A Simple Strategy for Rental Properties


Hey everybody welcome to listen. Moneymatters Los Blow for Bajan Job Lay. My 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 finance. You know the what Andrew I talk about. Is we like leveraging debt whereas like Dave Ramsey. Doesn't he's a completely against it and so it's like okay fine to valid approaches to personal finance. Which one fits you? Are you the guy living in a four million dollar or forty five million dollar mansion? Who can easily say to? Everybody knows your Dad's it's that easy. You know your fingers or you the kind of person who like if you WanNa live in a House. You need a mortgage. Yeah you know I I mean I kind of like you and I think it's to like there are some guys. I don't follow because their approach is maybe too complicated for me. Thank purists your Yep Yep exactly a purist right who who like yeah they make the old fashioned way and it's like I I don't I don't want to do it that way and I must not about like this like lazy. No as a fair approach. But you know I'm jerking a quadruple coffee style with vanilla beans and cocoa nibs which is definitely not a purist type thing. No it's actually against the Reinheitsgebot so it actually may be a great analogy because at seventeen percent. Maybe it will get you there faster. Yeah right right as we'll leverage yes if you would smart. Yeah so it is. I think it's really about it's about learning and it's about really understanding who you are as a person unite. What are you into our rental properties? Even right for you you know. Are you that kind of or is it just something you saw? And you're like well that person's making a ton of money on it so then yeah so then you know that I will and it's like well. Do you even like going on Zillow. Even I don't know that's kind of how I feel like I don't know I would agree and I think maybe one of the things that I didn't resonate with like look it. We've been doing this for seven plus years and finally made a course And you know I was like pretty much on an never course. Yes ever All the people who talk about Real Estate. That is their fulltime job they do rental properties. They're in there kicking ten minutes out there. I don't know replacing carpet. Whatever I have zero interest in any of that I literally don't even want to deal with decisions related to it. Yeah you when I did at one. I just wanted a really interesting. Investment would bring me income enough to make sell something to you know. Yeah okay well listen. I want to take a break and then I want to kind of get into your specific strategy. What you put together after doing all the research and buying up a bunch of properties and kind of just breaking it down in a very simple straightforward format as cool. Let's take a break. We'll be right back. It's no secret that we think diversifying. Your income is incredibly important as important as it is to diversifying your investments. And one way that we do it is by investing in rental properties. We've talked about it a lot on this show. And there's some of our most popular episodes now Andrew and I have done a ton of research. We've got experts and together. We've invested over one hundred thousand dollars of her own money in rental properties. We've even built an analysis tool to help us predict the profitability of a rental deal. And it's called investable and we're proud to announce that we've launched rental properties or passive investors. It's video course on exactly how you can passably invest in rental properties and like our podcast. It's incredibly actionable and details. Exactly how we both purchase and manage our rental properties. Finding the deal is half the battle the need to know your numbers to make a profitable investment for a hundred dollars off head over to listen. Moneymatters DOT com slash. Rei to learn more. That's listened moneymatters dot com slash. Rei for a hundred dollars off rental properties for passive investors. All right so the course that we created is specifically called rental property for passive investors. And I think that part of it the latter part is more important than the first part because your strategy is for the. Who Don't want to get into the nitty gritty of every learning. What jared said like every single aspect of of a house just in itself right like I don't know how interested are you in houses so so I mean I live in one year? It's cool and all that but I learned rather quickly that I can't add much value into a lot of these processes that already exist. Whether it's you know ruin often renovating or and break fix type things or like One because I would need to learn a ton and two because it's so cheap so cheap to hire property managers or some maintenance personnel will do a damn good job in Georgia to replace carpet. Whatever that I on an hourly rate like I just can't compete. It's too expensive for me to put my time in there. So then why did you even think about rental properties if you if that was a deterrent? And you knew that. And why did you choose this as a money making venture I you know? The the prevailing wisdom like we go to our tax person and he was like basically like everyone knows about rental properties by. Everyone owns a home or something. Sure you know. He's like advising us. We have to live close to the plays. Because like what you know. There was a person. They the rubber ducky whatever slipped into the toilet and flush and it overflowed and he had a rush there in the night. And just never be me. I would never be the one who got up out of bed period right and