The Millionaire Single Family INvestor
Opening:
We continue the conversation today with our panel. Moneeka Sawyer, Kim Kesterke and Mark Dolfini are millionaire single family investors and in this portion I ask them how long it will take to become a millionaire while owning single family rentals.
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Quote of the Day
“You’re off to great places, today is your day. Your mountain is waiting, so get on your way.”
Theodore Geisel, aka Dr. Seuss
Expected Air Date: Mon 8/1/2022
Guests:
Kim Kesterke: kesterk4@gmail.com
Moneeka Sawyer: moneeka@coreblisslife.com
Mark Dolfini: markd@landlordcoach.com
Transcript
[0:00] Music.
[0:16] Show that teaches you how to make money in real estate wherever you are whatever your situation there is an opportunity for you. And now here’s that flipping America guy Roger Blankenship. Thank you Kathy Curtis hello America,
We continue the conversation today with our panel Monica Sawyer Kim Kestrick and Mark Dolphini,
Three millionaire single family rental investors,
We started the conversation last time in episode number 535 and we concluded today and in a moment I’m going to get right to the meat of the matter and I’m going to ask them what does it take and how long does it take,
To become a millionaire.
[1:00] We get there in just a minute but in the meantime, if you wanna contact us, you can drop us a line. Questions at Flipping America. Net.
For all of your questions about real estate and real estate investing or you can call 877 55 Roger that’s (877) 557-6437,
Extension one. Leave your messenger question. We will answer every question that comes in. We always have and we always will. No charge.
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All of your business funding needs at flipping America funding. Com flipping America funding. Com,
One big announcement next week August 5 we are.
And introducing Flipping America Go our automated platform for real stating investing from the internet you’ve gotta see it to believe it it’s gonna be pretty amazing here we go with the interview if i follow a typical path
Starting from oh today.
Hey I thought about this one I thought it was a good question and it took me 5 years so just from when I really started getting serious and following the strategies 5 years I I hit that mark.
[2:24] And somebody’s out there saying, dang, that’s too slow.
Yeah.
You wanna build it so you can.
And that’s the problem that I see right now is you know we human beings have a tendency to think of the way something is today is the way it’s always going to be.
And until the next thing happens and then it’s like oh crap now then we,
Okay, well, this is what this is the plateau that we get to live in now.
But realistically I see a massive problem a lot of people that have way too little cash and they’re just stuck on growth like I was back in you know you know 0607 and oh eight hit.
And,
5 or 6 years.
[3:50] Yeah I’d say about 5 years.
Two, you know, it also depends on which market you’re in. And how focused you are. I will say that I was pretty lazy like I wasn’t keeping track of of how much equity I had. So, I wouldn’t go get the equity line. If I had done it a lot faster,
I think 5 years would’ve worked. It did take me about seven.
I was being blissful. I was working corporate. I was sorta like that’s my side hustle. I’m not even looking at it, right? But you know, you can,
I think a 5 year 5 year time frame is a really really good goal if you’re paying attention.
So everyone think about 5 years,
Think about where you could be 5 years from now with a one 1 million dollars in net worth not counting your own personal home just in your investment properties that’s not liquid cash and you’re not making a one 1 million dollars a year but.
At that point.
[5:04] I can’t again it depends on your strategy, right?
It make a little bit right but it’s not it’s like you say just a supplement.
Alright, next question and Monique, you get to go first on this one. If you could go back go back and start all over and do it differently, what would you do differently.
[5:35] Pay attention more. I think that’s the only thing I really.
[5:41] I had a kind of bad attitude about real estate. I had gone in kinda kicking and screaming.
And so,
I’m so much more gonna happen so much better so much faster.
So
And I would’ve more heavily took an advantage of the 2008 to 2013 law.
So I’m just gonna I know that market shift and they’re cyclical so I’m gonna be a lot more aware next time we’re in a dip not be so scared of it and just really,
Take all these strategies that I’ve learned and really go full force. That’s where I made most of my money. Those years. I will tell you though, just a sneak preview here.
We’re not gonna have a law. I’m not predicting a law but I am predicting that we’re finally gonna see,
Some easing off on the rapid rate of appreciation and we’re gonna be able to pick up some foreclosure.
[6:53] Coming about two 3 months.
[6:55] Notices of default are going out by the hundreds of thousands.
I know that they are alright Mark.
[7:07] Everything that was said so far is just brilliant maybe I’ll take a slightly different tack.
But I didn’t realize early enough is that I was creating hundreds of little jobs for myself that no.
Same person would have ever agreed to to do for free let alone,
When I do a $15 an hour job to save money.
