right now. If you think that talking to them one time a day is enough, it’s not. You need to overcommunicate with your folks.” – Cory Boatright

“It’s a humanity issue first. And it certainly affects our businesses and our pocketbooks and all these things. Do your part in using sanitizer and taking this seriously.” – Cory Boatright

“TV can be dangerous–the news can be dangerous–just to hear the bad news. At this point, we should all be thinking about what we can do to make a difference, to prepare. I like to call it ‘observing, analyzing, and preparing.” – Mike Zlotnik

“I agree that the only solution right now is this extreme ‘shelter in place’, very-very aggressive, on all fronts, all states, you know?” – Mike Zlotnik

“This is a time of unity too. We need to forgo all of our political differences, and stop political bickering and focus on the health of the nation and the health of the world.” – Mike Zlotnik

Resources:

Cory Boatright, website

Cory Boatright, LinkedIn

Cory Boatright, Twitter

Cory Boatright, Instagram

055: The Market Switch: Turning Residential Properties to Assisted Living

 

On today’s episode, I’m talking with Gene Guarino from The Collective Genius Mastermind group. He’s a new member to the group but not new to the real estate market. He’s an expert and a specialist in converting residential properties to assisted living. Today we’re talking about the assisted living market and what makes it tick: the in’s and out’s of the market, the success rates, the break-even points, and all of the nuances. 

Minute Markers:

00:23 – Introduction 

01:30 – Who is Gene?

02:48 – An example of assisted living real estate

04:53 – The typical monthly cost

07:08 – The operating cost for an average facility

08:21 – A break-even point

11:13 – Three-pack 

12:14 – Gene’s educational program

14:36 – The average time a given customer stays in a home

16:39 – Comparison to bigger senior living facilities

17:48 – Home environments versus larger Class A facilities

20:03 – What kind of time investment is required?

23:25 – Passive investment options for folks who want a return

25:00 – Success rates

27:56 – Gene’s BHAG’s

29:30 – Reaching out to Gene

31:19 – Thank you for listening to the Big Mike Fund Podcast

Quotes

“Yes, the economy of scale is a very different environment. Certainly, the home feels cozier as long as they like it. Also, it depends on the type of market.” – Mike Zlotnik

“That is the miracle of technology. It accelerates and continues to accelerate. I don’t think it will ever stop.” – Mike Zlotnik

“The lower your activity or involved in, the lower your rate of return. If you just want to own the real estate and lease it to the operator, you can get twice the market rent and have a nice cash flow in the real estate they couldn’t cash flow otherwise.” – Gene Guarino

“The key to this whole thing is location, location, location. The people that live in the house in the assisted living is all about the demographics of those people..” – Gene Guarino

Resources:

RAL101.com

054: The Power of Cashflow in Turnkey Real Estate Investing

 

Today, it is my pleasure and privilege to talk with, fellow mastermind group member (and fellow “phone book celebrity”), Nick Aalerud. Nick talks candidly about his reset stories, the lessons he learned from them, turnkey real estate deals, and the importance of stress-testing the deal. He also talks about his book, Don’t Quit: Stories of Persistence, Courage, and Faith; all of the profits from which go to charity.

Minute Markers:

00:23 – Introduction 

02:16 – A little about Nick and his background in real estate

05:37 – Nick’s first hard reset button

08:38 – Where to find cash flow deals/cap rates

12:00 – Multi-family flip/bird strategy

15:09 – Nick’s second hard reset and the lesson learned after

17:11 – Nick’s other real estate investments and business

18:12 – Nick on bigger assets

24:15 – Don’t believe the hype

26:42 – “Don’t Quit: Stories of Persistence, Courage, and Faith” book

28:34 – How to get in contact with Nick

29:28 – Thank you for listening to the Big Mike Fund Podcast

Quotes:

08:05 – I certainly agree with you to do the due diligence learning, to do the due diligence is the absolute key. And owning your own failures or successes is important. An indomitable spirit, you fall, you get up. That’s another key lesson so, it makes a lot of sense. I appreciate your sharing. It’s not easy to share, but it shows you’re not afraid to share even failures, which is a sign of strength.“.” – Mike Zlotnik

14:44 – “And small assets. They’re not necessarily bad assets at all. In fact, they’re great assets. It’s much easier to manage a small renovation than a big project. The exit happens to take place a whole lot faster.” – Mike Zlotnik

06:51 – “Learning to do my own due diligence with partnerships, learning that also taking ownership. I spent 6–9 months being just angry at this other person, other individual. I really couldn’t let it go until someone told me. It was actually Marshall Sylver, the national hypnotist, you might know him. He basically just said, “Own it. This was your failure. No matter what he did, you went through with it. You didn’t do enough due diligence. Why buy out of state your first five deals. Just own it, you made this mistake.” Once I own that for myself, it really helped propel me forward to sharpen my pencil.” – Nick Aalerud

26:35 – “Stress test the deal. I’m sure, I know you do that too. Stress test every deal, 100%.” – Nick Aalerud

Resources:

Nick Aalerud, Facebook

AA Real Estate Group, website

Nick Aalerud, LinkedIn

Don’t Quit: Stories of Persistence, Courage and Faith, Amazon

053: Rental Properties Cash Flow: Multi-Family vs Single Family with CEO of Pioneer Homes Al Beahn

 

On today’s episode of the Big Mike Fund Podcast, I had the pleasure and privilege of having Al Beahn from Detroit, Michigan. Al is a real estate investing expert, a lifelong entrepreneur and the founder and CEO of Pioneer Homes, the leading source for cash flow rental properties in Detroit. We talk about the multi-family vs. single-family market, best practices with contractors, and future plans in the real estate market and in the Detroit real estate market in particular.

