What happens when real-estate turns into
a total nightmare? It does for so many people. And today, I’m bringing a guest on
to share his experience. And what we’re doing to turn that nightmare into heaven. Alright. Check it out guys. I am sitting
here with my buddy Craig. Craig and I have just partnered up on some deals. And
some times before we can really start building a productive new portfolio, we
got to go back and dismantle some of the other stuff. You own a bunch of
out-of-state real estate, right? -Yes. -You live in California? -Yes. -But you’ve
got properties in where? -Kansas City, Missouri. -Kansas City Missouri. And who
does a lot of the management on those? -Me. -Okay. How do you do that from being so
freaking far away? Well, another… Usually… -I don’t know anyone that owns out-of-state
real estate that they’re trying to manage themselves. What… Like how is that
on your health and marriage and relationship and psyche and career? -Not
good. And I’m not usually… My friends, I don’t get stressed easily. This has
been stressful. -5 years now, right? -5 years. I learned about… Even about
investing out-of-state with, I learned about tax deeds and things. But I
realized that the big battle isn’t necessarily getting a property. It’s
getting a right property and then knowing what’s going on over there. -And
right now, you have. Is it 5 homes? -5 homes. -And what’s the hardest part
for you about that? -The hardest part and really for 3 years, it’s been
somebody telling me they did something to the property and then they didn’t do
it. -So, finding a reliable person over there. -So, in your own management, there’s
been some headaches and costs and you’ve had something stolen or taken from you?
-Yes. Matter of fact, right before I found
Kris on YouTube, Dustin, wonderful guy, he… Very reliable. I
would trust him with my life. And Dustin has been gone going in and
fixing properties. Well, into 3 years, I realized a lot of things that were not
fixed that said they were fixed. I had a management company. I won’t say who it is
but they… You know, they put a one-ton unit into a 1,500 square foot house. Well,
they knew better. And they either were incompetent and didn’t know their crew.
Yeah. -This is one of the common problems for new investors that say, “Hey,
California is too expensive. I’m going to go out of state.” And here’s the problem
with out-of-state investing in here’s the beauty.
Out of state is where you’re going to find the best deals. However, if you don’t do
enough volume, you’re going to get hurt. Because to a property manager, they’re
like, “Ah, this relationship is all… Is worth a little bit of money. The only way
I can get more money out of it is if I’d rub up repairs. If I asked for more money
for repairs and are needed.” And there’s just backdoored. This is and that’s. And
there’s no one really watching that. There’s no licensure. That’s at risk for
being taken away if someone’s quote-unquote dishonest. So, at the end of
the day, all your profits get eaten up on repairs and expensive and mismanagement.
-Yes. So, one thing I really like about Kris is higher rents. Like some of my
rents are 600-650. My highest one is 850. And Lynette, wonderful realtor. She wants
to manage him for me but I said there’s just not enough meat on the bone. I’m not
gonna make any money if I don’t. So, getting enough rent for the properties.
And what really excited me about Kris too as I went to one of events to know that
he’s the real deal and he is. And for all of you don’t have a background in real
estate, I’m just telling him by what I’ve learned. One reason I’m going out I’m
I’ve got all my properties going into escrow this week. Lynette’s doing
pictures of the houses this week it on the inside is that I only know Kansas
City. And I don’t know much about Kansas City. I know, “Okay, there’s a… I won’t go in
that neighborhood again or whatnot.” But I don’t have to reinvent the wheel. Kris,
is already going to markets that have appreciation. Quite honestly, I don’t even
know if I could tell you right now. Any appreciation on any of those properties.
But I know enough about… Its kind of like if you know enough about cars you can
keep the mechanic honest. I know enough about real estate that I know Kris is
is right on there. So, I’m following where he tells us to go. -You know. Craig,
appreciate that. So, what I want you to understand from this conversation is
that real estate can be the most… It can be the smartest investment but it has to
be done the right way. And the reality is that when you’re out there learning how
to do it on your own, it turns into a nightmare so fast. When it’s like, “Now, I
got to get on a plane. I got to drive out there. They said they were going to do this.
They never repaired that. They took money from me for this. They never did this.” I
think you were telling about someone that you paid for a bunch of materials
and the guy like stole them and then return him to Home Depot. Like, I mean
the crazy stuff that happens. And when it happens 3 or 4 times, there’s only
so much tolerance before you say, “I’m out of here.”
And it’s not that you’re necessarily doing something wrong, it’s just that you
really don’t know how to do it right with the right team of experts. Years
ago, Craig, I developed philosophy. “If you want something done right, don’t do it
yourself.” -I like that. -But your problem is that you’re wearing too many
hats. -Yeah.=And you and you’re trying to do it all. Well, it’s eating up your time,
it’s eating up your profits and at the end of the day, it’s frustrating. So, I’m
pumped about getting this put into the new properties. But for four people are
out there that are trying to do the lone wolf, I’m going to figure it out on my own.
What advice would you give them? -You know, you could… You could do… I could tell you
how I got to where I am. 5 properties and being miserable. But quite honestly, I
literally I could do those 5 properties now but I would never grow. My
biggest thing is that takes up all my time. And quite honestly, I wouldn’t be
happy with that. So, what I would say is don’t reinvent the wheel. These numbers,
if you, if you understand what return on investment is, 10 to 15% on unseen things
just go. I mean, I look at this and I saw the securities license for you know,
selling mutual funds and whatnot. Even then even when I was selling. I just
wasn’t comfortable because I couldn’t tell my client, you’re gonna… You’re gonna
do good this next year. I can actually say and I know this and these properties
that Kris has. “You’re going to get rent.” There’s again people always need a place
to rent. These are an expensive rents. These are rents that people always need.
-You know, well I appreciate that. Well listen guys, Craig’s giving I think some
really important advice. And at the end of the day, find a local mentor, find a
local expert. Find someone in your area that has the experience that as they’ve
tripped, they have fallen, they’ve bloodied up themselves and they’ve
learned how to not do that anymore. If you don’t have someone like that that
you can immediately reach out to, if you check the link in the description below.
Get your hands on a brand new copy of my book for free. I’m gonna ship that out to
you. Get a chance to talk to remember my team about what it looks like to
actually get a mentor work with somebody. You know, in Craig’s situation, we’re
partnered up and I’m helping the Craig transition into new markets. -Best thing
ever happened. -And now I’m talking about unlimited partnering where I can help
Craig get lined up with many partners, leverage the system and do countless
deals. -Yeah. -Did you pump? -I’m very pumped/ -Okay, awesome brother. We’ll listen guys.
Thank you so much for watching today and Craig thanks for being here.
Real estate done the wrong way can certainly be a nightmare but it doesn’t
have to be. There is a smarter, there is a superior way. Check the link for more or
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