In part two,  Susan Lassiter-Lyons, a successful real estate investor, financing expert and author of Getting the Money: The Simple System for Getting Private Money for Your Real Estate Deals wraps up the discussion on a more personal note – failures, successes and how monetary goals are not always the the goals that will make you happy.

For complete show notes go to:  http://olddawgsreinetwork.com/009-finding-the-…ate-deals-part-2

In this episode Bill will be sharing the Top 10 Real Estate Investing Markets in the U.S.  Compiled from multiple sources and other lists, Bill has carefully compared, compiled and ranked the leading markets.  

Check out our show notes at http://olddawgsreinetwork.com/008-top-10-real-estate-investment-markets/

IF YOU LIKED THIS PODCAST, we would love if you would go to iTunes and Subscribe, Rate & Review our podcast.  This will greatly help in sharing this podcast with others seeking to learn.

In the first of a two-part series, Susan Lassiter-Lyons, a successful real estate investor, financing expert and author of Getting the Money: The Simple System for Getting Private Money for Your Real Estate Deals, shares techniques for obtaining properties for little or no money down, what she learned from the crash of 2007 and how to position yourself when asking for money.

For complete show notes go to:  http://olddawgsreinetwork.com/007-finding-the-…ate-deals-part-1

Getting started in real estate investing is easier than you think.  In this Fun Facts Friday, Bill outlines the 4 simple steps to becoming a real estate investor.  Once you learn and follow these 4 steps you can look forward to a successful and prosperous retirement.  For more information go to olddawgsreinetwork.com.

Today’s topic is “How to Get Started in Real Estate Investing.”

I know that seems like a topic that would take more than 5-10 minutes but not really.  I break it down to FOUR MAIN ACTIONS TO TAKE:

1. Education
2. Mentorship
3. Planning
4. Action!

EDUCATION is of critical importance!  The more you know the less likely it will be that you will make major mistakes.  Now, let’s be real, you will make mistakes!  All of us do.  But you can reduce the number of casualties.

FREE STUFF!

You can literally obtain TONS of free real estate investing  information

WARNING!  Many – Most of the people providing this info have something to sell.  Lock up your credit cards before launching into this step.  These guys & gals are excellent salespersons.  And that’s OK.  They’re just trying to make a living.  But it is very easy, if you’re not careful, to spend thousands of dolars on products, programs. Etc. and before you know it, you have nothing left to spend on properties.

• Go to the Library - Read books– Have my personal Top 20 Real Estate Investing Books on our website at “olddawgsreinetwork.com/
• First book – I recommend Rich Dad Poor Dad because it helps set a mindset and prepares you to think like and investor. Cashflow Quadrant is good too
• Next book needs to talk specifics
• Next Book depends on what you want to buy – houses, duplexes/tris/quads or larger apartments
• com
• eBooks
  • QUICK TIP! Buy a cheap printer.  The best would be an HP Laser printer.  This type has a large cartridge and it’s made for large quantities.
• Blogs -
• Articles
• audio books
• Special reports
• Podcasts
• Watch Real Estate Investing videos on YouTube
• Join a Webinar
• Attend Seminars
• START RESEARCHING PROPERTIES

MENTORSHIP

• Where to find a mentor
  • Make some business cards
  • Prepare your elevator pitch
  • Start attending REI meetings or other real estate meet-ups
  • If there are none around you, start your own
  • Offer to work for free in the office of a real estate investor in exchange for training
• Should you pay a guru?

MAKE A PLAN

• Work on this with your mentor if you can
• Don’t worry -- it can and WILL change and evolve as you move forward but at least you will have a direction best for you
• Do I want to but local?
• Do I want to buy houses?
• Do I want to buy small multis? (I recommend the first being a duplex, triplex or quad)
• Where will the money come from?
  • Savings
  • IRA/Self-Directed IRA
  • Cash-out Re-Fi on personal home
• How much do you have to invest
• No money? Try no-money down techniques
• Do the math

ACTION - JUST DO IT!

• Determine how
• Set the money in a liquid account (if possible)
• Start searching for properties
• MAKE THE PURCHASE!

Check out our other podcasts at olddawgsreinetwork.com.

Get a copy of our free 3-Minute Rental Property Analyzer at olddawgsreinetwork.com.

Episode Sponsor: Meno Studio - menostudio777@gmail.com

Listen to master real estate investor and educator David Lindahl as he shares his personal rags to riches story and as he shares how others can achieve the same.  He shares many insider tricks, tips and techniques that have allowed him to get the maximum return on every property investment.