I'll should have deterred you from ever doing right and so I was like wait isn't isn't there's somebody who will wake up for you and go and do that is in their job for that. What would happen if it happened in your own home? Would you be able to know how to we have to evacuate? I own a snake right okay. Well that's that's something I think the thing is like So you knew that. Yeah you knew that. I knew that it didn't make sense for me to do that. Work Okay. So how did you start with? Let's go back to your first rental property right What was the first step that you took in in like you had capital right so the first thing is like you know get capital right? Did you have a budget going into it? So we do. What our budget kind of became around a properties that we were shocked at how cheap they were. We WanNA buying a property. There's like about fifty thousand dollars and so I didn't even know places that cheap right. You didn't just spinning Globe and like put your finger on. You know you know. How did you know where my starnes meal was investing there and I was like? Oh Wow and I saw the returns and answer your previous question like why even dive into any of this. It was because the returns were ridiculous. I mean news this. Yeah percentage wise like first of all just in terms of like cash that you pull out monthly you know after you net out all of the bullshit of vacancy in fixes and whatever but then there's also appreciation and they're paying the mortgage free and so like math wise. It was like why couldn't understand why everybody wasn't doing this. And I think it's all of the dead ends and like over learning just the whatever or no I think it's the capital. A huge part of it. Okay for sure but people get mortgages all the time for places they live in. Yeah and You know you don't need that much. There are plenty of people who have saved twenty some odd thousand dollars in their life. Yeah and so. That's really all you need. One hundred thousand dollars property so I would say like twenty to twenty five is probably what you need for a hundred thousand. I think I mean to me. It seems very risky. Because it is a lot to do with you. You have a lot of capital involved. You know. They're to go wrong but then again like that would be. I mean because I feel like investing in ten thousand dollars in a in a huge fund like the vanguard total. Yes so thank. Our total stock market fund is kind of like the tried and true in. I want to say that we are extolling that before it was cool and trendy. You know but you have to remember where I came from where I started working. I worked for this wonderful place that I loved called Leman brothers and then they went bankrupt. You blew my mind because every was smarter like the smartest people I've ever met and I became incredibly income insecure. I realize like how this whole lifestyle and all these commitments that I made and it could go away instantly ends. If you kind of like my last seven ish years it's literally. How can Andrew obsessively build income in every avenue possible and make himself like invulnerable to this stuff? Right and ultra diversified. Yes I mean you you know how ridiculous I am. With all the stuff and rental properties a is a great way to take the online business and we talk about all my business that you kind of have to get in there with like your Hickox and mind for Shit like you. Do we write the same way. You could approach rental properties that way. If you want to write actually you could. I love building this stuff. So I don't view it that way and I guess the way I viewed it is because I was GonNa say you know a lot of people on business. Don't know how to use wordpress at all and they are customers for Lhasa. Like yes you can go and buy but I guess because we build there and then we make money from it. I needed a place to plug the cash that we are earning and I didn't want to just grow this network number into infinity of dollars I would never touch anyways. I wanted income so that you know if say Co vid twenty right or something came along or nineteen comes along like. There's there's enough plates spinning. I wasn't planning for a pandemic but I was planning to lose my income right but okay so you got this guy who who points you. In like a place of rental properties you have some capital right. And you're like all right. I'm going to do this. I'm going to actually go through with this. You hadn't in hard for weeks of court and you had alison spreadsheet right. I was her name. Yeah Okay and so. This is what you're armed with really is like you have a guy you can ask the question to every once in a while. You have a spreadsheet that kind of keeps you in line and and you know where to look so I bit more because I had. I had neil. Who's sitting next me a work? Ask questions to the you know the Internet at large and I had listened my matters at the time and so I was asking Alison and kind of anyone. We had a community and I was asking people in listen moneymatters pro. You know But whatever this guy bill said and he wanted to sell a property and I was aware he wanted to sell the property. Okay and so you just and then that was it. You did it till we want them doing it. Yeah and what did you learn from that experience because you weren't you? I would say that you and you'd probably argue this were you. Were you fully equipped to even know everything? No I didn't know everything. I didn't realize the implications of some of the decisions that I made. This was such an insanely high yielding property. And I don't know I mean we've talked