Financial oversight in real estate: Your questions answered. In a heartfelt exchange, David and Clark delve into the intricate world of real estate portfolio management, revealing the emotional weight that property owners often carry. They candidly share their own struggles, painting a vivid picture of the challenges that arise in the pursuit of optimizing asset performance.

Their discussion underscores the pivotal role of proactive oversight by asset managers, whose expertise can transform overwhelming responsibilities into streamlined processes that empower property owners. By distinguishing between the duties of property managers and asset managers, they illuminate the necessity of understanding market dynamics and the strategic foresight required to scale investments effectively.

This conversation serves as a crucial moment for listeners, inviting them to reflect on their investment strategies and consider the profound benefits of enlisting an asset manager to lift the burdens of property management. As they extend an invitation to the Burn Your Boats community, David and Clark encourage everyone to share their own experiences and challenges, fostering a sense of camaraderie and support.

Ultimately, they leave listeners inspired to take actionable steps towards financial empowerment, urging them to reconsider their approach to asset management as a vital pathway to achieving their financial aspirations.

Takeaways

Asset management is crucial for real estate investors.

Property managers handle day-to-day tasks but are not asset managers.

Understanding your portfolio's performance is essential for growth.

Proactive oversight can prevent costly mistakes.

Scaling a real estate portfolio can become overwhelming without help.

Asset managers can optimize returns and manage property managers.

Investors should evaluate the quality of their assets regularly.

The opportunity cost of managing properties can be significant.

Investing in higher quality assets can lead to better returns.

Private lending can be a viable alternative to property management.

Sound Bites

"You need a break, you need a strong cocktail."

"Owning a real estate portfolio is not one of them."

"Your ownership responsibilities start at home with you."

Chapters

00:00

Introduction and Personal Challenges

03:57

The Work Starts at Your Mailbox

09:06

The Responsibilities of Owning a Real Estate Portfolio

19:15

The Limitations of Property Managers

25:18

The Challenges of Scaling a Rental Portfolio

29:51

The Role of Asset Managers in Property Management

35:38

How Commercial Investors Handle Property Management

37:59

The Importance of Return on Equity

41:20

The Responsibilities of an Asset Manager

52:26

The Freedom of Asset Management

keywords

real estate, property management, asset management, investment strategy, rental properties, portfolio management, landlord challenges, financial oversight, tenant relations, scaling investments

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In this enlightening episode, Clark and David unravel the transformative power of the rule of 72, a simple yet profound formula that could redefine your financial future. Imagine the life-changing potential of a small investment; with just $10,000 set aside for an infant today, we’re talking about a staggering $2.56 million in 48 years! This is not just a number—it's a powerful reminder that every journey to financial independence begins with a single step, and understanding the rule of 72 can be your guiding light through the often murky waters of investment growth.

They expertly break down this concept, illustrating how it demystifies the investment process and empowers you to make informed, strategic decisions that align with your dreams of wealth and security. By choosing the right investment vehicle tailored to your financial timeline and goals, you can take control of your financial destiny.

Join us in this vibrant community at Burn Your Boats, where the journey to financial literacy and independence is not just encouraged but celebrated. Embrace the opportunity to learn, grow, and transform your financial future—because your aspirations deserve to thrive!

Don't forget to Like, Share, and Leave a Review!

Keywords

rule of 72, financial decision-making, investment growth, manage expectations, financial freedom, time as wealth, investing, investment vehicles, real estate private lending, wealth creation, cashflow

Takeaways

• The rule of 72 is a powerful formula that helps estimate how long it will take for an investment to double in value given a fixed annual rate of return.
• Understanding the rule of 72 can provide clarity and help manage expectations when it comes to investment growth.
• The rule of 72 simplifies the decision-making process by cutting through analysis paralysis and allowing for quick calculations of investment timelines.
• Time and money have a relationship in the rule of 72, and understanding this relationship is crucial for making informed financial decisions. Time is a valuable form of wealth that can be used to grow investments.
• The rule of 72 can be applied to understand the impact of compounding returns over time.
• Choosing the right investment vehicle depends on the amount of time and money available.
• Real estate private lending offers a secure and predictable investment option.

