So I pulled the trigger fast and got that one. Michael: Exactly. You’ve got to have support of the people closest to you. They’re all legit things. What would you say to somebody who doesn’t have a supportive spouse/partner? Typically, for me, the outside’s the most important because most people make rental decisions driving by the house. Find out what makes the most sense in your market. If you’re flipping a house, it’s all about quality. You’re still working and you’re able to take all the cash flow and capital that you’re getting from your real estate investing, turning it back in there and that’s accelerating your ability to be able to get this all wrapped up once you move into the red houses, I think you call them, or the apartments. I really liked this video … and thought that what Mike said about having a rigid model in place to be very specific and focus on your goals … not to get interested in all the listings that could be a “great deal” … I feel that as a new investor, focus needs to be most important because you can waste a lot of time and money when jumping from one thing to the next … sort of spinning your wheels and not really making headway. Whatever you want to do. Some day I’ll be able to afford it. Again, I live in the Valley. We’re going to keep working. I also agree, with your statement about having your significant other 100% on board. Quickly analyze a property address or ZIP Code to compare your rent in your neighborhood. Here in Houston, the property taxes on a little $70,000 or $80,000 house can be $250 a month. We’re still relatively young. The house looked really good, good price and everything, but it said it was a three bedroom, two bath, two car garage, single family house. . Don’t always trust the MLS. In reality, it never really did cash flow, because you always have those repairs. So you pay a little bit more for quality and probably pay a little bit more for speed because time is money. Damon: That’s really good advice. It was actually through a contact of my wife’s that we were introduced to the Central Valley, which ultimately became Fresno and Madera, created some initial relationships out there with some friends of friends. We agreed on. Here’s the secret formula. Those would show up in my screen. The eclectic mix of housing means there’s a Boyertown home for every taste and need. What’s one of the more interesting lessons learned that you’ve had over these years of investing in real estate? This week, Michael Zuber – real estate investor, author, and young retiree – joins Adam & Matt to provide a blueprint from how he went from ZERO to 187 doors in less than 15 years. My goal is 20% return on any cash I put out or greater. Why do you just have a rigid model that you focus on? Something that I think justifies it. Glad you like the site and the interview. An investor needs to have some flexibility and insight into if I target this, you can get it working. I bought a property on my site I call the “ugly house” that actually had code enforcement issues, where I actually had to get a licensed contractor and go fill out permits. Damon: That’s cool. Don’t fight it. Damon: Good advice. How New Investors Can Build Confidence - IGTV - Michael Zuber Real estate investing is not a get rich quick story. Please thank Del and Steve for me as I love what they are doing. The wife and I answer any and all questions that come to us from friends. For most investors out there, it’s about a yield that they can get on their capital over time. You don’t try to force your own opinion or experience on it. It’s a nice thing to do in five or eight or ten years when I take all these green houses and create some more red hotels, but it’s about buying green houses today. I don’t know how it’s going to turn out yet. Damon: Well, that’s great. The one I did pay list was a first day listing, two houses, one big city lot that I thought was just priced where I would have bought it anyway. On this episode of Investing in Real Estate, Michael Zuber is back to share his incredible journey from life behind an accountant’s desk to creating financial freedom through real estate investing. That experienced relationship you can walk through and see the leases. We’re not going to create the list. Written by financial journalists and data scientists, get 60+ pages of newsworthy content, expert-driven advice, and data-backed research written in a clear way to help you navigate your tough investment decisions in an ever-changing financial climate! Connections; 15 years of Buy and Hold investing in Fresno / Madera California. With your loan, the cash flow is $500 a month. That was the beginning. Worked great for a while, didn’t work great for long. I actually write up my reports and give free access to stuff, not selling anything. It’s not hey I went online or hey, I looked in the newspaper or whatever, and I found five properties. The cash flow didn’t excel. Michael: I am probably sitting right now four miles from Springer, the way the crow flies. If so, One Rental at a Time will transform your life, just as it has transformed