What You Will Learn

• What convinced Dave that real estate investing was the best way to become rich quickly
• What the next Emerging Market will be that will be as big or bigger than Atlanta
• How me made nearly $4 million on a property he held for less than 2 years
• What you should do to prepare for the upcoming market correction
• What types of properties to purchase now and why

David Lindahl

With more than 18 years of experience in Real Estate Investing, David Lindahl has rehabbed over 820 houses, and currently controls over 7,400 apartment units.  Dave is the author of two #1 bestselling books, Emerging Real Estate Markets and Multi-Family Millions. His third book, through Donald Trump’s organization, is entitled Commercial Real Estate Investing 101: How Small Investors Can Get Started and Make It Big.  Among other publications, David has been featured in Reader’s Digest, Creative Real Estate Lifestyles, AOL and Kiplinger magazine.  Starting as a dead broke landscaper living in a 1-bedroom apartment, Dave Lindahl started buying and selling multi-unit properties in Brockton, MA to create a better life for himself.  With no Real Estate experience he created systems that allowed him to create enough monthly positive cash flow to retire with in 3 ½ years.  In addition to his expertise in Real Estate Investing, Dave offers a series of home-study materials and live events for investors.

How Dave Got Started in Real Estate Investing

• Left home when he was 16
• Was in a rock ‘n roll band for 8 years.
• Got sick of being a rock ‘n roller and decided to start lawn cutting business
• In the winters, when lawns were frozen over, he did odd jobs which led to him learning construction and starting his own construction company.
• Watched late night TV and saw Carlton Sheets “No Money Down” course advertised – bought it, did nothing with it, bought the revised version and then started buying
• Had no money so went to a course on how to get credit cards and used credit cards to purchase his first properties
• First property was a multifamily property – 6 units
• In three years had 40 units
• Became a millionaire through equity in the properties
• Properties cash flowed so well that he used cash flow to buy new properties

His Lightbulb Moment When He Realized That Real Estate Investing Was It!

• Interviewed with a man named Harry Helmsley and shared how he started investing in income property and ended up owning the Empire State Building
• Later went to local Real Estate Investing group and saw that there were people just like him – didn’t have much money and trying to better their lives – and they were successful and making it happen
• He said if they can do it I can do!

He Doesn’t Like Being Called a Guru

• He attended many real estate guru seminars and with some, felt ripped off after the events. He pledged to do things differently
• Although he also teaches, in addition to investing, he makes sure he covers the critical foundation so someone can get started and provides templates and formulas to make sure his students do things right
• He also emphasizes the importance of buying in emerging markets

Biggest Mistake

• Launched into too large a deal with not enough experience - a 420 unit “repositioning” property in Huntsville, Alabama
• Went from 40-unit to 80-unit to 420 unit!
• Needed to upgrade property and tenants
• Not in the right part of town
• 42% occupied when he purchased it
• Launching 2 other businesses at the same time and was not focused enough on the deal
• One of his first investor deals and wanted to make sure they did not lose money

Biggest Success

• The Wyndhams, south of Dallas, that they purchased for $5.5 million, with an assumed note, that sold for well over $9 million just under 2 years later
• Classic “value add” deal with lower rents, lower occupancy, higher than average expenses
• Went in with strong management company to execute turn-around plan
• Because it was in an emerging market, values increased rapidly

Advice to Listeners Getting Started With Limited Funds

• Learn what you need to get started
• Go in with the right attitude
  • Keep in mind you’re not going to be a landlord or property manager
  • Know you are an “asset manager” not a property manager
  • So you can deal with more deals and cash flow and not deal with tenants, trash and toilets
• Build a good team in the emerging marketplace you want to buy in
• Do business in one of the “Four Phases” of a market cycle
• Get started at the level you are most comfortable with focusing on moving toward bigger deals – that’s where the money is!
• First deal is always the hardest
• Once you have the confidence you know you can do it, the second deal comes very quickly
• The second year is crazy busy!
• Get educated and get started!

What Excites Him About His Current Business Today

• He is preparing for the next market correction that will be occurring soon
• Get educated now and start buying so that when the correction comes, you can pick up great deals that will increase in price significantly and swiftly

What Types of Properties He Looks For

• B and C properties (B properties are better because when the market improves they improve in value faster)
• Meet these three ratios
  • CAP rate (which determines value) – 7.75 or higher
  • Cash-on-Cash Return (how fast you’ll get your money back) – 12% or higher
  • Debt Coverage Ratio (how many times your cash flow covers your mortgage payment) – 1.6 or higher
  • This will allow other people to invest in your deals where you can get:
    • 25% of the cash flow
    • 25% of the resale
    • Full acquisition fee
    • Some deals will be so good you will get 50% of the cash flow and 50% of the acquisition fee

Rap-It-Up Session

• Favorite Real Estate Book – Emerging Real Estate Markets by David Lindahl and A Fortune At Your Feet by A.D. Kessler
• Favorite Business Book – Good to Great by Jim Collins
• Favorite Real Estate Web Site – reis.com
• Favorite Phone App – Flixster (movie ticket app)
• If you had to start all over and you only had $1,000 in the bank:
  • Start creating relationships with brokers
  • Go to business and social events to raise private money
  • Get into cash flowing real estate deal
  • Spend the money on the networking and a direct mail campaign

How to contact Dave

• Visit: REMentor.com.
• Office - 781-878-7114

To Get A Free Book From Dave

• Go to davesfreebook.com and you can get a book called Massive Passive Income Creator

Upcoming Seminar

• Ultimate Partnering Event – August 20-21
• Check it out at!