about a lot like there were no appliances in there like it was. It was so bad it was literally like four walls and a roof. I thought it was hilarious. That someone was gonNA come in. Pay Me what was way more than was almost like almost four times. My mortgage payment. They're gonNA pay me that to come and bring appliances and live there. I thought that was the most ridiculous thing ever it. Sounds MK and people did you know? But then you're obviously a bringing a certain type of people into the House and so they're all of these issues that you would do. You would never know right. And so it's like you know everyone wants to chase his highest yielding thing but there's a lot of downside to that because it actually wound up not being. I wanted to be passive and having something that's so high. Yielding is going to be riddled with issues. Because it's so risky right so he's just active yes. I went from a C. minus neighborhood to really trying to look maybe d plus to like looking at more be level. Neighborhoods You know and so you learned a lot. I mean you would say that like you had the school of of your rental property not being a bust by any means but being like a hardcore learning experience. Yeah like we have made money on it. It makes great money most years but It has been stressful. Where if you know me you have heard me joke about the whole like do you know an arsonist right right? Yeah would I love to just have that burned down and the insurance money and then put it into better property? Sure of course you know. But you're you're stuck with your Your initial decision. Yeah I will say like. I read for years about brewing beer before even brewed a beer and then I wrote a beer and it was terrible. It was everything was I. It was in the reason I procrastinate so much on starting because I read so much and it became so complicated in my mind right I was like oh I'm GonNa need this. I'm GonNa need all these weird cases beer is really really simple right. I and that was and then as soon as I did it. I became very quickly. That after like four or five batches. I'm like okay. I understand this now because I've done it. It's experience and I just want to say and this is something I've watched all the Marcus. Ramona's The prophet episode literally actually watched every single shark tank episode Wile feeding a baby and It's a good feeding my baby yard. And there's one thing that they always beat into every entrepreneurs head you need to know your numbers And if you know your numbers you can have a successful business. And the exact same thing is true with rental properties and so you can make all these dumb decisions like buying a property with no. I think you're GonNa get a really nice person. Moving in their hauling freight in and out of all other places they've rented you're not but if you know your number is your property will at least be profitable and if you know your numbers you could build a portfolio of properties that is resistant to running cashflow negative. And so what are what do you mean by that? Specifically what are the numbers like? What are you? Just give me a few choice numbers that you really need to know? You know the the amount of profit. And the percentage of profit that you make and the reason it's a percentage is because you need a certain amount of buffer over your mortgage and you need to have fair assumptions on things like vacancies and you need to also control your cost like you could buy four hundred thousand dollar place and make a killing in terms of rents. There are buildings in hoboken. You go buy for two million dollars with three units and I'm sure you could be profitable with it. But we are strategies focus on hundred thousand dollar properties because the more properties you have you get this portfolio and so it's really one knowing how to be profitable then setting it up so that there's so much protection from failure and reduction of risk that You'll be you'll most likely be good. Let me ask this last question I came to you today and I said and maybe I'm income needed today. I don't know I said I wanna I wanna you know. Obviously you know. I have a rental property. The whole the whole community knows. I have a rental property. I'm Labor that doesn't exist when I'm like okay. I want to buy my first rental property. Right I've not. I've not listened to bigger pockets. Not Listen to Paula. I've been listening to the money matters for the first year and I skipped a few years I started listening to the last couple of years. Only to the GEO Vonda was on. I didn't really care for Thomas too much. No I will like. Let's say let's say I came to you with that today. What would you what would you if I had you know you're like okay? Here's how I would do it. Just kind of like rapid fire. Like how would you tell me? Where would you tell me to start? At least I would start looking at properties in specific name. Hoods you get an idea of what good is. What is my tool of choice here The reason I say roof stock I mean look roof sock pays us but they are also the only online marketplace where you can find all these properties and it's cheaper for the seller and the buyer which violate a lot of good inventory. Goes in there so you. Will you tell me like you wouldn't tell me you need this much capital you would? You would say look for the property I look. I think that the strategy that we've outlined is incredibly accessible. I think it makes a ton of sense. Yes I can afford much larger properties. But I don't WanNa take that level of risk That said I you know I think you need to look