my life and the lives of thousands of o… I don’t think you need to over think it. I found one of the five that’s the best and I made an offer. . Why don’t you just try a whole bunch of stuff? Damon: You mentioned you’ve got about 20 of those. Does one lead to the other? Cash-on-cash. Michael: We started ten years ago, and we bought just houses and a couple of duplexes. So does the wife. I probably make, even today, 20 offers for every three or four that get a decent counter, and maybe I put one or two in escrow. I don’t care if it’s a McMansion. Most of the stuff I get appraises for double, even in the condition I’m buying them at. Damon; I’m totally with you now. It just was not the way to go. How do you establish relationships with . Again, my model is pretty rigid right now, so I find distressed assets. Being focus is key because that is the only way you can learn and insure each deal is better than the last one. PasswordUse at least 8 characters. Episode Resources SimpliSafe One Rental at a Time by Michael Zuber Subscribe to Investing in Real Estate on Apple Podcasts Find Your Financial Freedom Number 169. We have time that we put to this that we could be doing other things, and if you’re not both fully, fully committed, I would tell you you’re probably asking for trouble. Ep #279 - Michael Zuber - The Four Phases of a Real Estate Market Here is some of what you will learn: How to choose a property manager What … Are you doing that yourself, or are you getting other people? Don’t over think it. I think there’s a wave coming ashore, and I’ll absolutely 1031 again out of my little green houses, like Monopoly, into red hotels. Real estate is a secure place to put your money. Join Facebook to connect with Michael Zuber and others you may know. Again, you probably hope I don’t pay you. Damon: That’s right. It was a four bedroom, two bath house, two car garage. I still get calls . Michael Zuber writes clearly and passionately about an arena in which he and his wife have worked to become very successful: real estate investment. Capital gains means nothing in the model that I’m using today. . I try and share as much information as I can, much like Lifestyles, Del and Steve do. [CDATA[ function displayFullTranscript() { var ele = document.getElementById("full_transcript"); if (ele.style.height == "") ele.style.height = "500px"; else ele.style.height = ""; } // ]]> Brian I would tell you, at least in my market, there are probably 15 or 20 solid new listings a day. Damon: You’re just looking at the ones that are going to work for your model? I mean, six months ago it was a really slow trickle. I’m coming up with the other 50. Michael: California, there’s nothing like it. Damon: On the repairs, does your management company find the contractors and stuff, or are you doing that to get the work done? $52,000 for a two bedroom in my market would rent for $750. He charges me 9%, ten-year fixed. What you’re saying is, if I can just recap it, is that whatever the market’s doing, you work with it. When we went down the weekend and I always have a list of stuff to see. Damon: Right now you’re focusing on cash flow. I look at hundreds of properties every day, and there are probably three or four that are even close to making sense. How do you do it? The Remote Real Estate Investor. Even after being in the business ten years, every one of the acquisition reports on a little rinky dink house has some lessons that I’ve even learned. Throw in another $75 in repairs, just sort of rough and tough. Private investors like it because they get a healthy return, but most importantly it’s because their money is tied to a functioning asset. I’m not an agent. Damon: WealthBuildingPro.com. Today, Michael Zuber joins me to explain how he opened his mind to multifamily and achieved financial freedom—One Rental at a Time! Let’s take the first scenario when an agent calls you and says, “I have a property that fell out of escrow. I’ve tried to buy some more small apartments that have pretty sexy yields on it, but it just hasn’t worked out yet. A lot of people think that real estate investing doesn’t work in crazy markets like California or Phoenix or New York, but Mike proves that that’s just wrong. Michael: Absolutely. It was probably 80 or 100 bucks. Michael: Financing’s the hardest thing, as you know, for an active investor these days. Have you ever thought about real estate investing as a path to financial freedom? Property management, maintenance, vacancies are right around $200. We took a trip down there on a Saturday and were shown one house. You can apply these ideas to where you live too. So it varies. You can withdraw your consent at any time. Michael Zuber– The Four Phases of a Real Estate Market(Ep279) Rod: Welcome to another edition of “How To Build Lifetime Cash Flow Through Real Estate Investing”. Real estate became the option. The reason why going from zero to one property is the hardest. We’re making progress in that area. Actually, now it’s 15 years fully amortized. The other half is calling up first day listings and just taking my