Check out our other podcasts at olddawgsreinetwork.com.

If you would like to receive our free 3-Minute Rental Property Analyzer, email us at bill@olddawgsreinetwork.com.

Episode Sponsor: Meno Studio - menostudio777@gmail.com

Hear how a brilliant Harvard educated attorney left a plush New York law firm to pursue real estate investing full-time.

About Jonathan

Jonathan Twombly is a graduate of Harvard College and Columbia Law School.  Since 2013, he has run Two Bridges Asset Management LLC, a multifamily investment platform based in Brooklyn, New York, focusing on long-term buy and hold acquisitions in the southeastern United States.  Two Bridges currently operates more than 400 apartments in the Carolinas.  Before forming Two Bridges, Jonathan was a partner in the multifamily investment firm, TRB Investment Group LLC.  Prior to entering real estate, Jonathan practiced commercial and real estate litigation for more than ten years at large law firms in New York, Boston, and London.  He lives in Brooklyn, New York, with his wife and two children

Additional information on his background

• Practiced law for 12 years on & off
• Did not enjoy being part of a large firm
• Wanted to be able to be an “owner” over a “service provider”
• Recession in 2007-08 left him with little work to do. Began researching real estate deals online in his slow period
• At first thought REI would be something on the side
• Had some real estate litigation experience but not much

His Light Bulb Moment

He didn’t really have a single “lightbulb moment” that said “real estate is it!” but gradually, through various circumstances and events began to realize that real estate investing was his best option.

His earliest interest in real estate

• Disenchanted with life in corporate law.
• Grew up around real estate. His father taught architectural history and would take Jonathan to look at interesting buildings in New York area.  He looked at lots of buildings.  
• As a kid he used to like to look at the New York Times Sunday Magazine real estate listings and dream of owning one of those homes one day.

Looking for different career options

• Considered management consulting.
• Looked at finance and equities investing but saw big challenges – when the recession hit it was very bad.
• Real estate investing seemed most viable and intriguing. Would look at properties online but it he thought, “How could I buy enough of the 2-4 unit buildings to replace my income and survive.” Thought multifamily was the way to go.

Making Contacts

• Started networking to see what other opportunities were out there.
• Commercial broker in New York said, the only way he'd make it in New York Real Estate is if someone with more experience asked to partner.  
• A few weeks later, he met that person at a networking event who said they were forming a real estate investing firm and wanted him to partner.
• He started his first real estate investment firm with that partner.

Forming Companies

Forms First Company But Short Lived

• First couple deals did not go well – one the lender terminated. Another they terminated.
• Partner had different approach and philosophy. Not so much a mistake but just different approach

Formed Second Company - Two Bridges

• He knew if he formed his own company he could grow at his pace
• More control of the deals
• Able to leverage early experience

Types of Deals He Targeted

• Off-Market
• Only B&C class properties
• Already stabilized
• Already cash flowing well but can be improved
• Close to other properties they own so they can share expenses with same PM firm
• Can hold for 10 years

Where His Deals Come From

• Established network of brokers in his target area that provide steady deal flow
• Professional rehabbers

Investing Out of Town

• Targeted southeast
• Upstate South Carolina
  • Used 2010 Census info to determine the area was right for him
  • Population was growing
  • Had friends in Charleston to help build the team
  • Key investor contact in the area
• Had to be fairly close to NY
• Area had to be growing faster than the country as a whole

Goals for Current Business

• Double size of portfolio in the next few years
• Establish an investment fund and more later on
• 5 years from now have first
• Wants to get to the point where he can finance his deals with his own money

Advice for Those Getting Started

• Whether you look at deals through syndication by sponsoring a deal or doing your own deals. Minimize risk.  Look at good cash flowing deal.
• Avoid high risk, high reward
• Buy the biggest property you can afford – economies of scale are better
• Multifamily is preferred

Rap-Up-Session

• Favorite Real Estate Book: Wall Street Journal’s Guide to Real Estate Investing
• Favorite Business Book: The War of Art by Steven Pressfield
• Most Valuable Website for Success: com
• Favorite App: Anti-Social (block websites so you can focus on work)
• If you had to start over: Research crowdfunding sites. Invest in a property and learn how it works.

How Can People Reach Jonathan

• The Mortar Real Estate Blog - themortarblog.com
• His Company: Two Bridges Asset Management LLC

To Find Out More About the Old Dawg's REI Network go here!

To reach our sponsor Meno Studio: send an email to menostudio777@gmail.com.