Sound Bites

"The rule of 72 is a simple, powerful formula that has significantly impacted my thinking."

"The rule of 72 allows you to measure your risk-return relationship and helps you identify your real goals and expectations."

"The power of 72 can be used to manage your expectations and balance risk in your investment decisions."

Chapters

00:00 Introduction and Importance of Guests

03:47 Narrowing the Focus of the Podcast

05:46 The Ecosystem of Real Estate and Financial Growth

10:35 Explaining the Rule of 72

13:18 The Rule of 72 in Financial Education

17:51 Managing Expectations with the Rule of 72

23:12 Applying the Rule of 72 in Various Scenarios

28:07 The Relationship Between Time and Money

30:05 Introduction to the Rule of 72

32:34 The Power of Compound Interest Over Time

35:51 Applying the Rule of 72 to Retirement Planning

38:08 Choosing the Right Investment Vehicle

39:59 The Importance of Stability and Integrity in Investments

44:30 Exploring Different Investment Options

51:20 The Role of Real Estate in the Rule of 72

57:10 Real Estate Private Lending as a Secure Option

01:02:15 Simplifying Investment Decisions with the Rule of 72

01:04:52 The Importance of Feedback

01:05:26 The Power of Storytelling

01:05:33 Outro

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Clark and David interview Brian Luebben, owner of The Action Academy, who shares his journey of leaving a high-paying corporate job to pursue entrepreneurship and financial freedom at only 28 years old. Brian Luebben's leap from the corporate ladder to the entrepreneurial summit is nothing short of awe-inspiring—he’s not just breaking the mold; he’s setting it ablaze! By shedding the shackles of a high-paying job, he discovered the true essence of empowerment and freedom that Burn Your Boats champions. Brian embodies the spirit of pushing boundaries and seizing opportunities, reminding us that the journey to joy is often paved with bold choices and new experiences. His adventures in travel have not only broadened his horizons but also enriched his understanding of life’s intricate tapestry. As we navigate through the various stages of our lives, our priorities and goals naturally evolve, urging us to reflect on our financial aspirations with fresh eyes. Brian champions the idea of investing your energy wisely and nurturing relationships, whether through coaching or cultivating a vibrant community. In a world where business sustainability reigns supreme, Brian's insights on choosing timeless industries and forging powerful partnerships resonate deeply.

Action Academy: https://www.actionacademypod.com/

Takeaways

Push your limits and explore different opportunities to find what brings you joy.

Travel can provide new perspectives and expand your worldview.

Priorities and goals shift over time, and it's important to adapt and grow.

Invest in people through coaching and building a community to condense time and accelerate growth.

Choose industries that have been around for a while and will continue to be in demand for sustainable businesses.

Be cautious about partnerships and consider the time and energy commitment involved.

Real estate can be a valuable asset for creating wealth, especially when understood in terms of debt, time, and scale.

Sound Bites

"We're all just giant meat puppets walking around in a spinning, floating rock in an infinite universe."

"The secret to happiness is the pursuit of a hard thing and the pursuit of a hard goal constantly."

"I think it's a game of limits. I think the goal of your twenties and the goal of your thirties is to figure out where your limits are and expand them."

"Build a calm, cool cucumber while I built my business up to seven figures."

"Return on energy, right?."

"There's nothing passive about business. Passivity is found on the other side of profits and people."

