Expected Air Date: 06/28/18
Many of you listening to this have two types of assets – liquid assets and illiquid assets. A liquid asset is cash or anything that can be turned into cash in about 3 days such as publicly traded stocks. Illiquid assets include things like real estate, which clearly cannot be turned into cash — until now.
Our guest today is Matthew Sullivan, founder and CEO of Quantm RE. Matthew and his company have developed a way to turn your equity into cash. You are not refinancing your home, there’s no credit check, and once your equity position is established through an appraisal and title work, you are just hours away from cash in your bank account. The company will buy a percentage of your equity at current value and wait for you to sell the house before getting paid back.
Does this sound too good to be true? How does the company make money? Surely it’s not doing this out of charity. What are the risks to you as a homeowner and what are the risks to the company?
I recorded the interview earlier and I’ve had a little time to think about this and I think it is one of the coolest ideas I’ve seen in a long time in real estate. Matthew and his team DO make money, but most of the risk is on them. Once you understand your costs and make a plan for the money you will receive that will more than cover those costs, this is something you should consider.
Everyone’s situation is different and this wouldn’t be a great solution for everyone, but on the whole, this is an idea I can get behind. And wait until you hear what they then do with that shared equity. They give the public, you and me, a chance to own some of it. All that is coming up today on Flipping America.
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Guest: Matthew Sullivan, Sell a Piece of Your Home
Notes from the Interview
The company is called QuantmRE. Find them at www.quantmre.com.
The idea here is you sell a percentage of the equity in your house. This gets paid back when you sell the house. The concept is known as shared equity and is a way to turn the equity in your home into cash.
The shared equity is then tokenized and sold as a crypto-currency — a digital currency backed by real estate.
The coin will be called EQRE. – the Quantm Coin.
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- Keith, Bakersfield, CA “What is your opinion of flat fee real estate services and the agents that do them?”
- James, Boulder, CO “We are looking into buying rental properties in college towns. It won’t work here in Boulder with the Air Force Academy, but it seems like a decent idea. Your thoughts?”
- Casey, Seattle, WA “I was in a meeting a month ago and someone there had been on your show, so I went looking for it. I can’t believe all the great information you are just giving away, but I thank you. I’m really new at this, but my husband and I have some rental properties. They seem to pay for themselves, but I think maybe not quite, when you consider everything. We have 4 houses that together cost us $1.4 million. We get about $6500 per month from them. They are all free and clear with good tenants in good areas. What I don’t know is whether they are really a sound investment. They are in Seattle and we believe they will be worth more in a few years than we paid for them.”
Motivational Thoughts for the day
- Keep your eyes on the stars and your feet on the ground. -Theodore Roosevelt
Many of you listening to this have two types of assets – liquid assets and illiquid assets. A liquid asset is cash or anything that can be turned into cash in about 3 days such as publically traded stocks. Illiquid assets include things like real estate, which clearly cannot be turned into cash — until now. Our guest today is Matthew Sullivan, founder and CEO of Quantm RE. Matthew and his company have developed a way to turn your equity into cash. You are not refinancing your home, there’s no credit check, and once your equity position is established through an appraisal and title work, you are just hours away from cash in your bank account. The company will buy a percentage of your equity at current value and wait for you to sell the house before getting paid back. Does this sound too good to be true? How does the company make money? Surely it’s not doing this out of charity. What are the risks to you as a homeowner and what are the risks to the company?
[0:28] Time for flipping America the show that teaches you how to make money in real estate or wherever you are whatever your situation there is an opportunity for you.
Flipping America is brought to you today by Braswell Capital Solutions,
commercial lending made easy on the web at Braswell Capital solutions.com and now here’s that,
flipping America guy Rodger Blankenship.
Many of you listening to this have two types of assets you have liquid assets and illiquid assets a liquid asset is cash or anything that can be turned into cash in about 3 days,
three days such as publicly traded stocks and so forth it liquid assets include things like real estate,
clearly cannot be turned into cash in 3 days until now,
I guess today is Matthew Sullivan founder and CEO of quantum re Matthew and his company have developed a way,
to turn your Equity Into Cash imma say this again,
Matthew and his company have developed a way to turn your Equity Into Cash you are not refinancing your home there’s no credit check and once your Equity position is established through an appraisal and title work you were just hours away from cash in your bank account,
the company will buy a percentage of your Equity at current value and wait for you to sell the house before getting paid back.