because maybe it doesn't resonate with you. Maybe you WANNA buy one property by a multifamily. I don't know Because and you and you decide what your budget is after you've found a neighborhood you know what the prices are like okay. I'm going to need ten grandmother. Need Twenty grand whatever and then maybe you maybe if you stay about four but you know where to look back when you're ready exactly and from there like am I. Do I buy through rootstock? Would you recommend that as my first time? Would you recommend me okay? So here's like the two ends is so stock essentially like white gloves the transaction for you though though like you know help you pick property managers help you make pick property insurance. Get the closing people into your house. You could literally just signed the papers like in your living room Or You could go through a real estate agent. Who's picking Shit out from MLS and doesn't really care about Yo man? I never thought thing sounds right up my alley. We'll look serious truth. Is Everyone News as to? Podcast has the ability to use websites on the Internet. And so if you're going when you're going to try and find a place to rent and you're doing your research the the real estate agents that's the same shit that they have right so you're looking at the same thing and so if you can look what they are looking at but you know what you want you might as well just do the whole thing how do i. How do you know what you want your? I'm I'm coming to you with nothing right. So a big part of the course is kind of defining what we call a quote. Great property like what that is And I think it's really important to know what you're looking for or it'd be there's unlimited amounts of houses out there shooting dark. Yeah and so I think once you have an idea of what you're aiming for Then you could start to look properties and maybe a week or two weeks nine. We're GONNA pull the trigger remotely. You're just looking at pictures seeing bike details on property Josse. Yeah what do they eventually sell for? Maybe you throw them Super Low ball bids in there you know. I think like you can't like we. We buy places in Georgia. I feel like we know the neighborhoods Georgia we look. You can't pick a place in Georgia if you don't know what houses in Georgia look can go for. Yeah and rent for and that's it. That's the only numbers you to look at. I think I think Yeah PURCHASE PRICE AND RENTS ARE. Obviously the two biggest. Yeah and then from there. What do I do say I find a property that this is cool? I like this. This feels affordable to me It looks like they're getting good rent. maybe I I mean I think what you're not saying is like you know you had the spreadsheet but we. Also there's a tool called investable that you bill Ryan so investable was built because Alison spreadsheet became cumbersome in specifically comparing properties. Where where like what happens is like I WANNA buy one property? I'm looking at so many. And maybe this one and then. I low ball doesn't work out since you're kind of like playing with lots of potentials and so it really helped me understand which made the most sense. Okay side by side We said like the two numbers you know. Purchase price and rent. There's a one percent rule he take the rent divided by the purchase price of one percent of greater. It's probably a good deal but there's so much more can seize and property property tax. Yes you're buying around Chicago. You're GONNA get crushed and taxes. It might not ever work out for you the way you'd like it to A rental property. And so you need to plug these things into investable or spreadsheet or something and see if after everything's calculated if one you're gonNA make a profit and if two there's enough buffer there for bad shit to happen And you to still either make a dollar a month right. Certainly not lose money right and that's the whole name of the game. Yeah right and so. Let's say I find that property. I all the numbers work out. What are you telling me to do like what's my woods? My steps for next piece of it and then when do you let me go like when do you go? I like I don't know man you're on your own. Yes so you make a bid you start kind of but not insulting and of course we have guidelines for stuff like that. Once the bids accepted ru sock will carry the torch forward for you because they're very incentivized to make sure it It sells right sells If you're with a real estate agent. They would probably be the one to do that. But you'll need to get a lawyer and Blah Blah Blah and you close at rooftop properties generally have attended in there and so then it just kind of off to the races Like you just start collecting check essentially I'm sure that there are properties on. Mls and stuff like that to Maybe harder to come by and you're saying even set you up with a management company. 