Real Estate Investing for Cash Flow with Kevin Bupp
Ep #67: Apartment, Student Housing, and SFR Investing all while working a Full-Time Job - with Mark Gagner

This week we're going to speaking with Mark Gagner who is founder of Bridge Equity Group, a multi-faceted real estate investment firm who specializes in medium and large size multi-family & student housing investments as well as high-end residential fix & flips.

Mark just started his real estate investing career 5 short years ago in 2010 and has since completed millions of dollars of flips as well as a few larger commercial acquisitions including a 172 unit apartment building as well as a 42 bed student housing property. He's also learned the private capital game and was successful at raising a large chuck of the equity for the 172 unit apartment acquisition and this was all while still working a full-time job.

Here are a few things you’ll learn in our interview with Mark today:

  • How Mark was able to build a multi-million dollar real estate investment firm all while working a full-time job
  • How he is using fixing and flipping single family homes to fund his commercial real estate activities
  • The positive impact that a mentor/coach had on him during the beginning of his investing career and why he feels everyone should have a coach or mentor.
  • Why he feels that relationships are everything in this business
  • What excites him about the multi-family and student housing space
  • How he identifies emerging markets
  • How to gain credibility by partnering with other successful investors
  • The lessons he learned from cutting corners on a rehab
  • Why he suggests rewarding those who help you in your business (contractors, brokers, birddogs, etc)
  • And much more

Recommended Resources:

  • Download my free success guide,  “7 habits of highly successful multi-family investors” by going to www.KevinBupp.com/guide
  • Schedule your free 30 minute "no obligation" call directly with Kevin by clicking this link https://www.timetrade.com/book/KV2D2
  • Looking to invest in Mobile Home Parks? Want to JV with me on deals? If so, schedule a call with me and let’s talk. Click here https://www.timetrade.com/book/FGF7S
  • Learn more about Mark and his company, please visit www.BridgeEquityGroup.com
Direct download: Final_Edited_show_Mark_Gagner.mp3
Category:general -- posted at: 3:00am EST

Cash Flow Friday Tip #15: How to find and screen quality handymen for your properties

In this week's Cash Flow Friday tip I'm going to share 2 easy methods to find and screen quality handymen for your rental properties.  We personally use these two strategies when looking to build our rolodex of repairmen and service workers upon purchasing a property within a new market where we have no preexisting contacts.

Recommended Resources

  • Download my free success guide,  “7 habits of highly successful multi-family investors” by going to www.KevinBupp.com/guide
  • Schedule your free 30 minute "no obligation" call directly with Kevin by clicking this link https://www.timetrade.com/book/KV2D2
  • Looking to invest in Mobile Home Parks? Want to JV with me on deals? If so, schedule a call with me and let’s talk. Click here https://www.timetrade.com/book/FGF7S
Direct download: final_edited_show_15.mp3
Category:general -- posted at: 3:00am EST

Ep #66: Understanding Real Estate Financial Modeling - with Bruce Kirsch

This week we're going to speaking with Bruce Kirsch who is founder of REFM, a real estate financial modeling solutions provider who offers financial spreadsheet models, finance and financial modeling training, and financial modeling consulting for real estate transactions of all types.

REFM provides its customers with the advanced financial modeling knowledge, tools and skills they need to successfully model their real estate transactions and present them with confidence to potential partners, lenders and investors.

I’ve actually had the opportunity to go through and evaluate a few of REFM’s modeling tools and online training programs and I can personally say that the tools and trainings that Bruce and REFM offer are top notch and also very affordable in comparison to some of the other popular financial modeling software providers. And as an added bonus, REFM has a ton of free tools and resources available on their website including a free “back of the envelope” property evaluation templates to help you quickly sort out the promising deals from the duds.

In this show you’re going to learn:

  • What financial modeling is and why it's such a critical part of being a successful real estate investor
  • How to obtain the proper operations data for a property and make valid assumptions when building a financial model
  • How financial modeling helps you create and tell the story of any given property which is vitally important when raising private capital or pitching the deal to investors
  • Why you need to stay privy to all your local real estate news
  • Learn about REFM's tools and resources and how they can help your real estate business
  • How to download REFM's free modeling templates and other financial modeling tools
  • And much more

 Recommended Resources:

  • Download my free success guide,  “7 habits of highly successful multi-family investors” by going to www.KevinBupp.com/guide
  • Schedule your free 30 minute "no obligation" call directly with Kevin by clicking this link https://www.timetrade.com/book/KV2D2
  • Looking to invest in Mobile Home Parks? Want to JV with me on deals? If so, schedule a call with me and let’s talk. Click herehttps://www.timetrade.com/book/FGF7S
  • Learn more about REFM and Bruce by going to www.GetREFM.com 
Direct download: Final_Edited_Show-Bruce_Kirsch_66.mp3
Category:general -- posted at: 1:00am EST

Cash Flow Friday Tip #14: How to increase your NOI when renting to tenants with pets

In this week's Cash Flow Friday tip I’m going to share a strategy which I learned from one of our previous guests and have since implemented into a few of my rentals and it’s proven successful. 