[1:55] Does this sound too good to be true how does the company make money.
Truly is not doing this out of Charity what are the risk to you as a homeowner and what are the risk to the company,
I recorded this interview earlier and I had a little time to think about this and I think it is one of the coolest ideas I’ve seen in a long time in real estate Matthew and his team do make money.
And most of the risk is on them,
what you understand the cost and there are some cost and in some cases the cost can be fairly significant just going to put it out there but once you understand the cost to make a plan for the money you’re going to receive that will more than cover those cost,
this is something that I think you should consider everyone situation is different and this wouldn’t be a great solution for everyone but on the whole,
it’s an idea I can get behind and wait to hear what they then do with the shared Equity they give the public that’s you and me a chance to own some of it.
And all of that is coming up in just a few minutes here on Flipping America today let me tell you how to reach us you can find us on the web at flipping America network.com you can find this all over social media on Facebook you have to look up flipping America media on Twitter and Instagram and YouTube and no I’m not YouTube,
Google Plus what else Pinterest at flipping America just look up flat.
At flipping America and we are on YouTube we do have a YouTube channel and we’re on LinkedIn and we’re posting the links to the stories that we feature and other things other content that we’re providing.
[3:30] And that those posts are going up throughout the day and particularly after every show so you can reach,
all Aretha you know hear from us to all of those social media Outlets but also for those of you that just want to call we welcome you to call our national comment line the number is 404-369-1018,
press extension 1 if you want to leave a comment or a message and if you want to be on the show just to give us your question or comment that way.
I couple of other announcements if you’re ever in Atlanta on a Wednesday please come join me for lunch we’ve had people from Canada the Caribbean California,
I guess that’s three seas got a nice little alliterated outline there but we had people from all over who have,
stumbled across our show somewhere on the internet and when they came through Atlanta they took some time on a Wednesday to,
come and hang out with us and that’s what we do every Wednesday we just have lunch and talk real estate it’s called,
creative dealmakers and we do some interesting things talking about deal structures not always the straightforward I buy for cash and sell for profit,
we talk about other ways of putting deals together both structuring the funding at even structuring the way the the deal is bought or sold so that’s on Wednesdays from 11:30 to 1 you can get more information about this by going to meet up.com,
flipping Atlanta now I know the show is flipping America and I’m sorry for the confusion but flipping Atlanta is our local Atlanta Meetup Group.
[5:01] That is kind of the local group for flipping America and Joe if you’ll join that group,
you’ll get the notifications about the location we meet right now at Huey luey’s Mexican place Tex-Mex on Roswell Road in Sandy Springs,
suburb just north of downtown Atlanta.
[5:21] All right next announcement flipping America the app is in the App Store you can listen to the show read the show notes and in the end.
The entire catalog of shows is now available to you in,
in the app it’s a free download there are no upsells no in-app purchases it’s free to download and free to listen no limitations go ahead please download the app give it a try,
give us a 5-star rating to if you don’t mind and drop me a line and let me know what you think I just got off the phone with someone else in the media business who is surprisingly to me,
listening to my show and Dobie that my show was an inspiration to him and that was an inspiration to me that’s,
pretty cool so I we do like to hear what you think about it then anyways that we can improve how you want a quick and little tool to tell you how strong the potential Fix and Flip deal is,
you can download the property grade app just go to your app store and look up,
property grade the answer 10 several questions about the property in the app instantly tells you what you can expect to make your return on investment you return on cash and the program then gives your project a letter grade,
using the proprietary flipping America investment property grade algorithm all right let me see if I can just hit at least one news story.
I’m seeing more and more news stories I’m okay maybe I’m going to get two stories here I’m seeing more and more stories talking about the impact of global warming on real estate and honestly it kind of cracks me up,
I know that if the if the tides rise and.
[6:51] That sort of thing and then you know Oceanfront land goes away that we may be facing something significant but.
Just the sky is falling kind of language in some of these stories,
it really is humor as well it would be more humorous if I thought people were actually intending to be funny when they wrote it because it comes across to me is kind of funny and there’s a panic over nothing,
really when I was in high school in the Hue and cry was global cooling and we were concerned that the humans are causing the Earth to cool,
really seriously and I know I wasn’t in the high school,
hi I was in high school in the last century I do know that but still it hasn’t been that long ago that everybody was worried about global cooling now is global warming and I think a lot of you are with me like really,
is this that really that big of a deal okay.