Chapters

00:00 Challenging Conversations and Asking 'Why'

01:55 Burning Your Boats and Enjoying the Journey

04:37 The Pursuit of Hard Goals

11:19 The Value of Travel and Gaining New Perspectives

22:59 The Importance of Return on Energy in Investment Decisions

28:11 Building a Cashflow Vehicle for Financial Stability

32:54 Taking Action and Surrounding Yourself with Like-Minded Individuals

33:44 Identifying Your Strengths and Finding the Right Business to Buy

37:26 The Importance of Sustainable Industries and Clean Financials

41:33 Combining Business and Real Estate Investments for Wealth Creation

48:22 Investing in People and Finding the Right Coaches and Communities

01:06:15 Condensing Time and Taking Action

01:07:40 Harnessing Technology and Building a Community

01:08:20 Surrounding Oneself with Experienced Professionals

01:10:30 The Importance of Controlled Growth

01:11:09 Dedication to Personal Brand, Community, and Business

01:11:25 The Power of Hard Work and Action

01:11:47 New Chapter

01:12:45 BYB Outro

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In this captivating episode of the Burn Your Boats Wealth podcast, hosts David Shaw and Clark Lunt welcome the incredible Kathy Fettke, who takes us on a transformative journey through the power of resilience and the art of overcoming adversity on the path to success! Kathy opens up about her own personal trials and triumphs, sharing invaluable lessons learned from failure that can ignite your own financial ambitions. This conversation dives deep into the psychological barriers that often hold investors back and highlights the boldness required to embrace risk. Kathy's insights on the necessity of honesty and communication within the investing community are not to be missed, along with her passionate call to action for early engagement in real estate investing. Plus, they tackle the unique challenges women face in the industry and encourage everyone to discover their distinctive superpower. Don't just listen—get involved! Reflect on your challenges and join our vibrant community as we share strategies to navigate the world of investing together. Tune in now and be inspired to take the next step in your wealth-building journey!

Keywords

resilience, overcoming difficulties, failure, psychological barriers, taking risks, honesty, communication, getting started early, women in real estate, superpower, real estate investing, risk aversion, active income, passive income, property appreciation, boots-on-the-ground information, future planning, women in real estate, bigger pockets, real wealth, bigger pockets, real wealth

Takeaways

Resilience is key to overcoming difficulties and achieving success. Embrace failure as an opportunity to learn and improve.

Honesty and communication with investors are crucial in building trust and maintaining strong relationships.

Taking risks is important in real estate investing, but it's essential to do thorough research and have a support network in place.

Delaying gratification and living below your means in the early stages can lead to greater financial freedom.

Understand your level of expertise and experience before taking on new ventures in real estate investing.

Focus on living inexpensively and investing in your active income when you're young, while also building for the future.

Invest in properties that will appreciate over time, rather than solely focusing on cash flow.

Look beyond the headlines and trust boots-on-the-ground information when making investment decisions.

Sound Bites

"Happiness is when expectation meets reality."

"Analysis paralysis is just being frozen and not being able to do something. Whereas analysis is very, very important."

"When you're young, you can dive in and take risks with your own money, not with other people's money."

"I went back to what I can do it, but just know you're taking a big risk. Like, unless you're partnering."