So when I’m cleaning the apartment to save money when I’m you know painting the apartment when I’m putting in all that stuff
Not you know not saying you can’t do that in the beginning and probably you should do that in the beginning so you recognize how awful that work is but
I didn’t learn to value my time well enough and as result I never got I didn’t get away from that stuff,
And I will tell you if you’re getting into this job to make $15 an hour you’re never gonna make it you’re never gonna be rich you’re never gonna go off there’s the math doesn’t work there’s not enough time in the day.
So that’s probably what I would have said myself is learn about my time better.
[8:22] Alright, everybody. I’ve opened up the Q&A tab on my computer now. If you’ve got questions you wanna ask our panelists, put them in the Q&A tab right now,
And I’ll I’ll you know I’ll do my best to get to all of them in the time that we have remaining. I’ve got one more question for you all and then we’re going to do the little word,
Ceremony. The prizes in Karen I hope you’ve kinda got that figured out,
And then I’m gonna come back to each of you for final thoughts and wrap up okay and let’s see we’ll go.
Well, we we got the one more question. Let’s deal with it.
[8:59] What’s the one piece of advice that you would give to someone that you haven’t already said tonight? Kim.
Just understand there’s deals in every single market. You know, you hear, oh, it’s such a hot market. It’s hard to find deals. There’s deals in every market when the market’s going up and then there’s deals when the market’s going down. So, just back to the
The analytics just really understand what the what your analytics are what your metrics are and just buy accordingly,
Don’t listen to all the hype that’s going on around you.
[9:38] Two things probably. First is become a student of business.
So, become not a business student like you have to go to college and do this but become a student of business. Look,
Be curious about everything. Be curious about how everything works because there are things that you can learn and and integrate into your business. And secondly.
[10:03] This is really important for me in terms of creating a personal vision for what you want you what does you as a human being want and I promise you it has nothing to do with income generation and has everything do with your personal purpose,
And here’s the danger when you create a business vision.
Meaning I wanna flip 50 properties or I wanna buy 100 rentals or whatever but when you create a business vision before you create a personal vision you end up creating a life that exists to serve the business.
[10:33] So please make sure that you’re focusing on your personal vision first and foremost and then create a business vision.
I love what Mark’s talking about cuz I talk a lot about building your business based on your core values
Not a way you think you should be or what you think you want. So you just wanna reiterate and I just love the way you said that Mark. Thank you for that.
Yeah.
There’s tears in anything you do this worth having. There’s tears in relationships. There’s tears in words.
But those tears are worth it because even though sometimes real estate is hard.
Staying poor for the rest of your life is tartar.
That sounds like the final word there but we’re gonna get another final word coming up in just a minute. Yeah, Mark just did the mic drop.
Yeah that’s probably gonna make the the Instagram cut,
Outside of where you live.
[11:55] I’ll go ahead on that one just because which of you buys properties outside of where you live?
I do. Yeah. So, that’s kind of, you know, one of the things. I mean, I have one property in Atlanta. That’s where I live and then everything else is outside of Atlanta. So, it’s just finding a market that has,
I’ll just
Things going on. So, you wanna make sure there’s three to five different, you know, economic lovers so that if one thing leaves, whether it’s they, you know, big hospital and that leaves it like the whole economics aren’t just, you know, being
What I wanna say just kind of bottom out with it so you wanna know that and then you also wanna take a look at just kind of what the medium income is,
And then take a look at your budget can you afford in that market as well so when you look at those three things that really helps you find a market that
Kinda suits what what you’d be looking for.
[12:53] Stella cos we just moved far away from our hometown of San Jose
The kind of place that I would wanna live and I would attend my tenant would like to live that tenant,
Wants an upper scale nice area where they’re not gonna have their keys their cars keyed they wanna be able to just walk around at night walk the dog at night right,
So for me it’s also the economics of the plates,
Like walkability, those sorts of things. So again, you wanna work backwards, right? Who is it that you want in your homes?
And then you can look at all those once you’ve got the economics to test eggs then you can find specific neighborhoods or locations based on what’s happening in those neighborhoods.
Alright, I’ve gotta pause for a minute because something just happened on the Zoom.
[13:55] The video just got really wonky on Zoom.
[14:05] That’s really interesting the way that was. That was funny. Yep. Thank you guys. We’re in front of a green screen.
[14:13] Yep. Okay. You know what? What happened was.
Well now there it is now it’s back I I can either have them swimming in the ocean or and just it it is just heads or.
What you all on Zoom I just I just now notice this I’ve been looking at the camera I haven’t been looking down too much I’d Kimberly has on a green top.
And because I’m in front of a green screen she’s actually getting flipping America kinda projected backwards on her top,
While she’s sitting there and I thought oh that’s weird that looks like my logo. Oh it is my logo. Oh.