Y’all can send the emails if you want to about it but I’ve done the research I’ve read quite a bit about it and I just am not convinced that global warming is significant and what is there is I’m dubious and doubtful that,
humans cause it all right so I said that I don’t normally get in that kind of stuff hey I did the story I want to talk to you about what’s one from fortune and we’re going to link it to your Fortune Magazine says,
the housing market is about to slow down and I just like articles like that because if you listen to the show last may you would have heard me predict.
By this time in 2018 the market will be slowing down so stay tuned folks.
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[10:16] I’m online with Matthew Sullivan,
he is the founder CEO Chief cook and bottle washer for Quantum R E & s q u a n t m r e.com Matthew welcome to the show.
[10:28] What you’re thinking of adding me on as a pleasure to be here I’ve been excited about this I know you did an interview with my good buddy Jim Beach on,
school for startups radio and I’ve been looking forward to finding out more about what it is you’re doing you’re doing something with real estate,
I’m never heard before and honestly you know as long as I’ve been in real estate I thought I’d heard it all and tried it all but I haven’t done this,
and so I’m give us the elevator pitch the real problem if you are Iron Man and even years,
paying off your mortgage,
the problem is if you want to release them value in your home that’s your money that you spent all those years paying off you have to go back to the bank and you have to borrow more money.
That’s okay if you can afford to that you can afford to take on the extra monthly payments and it’s okay if you need two things,
criteria and you go to credit score that’s okay and if he does.
Equity built up until you sell the house,
what we do is we sold that problem by buying a percentage off the equity in your house it’s not that there’s no monthly payments there’s no interest.
You pass back when you sell your house.
[12:00] Important things you can spend the money on whatever you want there’s not like a he talked where you go to spend the money on revamping the house it’s entirely your money,
the problem that we sold is we help kind of homeowners getting money,
dead money that’s locked up in the actress in your eyes to the future value of the property,
absolutely right so the question is how do we make money out of this what we say is,
with buying a percentage of the value of your home and what you want to happen in your house to go up in value because if it does then we share in that appreciation,
it’s not like that,
did you have to pay the insurance with your house goes up for what we have is a it’s a partnership,
how does a multiple say whatever percentage of the value of the home that we buy we multiply that by 2.5 and,
that is the amount,
the weed that we share in the amount of increase in body of your hair to release 10% of the value of your home we would Sharon 25% of the increase in value.
[13:31] If your house went up by $20,000 we would get $5,000 of that.
[13:38] Okay alright so it’s not a straight line you buying it at 10% and cash out of 10% you buying at 10% but you’re cashing out at 25% of the game.
That’s right it’s the game.
So how’s doesn’t go up in value and we didn’t make any money and then comes a point where if you have stuff going down in value.
And we run the risk of losing money yeah so you’re betting that we’re not about to hit a big crash in the market.
What is a significant drop in real estate.
Increase in real estate in other areas.
[14:36] I think the whole world is not going to be in the trash but we’re doing like anywhere that we buy into will appreciate.
Yeah but now when you think about the historic rate of appreciation of real estate it it typically is 3 to 5% per year if you go back and look at a hundred year history of real estate is so I think that.
I would want to make more than 3 to 5% per year and you kind of answered that question already because if there is a a 5% increase let’s say you buy into a property and and you buying the $50,000 worth of equity.
Let’s say they have 500,000 and equity and You by 50,000 of that.
And so if there’s a 3% I’m just making up numbers now so I means I have to do math in my head but if there is a 3% appreciation,
and that would be compounded annually so you know after 5 years that $50,000 you know there might have been a $10,000 game but you’re actually going to get 25000.
An investment is not directly correlated with that house price inflation it because of that multiply we get more,
then the three to five and typically it’s to 10%. I guess because.
[16:18] We know that because our team has originated,
I’m in the house point values about a quarter of a billion dollars last,
so we got some very good information about how they perform we can we know that it starts at the average is around.
Wow alright so I was going to try to back into what the actual yield is but you just told me so all right that’s good and I was kind of getting to a number like that so this is a totally passive investment.
[16:54] If you’ve done a quarter of a billion you know I don’t know you Matthew but it was at a quarter billion of your own money.
[17:02] House price values that the amount of capital that was deployed is around 60 to 70 billion dollars,
when I say we are the team that we have as politic one tomorrow and was part of the company and that were,
I going back about it yet.