Minute Markers:

01:19 – Who is Al? What does he do and what is his background?

04:20 – The Detroit market for turnkeys

07:52 – Average, typical cost of rent generated today (for a $60,000 home)

09:19 – The multi-family market vs. single-family market

15:09 – What is driving the Detroit market?

18:34 – What does the future hold for Al?

19:00 – How Al manages his crew

21:29 – Al’s best productivity tools and advice

28:35 – Getting a hold of Al

29:17 – Thank you for listening to the Big Mike Fund Podcast

Quotes:

“It has been, I guess, margin compression issue in many markets. It has happened and is happening today, all over the country.”

“To me, it starts with the construction. Every deal we’ve ever done that had any construction, our success and/or failure, came from the construction side of the deal, always.”

“It’s the key to success. You’re measuring and monitoring progress daily.”

“When it comes to contractors, I have always found that trying to find the cheapest guys, you always, always end up spending more money in the end.”

Resources:

Al Beahn, email: al@pioneerhomesus.com

Al Beahn, LinkedIn

Al Beahn, Facebook

Pioneer Homes, website

052: Circle of Wealth: Multiple Income Streams with Lee Arnold

 

It is my pleasure and privilege to have minister, private lender, and real estate broker, Lee Arnold, with me on the podcast today. He is coming to us from beautiful Coeur d’Alene, Idaho. In this episode, we’re talking about hard money lending, real estate trends, and our best real estate advice.

Minute Markers:

01:32 – Who is Lee? What does he do and what is his background?

03:35 – Lee’s hard money lending business and the “Circle of Wealth”

05:57 – Why Reg A+?

10:35 – Modern real estate trends

16:45 – How to deal with the more aggressive loans and compressing yields

22:07 – Mike’s opinion of where the economy is heading, as a whole

29:59 – Lee’s best investment advice

33:30 – Lee’s reading recommendation

36:05 – Where to find Lee

36:23 – Lee’s best piece of advice

40:23 – Thank you for listening to the Big Mike Fund Podcast

Quotes:

 “We have something here what we call the circle of wealth. The circle of wealth is where we want to educate people first. That’s what my info marketing business is. It’s about educating people in the right ways to invest in real estate, the right types of real estate to invest in.” – Lee

 “I do predict that we’re going to start seeing real estate values dropping. I’m seeing more and more realtors sending out these $10,000 price drop emails. This is happening all over the nation from what I’m seeing.” – Lee 

“The job of fund managers is not to foresee the future but to prepare for different conditions. If you can prepare for the good, the bad, and the ugly, that helps you quite a bit, no matter what happens.” – Mike

Resources:

Lee Arnold, Website

The Goal: A Process of Ongoing Improvement Kindle Edition by Eliyahu M. Goldratt, Amazon

051: Marko: A Technology Platform for Investors

 

Today it is my pleasure to have Lance Peterson on the show. He has quite a unique platform in real estate since he comes from a background in technology. Because of both of those passions, he also has his own software for investors called Marko. We talk about what he does as admin for a real estate administration as well as who his typical clients are. 

Minute Markers:

01:14 – Who is Lance? What does he do and what is his background?

03:12 – Who are Lance’s typical clients?

06:14 – What capital do you have in the administration?

06:58 – In-house versus Outsource funding

10:50 – Lance’s software, Marko

15:00 – The difference between administering funds versus syndications

17:54 – The annual audit process

22:00 – Lance’s best practices

26:00 – Thank you for listening to the Big Mike Fund Podcast

Resources:

Lance Pederson, LinkedIn

Redwood Real Estate Administration, Website

Audible, website

Capital Attraction: The Small Balance Real Estate Entrepreneur’s Essential Guide to Raising Capital by Matthew Burke, Amazon

050: Multifamily Motivation: Lawsuits and Lifestyle

 

Today I have the pleasure of talking with Cory Boatright, a marketer, negotiator, and member of Collective Genius Mastermind. Cory’s wisdom, experience, and friendship is greatly appreciated. 

Cory and I talk about the ups and downs in the world of investing, business, and entrepreneurship by maximizing your genius zone and strengths and teaming up with the right people. The multifamily space is not a one-man show. It takes a team to get a deal.  

Minute Markers:

01:00 – What’s new in the world of Cory on the personal side?

03:30 – What’s new in the world of Cory on the business side?

