Immutable Laws Of Real Estate Investing
Creating A Real Estate Cash With Gary Boomershine by MoneyForLunch
Hey everyone – usually I’m here talking to you about an interview that I’m doing with one of my friends or colleagues that I know in the real estate business, but in this installment, the tables have turned.
Today, I’m getting interviewed by Bert Martinez, creator of Dominating Your Mind, and host of the Money for Lunch Podcast. I’m a huge fan of this podcast, and I highly recommend it if you’re looking for even more insight into this industry from a seasoned pro.
Before I get into the meat and potatoes of the interview, Bert is one of the best in the business. He’s helped over 1,000 small companies succeed by solving their marketing challenges – he’s worked for tech giants like Google and CBS, and he’s a master of the real estate game. So, if you’re looking for advice on how to make money in real estate, he’s a guru of the highest order.
Now, that being said, let’s discuss some of the gems that we uncovered during our time together. I always love talking shop with fellow real estate pros, and we covered a lot of different topics, so be sure to listen to the whole thing below.
2:45 – People are Always Looking for the Easy Investment
Let’s put it this way – if it were easy to make it rich, then everyone would be wealthy in America. The reality, however, is that you have to be smart with your money and put in the work to turn it into profit. Nothing comes for free, but so many new investors believe that they can unlock the magic secret.
Fortunately, real estate is always a good investment. Even those who bought properties just before the Great Recession of ‘08 wound up making their money back in a few years, while those who had money elsewhere may have lost it all.
The bottom line is this: real estate will never go to zero. No matter what happens, you will always be able to get money out of this industry. The critical thing is to know when and where to make your move.
4:55 “Cash Now, Cash Flow, and Cash Later”
When it comes to making money in real estate, there are a few different ways you can go about it. One of the easiest ways I’ve learned to break it all down is by looking at it as cash now, cash flow, and cash later.
Cash Now – a prime example of this method is when you flip homes, looking for an immediate profit.
Cash Flow – being the bank and having money coming in from other investors.
Cash Later – buying long-term properties that will appreciate in value while paying down the mortgage.
Each of these strategies has ups and downs, but as with all real estate investing, it takes time, dedication, and hard work to make the money you want in this business. It may be a leverage game, but you can’t do it as a side gig and expect to get rich off of it.
12:04 Over 13 Percent of All Real Estate Transactions are Off-Market
If you’re familiar with my service REI Vault, then you know that our specialty is finding motivated sellers that aren’t using traditional services to sell their property. Although there is some benefit to using on-market tactics (i.e., checking the MLS, working with realtors, etc.), you are going to get a lot more flexibility when you find off-market sellers.
Considering that over 13 percent of all transactions happen this way, it’s a massive market to get into as an investor. Not only that, but the flexibility offered by motivated sellers means that you can do more with your investment. Sure, the properties aren’t necessarily “move-in ready,” but I find that that doesn’t really matter to your bottom line.
14:34 For Finding Off-Market Deals, Direct Mailing is King
One of the challenges of finding properties off-market is that you have to know where to look and you have to be consistent. You can’t just go online and search for sellers, mostly because they aren’t posting the home on any websites.
Thus, you need a system of finding properties and connecting to the seller directly, and I’ve found that direct mail is one of the most reliable methods to do that. To date, REI Vault has sent over 27 million pieces of physical mail, which is why we’re so valued in the industry.
Contact REI Vault Today
I’ve only covered about half of the interview, so be sure to check out the rest above. Also, if you’re interested in getting a piece of the off-market pie, see whether or not REIVault is right for you. We are a community of dedicated real estate investors, so see if we can help you get the most bang for your buck.