'cause there's probably already one in there and you could choose your own and you could even self manage but they have the strength. Criteria of what they think is good and in every neighborhood. They've neighborhood being like Atlanta Georgia. Yeah they they've identified the top three that fit the criteria. They've negotiated deals with. And so you kind of get a go in with somebody that's GonNa treat you not like Matt with one. Property Yummy can screw over. But as a customer of ru stock of which there are a shit ton of properties and they better take good care of you because rootstock has openly said you can escalate to them and they will go to the property. That's really compelling yes. That was the thing that's sold it. I May I think I had Zach on the phone. I ask him so. Wait a second I have. You talked to a property manager if I wanted to. I want the relationship. Yeah but if they'll get involved you know okay once I buy this property. Then then what is paying the money and collecting? I mean look before we've set up an LLC we've done a few housekeeping type things but you're going to build a preserve account and you're just going to collect a check and then answering email onto your property manager exactly and usually they tell you what I guess the good ones Tell you what they think should be done. I almost always agree occasionally. Ask a question There you go. Yeah I'll see a quote you know and it's like fix a toilet two hundred dollars. I think we can get this cheaper. Yeah I don't know I don't care I'll probably pay it anyways. But then they're going to go and find somebody yet. Another quote you know. It's so funny. 'cause I hear that and I think about my relationship with my property manager and I what we do we like on the phone and we just had a call because my hoa wants us to put in a vent covers over like the dryer exhaust and stuff. And I'm like wait. Do I even have to do that? Is that is that? Because that's like Iona I'm an HOA. Look there's I can't do any else to the outside of my house but I can do that so I look you know so I look into that and it's like well because it's a very specific. Find out all this information. Talk to my property manager. He's giving me information. Not Something googling before I buy my first rental property right exactly right and it's just like and that's the thing like I've learned so much about owning rental property because I I went through the school of hard knocks of figuring out and I still don't know anything and I'm even more nervous to to get into actual rental property because of it but I think a killer team. Yeah we'll know those things. Yeah and you can just defer to them. I don't think that you should know a shouldn't have to research no for no but then you do that afterwards and the an only it's only on a need to know basis you know it's like oh it's like it's like it's like what do they call it like on demand learning. It's like John Wayne. Need to learn and time learning just in time learning. Thank you when you when it's ready when you're ready to learn that one thing 'cause you need to learn use in two seconds you find one source you go cool? I'm GonNa go with that and you move forward and the amount of times I've had you know like I was collecting rent via check. And I'm like oh I went on went on facebook. Posit that Shit. Yeah I went on facebook and I was like. There's gotta be a better way right. Facebook people and they're like yeah COZY DOT COM. Oh cool and it's like okay and you learn later. Yeah anyway so that was. That's pretty much it. I wanted to address that from Jerry because I thought it was an interesting question not necessarily about rental properties in general but more about learning and learning about things to do with investing and money and all that like. Can things really be that simple? Yeah if you make it that simple. We hope this show is mostly that we. There's a million ways to handle your finances. We have our way. Yeah the way that we think you know you should do it. And then way in my way or are slightly different too. Yeah Yeah and so we follow you. Know the Maui the NGO whatever. It actually turned out to be rather easy. But if you WANNA learn the Angela. The Matt way the Dave Ramsey way right the Michael Jordan way like becomes very complicated. Well it gets easier right and then it's all about. How do we deliver that information? So getting people is hard. I mean it's it's like you can over. Educate you know if I sat there and told you how to make beer. I'd be like all right. Well you got to talk about water. Chemistry I man because it's like no issues I don't even know could even potentially be. Yeah exactly yeah so jared. I'm glad you took the course. Bogo had you want to say I was just going to say I I it wound up being. I guess kind of an ad for the course. Although you know I think it talks too. Many things sure If you are interested in the course yeah you can go to accom- are Ei from your state. Investing you'll get one hundred dollars off and lifetime access to investable which the tool that we built to kind of like run analysis on all these properties. Yeah so and again. Thanks jared for your question because again I think it speaks to our larger point about learning and education. And if you missed anything we'll have everything in the show notes I know we covered quite a lot in the second half and again a lot of that is covered in the course But we'll have some of in show notes you can either check your preferred podcast. App or you can visit lists moneymatters dot com slash show. Please subscribe wherever you normally listen to podcasts. And tell your friends about us If if they if you think they might be interested point them to your favorite episodes. Maybe somebody WHO's interested in a rental property? Maybe this is the the kick in the ass they needed to get started. And hopefully they'll become subscriber and if you have any questions or topics you WANNA talk. You want us to talk about on future. Episodes of the show Different topics of the matter. Email us at the money matters dot com and of course all the tools and resources that we normally mentioned on this show are available at listen moneymatters Dot Com all right later Andrew Letterman. Please tell your friends about this show.

Coming up next