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As an entrepreneur, small business or practice owner, or high-level executive, do you ever find yourself wondering if you’re using all the tax, entity and wealth strategies available to you or if your investments are truly producing all they could be? Happily, you don’t have to put up with that any longer. I have the solution. Real Money Talks! We're having the right conversation about money.
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Now displaying: October, 2018
Oct 18, 2018

Real Estate is one of the best ways to create and grow wealth. My friend Lance Edwards is here to talk about how to get into small apartment investing and create wealth by scaling up. Lance talks about the three methods for creating deal flow including his secret weapon.

Lance Edwards is a best selling author, real estate investor, teacher, and radio and TV personality. In this episode, he breaks down what small apartment investing is and how it can be so much more lucrative than single family home investing. He also talks about the advantages of direct seller negotiation including down payments, interest rates, and no personal guarantees.

You can find Lance here:

Deals & Dollars Club
Lance on Facebook
Lance on Twitter
Ask Loral

Show Notes

  • [01:50] Lance has been involved with real estate since 2002. He was in the process of trying to find ways to make extra money.
  • [02:38] His first deal was a fourplex with no money down. Within 2 1/2 years he had done 50 deals using other people's money on a part-time basis.
  • [02:55] Within three years of his start in small apartments, he was able to retire from a 20 year corporate job.
  • [03:02] He has been doing real estate full-time since 2005. He has been teaching others how to do the same thing since 2007.
  • [03:16] There is so much less competition was small apartments than single-family. You make bigger numbers for the same effort. Plus you can buy these properties for cash flow or flip them.
  • [03:45] My best-selling book is How to Make Big Money in Small Apartments.
  • [04:37] Rental houses don't have the cash flow that small apartments do. Apartments are built to be income producing vehicles.
  • [05:17] You can buy 10 houses or one 10 unit apartment complex. Start with a small apartment building and scale up. It's all very simple math.
  • [06:36] Learn the business and understand the basics. Then decide if you want to do it yourself or have us do it for you. We do a lot of done for you services to find sellers and buyers. At the end of the day, you need to find sellers and buyers or investors.
  • [07:33] Three methods for deal flow are websites, brokers, or direct mail.
  • [08:06] Brokers can give you access to pocket listings that are not available on the public websites.
  • [08:12] The secret weapon is direct mail. This is sending mail directly to an owner asking if they are interested in selling. This cuts out the competition and gives you direct contact to negotiate for things like seller financing.
  • [09:03] Negotiate your own down payment and interest rate with no personal guarantee.
  • [10:29] When you sign a personal guarantee or recourse loan. The bank can take your property and come after you personally.
  • [10:53] With seller financing, you can purchase a property with monthly installment payments for a few years. There is no credit check, everything is negotiable, and there is no personal guarantee.
  • [11:13] If you default on the note, the seller takes the property back, but they don't come after you personally.
  • [12:22] Flip one, flip one, flip one, hold one is the path to financial success. Create deal flow and flip properties while you cherry pick the ones you want to keep.
  • [13:39] Use other people's money for leverage. Use private investors or self-directed IRA investors. Tap into other people's resources. The only thing that holds you back is deal flow.
  • [15:15] The investor can be a lender or an equity partner. They loan me $50,000 and I give them 6% interest. An equity partner may get 1/3 of the property value and income.
  • [16:56] You can negotiate the terms of your loan with your private lender. Deferring interest will boost cash flow.
  • [18:01] Small, midsize, and large apartments. Corporations own large properties. Midsize is the space of mom and pop investors.
  • [19:39] Everything is the same with the midsize. There are just more zeros on the check.
  • [20:18] Forced appreciation. Increasing the net operating income. Raising rents or reducing operating costs. Raising occupancy also raises value.
  • [25:16] Don't make the mistake of thinking that you are not qualified to get started.

Links and Resources:

Oct 11, 2018

Amanda Holbrook from Specialized IRA Services is here with me today. We are talking about self-directed IRAs. We go into the details of how you can open one or how you can transfer an old 401(k) into one. True self-direction is not limited to stocks and bonds. Self-directed accounts allow you to get off of Wall Street and onto Main Street by investing in tangible assets.

When it comes to making and keeping money, tax advantages as well as having capitol to invest are major advantages. Having a team to help you set up something like a self-directed account can make it easy to begin earning and saving like never before. Amanda shares strategies and clears up misconceptions about this smart retirement strategy.