Chapters

00:00 Introduction and Acknowledging Kathy's Experience

04:12 Overcoming Difficulties and Failures in Investing

13:22 The Importance of Getting Started Early

17:56 Knowing Yourself and Your Unique Abilities

22:22 Challenging Stereotypes in Real Estate Investing

22:50 The Power of Honesty and Transparency

23:18 The Challenges and Progress of Women in Society

28:20 Resilience and Support: Keys to Overcoming Failure

33:17 The Role of Risk-Taking in Success

39:32 Investing in Real Estate at a Young Age

52:45 Building Wealth and Passive Income as You Get Older

54:33 The Progression of Investors and the Importance of Active Income

55:58 Investing for the Future: Appreciation and Building Wealth

01:02:29 Time as a Valuable Commodity: Spending it Wisely

01:11:55 Mentoring and Empowering Others in the Real Estate Industry

01:13:20 Launching a Women's Mastermind for Real Estate Investors

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Clark & David welcome Ariel Herrera, a real estate investor and data scientist, who shares her journey into real estate and the importance of data in the industry. She emphasizes the three pillars of real estate: data gathering and analytics, field work, and contracts management. Ariel discusses how she collated economic and market data to analyze markets and find the best deals. She also highlights the value of using data to identify distressed properties and target motivated sellers. Ariel's approach brings a commercial real estate mindset to residential real estate investing, providing valuable insights and tools for investors. Ariel Herrera discusses the importance of using data and technology in real estate investing. She emphasizes the value of accessing public records and using web scraping to gather information on motivated sellers. Ariel explains how her software, Coffee Clozers, streamlines the process of finding and analyzing deals, as well as automating tasks like data collection and underwriting. She highlights the benefits of using data to identify up-and-coming areas, make informed investment decisions, and save time. Ariel also discusses the different ways her audience can connect with her, including through her YouTube channel, Facebook group, and Coffee Clozers platform. Tech in Real Estate: techinrealestate.com Coffee Clozers: https://www.coffeeclozers.com/ LinkedIn: https://www.linkedin.com/in/arielherrera/

keywords

real estate, data gathering, data analytics, field work, contracts management, market analysis, distressed properties, motivated sellers, investing, data, technology, public records, web scraping, motivated sellers, software, Coffee Clozers, automation, underwriting, up-and-coming areas, investment decisions

takeaways

• Data gathering and analytics, field work, and contracts management are the three pillars of real estate.
• Using data to analyze markets and find the best deals can dramatically increase success in real estate investing.
• Identifying distressed properties and targeting motivated sellers is crucial for finding deals.
• Ariel Herrera's approach brings a commercial real estate mindset to residential real estate investing, providing valuable insights and tools for investors.
• Using data to identify up-and-coming areas and make informed investment decisions can lead to higher returns.
• Connecting with a community of like-minded investors can provide support and guidance in building a successful real estate business.

Chapters

00:00 From Tech Analyst to Real Estate Investor

11:19 Choosing Real Estate as an Investment

18:00 The Importance of Data in Real Estate Analysis

25:31 Using Data to Find Deals and Build a Team

30:04 Web Scraping and Automation in Real Estate

33:20 User Feedback and Improving Data Analysis Tools

38:32 The Value of Property-Specific Data in Negotiations

40:01 Streamlining Underwriting with APIs

40:59 Going Deep with Data Analysis

42:44 Ariel Herrera's Suite of Products

51:44 The Growing Trend of Walkability

55:30 Exploring Creative Real Estate Strategies

58:48 Using Ariel Herrera's Tools at Different Stages of Life

01:13:22 David and Clark's Recap of Interview

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In this episode, Clark and David discuss what to do when you find yourself in a real estate investment that is not going as planned. They emphasize the importance of staying calm, controlling your emotions, and not blaming others. They highlight that real estate can always be fixed, either with money or time. They advise taking your medicine quickly and not being greedy, as holding onto a bad deal can cost you more in the long run. They stress the importance of never losing faith and staying in the game, as every successful investor has made mistakes. They also provide practical tips for dealing with specific scenarios, such as refinancing or bringing in a partner. The conversation explores various strategies for dealing with negative cash flow in real estate investments. The hosts emphasize the importance of delaying gratification and taking a long-term perspective. They discuss options such as refinancing, renting by the room, lease options, and owner financing. They also highlight the value of looking at the bigger picture and using tools like an IRR sheet to understand the long-term profitability of an investment. The hosts encourage listeners to join their free mastermind community for ongoing support and guidance.

