018: Lease Options and Land Deals

Joe McCall is a member of the Collective Genius Mastermind and is a business and real estate coach. He is extremely skilled in wholesale lease deals. Today we discuss how Joe got into lease optioning and what it is and for whom it works best.

Joe also discusses the pros and cons of doing land deals. He explains why he likes them and how they can be very lucrative. We also talk about his coaching services and what he looks for in a student. If you are seriously considering getting into real estate, Joe is an excellent teacher and offers a lot of great information!

MINUTE MARKERS

00:00 — Introduction to the Big Mike Fund Podcast.

00:23 — Welcome Joe McCall to the show!

01:12 — Who is Joe McCall? Why real estate?

03:28 — Joe’s 3 keys to success.

03:52 — Joe’s focus on flipping properties.

05:18 — What are flipping lease options?

07:13 — What are wholesale lease options? Why does Joe like them?

07:50 — How Joe got into lease option real estate.

08:20 — Why Joe left his career as a civil engineer.

10:43 — Why landlords are great business leads for lease options.

11:40 — The types of neighborhoods lease options work best.

13:51 — How Joe got into land sales.

16:00 — The appeal of land flipping.

17:01 — The land buying process.

19:30 — The pros of land sales.

19:40 — The cons of land sales.

20:55 — The biggest land deal Joe has done.

21:48 — Why Joe likes land deals.

22:30 — Joe’s coaching services.

29:50 — Joe’s book recommendation.

32:57 — The tools Joe uses to help with productivity.

35:18 — Joe’s contact information.

36:35 — Thank you to Joe for coming.

36:40 — Outro to the Big Mike Fund Podcast.

RESOURCES

Big Mike Fund Podcast

Real Estate Investing Mastery

Real Estate Investing Mastery website

Joe McCall’s website

The Pumpkin Plan: A Simple Strategy to Grow a Remarkable Business in Any Field by Mike Michalowicz

Podio

Slack

017: What the Tax Cuts and Job Act Means for Real Estate Investors

Kingsley Charles joins me today to talk about the tax changes of 2017 and what that means for real estate professionals. There have been some major changes to the code and Kingsley tells us what we can expect for this upcoming tax season.

Kingsley is a member of the Collective Genius Mastermind group and is a partner and business consultant and planner for the Ascentia Group. I have worked with him for years and he is really well versed in the tax code and really understands the impact changes to the code do to small businesses. We discuss deductions, the stock market outlook, and Kingsley’s general advice to all investors, not just real estate investors.

MINUTE MARKERS

00:00 — Introduction to the Big Mike Fund Podcast.

00:23 — Welcome Kingsley Charles to the podcast.

01:07 — What the tax cuts mean for real estate professionals.

02:50 — The industries that aren’t benefited by the tax cuts.

03:50 — What has been removed from the tax code.

05:15 — What has been added to the code.

06:18 — Nothing is permanent in the tax code.

08:28 — What is currently deductible in this new tax code.

12:10 — The trade-offs when the tax code is changed.

14:55 — Kingsley’s strategy for tax planning.

18:05 — The current economic state of the stock market.

19:03 — How to reduce market risk.

19:50 — The pitfalls of the stock market and what to be mindful of.

20:45 — Why you need to self-direct your investments whenever possible.

21:35 — Kingsley’s advice to real estate investors.

22:00 — Why the “shotgun” approach isn’t a good idea.

24:20 — Kingsley’s book recommendation.

25:35 — Kingsley’s contact information.

26:24 — Thank you to Kingsley for joining the podcast.

26:34 — Outro to the Big Mike Fund Podcast.

RESOURCES

The Wealthy CEO

#KnowtheCode

016: Wholesaling and Seller Financing

My guest today is Larry Goins, master blaster of wholesaling real estate and seller-financing. I met Larry at the Collective Genius Mastermind, we have known each other for many years. Larry has 30+ years experience in a wide variety of real estate. Today we focus on his Filthy Riches program and his HUD strategy.  Larry offers some great advice for my listeners today and delivers a wonderful episode.

MINUTES MARKERS

00:00 — Introduction to the Big Mike Fund Podcast.

00:23 — Welcome Larry Goins to the podcast.

01:50 — Larry’s life on the lake and his passion for real estate.

03:46 — Larry’s most successful deal to date.

04:30 — Larry’s books and general real estate experience.

05:04 — Why Larry focuses on wholesaling and seller-financing.

05:30 — Why real estate investors need to be marketers as well.

06:25 — The basics of seller financing and the Filthy Riches program.

07:00 — How Larry creates a Filthy Riches property.

08:50 — When Larry decides to do a contract for deed arrangement.

12:00 — How contract for deed varies state to state.

12:44 — Larry’s HUD experience and his strategy.