You can find Amanda here:

Ask Loral

Show Notes

  • [02:27] Amanda started out working in the conventional lending industry. She then discovered peer-to-peer investing. Then she found out with the self-directed IRA, we can be private lenders to each other.
  • [03:11] Self-Directed IRAs are the vehicle that lets you invest in something that you know.
  • [03:31] True self-direction is not being limited to stocks, bonds and mutual funds. You can also invest in the nontraditional space.
  • [04:34] With a self-directed IRA you have a lot more creative opportunities to get double-digit returns on your money.
  • [04:51] Anyone with a social security number and earned income can have a Roth IRA.
  • [05:16] With an old employer 401K it is to roll it into a self-directed IRA.
  • [05:39] With a Roth IRA you pay the tax on the seed not the crop.
  • [05:44] Get your kids started with a Roth IRA. It's how to build the trust fund babies of tomorrow.
  • [05:52] The entire point is to get the money off of Wall Street and back onto Main Street.
  • [06:28] Get professional pictures of your baby done and issue them a 1099 for the Roth seed. The limit for the year is $5500.
  • [07:13] If this $5500 grows at 10% until your baby is 591/2, you have over 2.5 million of tax free income for your child. Take action today to set your children up monumentally for tomorrow.
  • [08:12] There are three steps to moving a 401k. Once you have deposited the funds, you can pick a non-traditional investment.
  • [09:20] There are no tax consequences as long as you keep the vehicle the same. It's a lateral move.
  • [09:45] Self-directed means you are not limited to, stocks, bonds and mutual funds anymore.
  • [12:04] A Roth IRA is a big piece of how you can keep your money. The taxes are already paid.
  • [12:24] A Roth solo 401(k) is the account to have for self-employed people. You can put 18,500 in the tax-free portion and up to 36,000 in the tax-deferred portion.
  • [13:35] Your Roth IRA can also be zero cost capital. You can take a loan out and pay yourself back.
  • [14:47] You can bite tangible assets like gold, real estate, and other investments. You can have tangible investments that are insured in your tax-free account.
  • [15:58] When you purchase a property and do a deal you do it in the name of your IRA. It is all about how you title the property. All expenses come from the account and all profits go back into the account.
  • [16:49] You can also be a lender. When the money is made payable it's payable to your account. This is how the money grows tax-free. Month after month after month.
  • [17:41] Things that can't be included are life insurance policies, collectibles like artwork, and you can't fund yourself in a business dealing.
  • [18:30] You can't benefit out of the retirement account in the here and now. Your spouse is also off-limits. Aunts, uncles, nieces, nephews, are all okay to do business with.
  • [19:33] Things to look for when finding the team. Find people who practice what they preach. Find innovators who also execute.
  • [21:27] Knowledge doesn't just make you successful. Execution leads to the success.
  • [21:45] Look for experience behind the table. Make sure you are dealing with a fully licensed custodian and make sure you understand the fees.
  • [22:23] There are set up, annual, and transaction fees. Specialized gives unlimited buy sell transactions for a flat fee of $250 a year.
  • [24:17] Think about whether you want to just dip your toe in the water or get your whole family on board with specialized platinum service.
  • [24:28] To take action, you decide, deposit, and direct.

Links and Resources:

Oct 4, 2018

If you feel like you missed out on some of the big earning opportunities of the past, you are in luck. There are three big learning opportunities right now. The cannabis industry, blockchain technology, and cryptocurrencies are changing everything. There are huge opportunities in this space.

I’ll be in Las Vegas in October talking about these opportunities with a team of experts. I'll also be at the Big Table Mastermind in November. My guest today is Don Beavers a researcher, coder, and a crypto expert. He describes himself as a guy who knows a lot about math. Today, we talk about some of the new opportunities that are opening up and how to get in on the ground floor.

You can find Don here:

Ask Loral
Don on LinkedIn
Don on Twitter

Show Notes

  • [02:11] Blockchain is a method of data storage. It's a distributive ledger. It's like a giant spreadsheet that is duplicated thousands of times on a network of computers that also keeps it updated.
  • [02:54] The data is public and easily verifiable. It doesn't have a single location or a single point of failure.
  • [03:40] When transactions occur, the data is encoded in digital data or encrypted. Each block is connected to the one before it and the one after it and it creates a chain.
  • [04:52] Blockchain provides you with an immutable indelible record of your transactions or data. A software interface using blockchain will be customized by the industry.
  • [06:51] One way to invest in blockchain is to invest in companies that are already adopting the technology. You can also participate in the industry by offering your own tokens for services.
  • [09:36] Blockchain and Bitcoin are two different things. Blockchain is the technology behind crypto, but blockchain can be used for other platforms.
  • [11:05] Don got into blockchain, because he is building a rocket and wants to track every component going into that rocket.
  • [12:14] Blockchain is so economical and easy to work with that you can use it to track every single instance of something. It's perfect for financial data and medical records.
  • [14:27] Don got into blockchain when one of his friends website was hacked. The data was encrypted and the hacker demanded bitcoin.
  • [15:22] He was able to recover the website and started looking at the technology behind bitcoin. He realized the potential for blockchain.
  • [15:55] Blockchain is going to make the world a better place.
  • [17:11] One of the most amazing opportunities out there is pharmaceuticals and the marijuana related industries.
  • [17:29] This industry requires a large amount of data acquisition. Blockchain is the perfect solution to handle the infrastructure for this data.
  • [18:18] At the October event, Don is going to talk about how blockchain is going to make the cannabis industry viable and about cryptocurrencies that are safe to invest in.
  • [19:12] When you get to know blockchain, you will catch the excitement, because it is going to absolutely change the world.

Links and Resources:

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