keywords

real estate, investment, mistakes, staying calm, controlling emotions, fixing problems, taking medicine quickly, not being greedy, never losing faith, practical tips, real estate, negative cash flow, delaying gratification, long-term perspective, refinancing, renting by the room, lease options, owner financing, IRR sheet, mastermind community

takeaways

• Stay calm and control your emotions when faced with a real estate investment that is not going as planned.
• Real estate can always be fixed, either with money or time.
• Take your medicine quickly and don't be greedy, as holding onto a bad deal can cost you more in the long run.
• Never lose faith and stay in the game, as every successful investor has made mistakes.
• Consider practical solutions such as refinancing or bringing in a partner to mitigate the challenges of a struggling investment. Delaying gratification and taking a long-term perspective is crucial in real estate investing.
• Using tools like an IRR sheet can help investors understand the long-term profitability of an investment.
• Joining a mastermind community can provide ongoing support and guidance in real estate investing.

Sound Bites

• "You will experience problems like this in the future guaranteed. If you continue to stay consistent with your real estate and buying and just know that everyone else has been there and it's not the end of the world. Again, this too shall pass."
• "Real estate can always be fixed. It just takes money or time."
• "You can get out of the mousetrap. There might not be any cheese when you get out of it, but at least you're out of the mousetrap now."
• "Your 10 year in the future self will be so freaking glad that you didn't sell that house at a $10,000 loss or a $3,000 gain."
• "Start thinking outside the box a little bit and maybe infuse them in different capital."

Chapters

00:00

Introduction and Recap

02:58

Staying Calm and Controlling Emotions

05:55

Fixing Real Estate Problems: Money or Time?

09:54

Taking Your Medicine Quickly and Avoiding Greed

22:48

Practical Solutions for Struggling Investments

31:55

Getting Out of the Mousetrap

39:07

The Goal Post Moved

45:54

Real Estate Will Bail You Out

47:00

Maintaining Your Mindset

52:27

Understanding Long-Term Profitability

57:19

Joining a Mastermind Community

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Summary

In the two-part series of the Burn Your Boats podcast, Clark and David candidly share their own screw-ups and F-ups in real estate investing. They stress the importance of learning from mistakes and provide actionable takeaways for listeners. In their conversation, they delve into common mistakes and screw-ups made by investors in real estate, such as overpaying for properties, cutting corners on renovations, not understanding comps, using cheap contractors, lacking multiple exit strategies, and not comprehending debt and financing terms. They also highlight the challenges faced by investors who purchased properties from new home construction builders. As a trusted source of real estate investing education, Burn Your Boats offers practical and professional insights for both novice and seasoned investors. Join the Burn Your Boats investor community to access exclusive content and resources for personalized advice on wealth building and management. Overall, this conversation provides valuable lessons for real estate investors, showcasing relatable examples and emphasizing the importance of learning from mistakes to achieve success in the industry. Link to Skool: https://www.skool.com/burnyourboatswealth/about

Keywords

real estate investing, screw-ups, F-ups, overpaying, soft costs, renovations, problematic areas, red tags, permits, real estate, investing, mistakes, screw-ups, overpaying, cutting corners, renovations, comps, contractors, exit strategies, debt, financing, new home construction

Takeaways

• Real estate investing is a long game and everyone makes mistakes along the way.
• Factor in soft costs such as closing fees, utilities, and prepaid expenses.
• Understand the time it takes for renovations and plan accordingly.
• Be cautious of buying in areas with problematic neighbors or issues.
• Understand the importance of permits, red tags, and working with experienced contractors.
• Be cautious of properties with unpermitted additions or inaccurate square footage.
• Have multiple exit strategies and consider the long-term rental option.
• Understand the terms and costs of debt, especially with hard money loans.
• Evaluate comps and understand the market conditions before making a purchase.
• Don't rely on one trick pony strategies; have backup plans and multiple options.
• Be aware of the challenges faced by investors who bought properties from new home construction builders.
• Join the Burn Your Boats Wealth community for access to free tools and resources.