Thanks very much for the one of the companies in the US to go to market with a.
[17:41] I’ve developed in Las Vegas because as you can imagine having to deal with all of the regulators and government agencies in Nyssa politicians.
[17:51] Getting people to understand that this is not saying it’s not that if it’s an ankle sprain,
call T-Mobile on Fayette around $70 in Investments,
okay we got to go to a break when we get back I want to ask you some questions about the specifics and then I know that you talk to me before we went on the air about another piece of this that is,
really trendy really interesting and it’s probably another way that you create a little income stream.
And I’m kind of blown away by this whole thing so folks hang on will be back in just.
[18:49] Flipping houses I want to show you how to flip houses and there’s probably no one in the country better qualified than me to show you I flipped hundreds and hundreds of them,
and I also have some training and degree and experience and education so I could show you how to do exactly what I’ve done hundreds of times don’t believe me.
Head on over to flip starter event.com but in the meantime Give a listen to Pat caywood.
[19:14] Cleveland Tennessee and I’ve been.
[19:17] Doing some flipping since about March of this year and had started with a Nationals program that was very expensive I spent today with Roger Blankenship.
Learning about his program and boy do I wish I’d met Rodger.
[19:36] He has a clear concise program and many tools that are going to be very hot.
[19:42] And starting and managing the program and the mentorship and Leadership and coaching that he saw frame are invaluable.
[19:52] Thank you so much for all.
[20:46] Number phone went to the break we were talking about if you were talking about in big picture about the return I want to talk a little bit about the specifics I let’s just say I’m a homeowner and I’ve got a half million dollar house and.
I owe $200,000 on it what can you do for me.
[21:04] So that means you owe out right $300,000 of your house,
okay so your house is worth $500,000 they what we do everything is well it’s now based on the value of your house that we can release,
how to spell offend,
piece of ownership of your Anaheim,
well that’s why I missed as important if we were to release what,
we can transfer ownership it’s an auction so that when your house is sold.
We own it affected me $150,000 worth right now.
When you sell your house.
[22:23] When you sell your house we get $150,000 back,
I’m to be posing for you it is at the point you sign that contract even mediately get your hundred and $50,000,
I’m full I’m being released to the capital of charge depending on.
Number of factors between 3 and 5% of $50,000.
Write do we make out $6,000 and that’s how we keep the lights on it when you get $144,000 and then.
Is Daniel Holmes 10 years 20 years.
And nothing you keep your house for 10 years and it’s going up to 600,000 does that sound.
We get $150,000 back when you sell your house and then we say how much is your house going up in value.
[23:55] Should we take that when multiplied by 2.5 and we would take.
75% off bedding that sounds release.
At the cost of that $250,000 would be $75,000 right.
[24:23] I’m not a very good comparison.
[24:36] Other than the right.
Bible $6,000 from now and if you know anything about the business that we’re in if you can take a hundred fifty thousand if you can’t turn it into another hundred and fifty thousand in a couple of years and you’re not doing this right.
[24:52] I think you have to be a resident,
if you go rental properties.
They had to do some time and expand them because they simply cannot borrow any more money.
Thought they thought I could see you tonight.
We can do it we can help them raise more money by buying some of that I couldn’t wear.
Angel keep on adding that to your teacher existing credit,
so in the same three years I wanted to buy you out could I buy you out and just pay you what you put in it plus whatever that percentage of the game is at that time.
Yeah what we do is we do an appraisal the house,
how much it how much is it going to 10% charge,
if you decide to buy us out oh you move within the bus driver do we need to make sure that we make some of that to you.
down to what the market prices okay.
All right now what do you do when you when you’ve reached an agreement with someone and you start doing the title work and you see they’ve got a material ones laying or a judgment against them or some other title defect.
[26:24] We go to look at everything on a case-by-case basis is the property value itself.
What is the likelihood that the property is going to be going to find itself in a full stallion bar,
play if if there is a lien or some other type of Sean John the time then,
if that’s a potential foreclosure action that is likely to happen as a result of that would want to avoid.
Boots and leave out of your home and your home is enforced into a cell which will probably be significant discount to the card balance.
It went well we’re pretty careful to watch out for those types of soda bananas okay,
we taking it this whole segment talking about the specifics but I want you to see if you can give the audience a teaser for hanging around till after the next break because I want to talk to you about tokenization.
