Jarrett, Andrew, Daniel discussed on Listen Money Matters
Name is baton. I'm here as always with Andrew. Andrew how are you? What are you drinking? I am excellent in no small part because of the rise and grind quadruple coffee style. Ooh boy beans and cocoa nibs. I'M GONNA go slow okay. I was GONNA say it's the only one I had in the fridge and we have beer coming but say you're coming today to not today though. Don't get low coming from Kelley and I don't think they shipped yet. Oh my life next. I'm a bud or something that's a nice nice thirty pack. Yeah do you do you get drinking a double? I so I'm not too far off from you called shelter from Outer Range Yeah so we're GONNA take it slow as well but today when morose done outside. I'm gonNA drink more beer. That's right so today's catchphrase comes in from Daniel via email. Thank you Daniel appreciate that and to I don't speak Spanish. What does that mean the lazy work? Double yes and I was like I was talking to staff to Steph speak a little Spanish and I was like. I said flow hosts. And she's like what the hell apparently means flip-flop literal translation so I if I if I said it incorrectly. I'm sorry but maybe we'll with a better pronunciation. Maybe I got maybe a nailed it. If you did say it wrong doty malice say of right and you loved it. Don't Ema they're going. Well all right so today. Speaking of email we're talking about are simple strategy for owning and managing rental properties. And we have a course called Rental Properties for passive investors and. We got some feedback on it via email. And I think it's important to address this feedback. I just want to say that you know. We took a liberal amount of time. Putting this out there I was wickedly nervous. And as with every episode we put out or poster everything with anxiety and think. It's just no good ever thought about the worse any anything that I've ever published in my life. I'm pretty sure his no good. You're the creators dilemma. Low confidence and yes so yeah I course we took a long time wasn't very confident but it's out and I'm gonna read an email part of an email from Jarrett is was also not that we weren't confident in the content that we're able to deliver it well correct and this email from Jarrett he. He loved the course but he had some. It was kind of like shocking to him and his his question was. Could it really be that simple and straightforward? Now I'M GONNA go into more detail so he says everything you all said makes so much sense but then again it has to. It has the negative effect of making. It seem almost too good to be true at the same time bigger pockets afford anything etc all have dozens of articles and podcast episodes covering hundreds of different hyper-specific real estate issues. What your course is the first that I felt Can actually take action on. They make it seem like you have to learn every last aspect of every single. Damn thing out there and if you don't you're going to get into a six-figure disaster it talk about having to go to real estate meet UPS. Learning the neighborhood intimately becoming an expert on every single element of house etc etc. All of these things by the way have turned me off to the whole idea for the record so yet yours seems to rationally. Say That you only need to take a guided series of steps. Is it really this easy? Our websites like big pockets filled with fluff and noise to get clicks. Or is it just that your methods and strategies already most of what they say into account does roofs? Just do most of the work for us. I guess I've been trained to be so cautious on real estate that I am naturally skeptical thinking there has to be more that you're not covering even though I love the course now I wanna that was from Jarrett I wanna say this is not some big ad for this course. I think there's a really. There's a much deeper issue here with money. General yes and especially any sort of complex topic like I mean. Real estate investing scares me personally. I think it's it's and the reason scares me because it's so there's a lot of capital you don't know what you don't know a lot of money on the line right But I want to ask you a bunch of things because you jumped into this head. I you bought your first rental property how much you know because sites like bigger pockets like they have a ton of content you could learn for ever and now by a single property right. What did you do like? What was your steps to learning first before you jumped into actually by. I was talking about with my friends who one had already bought one and was buying his second like talk to them for months about it. Did incessant amounts of research. What I listen to the bigger pockets. Podcast which you know. There's a lot of good stuff in there but perhaps a challenging to get through It's just a lot and then you don't know anything. What is what was the most helpful part was it. Was it listening to podcasts? Was it just like literally having sort of a mentor right? You know. He didn't he didn't know like much more than me. And to be honest I we kind of just like jumped into the fire and we learned a lot like cutting our teeth on it. I feel like you know. I learned a lot about the burr strategy and I was obsessed with the burr strategy. Before did it which is by. Rent Bob's I by rent repeat As this whole way of like putting money and pulling most of it out it's like it's the philosophy right yet and it's a really great strategy but it he infinitely complicated on top of just buying picking a property right like I just. There's so many ways to down in the right and you can And you can basically like learn forever. Yes you could just continue to learn and never actually pull the trigger on anything. It's trying to say like you're an expert in science which signs outside Earth size ever end and then you know this. It speaks to that. 