shots. Michael: No. Damon: Exactly. In that story, they called me the next day and said they had offers of 25 to 30K over list price. You’ve been doing this for a while. A 4-2 rents for $1,050. Damon: That’s right. The market, especially in a distressed state where it’s a buyer’s market, is going to be telling you what’s on sale. He logs his investing progress on his web site WealthBuildingPro. I know you’re gonna get value from the gentleman we’re interviewing today. What was your motivation and how did you get started? Damon: Because I grew up in Bay Area there, Silicon Valley, I thought I’ll come back and work there after I graduate. I think you’ve got to take what the market gives you. Following; 84. Again, my model’s pretty tight. We’re three hours from all of our investments. I mean, it would be a full time job just managing those. Damon: It’s like, “I’m sorry, you guys.” I don’t back out of contracts once they’re accepted them, but the listing was wrong. . I tell every investor they have to have one driving criteria or goal, and it can’t be something loosey-goosey like I want a net worth of a million bucks or something just sort of out there. We’ve been investing there for ten years. The bad ones will lead to fights, and you may not want to add that added stress to a relationship. Rudy Ringel: What Is The Worst Property You’ve Ever Inspected? Is it handyman kind of work – paint, carpet, blinds? I’ve really enjoyed this conversation. In this case, it’s going to be a long-term rental. No. If they’re not onboard with you 100%, you’re asking for trouble because this business will give you surprises. I think it’s going to be, at least in my market, there are a series of waves and I think the apartments are behind the houses and duplexes and quads are behind the houses, and then apartments are behind the quads. Thanks for your time. Michael: It depends on what your end goal is for the house. What’s your website? So that’s where I do the deals today. You’ve just got to keeping buying in this market. We thought we’d figured out the stock market game. The handyman make ready stuff is very different than a flip. Damon: It works in that area too. On the apartments then, you purchased some small apartments, 10 units, 13. Damon: When you’re looking at getting that 20%, you’re including the fact that someone else is going to be managing all of these things? My stuff, make ready, it’s fix anything that’s hazardous. It’s beneficial. I’ve built up a reputation, I hope, that I value that I close deals. Today, Hugh Odom explains how to earn … Damon: Absolutely. We do nice things, but it’s from our W-2 income. I’d say at least half my deals come that way. I’ve got a bunch of cash in. Damon: Your filter criteria. It’s about not being distracted, because when you get distracted or even worse get bored, that’s when you make mistakes that cost you lots of money and whatever you’ve built can explode. I’m just curious. Then it’s the closing costs, which is about $2,500, and then all my make ready costs. Learn how your comment data is processed. That was it. . We sold all the houses. We weren’t sophisticated. I have a hard money guy that takes the other half. Michael Zuber is a real estate investor based in the Bay Area, and in this episode, we'll be going over how the investing landscape has changed due to the COVID pandemic and how politics will affect your investments. Damon: It is pretty expensive. That’s how I get some, if not all, of my capital back. Love what Del and Steve are doing, so figured it was time for me to give back a little. Take what the market gives you and use the opportunities it presents. Probably, I don’t know. Damon: When you say 16 properties, are you saying these are 16 properties that might be potential investments, or that’s in the entire market area? So the yields are great. 28:36 – Matthew and Michael discuss the two most important factors in real estate Michael did a great job writing this book very straightforward with no fluff and I love the humility in his writing. Michael: No. We’re going to keep working until we switch out and get to red hotels. I have a lot of property. He's also the host of the YouTube Channel “One Rental At A Time”, where he produces daily videos and interviews giving his audience valuable information about financial freedom through real estate investments. I think it’s 1.2% or something of purchase price essentially. Damon: Focusing on that. I don’t mind being out on a limb, but I want it to be a pretty sturdy limb. Michael: Absolutely. After a while, the network and the beehive expands, and once people start to see the returns and the security, they tell other friends and it sort of goes from there. Buy when everybody’s afraid. That’s so cool. Michael: Twenty of them done already and got five or six in the works already. The Hub was founded by Real-Estate Investor & Best Selling Author, Michael Zuber. Michael: Absolutely. Michael: I took the time to write up some articles that I get questions from friends and other investors, so I took the time to write. Michael: It’s tough. Damon: And you have. If you’re not in the game, you should probably take a few minutes. That’s really why my model has evolved, if you’ve looked at the site, because what I’ll do is after I go get it, make ready. Do you work in technology? I work at a high tech company. 