This strategy I'll talk about today is implementing a monthly pet rental fee into your lease agreements in place of a flat fee pet deposit.

How does a 10-15% increase in monthly rental premium sound?

Recommended Resources

Direct download: Cash_Flow_Friday_Tip_14.mp3
Category:general -- posted at: 1:00am EST

Ep #65: Investing in and Making Money with small Multi-Family Properties - with Lance Edwards

Our guest for this week’s show is multifamily Real estate investor, Lance Edwards. Lance is going to share with us some of the benefits of investing in smaller multifamily properties and why he feels there are multiple competitive advantages in these smaller unit buildings which makes it a great place for investors who are just getting started and are interested in buying their first Multi-family property.

In this show you’re going to learn:

  • How to use OPM or other people's money to acquire multifamily properties
  • Why Lance refers to apartments as "Cash Flow" Vehicles
  • What economic fundamentals he looks for in markets he wants to invest in
  • Why cash flow is king and appreciation is just icing on the cake
  • His method for new investors which he calls flip, flip, flip, buy and hold (rinse and repeat)
  • How to use the MLS to find these smaller multi-family deals
  • How he wholesaled an $11 million multifamily apartment building.
  • How he uses direct mail to find a majority of his deals
  • How to get a copy of his free book "How to make big money in small apartments" by going to www.FreeApartmentsBook.com
  • Why he feels strategic partners are extremely valuable and can help accelerate your RE business
  • Why you need to become an expert marketer if you want to succeed as a real estate investor
  • And much more

 Recommended Resources:

  • Download my free success guide,  “7 habits of highly successful multi-family investors” by going to www.KevinBupp.com/guide
  • Schedule your free 30 minute "no obligation" call directly with Kevin by clicking this link https://www.timetrade.com/book/KV2D2
  • Looking to invest in Mobile Home Parks? Want to JV with me on deals? If so, schedule a call with me and let’s talk. Click here https://www.timetrade.com/book/FGF7S
  • Learn more about Lance and download a few copy of his book by going to http://www.FreeApartmentsBook.com
Direct download: final_edited_show_ep65_Lance_Edwards.mp3
Category:general -- posted at: 7:37pm EST

Cash Flow Friday Tip #13: Two Powerful negotiation techniques to obtain seller financing

This week's cashflow friday tip is going to be an extension of last week's cash flow Friday show where we discussed the benefits of seller financing for both the buyer and seller of an income property. Well, today I'm going to share with you 2 proven strategies to significantly improve your chances of obtaining seller financing on a purchase and how to properly use them.

Recommended Resources

  • Download my free success guide,  “7 habits of highly successful multi-family investors” by going to www.KevinBupp.com/guide
  • Schedule your free 30 minute "no obligation" call directly with Kevin by clicking this link https://www.timetrade.com/book/KV2D2
  • Looking to invest in Mobile Home Parks? Want to JV with me on deals? If so, schedule a call with me and let’s talk. Click here https://www.timetrade.com/book/FGF7S

 

Direct download: final_edited_show_13.mp3
Category:general -- posted at: 4:00am EST

Ep #64: Understanding Syndication and JV Structures and which one is best for your next deal - with Jeff Lerman

Our guest for this week’s show is Real Estate Attorney and investment expert, Jeff Lerman. In today's show we're going to speak with Jeff about 2 hot topics that are critical to understand and implement into your business if your goal is to build a large real estate portfolio using OPM, also known as other people's money and these two topics are JV or Joint ventures and Syndication.

In today's show we're going to dig deep into both of these partnership structure types so that you, the real estate investor, can be better informed and educated the next time you're preparing to take down a property using other people's money.