[27:31] So do cities.
What I think that you know that he’s is the token ization will probably have more effect on everyone’s lives than anything else they’ve experienced.
Okay and when we come back Matthews going to tell us how they are now taking this Equity that they’re buying and houses a quarter of a billion so far and they’re tokenizing it,
and making available through some sort of cryptocurrency exchange I know you’re going to want to hear this so hang out folks will be right back,
[28:18] Are you one of the 70% of Americans living paycheck to paycheck and tired of the stress if so I understand as I used to be in that 70.
[28:26] I start investing 2003 with my net worth with -80 thousand since then I’ve built a business that generates over $500,000 a month in income and allows me the freedom to do what I want I’m Brad Chandler and I teach people just like.
[28:38] How to find Freedom through real estate investing using a tactic that doesn’t require credit or tons of cash for a free training on how you too can do this please visit Brad camel.com.
Hey flipping America listeners have you ever walked into her property and said I have no idea what it will cost to repair this home those days are over.
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[30:26] We’re back he’s Matthew I’m Rodger and I teach people how to make money in real estate.
And Matthew is making money in real estate and he’s got a team and they’re out there they’re they’re making it happen they’re also solving problems for homeowners who just need to pull some cash out of their house.
And I like what I’m hearing so far this is like nothing I’ve ever heard and I didn’t think I would say that when it came to real estate but I’m very impressed so now we’re going to talk about the tell us a little bit about where that came from and what it even is.
[30:58] This is one of those words that is linked to this whole blockchain and cryptocurrency.
And what most people anyway.
Bitcoin ism is a form of transferring money from one person to another.
Buy some services from you that’s why I was going to buy your house in Bitcoin.
[31:38] News items about how houses of pay for a Bitcoin.
If you want to pay for a house in Bitcoin what you going to do if you could have done buy some Bitcoin then you hold it on this electronic wallet and then I transfer that they cling to you because I’m buying the house from you.
And I made the Bitcoin from my electronic wallet into your electric wallet money I would send it from my bank account to your bank account.
The way that you do it in a cryptocurrency if you move it from one electronic wallet to another,
if I bought some Bitcoin today thinking that I’m going to send you the Bitcoin at the end of the month when we complete the transaction.
[32:21] As a child that the value of Bitcoin could.
A million dollars worth of bitcoin to buy your house by the time I come to send you the Bitcoin it’s illegal.
Because the value of the Bitcoin fluctuation.
Where do you understand what Bitcoin is based on.
Because of that and no one really lost it.
The same way that they trust where you go to church.
[33:14] 3-pack white stuff that people really understand.
People’s the equity in people’s houses that’s real that’s why she was something I need to buy you that because you can look at every single and you can send an appraiser out,
and you can you can get a real value of that real asset imagine if we take over there.
[33:41] And then put them into a pool and then create.
Cryptocurrencies or aha a bit like a Bitcoin.
[33:55] Can I have the weights when you buying one about cryptocurrency taken you’re buying something that is a shaft,
maybe even though it’s the kind of show you’re buying a share of food of those real estate in the end.
On one side you’ve got the fact that you’re looking at this typing as a potential investment.
Even if you don’t.
Worried about the fact that I can make it so I can buy you know buying it because the great thing about attention is it’s much better than money.
Because it’s much easier to send someone a payment using tokens.
In the not-too-distant future houses will move on to the blockchain.
One of the stuff that has to happen when you buy or sell a house.
Typhoon one of those things that are currently stored in reading the paper in summer.
What was that will move on to this electronic trading platform.
Which means that when you buy and sell houses the unseeable transfer electronically then.
[35:24] The death of the ownership.
to buy someone’s house,
crazy idea but it’s happening at the righteous right behind the scenes,
right we’ve reported on the growth of aetherium here on the show and its use particularly in Southeast Asia to buy real estate and had a few cases were Bitcoin itself was the currency used but are you creating a new coin.
Yes exactly new coin. Is backed by real estate. Okay.
You knew exactly what each daughter was was because it was backed by this huge pot of gold in Fort Knox.
What do you call a grade that it was okay.
[36:41] I like it what you had and it’s this combination of these two well it when people buy these each Uwharrie coins,
because they want to be able to have some cryptocurrency in that wallet that they know isn’t going to have the same volatility is Bitcoin.
doing that you would hold out because that’s stable because that predictable because you these claims cuz you want to pay for something in the future with these,
value of these coins.