04:00 – Making more in the multifamily and commercial space through mastermind partnerships

06:54 – The key to finding deals is to find a distressed property or distressed seller

09:35 – Boots on the Ground: Is a good strategy to go local and befriend brokers?

13:15 – Understand the game by building a team with people who have done deals

15:09 – Multifamily Motivation: Lawsuits and lifestyle

16:49 – Property management company will make or break your asset

19:16 – Ignorant Money: Financing makes a difference with low interest rates, high sales price

22:27 – “You never want to over pay just to get the deal.”

24:35 – Million-dollar Difference: Price you agree on via LOI will likely change before closing

25:43 – How to value assets

26:33 – Increase Rents, Decrease Expenses: Two ways to make money in multifamily game

29:30 – Multifamily advantages include cash flow and minimal tax liabilities  

33:40 – Reaching out to Cory Boatright

36:40 – Thank you for listening to the Big Mike Fund Podcast

 

Resources:

Cory Boatright, Website

Cory Boatright on Facebook

Cory Boatright on Instagram

Investing Capital Group

Apartment Evaluator

Collective Genius Mastermind

049: Are Shopping Centers a Great Investment Opportunity?

 

Today I have the pleasure of talking with Rob Levy, who has been in the Real Estate business for 30 years. While some people think of it as a going down sector, Rob and I think of it as a land of opportunity. It’s a little bit of all contrarian play in the space retail and America’s going through a transformation in that sector. Today Rob and I talk about how we can take advantage of great pricing and market, balance in the market.

Minute Markers:

00:45 – Who is Rob and what is his background?

04:24 – Why the good old shopping centers are still interesting and why they provide a great investment opportunity

08:00 – What kind of cap rates are you able to get today in retail

11:30 – Value: buying significant reductions to replace the cost

12:42 – The typical value add strategies in the retail sector

15:21 – Other strategic angles

20:00 – How Traffic and Population Growth plays a part in the retail sector

24:49 – Opportunities in the retail sector and possible future shifts

28:30 – Reaching out to Rob Levy

31:16 – Thank you for listening to the Big Mike Fund Podcast

Resources:

Rob Levy, Website

048: Real Estates Funds Explained

 

Today David Phelps from the Freedom Founders and I will be talking about real estate funds. We will do a quick overview, talk about what the big picture is (in investing in real estate), and where we’re going today with funds. 

Minute Markers:

01:30 – Disclaimer

02:00 – Who is David?

03:43 – Freedom Fighters

04:30 – David’s book, “From High Income To High Net Worth”

05:25 – All about Mike

06:35 – A little bit about different types of investing

08:41 – “What should I invest in first?”

10:40 – Public versus Private Funds

13:06 – Security as trade and exchanges

14:05 – Fund Objective and Investment Philosophy

19:00 – Risk-adjusted return

21:08 – Does the given fund live in quadrant one

22:58 – Diversified versus focused funds

24:20 – Open-ended versus closed-ended funds

27:19 – Equity versus debt versus debt and equity funds

31:12 – Income versus growth versus growth and income funds

37:27 – Who determines what the value is of the various assets in a fund

41:30 – “How do investors receive unrealized gains?”

43:30 – Long term gains and short term gains

46:58 – Income and growth investing

49:54 – Summary of the Tempo Opportunity Fund

54:48 – Freedom Founders

56:42 – Final Thoughts and Thank yous

57:18 – Thank you for listening to the Big Mike Fund Podcast

047: Going the Extra Mile: Portfolio and Investment Goals

 

Today I’m talking to Ryan Parson who is out on the road on the Motorhome and Money Tour for Mile Marker Club. We’re chatting about what the Mile Marker Club is, how to invest your money, learning along the way, and about what you need to consider when you are investing for the first time.

Ryan is the Founder and Chief Investment Officer of the Mile Marker Club as well as its parent company, Heritage Capital USA. As well as providing its members with a larger pool of dollars with which to invest, attracting bigger, better deals and opportunities, the Mile Marker Club also provides its members with a curriculum of wealth education materials.

Minute Markers:

00:39 – Hi Ryan

00:56 – What’s new in the world of Ryan?

02:44 – Why Ryan started the Mile Marker Club

06:04 – What is the Mile Marker Club?

09:53 – Portfolio and Investment Goals

15:57 – The First Steps to Investments

16:52 – How the MMC Helps You Build Your Portfolio

20:00 – Continuously Learning

21:45 – Preach a lot of change, Change one thing at a time

22:06 – Mile Marker Symposium Event Review

22:42 – People need to learn together

22:57 – Are you investing to learn or learning to invest?

23:40 – “It’s lonely at the top.”

26:01 – Build the policy and constantly update

29:28 – Loss Reserves

30:29 – Infinite Return

33:06 – Common Equity

35:26 – When will you be done with the deal?

37:32 – Open-ended funds

37:57 – Final Thoughts and reaching out to Ryan

39:15 – Thank you for listening to the Big Mike Fund Podcast

Resources:

Ryan Parson, Heritage

Mile Marker Club