In this show you’re going to learn:

  • The difference between a syndication and JV structure and how to determine which one is the right fit for your partnership
  • Why you should be using OPM, also known as, other people's money for your deals
  • The legalities behind each partnership structure
  • Estimated cost of setup for each partnership type
  • The pros and cons of each structure
  • How crowdfunding is changing the landscape, but is probably not your best option for raising money for a deal
  • How to legally stay out of the SEC's crosshairs
  • The new general solicitation rules and how they affect syndications
  •  And much more

Recommended Resources:

  • Download my free success guide,  “7 habits of highly successful multi-family investors” by going to www.KevinBupp.com/guide
  • Schedule your free 30 minute "no obligation" call directly with Kevin by clicking this link https://www.timetrade.com/book/KV2D2
  • Looking to invest in Mobile Home Parks? Want to JV with me on deals? If so, schedule a call with me and let’s talk. Click here https://www.timetrade.com/book/FGF7S
  • Learn more about Tom by going to http://www.RealEstateInvestorLawyer.com
Direct download: final_edited_show-Jeff_Lerman.mp3
Category:general -- posted at: 1:00am EST

Cash Flow Friday Tip #12: Understanding the benefits of Seller Financing for both the seller and buyer of an income property

In this week's Cash Flow Friday tip I'd like to share with you the primary benefits of owner financing for both the buyer and seller of an income property.  The benefits I'm about to discuss should be used in your negotiations when trying to pitch the idea to the seller or to the broker representing the seller.

Here is what I feel are the top 6 benefits of owner financing for you the buyer:

  1. Non-recourse debt and does not appear on your credit
  2. No credit checks required (most of the time)
  3.  Ease and quickness of financing
  4. No need to prove existing track record
  5. Flexibility to structure creative terms including interest rates, amortization term, down payment amount, etc.
  6. The ability to purchase un-financeable deals. For instance, an apartment building or mobile home park that has significant vacancy will be terribly difficult or nearly impossible to finance through conventional terms, but with owner financing anything is possible.

There's many more benefits than that, but I think those 6 are the primary ones. Now I will say this, most of the time an owner won't just come out and say that they'll do seller financing and I don't suggest you even bring it up during your first meeting with them. In fact, most of the time you'll need to establish a rapport with the sellers before they'll ever consider it, so be sure to be delicate with how you approach the subject and be sure to presentl it as a win-win proposition.

Now let's discuss the big benefits from the owners standpoint, and just remember, most owners don't realize that owner financing is even a viable option nor do they know how beneficial it is for them. Use the benefits as part of your negotiations and rapport building strategy to increase your chances of a seller saying yes.

  1.  Ongoing Monthly Income: For an owner who is selling an income property it might be beneficial for them to continue to receive monthly payments from the sale rather than take the lump sum of money, especially if they don't have another investment lined up which will get them either the same or a better return than that of the asset they're selling.
  2. Keep the money in a performing investment: When asked what they plan on doing with the proceeds from the sale, most sellers have no clue what they'll do with the money and most of the time it ends up in their bank account or in a money market where it will make practically nothing. Seller financing is an opportunity for them to keep their equity at work, but eliminate the day to day headaches of operating the asset. Plus, their money is secured by a property which they are very intimately familiar with. Sounds like a win-win to me, right?   
  3. Maintain Control of their investments: Seller financing always allows the sellers to maintain control of their investment dollars whereas if they take their sale proceeds and hand it off to a wealth advisor they're basically placing their destiny in his/her hands which I'm sure we can all agree isn't the best option.
  4. Limit Tax Exposure from Sale: With owner financing (installment sale) the seller is the ability to spread out their capital gains exposure as the IRS has special tax rules for installment sales in which the seller is only required to pay a small portion of that tax bill each year while the loan is being paid off. Assuming they aren't planning on a 1031 exchange, if the sellers take a cash sale they will be required to pay all capital gains plus a  recapture of depreciation which will add even more to the tax bill.

Some of the reasons of why a seller wouldn't want to hold financing or why it might not make sense for them to do so:

1.    They're planning a 1031 exchange of the proceeds into another income property

2.    They have an immediate need for the cash and can't wait. This could be a emergency medical condition, maybe legal fees for a court battle they're involved in, or one of many other things why people need cash

3.    They don't trust or feel comfortable with you or just can't wrap their mind around the idea

4.    Their friends, family, realtor, CPA, Attorney, or someone else who is influential in their life told them it was a bad idea.

 

Now that you have the benefits, it's up to you to sell them to the seller.  Good luck!

Direct download: final_edited_show_episode_12.mp3
Category:general -- posted at: 1:00am EST

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