[37:25] So are you projecting at the coins are going to have that same kind of eight or 9% return.
[37:30] Very difficult to predict.
We going to be choosing very carefully what that real estate is that we put into that. We do not your puppet stage should appreciate in line with a bison.
Brown and there’s a possibility that it might be.
I have a big fan of cool about that then we not really looking for this to be from the investment side.
At the time and then become used as a currency because people trust it.
Yeah yeah I like the sound of that you know what we’ve got to go to a break when we get back I want to I want to get personal for a minute.
[38:43] Not too long ago we did a one-day flip starter in Chattanooga Tennessee and low and behold one of my old College friends came out to the event his name is Peter Faulkner and here’s what he had to say about the event.
[38:56] Peter Falkner here I tended a one-day flip starter training session led by Rodger black.
And I was amazed to see what has happened in Rogers Live from the last.
[39:08] Plus years flipping over 800 houses and then this one day training he told how he did it and what the pitfalls the blessings the benefit.
And how to do it and I was so impressed with how well organized.
[39:26] You’re tempted are encouraged to go go at was not a bad price and if you get a chance.
[39:55] We’re back time Rodger he’s Matthew and this is the show flipping America we don’t encourage everyone to drop what you’re doing and flip houses like you see on TV but we do encourage everyone to consider real estate as a part of the balanced Investment Portfolio into that end we aim to bring you the,
best information all the options,
demographics Trends research and data right here on this show flipping America and Oaks you are proving us to be worthy of the effort,
by the fact that so many of your tuning and we are one of the fastest-growing real estate radio shows in America and so thank you for joining us and I’ve got Matthew Sullivan he’s been with us today we been talkin about.
Quantum re fascinating project where his,
team will buy a piece of the equity in your house they’re going to make some money off of it,
but if you know anything about the time value of money then you can kind of figure out that you’re getting cash in your hand that you can do something with that would outweigh the cost that are.
Basically the cost of capital in this case if you’re looking at the equity in your home is capital for something you want to do now.
We don’t give advice on this show anything that sounds like advice that’s not advice at all it’s just a suggestion but here’s a suggestion don’t cash out the equity in your home to buy a new car that’s just,
but I would say hey but you know if you want to look at it to buy another rental house that might be something,
we’re truly considering or or they use it in the flippers are some some other type of thing where you’re going to make back all that this money is costing you plus more now.
[41:32] Matthew but we went to the break I said we’re going to come back and get personal.
I get a kick out of asking this because so far this is show I think this is show number 162,
and out of a hundred sixty two shows maidenhead guess on every show but I probably had over a hundred guest and not one single one of them is doing what they thought they would do when they were little kids,
when you were a little boy and you were thinking about what you wanted to be when you grew up what did you want to be I wanted to be a doctor.
Okay now I get it and I remember.
The odds of dying or still a hundred percent,
exactly that’s right so far so good,
you wanted to be a doctor that didn’t quite work out for one reason or another and now are you doing something in this work that is related to your formal education.
[42:53] Yes I think I probably am,
a low degree many many years ago.
That was going to drill into an umbrella today at least act cuz I remember when I be here when I left school to University.
I was great to Ryka lunch time.
I’m pricing like Mike himself in writing country like a teenager.
And then the lawyer that teaches you to feel that way and I should get to the fax and get to the meat and get some specific.
and wake up with Chase and something that stuck with me from the running should be okay,
that’s good I always like to find that out I get a fair share of people who wanted to be a professional athlete and something they wanted to be superheroes I had a gentleman on the other day who wanted to be a physicist when he was a little kid,
[44:28] Just things like anything,
gasoline on Aviation field still have this,
law offices near John Wayne Airport in Orange County.
Every time I took a boo costume smell aviation fuel,
alright well let’s Circle back around to the business aspect of this let’s say I’ve got a couple hundred thousand dollars and I would like to invest in something that you’re doing me either coin or or something is there a mechanism that I can do that.
Yeah I’m done will be there with busy building this and we will be launching to the public at the end of this year that’s a very big building a platform that is a banking grade pack.
And that’s costing us in several million dollars to build,
as resilient as a banking in construction would be because.
The messages watch the space you will be able to get actually involved in after the business and I’ll take him if you are you will be able to release will be towards the end of this year.