14:05 — Where to find Larry’s book HUD Homes Half Off.

15:00 — Larry’s favorite books.

17:25 — Why Traction is a great real estate tool.

18:00 — Larry’s favorite production tool.

19:10 — Larry’s opinion of the current market.

21:06 — A deeper look at value investing and cash flow investing.

21:45 — Larry’s contact information.

22:46 — Larry’s parting words to the audience.

23:07 — Thank you to Larry for joining us.

23:15 — Outro to the Big Mike Fund Podcast.

RESOURCES

Filthy Riches

HUD Homes Half Off by Larry Goins

Lessons from the Richest Man Who Ever Lived by Steven K. Scott

The 4 Disciplines of Executions

Traction — Gino Wickman

015: Concepts and Strategies

Today’s episode of the Big Mike Fund Podcast is an overview of the concepts and strategies we have discussed thus far in the series. I don’t have a guest today, but I do have a lot of useful information about investing and real estate in general. I will go over some common terminology and give some insight on what it actually means in regards to an investment. So. we’ll talk about things like Return on Investment, speculating, appreciation, depreciation, and real estate funds.

Join me today for this primer on real estate investing and take notes so you know what you’re getting into with your next investment.

MINUTE MARKERS

00:00 — Introduction to the Big Mike Fund Podcast.

00:23 — Welcome to today’s summary of concepts episode.

01:05 — Investing vs. speculation and gambling.

03:36 — Why speculation doesn’t work and other progressive systems.

05:33 — The difference between Return on Investment and Return on Time.

08:33 — Why good investments have both cash flow and appreciation.

09:46 — The two components of appreciation.

10:54 — What is value add?

11:58 — The type of appreciation my team and I look for in our investments.

12:10 — Real estate as an asset class.

13:28 — The six points that make real estate a unique opportunity.

17:00 — How to find the best real estate opportunities.

20:04 — The difference between small real estate funds and big institutional REITs.

24:17 — What to consider when choosing a smart real estate investment fund.

34:50 — Diversification is the mother of all risk strategies.

35:10 — My parting thoughts for today.

35:17 — Outro to the Big Mike Fund Podcast.

RESOURCES

Big Mike Fund

Real Estate Investment Fund: How to Choose a SMART Real Estate Investing Fund: Top 10 Biggest Mistakes To Avoid Before Investing Into a Real Estate Fund (Private Money, REITs, Equity, Structure, Tax) by Mike Zlotnik

014: Successful Multifamily Investing

My guest today is Corey “The Big Kahuna” Peterson, the founder of Kahuna Wealth Builders. Corey is a real estate investor, educator, and a member of the Collective Genius Mastermind. He specializes in multifamily units.

Corey has humble beginnings, he didn’t start his career in real estate until his 30s. He began wholesaling properties and pivoted into apartment complexes. Corey shares his business philosophy and tells me what he looks for in a deal. Corey’s experience is a great example of how to take good care of your investors and how well they will take care of you in return.

MINUTE MARKERS

00:00 — Introduction to the Big Mike Fund Podcast.

00:23 — Welcome Corey Peterson to the podcast!

01:36 — How Corey got involved in real estate.

04:00 — How a racquetball game changed Corey’s life.

06:10 — The turning point that lead to Corey investing in apartment complexes.

07:33 — The unique approach that got Corey his first deal.

09:18 — The mistakes Corey made in his first deal.

11:00 — Why you should always take care of your investors.

11:50 — Look at the deal from an investor’s viewpoint.

12:36 — Corey’s second deal.

14:20 — The 1031 exchange deal that paid off.

15:10 — What Corey considers in a deal.

16:12 — The “sweet spot” Corey looks for in current deals.

17:44 — The benefits of requiring ACH drafts from your tenants.

19:50 — The type of deals that appeal to Corey.

20:15 — The upside to working with a management company.

22:33 — Corey’s goals for his investments and the typical exit strategy.

26:09 — Encouraging managers to get 100% occupancy.

28:15 — Corey’s book recommendation.

29:00 — Corey’s contact information.

29:24 — Thank you to Corey Peterson for joining us today.

29:26 — Outro to the Big Mike Fund Podcast.

RESOURCES

Kahuna Wealth Builders

Why the Rich Get Richer: The Secrets to Cash Flowing Apartments by Corey Peterson

The Richest Man in Babylon by George S. Clason

The Multifamily Legacy Podcast

013: Defining Effective Leadership

My guest today is Patrick Precourt, an MMA fighter who is a successful gym operator. Pat is a very active member of the Collective Genius Mastermind. He is known as “the people’s developer” within the group. Pat is more than a business owner, he is a cultivator of people.