2005 and 2006, Fresno was the number one market a couple years running, like 40% appreciation. That dreaded shadow inventory is maybe starting to release a little bit. 10:14 – Zuber believes that 2021 will be a positive growth GDP and will be 5% or greater. Why the first four properties are simple. Thank you for having me. I remember there was a house that was written . I will take your advice on that. By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions. Michael: Cheap is good. In today's episode, let's reveals how Michael takes advantage of 1031 exchange to increase his portfolio. It’s already been repaired. The shot gun approach really doesn’t work. I certainly plan to do that again. Houses are too expensive. Mike, Michael Zuber, greets guests last week for the grand opening of The Hub, a group of small Fresno businesses involved in residential real estate working in the same building. 2001 was a very different real estate market. I went and looked at it. Damon: That’s awesome. His security is well in hand. Is there anything that we haven’t talked about that you think we should talk about or that you wanted to share? Damon: Generally 20% to 25% below what they’re asking for, and that’s in both scenarios, both when an agent brings it to you as well as the MLS? And it rents for $1,050. It was a skinny deal. Damon: Absolutely. Lately we’ve been buying the distressed houses again. Michael: Obviously, the individual is a discrete item, but that’s not a bad approach. You don’t have to in this market. Over time, I’ve made relationships, again, my market with some writers from the Fresno Bee as an example. We talked about it and everything, but I feel like I stepped out on a limb to say, “Okay, look. Right there on Miramonte. Photo by David Castellon published on December 16, 2019 - 12:54 PM It’s a three bedroom, two bath, maybe 1,300 to 1,400 square feet. It’s all true, but it doesn’t have to be that way. So I have a hard money guy who’ll take the other 50%. One of the things I try to do is everything I get in escrow, I close because I’m trying to keep my relationship with the agents. We bought it. Michael: One of us was wrong and it wasn’t me. Michael: Yeah. Then I’ll sell, which I hope by the time is 50 or 100 green houses, and buy some nice red hotels and be absolutely done. Every dollar we’ve got in the game, that money tree we’ve planted, we want to be something in the future. It was asking like $52,000, something like that. The criteria are very different. Then there’s that lovely thing you may have heard about, Prop 13, which limits how far it can ratchet up. Damon: It doesn’t get into your cash flow much. We outsource that. Michael owns hundreds of rental properties in Fresno County and wanted to give back to Fresno by founding The Hub. Show them the reports that we’re writing up. Michael: Works for me. Michael Zuber Real Estate Investor. Mike, I really like your website and I think it is wonderful of you to give back to not only seasoned investors with the priceless advice you’ve learned over ten years but also the simple, straight-forward advice you give to new investors like myself. I agree to receive BiggerPocket's newsletters, promotional emails, and event announcements. I said, “There has got to be something.” That immediately went on my list. A lot of the investors, because I’ve been in the game a long time, they’re asking for private money on distressed stuff, right? That’s really where I find a lot of my best deals are on properties that are “distressed.” In my market, that means it doesn’t qualify for FHA. I probably watched 40, 50 hours of your guys’ podcasts or radio shows. Yeah. We just need a few details to get you set up and ready to go! Michael, welcome to Epic Real Estate Investing. So please help me welcome to the show, Mr. Michael Zuber. It does seem to come in waves. I don’t get in bidding wars either. I already have a plan for that, because when I can stop buying these houses, I’ll sit back for a little while, let them get back to near replacement costs. So we’re buying what I call the “green houses” again. We sold it for $269,000 or $267,000, less than three years later. You will have surprises, good and bad. Awesome interview Mike, thanks for sharing what you are doing — I learned a lot. Whether you are looking to buy or sell, our website is a one stop resource for all of your needs. All the stuff you hear about. Is that right? I think there’s one thing that often gets missed because lots of people think real estate investing is the way to go. Michael Zuber (1972 - Hopefully Decades from Now) One Rental at a Time was never intended to be a book or YouTube channel but simply was how he had to build his portfolio … Thank you, Mike. Michael: I can tell you two things. Then it’s mortgage payments, tax, insurance, which you’d expect. //