How do you decide to walk away from a dealer or an opportunity?
[15:09] Well, for me, it’s cash flow. It it’s got a cash flow and it’s got a cash flow.
Please for god’s sakes it’s like you’ve gotta make sure your budgeting for capacity you’ve gotta make sure your budgeting for vacancy expense you gotta make sure your budgeting for other things and I wanna add this one little tweak onto the last question in terms of investing outside.
Legislative,
For god’s sake please do not forget to look at that because I’m telling you there is not for lover money what I invest in certain states because they are so hostile towards landlords,
You know I my people.
I grew up in the people’s republic of New York. There is no way for love or money what I invest there. I’m sorry. I just wouldn’t because it is so anti landlord. Now, again, I know there’s plenty of you to do it and I’m not saying you can’t be done.
But why make it harder? You know, look at areas that are more friendly to landlords. There’s lots of friend, lots, lots of states that do that. So,
Me walking away from a deal if it doesn’t cash flow or if it’s just an area that’s gonna be hostile to what it is I wanna wear.
The others you got it.
[16:29] So, for me, I think what happens with investors is you find a deal and you’re like, oh my.
You know what? There is going to be another opportunity in 2 minutes, guys. Like literally, every time you turn around, there’s another opportunity. So, just make sure you actually love the,
Don’t just jump in, jump in because it’s the thing that showed up.
Hey I know that Kimberly knows Gordon Cats and some of our nancy will probably know him too he is my friend and mentor he’s been investing in real estate for 50 years.
And he comes out with some of the funniest things right off the top of his head and you all know if you’ve been getting the email from me he’s the guy that said I think there must be a 1000 ways to make a one 1 million dollars in real estate that’s one of his little things,
And I’m using that as kind of the theme for this year and Gordon is gonna join us for a show later on in the year and he’s trying to come up with a 1000 ways he’s making a list.
[17:38] I’ll sit with him 1 day at the IHOP having breakfast and I was just pummeling him with questions you know and this kinda came up and to what you just said Monica he said well you know.
It’s true and we,
Yeah. You know, as you’ve been in in a while and you get to know the markets.
You wanna caress it and hold on to it and then.
[18:18] And man, I’ve got myself in trouble doing that. Kimberly, what what do you wanna add?
Yeah so this actually just happened to me because I had 10 31 exchange money that I had to identify in 44,
Hey 5 days in place and so I found something kinda same thing found something got it under contract but this thing wasn’t right that thing wasn’t right and.
You know it ended up being towards the closing date a few days before and I just,
They had to follow my intuition and just say this isn’t right and I did lose my earnest money but honestly I went,
You know, I extended my search and I ended up finding something $30 thousand less and a better location, better,
Do you know all your gut and try not to get so overly attached to a property that you’re looking at.
[19:10] Yeah. Very good. Very good. Okay, Valerie says, how can you grit she asked? How can you gracefully get a tenant to move because they’re not taking care of the property,
I’m losing thousands of dollars due to water leaks that they’ve caused over the past 2 years.
Self managing for the last 15 years. I finally have a property manager. Thank goodness but the it really is going to the least and looking at your verb.
Take a look at when does that lease end
And what is the verbiage to terminate that lease do you have to give them 60 day notice do you have to give them 30 day notice then on top of that because it’s been 2 years I’m thinking they’re probably on a month to month,
So kinda give them a 60 day notice give them that termination letter,
And just go in recoup your property fix it up and then find a tenant that better suits the properties needs in your needs yeah the gallery said gracefully.
Alright, go ahead. Who who’s next?
[20:29] Well I think I think the,
Right and that’s what a system will prevent the system provides that emotional buffer between you and the resident.
So a lot of times it’s when someone has a at least violation and if and I don’t know the situation of course Valerie but you know if you have a,
You know if the if the resident is text message in you and they can call you on on this thing you know that’s your fault not their fault,
And if you can’t.
So
And make sure that you’re enforcing these and if you have any any inability to do that I’m gonna say that’s almost because you’re too emotionally close to it,
Put those systems in place to remove that emotion to a put up an emotional.
[21:51] Let me ask you Roger do you have a favorite restaurant.
[21:54] I’ve got half a dozen favorite restaurants. I know.
One okay well I didn’t make friends wherever I go man and this guy,
Hey Sue.
I think I need half of those places with you so,
Nobody gets myself a number.
You had to be yet to be in some sort of select group to get my phone number so I I’m with you on that what else what do you wanna say.