On today’s episode, Pat shares his view on business and how he approaches his management style. Listeners will learn about identifying a challenge and how to make it an opportunity. You will also learn how to find people that can bring creativity and multiple viewpoints to your company’s problems. Tune in to learn more about becoming a people developer and more about Collective Genius.

MINUTE MARKERS

00:00 — Introduction to the Big Mike Fund Podcast.

00:22 — Welcome to the podcast, Patrick Precourt.

00:41 — Pat’s background with gym operation and Collective Genius Mastermind.

01:16 — How to show leadership and attract talent in your management style.

03:39 — How to identify a challenge and make it an opportunity.

04:11 — The difference between management and leadership.

08:11 — Why you can’t expect complete replication.

08:50 — What defines success for a gym?

10:45 — How location changes the key metrics.

11:27 — How to measure member happiness, create a community, and the “Cheers” effect.

15:06 — Why Mike prefers martial arts.

16:00 — The appeal of self-improvement and how to encourage it.

17:00 — Why Pat’s competitors can’t duplicate his business model.

17:45 — The benefits of the Collective Genius Mastermind.

20:15 — What makes Collective Genius Mastermind a great mastermind.

22:05 — The more you give, the more you get.

22:33 — Pat’s role in Collective Genius.

23:33 — Pat’s book recommendation.

24:52 — The Law of Attraction in a nutshell.

26:50 — Patrick Precourt’s contact information.

27:25 — Outro to the Big Mike Fund Podcast.

RESOURCES

Big Mike Fund

Patrickprecourt.com

012: The Value of Self-Storage Real Estate

My guest today is Scott Meyers, the expert behind Self-Storage Academy and Self-Storage Investing. These two businesses are the crux of Scott’s efforts to teach people how to make money in the self-storage industry. We discuss the types of self-storage facilities and how an owner can find the best fit for them.

Self-storage is a ripe industry for investment opportunities. It is the best of both worlds, real estate, and retail. Scott expands on the idea that self-storage facilities are often treated as businesses to increase their value. He describes his process to create a storage facility and offers his opinion on current market trends.

MINUTE MARKERS

00:00 — Introduction to the Big Mike Fund Podcast.

00:22 — Welcome Scott Meyers to the podcast.

01:30  — Scott’s work with Ywam Homes of Hope.

04:22 — The value of self-storage real estate.

05:00 — Why Scott pivoted away from single-family rental real estate.

08:10 — Mike’s observations of Scott’s storage units and his educational tools.

09:19 — How you can invest in a self-storage facility as a business.

09:50 — The 3 types of self-storage projects.

11:28  — Type 1: Rehabbing existing self-storage units to increase value.

12:29 — Type 2: Converting an old industrial building to storage units.

13:15 — The benefits of converting a former business.

13:40 — Type 3: Building from the ground-up.

14:34 — Why Scott enjoys conversions and rehabs.

15:28 — Why Scott likes to find bigger projects.

16:50 — Why old shopping malls make ideal locations for self-storage businesses.

18:25 — Mike’s interest in self-storage and the projects he has going right now.

18:39 — The predictability of the self-storage business model.

20:25 — How to increase ROI (return on investment) on a self-storage unit and still keep tenants.

22:00 — The storage condo trend and what Scott thinks of it.

24:47 — What Scott takes into consideration when creating a self-storage facility.

28:30 — Scott’s contact information.

29:33 — Scott’s advice to new business owners.

31:36 —  Thanks to Scott Meyers for joining us today.

31:47 — Outro to the Big Mike Fund Podcast.

RESOURCES

Big Mike Fund Podcast

Homes of Hope

Self-Storage Academy

Self-Storage Investing

Traction: Get a Grip on Your Business by Gino Wickman

011: Investor Real Estate Deals

My guest today is Aaron Chapman, the loan officer and loan originator for the Security National Mortgage Company. Aaron specializes in investor real estate deals. He began his career doing purchase loans for owner-occupied properties. However, one discussion in the early 2000s changed the direction Aaron went moving forward. He explains why he likes working with investors and how the market is affected by investor deals.

Aaron is also a rescue worker for his local sheriff office in Arizona. We kick off our interview by exploring why Aaron decided to get involved with rescue training. His answer is very telling as to the kind of man he is. Aaron is a fellow member of the Collective Genius Mastermind group and he offers some smart observations of the current market. Tune in for this value-packed episode!

MINUTE MARKERS

00:00 — Introduction to the Big Mike Fund Podcast.

00:28 — Welcome Aaron Chapman to the podcast.

01:36 — Aaron’s work with his local sheriff department. The event that started it all.

04:28 — Why everybody can give back to their community.

05:50 — The state of the mortgage industry.

07:48 — The difference between purchasing loans for owners versus purchasing loans for investors.

