563: Getting Real Estate to Work for You in Today’s Economy

October 18, 2021bmanasseroUncategorizedNo comments

SHOW NOTES FOR EPISODE 563: GETTING REAL ESTATE TO WORK FOR YOU IN TODAY’S ECONOMY

95% of the people who try to invest in real estate quit within 5 years – Why? Because they keep repeating the same mistakes! In today’s podcast , real estate investor and CEO of RealEstateInvestor.com shares how you can become successful in real estate without it becoming just another J.O.B. (just over broke).

What You Will Learn

How Gary made $181,000 on his very first flip
The 4 steps to becoming a successful real estate investor
Why real estate investing can turn into just another J.O.B. (Just Over Broke) if you aren’t careful
New opportunities available for savvy investors in California’s eviction-saturated market
Why a new market crash is near
What the number one reason is most new investors fail
Why it’s critical to know your strengths BEFORE you start investing

About Our Guest

Gary Boomershine

As the founder and CEO of RealEstateInvestor.com, Gary Boomershine is on a mission to revolutionize the real estate industry and reinvent how agents and investors do business today. Alongside his team, Gary is leading the revolution by building a scalable suite of innovative products, tools, training, and managed services that nurtures every relationship, and helps real estate agents and investors make more money while working less. When Gary’s not working, he can be found enjoying life with his family, traveling, skiing, roller blading, and fly fishing.

More About Gary

Gary grew up in the San Francisco Bay area in a real estate family
His father and grandfather were both entrepreneurs
His parents owned a real estate brokerage and a bunch of rental properties
Gary got his real estate license right after turning 18
The whole family got involved in the “family business”
He paid for college by door knocking and cold calling and working on the family rental properties
He didn’t really have a big interest in real estate, if fact it was quite the opposite
Silicon Valley was starting to boom
He graduated in 1991-92 with a computer engineering degree from UC Davis
He got recruited to a large technology and management consulting firm
He did that for 5 years and then moved into enterprise system sales – selling $500,000-$5,000,000 software programs to Fortune 500 companies
He was working 90 hours a week, travelled all over the world
In 2004, he and his wife had two small kids a 2 month old and a 2 year old – both daughters – who Gary never saw because he was working all the time
It was no life, he was very unhappy
Gary and his wife decided to go back to what they know – real estate – his wife grew up in a real estate family, too
They both quit their other jobs
They had a big mortgage
So they went real estate investing full-time

Becoming Real Estate Entrepreneurs

In 2004, they bought their first investment property
Their first deal was a property 5 hours away from where they lived
He made every mistake in the book
But, despite that, they ended up making $181,000 on that one house
That set them on the right trajectory
Since then, they have done hundreds of transactions since then
The motivation was to create a lifestyle that they loved
He no longer had to worry about a J.O.B. (being Just Over Broke)
He also recognized that, if you’re not careful, you can also get caught up in real estate where you are just creating another Job
- If it’s done right – especially your “Why” and your “What” – without getting caught up in the “How”
- It took him 10 years to finally get it
- In 2013, he got some CEO coaching
- He put together a plan that said, “I want to get consistent passive income without having to work too hard for it”
Today, he also runs a real estate marketing company called RealEstateInvestor.com
He’s also still actively investing in more properties
He likes single family homes more than apartments
He also loves self-storage
He also loves AirBNB
He also loves lending money
- He works with Hard Money brokers
- He only does first position mortgages
- He typically gets 8.5-9.5% interest only loans
- He does them at 25% of the purchase price
- It’s a hedge against the downturn in this real estate cycle
He also just bought a house for $.52 on the dollar because the current owner could not evict the tenant. As the new owner, Gary can now evict
He also has purchased commercial retail properties

The Changing Economy

Real estate has always been a 7 year cycle for hundreds of years
This is the longest cycle in history
He feels we are going to see a fairly substantial blip in the market
You should be aware of it and continue to buy right
In 2-3 years we are going to see massive inflation
You want to be owning real estate when that happens
You want physical assets, tangible items as close to free and clear as possible

Coaching

Gary says that out of all the things he does, coaching is what he is most passionate about
He tells people he coaches that it’s OK to make mistakes, just don’t repeat the mistake more than once
Einstein says, “Doing the same thing over and over again and expecting a different result is called insanity”
He loves coaching
- He likes interacting with other like-minded people
- People who are looking for financial freedom and a life
- He loves coaching them and showing them their mistakes and given them the best practice and then hearing the result