[22:39] So we don’t know the whole situation, right? Valerie? But if I was in that situation, I would, first of all, one
Why there’s so many water problems I in my lease they’re required to allow me to come visit the property and within with 24 hour notice I give them 24 hour notice and meet there with a plumber and take a look at what’s going on
Like why are we having all of these water problems and i just get them fixed it’s you know our tenants,
Part of why they rent is because they don’t want all the responsibility of a house.
Ensuring that you want a good environment for them,
We’ll also help them to understand your situation and help you to find a solution. I don’t know if that’s even possible with this particular tenant but.
Yeah it’s in the least for me that I can go fix the problem if I want to
You know, if they’re breaking the lease because if they’re not maintaining it, to the standard that they moved into.
Then there breaking the least they’re at a lease so give them notice and get them out of there and you can do that very kindly but yeah if they’re not taking care of the house they don’t deserve to live there,
Hi we’re we’re a little overtime but I’m gonna take one more question from Armond and then I wanna ask you guys get your thoughts together,
While we do the awards and Karen i have an idea for the words of.
[24:04] Off you in text message while they are answering Armen’s question how do you determine when to add value or improvements to a property.
[24:13] For example adding water meters separately to a multi unit that’s currently on one m.
[24:21] So, for me, it’s about returning investment. You know, I wanna I wanna look and see like a lot of times I’ll have people,
That because I also manage properties for some other folks.
You know can I and I’m like man.
In my market a lot of times that is gonna become much more of an expense to you than it is a benefit to the residents.
[24:55] So, you know, or they wanna leave something like a water softener and I’m like, look,
Let them provide their own water softer because yeah, I know what you wanna do. You wanna protect the the pipes and all this other stuff but the thing is, there’s no guarantee that they’re going to use it.
You know and now you got there’s an expectation that if it’s there.
That it works. That if it’s there, it’s gonna be serviced.
Put something in there whether it’s windows or you know obviously
But you know, is you putting, you know, $5000 of new windows? Is that going to enhance the habitability or rentability of the property? Meaning, it’s time on market. It’s gonna be compressed. Or is it gonna be able to bring more rent?
You know, stuff like that. It’s just it’s really it’s really more judgment call, but that’s the, that’s the metric that I use.
[25:54] Hey mate I also wanna say anything do you wanna go Kim
Same type of thing is just see it doesn’t is it going to increase the rentability of the property and is it gonna boost your rents at all
I would think with the separate water meters or the one water meter and putting them on separate that would alleviate the burden of you having to split up utilities or take on the utilities yourself so you know that that could be a benefit there,
But that’s just something that I’ve learned even doing flips is you just build to the market you same type of thing with your rentals you just
Build to the market and then kinda just stop there unless it’s gonna earn you more money in the long run.
[26:39] I was just gonna say with the water meters, what I’ve found is that if there’s multiple properties, sometimes you’ve got
121 and then you’ve got 132 and then you’ve got you know a one one or whatever it becomes difficult sometimes to divide up.
That stuff and the renters get an irritation about it and that sort of thing. So, honestly, you know, your time is worth money too.
So visiting save you time and energy and money and make it more comfortable and joyful for the people to live there,
Then all the way around it’s a winner that one but it’s not always a case if the units are always this are basically the same size you can pretty much leave it the same way so again it’s a judgement call and that’s gonna be true with all improvements that you do on a.
[27:24] But you do wanna make sure that there’s a return on investment,
We had contest going on and we gave out some awards and I asked our panelist to come back with a final thought for the day,
And we share those with you here first Kim Kestricky alright well okay so I just actually put a post on my Facebook group today that 90% of millionaires own real estate,
So, just think about that. If 90% of millionaires own real estate, then, go on.
Some real estate it is the number one way to build wealth to accelerate wealth to achieve financial independence to really get those goals to where you wanna be,
So, you know, I I encourage you to do the research. You know, work with mentors, ask questions, find people doing it.
It’ll all add value and really help you get where you wanna go.
[28:26] So I got a real quick one.
Goals without action are just dreams. So, get out there, take action, and create the life you hurt deeply desires.
[28:42] Alright we’ll remember integration or information without integration does not mean to transformation integration without,
But learn it within 12 at.
Make sure you’re placing a value on your free time because if you don’t someone else will.
Alright, that’s our rental panel and hats off to them. What a great conversation that was and here’s the quote for the day. You’re off to great places. Today is your day. Your mountain is waiting so get on your way.
That’s from Theodore Geisel AKA doctor Seuss we’ll be back next time with another Irish blessing and in the meantime keep your eyes open.
You’ve been listening to flipping America real estate investing for everyone. Listen three times a week on stations across the country or on the flipping America app
Free in the app store. Be sure to like us on Facebook, find and follow us on Twitter and Instagram and keep your eyes open.
[29:48] Music.