11:00 — Where the loans come from.

11:20 — The huge opportunities in Aaron’s real estate space.

11:43 — The standard limits banks put on investor involved property deals.

12:00 — Aaron’s company’s approach to loan agreements.

13:00 — The minimum amount Security National Mortgage can give for a loan.

13:52 — America’s system and regulations regarding real estate development loans.

18:54 — Why Fannie Mae and Freddie Mac are missing a big opportunity in Aaron’s space.

19:23 — The importance of Fannie Mae and Freddie Mac to the current real estate market.

21:28 — Aaron’s predictions for interest rates.

25:00 — Mike’s opinion of Aaron’s prediction.

26:58 — The reduction of real estate inventory and what that means for the market.

30:00 — Aaron’s observations about the new construction trend.

33:34 — Aaron’s book recommendations.

35:00 — The importance of being grateful for your business and life.

43:40 — Aaron’s contact information.

44:33 — Outro to the Big Mike Fund Podcast.

RESOURCES

Big Mike Fund

Security National Mortgage Company

Aaron Chapman’s email

010: The Benefits of Self Banking

My guest today is Gary Pinkerton, a wealth strategist at Paradigm Life. Gary has a fascinating personal history as a former military submarine captain. He transitioned into real estate as a civilian career. Gary and I discuss his path to wealth strategy. We also explore Gary’s specialty in infinite banking, which is a self-banking investment strategy.

Gary explains self-banking and outlines the benefits of using an insurance policy as a revenue source. We discuss the multiple uses for the money and how investors can take control of their liquidity.

MINUTE MARKERS

00:00 — Introduction to the Big Mike Fund Podcast.

00:30 — Welcome Gary Pinkerton to the podcast.

01:03 — Gary’s former military experience.

03:07 — How Gary transitioned into civilian life.

05:06 — How Gary got involved with Paradigm Life.

06:30 — Gary’s observations of his differences from other veterans.

07:23 — The level in which Gary’s family is involved in his real estate business.

07:44 — How can life insurance be used as a self-banking vehicle?

08:20 — How life insurance protects wealth.

11:15 — The typical interest rates Gary has within his deals.

11:53 — The benefits of self-banking.

12:53 — Is the interest rate deductible?

15:22 — The differences between paying a lump sum into a policy versus paying into a policy over 20 years.

18:10 — The tax issues that come up with insurance policies.

20:06 — Paradigm Life’s goals for their clients.

21:34 — Why insurance policies include fees.

24:16 — The costs associated with one of Gary’s policies.

26:11 — How Gary structures his policies to help clients maintain their policy.

26:57 — Should you purchase life insurance for kids as a passive income?

29:15 — How to contact Gary.

31:04 — Mike’s impression of Gary’s policy structure.

31:42 — The standard process an investor goes through to use their policy as a savings account.

34:19 — How Gary’s deal structure is better than a “no money down” structure.

35:20 — Gary’s final thoughts for the audience.

36:50 — Mike encourages people to invest in their own talents.

37:16 — Outro to the Big Mike Fund Podcast.

RESOURCES

The Secret Asset by David D’Arcangelo

Gary’s email

Gary Pinkerton’s website

009: New York’s Real Estate Market

Welcome back to the Big Mike Fund Podcast! My guest today is Eric Goodman. Eric and his father run Goodman Capital, a real estate investment firm that focuses on commercial real estate. Goodman Capital brokers closed fund deals and specialize in foreclosure sales.

Today, Eric tells me about his company’s fund structure and gives me some examples of sales that worked out for the best. We discuss the state of New York’s real estate market and how the pending tax reforms will affect the market.

MINUTE MARKERS

00:00 — Introduction to the Big Mike Fund Podcast.

00:27 — Welcome Eric Goodman to the podcast.

00:47 — Eric’s background in real estate.

01:30 —  About Goodman Capital and commercial real estate.

03:00 — The types of deals Eric and his team look for.

04:46 — The difference between closed funds and open funds.

06:23 — What is a waterfall and how does Goodman Capital use the structure?

08:33 — The equity deals Eric and his team have seen in this market.

10:05 — The breakdown of Eric’s company’s capital.

12:49 — The difference between forced appreciation and natural appreciation.

13:22 — Examples of opportunities Eric has seen within the New York market.

16:13 — Where Goodman Capital gets its referrals.

17:16 — Eric’s predictions for New York’s real estate market.

19:45 — My opinion about the incoming tax reform and what that will mean for New York’s market.

23:30 — The top indicators of a market change.

25:25 — Thank you to Eric for joining the podcast.

25:45 — Eric’s contact information.

26:20 — Outro to the Big Mike Fund Podcast.

RESOURCES

Goodman Capital

(516) 247-6012

Big Mike Fund