10 New Tips For Real Estate Investing & a Lot More Info

Commercial Real Estate Investing From A-Z

What did I learn at the Real Estate Guys Summit on Sand event this year? A whole lot, and I'm sharing all of it with you today.

You should read this entire episode here: https://bit.ly/3qEBczv

Real estate strategies:

Donate land to the city to build stadium, and you will still own all the land around the stadium.

Buy two properties that are next to each other so you can combine operations and expenses and increase NOI, therefore you increase the value of your properties right off the gate.

One thing they always say is for you to purchase 5-10% of your net worth in gold, just in case something really bad happens. If you are like me thinking that that gold isn’t producing any money, so I’ll just purchase stocks or real estate instead, the good news is that there are firms that will loan against gold and silver (at Prime + 2 points). What you need to keep in mind is that if gold or silver goes down in value, the firm will ask you to come up with the difference. When that happens, another strategy around that is that you can just buy more gold at that time because gold will go up later either way.

Turn your liabilities into assets!

All the fun expenses have to make money, your thought process should always be “what am I going to get in order to pay for X”.

For example, Ken McElroy wanted to buy a Ferrari, he has something like $1B worth of multi-family investments, he has all the money he needs, but he still said, what can I purchase that will pay for the Ferrari. He ended up purchasing a piece of land that had a billboard in it, the piece of land cost $300,000, the billboard was making $40,000/year. He created an easement on the billboard section, which is the right to use that piece of land for however long you decide (since you're the land owner) and sold the land for $300,000! He now has $40,000 income free and clear yearly that is taking care of his Ferrari.

Kim Kiyosaki wanted to buy an airplane. She ended up buying her airplane, the entire purchase can be deducted, plus all of the expenses of the airplane. Not only that, they are chartering the airplane when they’re not using it! So the plane is either going to be free, or they will make money off it. You can do the same thing with a boat!

Have no money for a down payment? There are plenty of options:

You can get money from most major credit cards, with zero fees for 10 months.

Ask your bank lines of credits, ask to increase the lines of credits every 6 months.

Pre-sell a product to create income (in the real estate example, for the down payment).

Don’t ask “When should I get started” ask “How can I get started”.

Even very successful people still get nervous when buying properties, Ken McElroy said himself that he still gets nervous when closing on a deal!

Important things to do next:

Create a Trust before end of year - make sure you get your CPA and an attorney together to put your Trust in place.

Read the minutes of the Fed, they put it out 3 weeks after each meeting.

DISC profile, have every employee take the test: https://www.123test.com/disc-personality-test/

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Learn about the repo market: George Gammon.

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