Gary’s New Book

Gary has a new book coming out soon called The Freedom Code
It’s a faith-based book
It’s his story
He wants it as a disrupter in this industry
It’s not a “How to” book
- It won’t teach you how wholesale, fix ‘n flip or how to buy rental properties
It’s more of a strategy book on how to get your mindset right and on getting crystal clear on what you want real estate to do for you and lessons learned
For example, he says in the book, you are only 7 properties away from being a millionaire and becoming financially free
He believes in the story of the tortoise and the hare, the tortoise is the one that’s doing it right – slow and steady!
95% of the people who do real estate quit within 5 years – Why? Because they repeat the same mistakes
The way to avoid this dilemma is to find someone in your local market who has done it right and learn from them
- And once you’ve perfected it and become successful, then you can make it better
Real estate is a finance game and a game of leverage
- It’s not just leveraging some else’s money, it’s also leveraging someone else’s time
You’re not just a real estate investor, you’re a real estate operator who operates a real estate business
- And every business needs a CEO
  - If you’re a CEO and you’re doing $10 an hour work, you’re going to have a $10 bank account
  - In the book, he helps you figure out how much your time is worth – It should be between $250 to $1,000 an hour
  - If you’re not doing that kind of work, you’re wasting your time!
  - There’s a model that can show you how to find the $10 per hour people to take that stuff away from you
- He has a girl on his team that does the $10 per hour work, handles calls, does mailings
- Gary focuses on closing the sellers and raising money
- You have to be crystal clear and super protective of your time
A lot of new investors think they need to get a real estate license before they get started
- This simply is not true
- If you’re selling properties for someone else, it makes sense to have a license
- But if you are buying properties mainly for yourself, there is no need to have a license
- Gary had a license for 18 years and it did nothing for him as an investor
- Anyone can be a real estate investor
- You don’t need a license
Being a successful investor is about…
- Finding the right property
- Buying it right
- Leverage the right people to compliment your skills
- Turning it into a long-term asset
- It’s not rocket science

His Biggest Mistakes

Trying to do everything by himself
And trying to figure out all the pieces
Hiring people instead of partnering

His Biggest Successes

Getting a coach
He has three coaches today
He’s in masterminds with people smarter than himself
Getting around like-minded people
He uses a business model called Traction (from the book by Gino Wickman)
The key is to do what you’re best at
He is not a good rehabber
He is very good at relationships, raising money, closing sellers and finding and hiring good employees
He also believes you have to be in the game for the long haul
- Have 12 months of reserves
- Own as many properties free and clear as possible (especially with an impending crash ahead)
- Don’t be short-sighted to make a quick buck
He also always buys off-market properties
He also has a powerhouse phone team together for his marketing efforts (inside sales)
- He built a team of virtual assistants in the Philippines
- He offers this service to his clients on RealEstateInvestor.com

Advice for Old Dawgs Looking at Real Estate Investing to Help Them in Their Retirement Years

Three Buckets
- Truly Passive – You have some people who just want to be fully passive investors
  - Lending
- Passively active – People who want to do rehabs or property management
  - Do you have the capital and the reserves
- Active Business Operator – Others who want to be more hands on
Figure out who you want to be
He is only buying very smart, very conservative
He believes there will be a downturn in the real estate market
- He believes there will be a lot of foreclosures in California, Washington and Oregon
- He believes there will be an 18 month blip
- Then be believes we will see appreciation like we have never seen
- He will have as little debt as possible
- And will have lots of reserves
Real estate is the best asset class right now if you:
- Buy right
- Look on the downside, not just the upside
- Look at your cash flow and reduce it 50% – can you still survive?
- Look at worse case scenarios

Current Business

He likes to look at where the world is going
Covid has given us something we have never seen before
He’s passionate on helping people who are facing their biggest challenges today
Real estate is going to have a new value in the new economy

Rap-It-Up

Favorite real estate book: Rich Dad Poor Dad by Robert Kiyosaki, Traction by Gino Wickman, Rocket Fuel by Gino Wickman
Favorite business book: Samurai Selling by Chuck Laughlin
Favorite Personal Book: Halftime by Bob Buford
Most valuable web site for success (other than your own): Zillow, Realtor.com, RealQuest,
Favorite app: BSF International and Slack
Favorite quote: “If you believe you can or you believe you can’t, you’re right.” – Henry Ford
If you lost everything – all your assets – and had to start all over, knowing what you already know, and you only had $1,000, what would you do to re-launch your real estate investing business? I’d put it all into marketing (direct mail and texting) and get 3 leads and close on one.

How to Reach Gary

Website: RealEstateInvestor.com
Free Stuff: RealEstateInvestor.com/growth
Facebook
Instagram

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