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SHOW NOTES FOR EPISODE 143: FROM $600,000 IN DEBT TO REAL ESTATE MOGUL
Linda and Jim McKissack, authors of the book HOLD: How to Find, Buy, and Rent Houses for Wealth, were reeling in success in the 1980s with their Texas restaurant/night club business — “living the dream” — until the economy took a major downturn. Then, with over $600,000 in debt, they had to reconfigure their lives and turn things around quickly. In this episode, Linda shares how real estate investing became the vehicle to not only rescue them from financial disaster but to set them up for life!
What You Will Learn
- Why it’s important to set goals to create the future you want
- The three ways to build wealth
- The book that changed her thinking about building wealth
- How disciplined living and faithful saving are key factors in turning financial disasters around
- The power of strategic partnerships
- The importance of factoring in the reality that people are living longer lives into your retirement plan
About Our Guest
Linda McKissack
Linda McKissack is an entrepreneur, best-selling author, business coach, trainer and highly regarded speaker. Her greatest passion is helping the successful but overworked entrepreneur understand the power of leverage and passive income in their lives. Linda is the Operating Principle for the Ohio Valley Region for Keller Williams International and owns multiple Keller Williams franchises. Her career in real estate began in the early ‘80s with a rocky start. Through her experiences, Linda has developed an understanding of business that she shares with other entrepreneurs and business owners around the country. Her results-driven personality continually helps push successful people to the next level in both their lives and careers.
After her tough start, Linda looked to mentors and coaches to help her adopt the systems, models and business plans that propelled her to success in real estate. Her real estate team, McKissack Realty Group, sells over $60 Million in volume and closes over 300 properties each year. She has gone on to create five successful businesses, one of which includes ATPL, a consulting and speaking business designed to teach and coach real estate professionals and entrepreneurs around the country.
Linda has taken her success and graciously shares it with others through her writing and speaking. In 2013, Linda was co-author of the national best-seller HOLD: How to Find, Buy, and Rent Houses for Wealth.
She has been a guest speaker at the Colorado Association of Realtors, Hawaii Association of Realtors, National Association of Realtors, CRS, Keller Williams University and a regular speaker at Howard Brinton Star Powers Seminars. Recently, Linda was featured on one of the top ten business blogs, Entrepreneur on Fire. Her authenticity makes you believe if she can do it then so can I.
More About Linda
- Late 90s in Texas, economy was great
- Husband in restaurant and nightclub business
- Income just went away overnight
- $600,000 in debt
- At 23 years, she went back to work
- Had to radically cut their living expenses
- Tried to assess what work she could do
- Decided to be real estate agent
- She was good at it
- As they starting making money, they looked at how they could prevent financial trouble in the future
- Started setting 15% aside and when they reached $15-20K, they would buy a house, finance for 15 years
- Read Robert Kiyosaki’s Cashflow Quadrant
- The book said there are three ways to build wealth: real estate, stocks and businesses
- Because she was already in real estate as an agent, they decided to get involved in real estate investing
- In the meantime, was coached by Gary Keller (founder of Keller Williams) on how to grow real estate businesses/brokerages
Becoming Real Estate Investors
- Set a goal to generate $250,000 in annual passive cash flow in 20 years from 20 rental properties (her husband was 40 and wanted to reach that goal by the time he was 60)
- Couldn’t get a loan
- Found a partner (who was a builder) to help finance purchases. The partner stayed with them through the first three properties
- Found first property but had no money. House had foundation problems. Fixed it up and sold it for $15,000 profit (she also got RE commission)
- Second house purchased from Resolution Trust Corporation for exactly $15,000
- Bought a third one
- They have long since passed their original goal
- Her brother-in-law is running her real estate teams with Keller Williams
- Real estate residential investing has slowed because prices are up
- Currently has about 100 SFRs. Has branched out into 16 vacation rentals (includes commercial ranch), multifamily, 6 commercial buildings
Biggest Mistake
- Not setting up their real estate investing efforts as a full-fledged business with lead generation arm
Biggest Success
- The market timing – She purchased a lot of properties between 2008-2009 at foreclosure sales
Advice for Old Dawgs Considering Real Estate Investing for Retirement
- Know that people are living longer
- Most people are not educated about how to plan/prepare for retirement nor how to prepare financially
- A study that followed 100 people for 40 years found
- 54 were broke – dependent on family or government (those of us doing well will have to step in to help those who were not)
- You start becoming aware at 50
- It’s never too late to turn things around
- You can totally changes your financial situation in 5 years or less – you have more time than you think
- Questions to ask:
- When do I want to be financially independent?
- What means to I have to work with?
- Money?
- Possible partner who has money?
- Assess you situation
- How much do you need to make?
- Work backwards to see how to get there
- Set goals and break down by – 10-5-3 years-1 year-month-week-day
- How much $ may I need to help others – parents? siblings? kids?
- Single family home rental properties
- This she knows best
- People always need houses
- Buy wholesale (below market price) and sell retail
- Foreclosure auctions are not good now
- Networks with other realtors who are looking to close quickly
- Apartments
- Vacation rentals
What’s the One Thing Exciting You About Her Business
- Learning how to succeed with others
- Bringing in good people to train for success and start to take over many operations of the business
Rap-It-Up
- Favorite real estate book: The Millionaire Real Estate Investor by Gary Keller
- Favorite business book: The Four C’s Formula by Dan Sullivan, The One Thing by Gary Keller and Jay Papasan
- Favorite app: My Fitness Pal
- Favorite quote: “If you don’t design your life, something or someone else will”
- If you had to start all over, knowing what you know, and you only had $1,000, what would you do to launch your real estate investing business? Go find a partner that could benefit and where we could bring something to the table.
Where to Buy Linda’s Book “HOLD: How to Find, Buy, and Rent Houses for Wealth”
How to Reach Linda
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