Sound Bites

• "It's super exciting to own real estate or any asset when it is growing exponentially, the market is bubbling, you can see your profits rolling in monthly."
• "We're going to discuss all of our absolute mess ups over the years. If we made them, trust me, you're going to make them too."
• "Burning your boats using real estate is not something that happens overnight. You have to have the gumption and the foresight and the ability to hold real estate long term."
• "You overpay for a property, that means you have to underpay for other things."

Chapters

00:00

Introduction and Purpose of the Episode

11:44

Chapter 1: Avoiding Overpaying and Understanding Soft Costs

15:21

Chapter 2: Managing Renovation Timelines and Delays

27:06

Chapter 4: The Importance of Red Tags and Permits

29:03

Chapter 5: The Dangers of Cutting Corners in Real Estate Investing

33:30

Hiring Experienced Contractors

37:18

Understanding Property Value

43:52

Multiple Exit Strategies

52:36

Buying Near New Home Construction

56:40

Joining a Real Estate Community

57:50

Outro

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This Podcast Episode discusses the concept of hard money lending as a way to generate income in real estate without the hassle of being a landlord or the risks of flipping properties. Clark and David emphasize the importance of building relationships and maintaining a good reputation as a borrower or lender. They highlight the benefits of being a lender, such as consistent monthly income and protection through collateral. They also mention the risks involved for both borrowers and lenders, but note that the default rate in the hard money lending industry is typically low. Clark and David suggest that hard money lending can be a viable option for those who have capital to invest and are looking for steady returns. Private lending, also known as hard money lending, is a lucrative and low-risk way to make money in real estate. Borrowers who seek hard money loans include fix and flippers, developers, professionals needing capital for business ventures, and individuals going through life changes like divorce. Lenders in this space are typically retirees or experienced real estate professionals who want passive income and have the capital to lend. Private lending offers a predictable and sustainable income stream, and lenders have the advantage of analyzing deals and mitigating risks.

keywords

hard money lending, real estate, income, borrower, lender, collateral, risks, reputation, relationships, default rate, capital, private lending, hard money lending, real estate, fix and flip, developers, passive income, retirees, capital, borrowers, income stream

takeaways

• Hard money lending is a way to generate income in real estate without the hassle of being a landlord or the risks of flipping properties.
• Lenders have the advantage of consistent monthly income and protection through collateral, while borrowers have the opportunity to secure financing for their real estate projects.
• The risks involved for both borrowers and lenders include potential market changes, defaulting on payments, and the need for thorough underwriting and due diligence.
• Hard money lending can be a viable option for those who have capital to invest and are looking for steady returns. Private lending is a low-risk and lucrative way to make money in real estate.
• Lenders in this space are typically retirees or experienced real estate professionals.
• Private lending offers a predictable and sustainable income stream.
• "Put real dollars in your pocket every month without taking an extreme amount of risk"
• "Lending is hands down, without a doubt, the easiest way to make money in real estate."
• "Private lending is a low-risk, low-brain damage way to make money in real estate."
• "Private lending is mailbox money. It's stress-free passive income."

Chapters

00:00

Introduction and Setting

03:48

The Overlooked World of Real Estate

07:54

The Challenges of Real Estate Investing

10:13

Alternative Options: Hard Money Lending

15:06

The Magic of Private Lending

24:02

Understanding Collateral and Security

28:14

Utilizing Hard Money in Challenging Situations

29:11

The Benefits of Hard Money Lending

30:07

Who Borrows from Hard Money Lenders?

38:03

Retirees as Hard Money Lenders

45:42

The Shift to Hard Money Lending

52:53

Experienced Real Estate Professionals as Lenders

55:44

Becoming a Lender through Owner Financing

56:18

Risks for Borrowers in Hard Money Lending

01:04:46

The Personal Aspect of Lending and the Role of Relationships and Reputation

01:11:00

Lending as a Low-Risk Way to Create an Income Stream

01:19:44

Lending as a Source of Cash Flow in Real Estate

01:23:57

BYB Outro.mp4

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