[46:05] Schedule a website and put your name in and I just felt so I left them will keep you updated without,
okay in the website is quantum that’s q u a n t m r e don’t put II them in there it’s q u a n t m r e Quantum ari.com and.
I told did I maybe I misunderstood earlier if someone wanted to show you equity in their house now are you buying now it sounds like you have been buying weed in a previous life.
[46:41] Cute experiencing that site to say but that is another company so we managed to grab the Challenge from competing company name it we are still putting the pieces together,
because of legal records free and Technical on that we haven’t originated any transactions yet,
decades old and has a transacted I like it,
it’s not everyday I get I come across a new ID in real estate so Matthew very enlightening thank you so much for joining us today I know you’re busy you taking your time to be with us in for all of our listeners we say thank you.
[47:26] What is a pleasure thank you for having me on what we’re going to have a follow-up in about 6 months to see how things are going if you’re ready to lunch I thank you baby.
[47:54] I really like it when we get into ideas that are just different from things that we,
hear a lot of in this is the thing that I had not heard any of I mean I had heard about Matthew Sullivan and heard about Quantum re and I knew I had to get him on the show when I heard about it but,
I didn’t know that much about it and I don’t know anyone else that’s doing this so congrats to you Matthew and your team and wish you all the best in this and we’ve already kind of.
[48:24] Put it on the schedule to have him back in about six or eight months and see how it’s going we’ve got some emails and let me see if I can get through,
these emails today,
keys from Bakersfield California says what is your opinion of flat fee Real Estate Services and the Agents that provide them well that’s a good question Keith but my opinion is.
Really the same opinion that I have of realtors in general.
And what I mean by that is there are some good flat free agents out there and there are some not-so-good flat fee agents out there there are some good models and there are some not-so-good models,
I own the whole there’s nothing wrong or right with the flat fee model Maybe.
It’s the wave of the future I don’t really think so because.
It’s tough for realtors to really make a living in this business and if they go into it knowing that they’re just going to make up a thousand or $2 or $200 then,
that’s not really all that motivating and the Realtors put more work into this then any non-realtor realizes,
particularly from the day goes under contract to sell just to get it to the closing table but there’s some other marketing expertise and things involved in getting the home sold in the first place,
so I think that we should just plan on giving the Realtors they are due now having said that I had a flat fee listing Arrangement on probably three or four hundred houses that I sold.
[49:57] And the agent that,
I did the flat TV listing for us his reasoning was just nice I said to look man you can’t be making any money off of these listings he said well I don’t make money when I sell your house but because of you and your guys.
My sign is in a whole bunch of yards about a hundred more yards a year than it would have been otherwise and so,
I’m becoming a known person in this industry and indeed fast-forward about 10 years and he is the number one realtor on the Southside John Durham he’s been on the show a couple of times and.
That’s it that was a good way of looking at it for him he really didn’t make that much money and I even encourage him to raise the flat fee a few times and finally he did.
All this is to say Keith flat trees or nothing wrong with it it’s a good thing if you can find it but be careful because some people who are offering flat fee,
a real estate services are basically not providing any actual service what you’re really doing with some of these.
Is you’re just paying to get the house on to the MLS and that’s okay,
if you are good at selling the property yourself if you are willing to do your own open house if that’s the way you want to do it if.
You can do some other things and then stay on top of things you know your agent may not give you full service now when I was doing the flat flat fee listing I was still getting full service from the agent of course as a professional investor and a real estate professional myself.
[51:31] Full service to me,
is different than full service to the average homeowner selling their house I was not a burden to my realtor they could send the contract over I didn’t need any explanation I didn’t need any hand-holding I knew what I was looking at an I knew what I needed to change and so,
their full service required less effort but still it was full service so make sure that if you’re going to do a flat fee that you’re still going to get,
I like for example every time the property shows I want the Agent following up and getting feedback from,
the people that looked at the house I want to know if there’s something that they didn’t like,
that is also something I can address if we have irreconcilable defects then we we probably already know about it and,
there’s nothing we can do but combat that was price,
but if there are other things wrong I want to know and so the agent has to get feedback from the other agent who has to basically talk to the people or get them to fill out a form and those that feedback is very helpful when I definitely want,
and then there were that’s probably the main thing that I want from the servicing side from a real estate agent because,
I’ve taken the time to understand the real estate contract,
Keith I hope that helps James from Boulder Colorado said we are looking into buying rental properties in college towns,
they won’t work here in Boulder with the Air Force Academy but it seems like a decent idea your thoughts well James that’s interesting.
