A couple days ago, on Saturday the 23rd I went to Chicago to one of the monthly intensive training sessions that the Renatus group puts on. It was the first such training that I’ve been to because these meetings happen once a month on Saturdays, and until now, I’ve always worked Saturdays. Wow was it helpful! I learned a lot and was also able to do quite a bit of networking. My mentor Steve Casey was there and he introduced me to several people who have been in the industry for quite a while.
One guy named Ed has been buying rental properties for 40 years. He made it clear to me that the best way to buy properties is through partners. He told me about all the properties that he had and kept saying he owned half of this property, half of that property, a third of the next one, etc etc. The point he was trying to make was that if I tried to go out and buy all the properties myself, I would only be able to buy as many as my cash or credit extends. If you’re using federal funding, they stop funding you after 4 or 5 properties anyways, so I wouldn’t get very far. If on the other hand I use private funding and have partners in each of my deals, yes I’ll only have a 50% or lower interest in the property, but I’ll have many more units. 50% or 20% of something is better than 100% of nothing. Ed also does Tuesday night conference calls where he shares a lot of his real estate knowledge and so I’ll be joining these calls to see what more he has to say.
I was also introduced to another guy who is a banker and offers funding specifically to real estate investors, so there isn’t a limit of 5 properties. There’s no limit as long as you can come up with the 20$ downpayment and show that the deal is good. The problem was that the particular guy that Steve introduced me to doesn’t lend in Wisconsin, but he knows someone who does, so I need to call him and he’ll hook me up with his contact you lends in Wisconsin.
I want to share with you two practical things that I learned from this seminar. First off is I’m sure most of you have heard of the idea that you’re supposed to make a goal and write it down, and then put it in a prominent place that you see every day. The speaker disagrees with this idea. Instead, he thinks that you should write your goals and then put them away. Then, you should think of the reason you have these goals, whether it’s because you want to have financial freedom, you want to support your kids, or whatever it is, make a picture of what that looks like to you, and display that in 3 prominent places that you see often every day. So instead of displaying your goal, you’re displaying your why. This is much more powerful, according to Johnny D.
The second practical nugget of information that I picked up from this seminar is a new way to find off market deals. Basically what I’m going to do is start looking for “for rent” signs and I’ll note down the phone number on the sign and the address that it is in front of. Then on Saturday mornings between 8:30 to 10am I’ll give the number a call. That’s apparently the most likely time that the owner will answer as opposed to someone he’s hired to answer the phone. I can then get some information about the property from him and then ask him if he is interested in selling. If the property isn’t rented, then he’s most likely unsatisfied with something and may be interested in selling. Most landlords got into the rental business because they are looking for cash flow. If a property isn’t rented, they aren’t getting cash flow. This is a great opportunity for me to offer to buy the property, have them seller finance it, and I’d be able to give them consistent cash flow. So I’ve got my hawk eyes on looking for those for rent signs.