'cause I'm a home brewer? I know a lot about beer to make beer. I am forever learning. It doesn't mean I'm not sitting there making beer making beer but I'm still learning every day in changing my process. The next time I make an exce batch and you know the fermentation of stuff's involved. Does that mean that you can make wine? Doesn't mean you can't make wine where you're probably not going to be that great at it because you have done it and it's not a focus now okay. I want to kind of drill into the learning process more because specifically for you because if I were to buy rental property right now and I I was part of the course I took the course essentially i. You are the person I wouldn't even. I wouldn't look up anything I would just ask you right. Is that kind of how you approached. It was with with your friend who who did. Because it's like well somebody needs on it. So yes so I worked with him but to be perfectly honest I learned the most from someone that you may remember a million years ago. Her name was Alison Carols. And she was like a real estate expert on listen my imagine the beginning. Some of her Articles are still on the site and she had owned. I think it was eleven properties of the time. Okay and she had a whole spreadsheet and process that she used and so I really adapted her process to fit my needs. I pretty much following all of her exact things and then as I went through it. I was like not this this. I don't want to do that. I don't care about this and I kind of made it more me. She wanted to be real estate. I just I just wanted to make money whereas wanted to be successful in it but didn't WanNa live and breathe. Do you think that you had to have a foundation of some kind of knowledge before even going and learning about rental properties? Yeah Yeah I definitely what is that? So I think it's just like basic understanding of properties rent and like the value of things I think a lot of people go into buying rental properties. Where like hey I heard this guy. He makes money on rental properties. This houses for sale. I think we could rent and make some money. Yes and no you. Can't you could definitely by rent it but you can make money on okay and in like all right. So what was the out of those pieces like? Yeah you you learn how to buy properties. It was it was allison spreadsheet. That really spoke to me in that it was I kind of lean towards numbers and I understand things in that context but it really set I. I liked her approach where she had Limitations on the deals that she would do based on the numbers says you put in the ramp racing the purchase. Pray send you know. She had assumptions for like vacancies. You boop boop put all these numbers in and it was like she had boxes that would be from green to Red Right. Radian of like how much you should do. This deal So Sheila Binary choices and it was you know. And then what would happen is like this? I would clone the spreadsheet into other tabs and compare these gradient numbers against each other and I was like. Oh this is such a better deal right. I also think too like you. I mean look. We've been doing this. Podcast for however many number of years and you have a base knowledge. You've been learning about money your whole life. You have an understanding of the dollar if you will right you just have a different You just have a different philosophy or whatever's in your mind that makes you who you are you just think about it differently the even I do and probably anybody else right and so I think by going into it with that is you're not you. Didn't I think to point out what you just said? Which was you know yes you can. You can find a property. A binary choice. Yes or no. Do I buy the property? Yes I buy the property. Will you make money on it? No you know it's there. Is that possibility but I think the way that you look at things so unique. I want like a financial model to put it in. Yes but you wanna you WANNA constraints yes right. You got those. And that's what the course covers. It covers those constraints big-time tire end to end how we think about a process. Yeah so this is kind of similar to the pool industry weirdly when it comes to learning And it also. I've been making bread and so I wanNA just give out to like examples. One a lot of people who come to university. I my my goal. There is to make learning about ucare incredibly simple because who the hell wants to sit there and learn about water chemistry. It's like no it's my clear or is it not clear and I don't care why I don't care about the science I don't want it cloud into work. I wanted to work okay. So they don't need to know all the INS and outs so what I try to do. Is is approach it with a very like you know like you. I put in a box. Like here's what your numbers gotta be. And here's and that's it now. The problem with that in when you like people would come into my store when I worked at the store and they would have a problem and I would be like. Here's your steps. Boom would go okay. The problem is they would go across the street to another pool store and they would ask them and that person give them a different Strategy RIGHT PROBABLY OUT. Both of you will now. They don't know which and then he tried to mix them and missteps are all out of order because one person has their way of doing it. Another person has their way of doing. And now you're mixing chemicals that shouldn't be mixed and you get were confused and so what you do is and you ask for a third opinion and you keep going down this road if you're somebody. Who'S LISTENING TO BIGGER POCKETS? But then you're moving over to afford anything and you're listening to Paula. You're getting I'm sure you're getting two different approaches to different philosophies to the strategies right as not to say that one is even better or couldn't be successful it. Just it's it's whether or not it fits you right if it makes sense to you as the person learning it right so yeah and kind of go a little bit more on learning and then after this after the break I kind of wanted to talk about the strategy briefly kind of get it. Kinda get into it. Oh if I may talk about Paula's approach as well which is a great approach and pauses And she's been very successful but it's like kind of a very scrappy from the beginning. All hands in where she created all the value herself. She found the property. Got It for a wicked deal was kind of in steeped in everything And that's totally something that is viable undoable. Riley into it. Right yeah you could find wholesalers or you can go to foreclosure things and you can try and get that one deal. It may take you incredibly long time. I just didn't WanNa do that. Yeah you know. Yeah and here's the thing to consider personal.