[53:01] That you bring this up because we’ve been exploring this ourselves here at the flipping America home office in Atlanta we’ve been looking at,
maybe going into the towns where some small colleges are we’re looking for small colleges that are actually growing larger and larger and don’t have enough dormitory space that,
that would be ideal the advantage of this is in the small towns you can typically buy houses fairly cheap and since the college kids are going to be.
[53:30] Cheering the rent you can give them a very fair price for their room and in the shared areas like the bathroom in the living area but,
you can probably get more a little bit more than the fair market rent in the house in that town would be just two ordinary people that live there the other thing that I particularly,
like about this model is mommy and daddy always cosine and load times you can get your rent payments made with direct deposit,
so all of those things are things that you need to look at doing if you’re going to do this but yeah I think it does look like a decent idea we’re going to be exploring it and,
will let you know when we have a little bit better develop criteria but you don’t want to go to a small college town where the,
College itself is,
I’m kind of just stagnant or has plenty of dormitory space so we’re planning to actually talk to people in the housing department to each of these colleges to see what their needs are and of course,
like any other thing that you’re ever trying to sell,
it’s good first of all to know that somebody out there needs what you’re selling or wants what you’re selling so make sure that they they college that you’re targeting has a need for additional living space for their students off campus some colleges and I think the,
probably I’m tapped into this with the Air Force Academy some colleges don’t allow their students live off-campus there’s a little bit more regimentation and in the lifestyle of the students and in some colleges some of the ones that we’ve looked at so far.
[55:04] After your freshman while they’re out of space and so you basically can’t live on campus and so there’s a great need there for this kind of housing.
[55:15] And I got an email from Casey from Seattle Washington I was in a meeting a month ago and someone,
there had been on your show so I went looking for it I can’t believe all the great information you are just giving away but I thank you I really new at this but my husband and I have some rental properties they seem to pay for themselves but I think maybe not quite,
when you consider everything we have four houses that together cost us 1.4 million we get about $6,500 a month,
from them they are all free and clear with good tenants in good areas what I don’t know is whether they are really a Sound Investment they are in Seattle and we believe they will be worth more than that more in a few years than we paid for them.
Okay it’s okay see if I understand your question you just want to know if you’ve made the right choice of course it’s a little difficult to go back on that choice right now and you didn’t say how long you’ve held them are on them but if you have good 10in send them,
then you must have been some time because you know they’ve been there long enough to know that they’re good alright so it’s just look at the money side of it okay.
Hung on the cash flow inside you got $6,500 a month let me get my calculator 6500 times 12 equals 78000 so you got 78,000,
dollars a year in gross income now even though you have a good tenants and and.
You know they’re taking care of the place you still have some maintenance issues that are inevitably going to come up you also have to pay taxes and,
you also have to provide insurance so let’s assume a best possible case scenario and say that.
[56:51] Your tight you’re running at about a 15% expense ratio which would be very low the industry standards around 25 on single family homes so I’m going to give you the,
benefit of the doubt here and give you a best-case 6500 times 12 equals 78000 and we’re going to multiply that times,
8 V because we’re having about 15% and expenses,
I’m out of our income so we got $66,300 in net income then you divide that by your purchase or E requisition that’s 1.4 million.
[57:27] Make sure I get the right number zeros in there and you’re getting about a 4.7% return on your money alright,
the 4.7% return on your money is a little bit better than you can do in a in a CD but,
you might do better in an index stock fund then in these houses and the index stock phone would probably it would be a little exciting over the last few days but it probably be,
probably be less effort but the thing that I have to include here is your getting some enormous tax benefits,
from owning these houses because of the way you’re able to depreciate,
the purchase of these houses if you haven’t already received that enormous tax benefit you need to talk to your accountant your tax preparer about this,
and if your tax preparer does not know what you can do because you own rental properties and then get a different tax preparer because,
you’re sitting on a little bit of a tax savings gold mine right there with those properties.
[58:25] Okay I think that I hope that helps but I’m pretty sure the music means we’re out of time for today so we’ll be back again in a couple days folks keep the questions coming.
[58:51] Are motivational thought for the week is from Theodore Roosevelt keep your eyes on the stars and your feet on the ground.
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