April 3, 2024
Something I’m Reading
I’m currently reading “101 Essays That Will Change The Way You Think” by Brianna Wiest.
Something I Photographed
A couple weeks ago I took a 4-day off road trip I took around the Grand Canyon with Rosie. We got messy.
Something I’m Excited About
Excited to be in Austin, Tx and spend a couple of days with seven to nine figure real estate investors at a high end mastermind that I run called The Fifty. Looking forward to catching up and learning from each other.
The Tribe’s Financial Freedom Hour
On this week’s Financial Freedom Hour, April 4th at 7 pm ET, we will be joined by special guests Amanda Han & Matt MacFarland, my personal CPAs, who will be teaching The 5 Steps to Eliminate Your Taxes (Legally).
They are authors of the highly rated book Tax Strategies for the Savvy Real Estate Investor and they have been featured in prominent publications including the Forbes Finance Council, Money Magazine, Talks at Google, CNBC’s Smart Money Talk Radio as well as the BiggerPockets podcasts. Amanda & Matt have helped thousands of investors nationwide to save on taxes with proactive tax planning.
Something I Can Answer
I’ll be answering two questions asked by a BTB subscriber. Have a question you want me to answer? Reply to this text with your question!
Question: "How do you maintain a healthy work-life balance?”
I like what Jay Papasan and Gary Keller say in “The One Thing,”- there is no work-life balance. Instead, it’s “work-life balancING.” It’s an ongoing process. And that begins by regularly checking in on how I’m doing in that area of my life, and making adjustments based on how I want it to be. There are seasons of life where work NEEDS to take a huge role in my time, but I have to balance that with moments where family takes a huge role.
Question: "'When looking into MHPs, would you recommend city sewer or septic? Is septic a deal breaker?”
Great question. Septic tanks add a degree of risk, specifically because of the age of them. They fail, and when they do, a single septic tank can cost $30,000 or more to replace or repair. Now imagine having 100 of them at one park… you can see the danger. Therefore, we (at Open Door Capital) typically don’t invest in communities with septic tanks.
HOWEVER - with risk comes opportunity (because most people avoid risk) and risk can be lessened with education and investigation. For example, what if you became an expert dealing with septic tanks, knew how to evaluate a tank for its usable life, and got such a good deal on a property that even if they all failed, you’d still make a good return? In other words, septic tanks might be the perfect “hard” thing to get good at. It’s not my “hard thing” but maybe it’s yours?
This week in lending
Create a solid foundation...
In other words, make yourself a lender's best friend.
When it comes to getting the best rates, leverage, and overall terms, the borrowers with the following qualifications get their loans served up on a silver platter:
Experience: In the hard money space, this is truly #1. When you have a proven track record, the risk is lower, and therefore you'll see better overall terms.
Credit Score: This isn't a DTI thing, but a verification that you're using credit wisely. The higher the score, the better the rates, just like any other lending situation.
Liquidity: Having the access to your cash is important. Our team wants to see that you have the cash to close and in some cases also show reserves. If you're looking to scale, have a solid bank of reserves to support your RE Investing business.
Urban Properties: this is more of a bonus, but it's important. The likelihood of a smooth transaction, higher leverage, and better overall terms is much greater if your deal is in an urban space. Comps are easier to pull, and therefore appraisals and BPO's are more of a slam-dunk. Focus your rental properties and flips in urban spaces for better terms.
If you can get these four categories locked in, your borrowing experience is going to be significantly better. If you have questions or would like to submit a deal for a soft quote, text REF to (360) 641-2412 or book a call HERE.
If you'd simply like to know more about BetterLife Real Estate Funding (REF), check us out at betterliferef.com
Something I Recommend
I was always envious of the people who are “ON” 100% of the time. The people who don’t deal with low motivation, doubt, fear of failure, or those endless days of thinking your whole entrepreneurial journey is about to blow up in your face. These people were running circles around me in business and real estate and when I finally figured out what they had that I didn’t – It all made sense.
These people were using a Mindset Coach to keep their eye on the prize and expose them to a higher level of thinking every single day. So when I went to find one of these coaches specifically for real estate investors, all roads lead to Jason Drees. Jason has been coaching me for nearly a decade at this point and has supported my growth from a small time investor to someone with nearly $1B worth of assets under management.
If you’re looking for an edge to accelerate your growth, talk to Jason. You can get a FREE coaching session through this link.
For my health-conscious friends (or those trying to be healthier), I’ve been using MyBodyTutor for years for accountability on my fitness and diet. These guys assign you a coach to hold you accountable, track your food, suggest exercises etc. You can check them out here.
Disclosure: “Some of the links in this post are affiliate links, which means I may earn a commission if you click on the link and make a purchase. However, please note that all opinions expressed here are my own and I only recommend products or services that I have personally used and found valuable."
Your Friend,
P.S. Comment below and let me know your thoughts on this week’s BTB! Please be friendly :)