100 episodes

Join industry professionals and personal investors from the Roofstock team as they discuss all things remote real estate investment. From time management, deal analysis, property management, financial considerations and scaling your portfolio, to interviews with other industry experts, this is the place to be to master real estate investment.

The Remote Real Estate Investor Roofstock

    • Business

Join industry professionals and personal investors from the Roofstock team as they discuss all things remote real estate investment. From time management, deal analysis, property management, financial considerations and scaling your portfolio, to interviews with other industry experts, this is the place to be to master real estate investment.

    How to Make Competitive Offers Without Paying Too Much

    How to Make Competitive Offers Without Paying Too Much

    With home prices soaring and competition through the roof, it's important as an investor to know how to be competitive without compromising your returns. In this episode, we discuss different strategies to consider to make sure you're not left high and dry from an emotionally driven deal.
    ---
    Transcript
    Emil:
    Hey everyone, welcome back for another episode of the remote real estate investor. My name is Emil Shour and my co host today are,
     
    Tom:
    Tom Schneider
     
    Michael:
    and Michael album. And today's episode, we're gonna be tackling something that's a little relevant to the time. So as everyone knows, very hot real estate market, not a lot of supply a lot of demand. So we're gonna tackle the question, how do you make competitive offer in today's environment without overpaying? So let's hop into this episode.
     
    Alright, guys, this is a very timely topic. As I mentioned earlier, very hot market out there not a lot of supply. A lot of demand a lot of owner occupant demand, right people very interested in home. So if you're an investor looking to buy a single family home, probably pretty tough out there right now. So Michael, I wanted to kick this one off to you first, just because I'm sure in in Roofstock Academy you get this question a lot from new investors, seasoned investors. So I'm curious what your you're telling people what the message your your relay is?
     
    Michael:
    Yeah, absolutely. Is I First off, I just have to say I love the wording you use. It sounds very coach, like at a sports event? So my answer is like, you got to have high and low and you go out there. It's tough out there. But you got it. Yeah, score barkos. So I think it's really apt. It's really apt question and definitely really timely. So what I always tell people is, look, the numbers need to drive the decision making above anything else. So if you can afford to pay 5000 over ask 10,000 over ask or ask or 10,000 under ask. I mean, that's just the numbers. That's the math.
     
    So you need to do your analysis really thoroughly and be very confident in your numbers both on the income and the expense side, which is then going to dictate Okay, what kind of returns should you be anticipating based on these different purchase prices. And so we've actually got a really great tool in the academy, the property analysis tool, and you can do a goal seek in Excel, which will basically tell you, Hey, this is the maximum offer price you can have, or that you can offer in order to hit your goals, whether that be cash flow, or cash on cash or cap rate. And so like Pinocchio says, always let your conscious be your guide.
     
    Tom:
    But that's not a good mentor He’s got a, you know, a checkered history. So think of someone else Michael
     
    Michael:
    Depending on his nose length is gonna determine how how good of a mentor he should be, always let your numbers be your guide. And the other thing too is if you're buying with a loan, there's going to be an appraisal done. And so the lender is also kind of going to be your backstop in that sense. And they're going to look to other properties and say, Well, this isn't worth that much. So we're not going to lend on this much. So you've got a little bit of leverage. But the thing to keep in mind is that a lot of people are overpaying for properties they're paying over ask they're paying above and beyond what the appraisal comes in at. So it is just very competitive. So I'd say first and foremost, let your numbers be your decision making beat up pointed out spear. Tom, what are your thoughts there?
     
    Tom:
    I think that's great. You know, it's funny, we have the outline of this episode. And sometimes I'll I'll sort of quickly run the episode and how I expected to go out like our talking points, just kind of knowing each other and I think you stole mine in this episode.
     
    Michael:
    You were going to use my reference to Pinocchio?
     
    Tom:

    • 24 min
    2 Simple Rules to Follow for Successful Property Management

    2 Simple Rules to Follow for Successful Property Management

    Dana Dunford from Hemlane Property Management joins us again with some practical tips to ensure the best outcomes with your rental properties. 
    ---
    Transcript
    Michael:
    Hey everybody. Welcome to another episode of the real estate investor. My name is Michael Albaum and today I'm joined by my co host,
     
    Tom:
    Tom Schneider.
     
    Michael:
    And we have a very special guest with us. Dana Dunford, CEO of Hemlane is going to be joining us again for another episode. And she's going to be talking to us today about some of the tips and considerations we need to be cognizant of and thinking about if we're going to be remote landlording. So let's get into it.
     
    Michael:
    Hey, Dana Dunford, welcome back to the show. Real pleasure to have you back on.
     
    Dana:
    Great. Thanks for having me, Michael. Thanks, Tom.
     
    Michael:
    Absolutely. So Tom doesn't get any credit!
     
    So today, Dana, you're going to be talking to us today about a couple different rules that landlords should be mindful of, if they want to get into remote landlording. So I am just going to kick it off to you to start out. And if you could start with rule number one walking us through what people need to know about before they become a remote landlord?
     
    Dana:Yeah, so a lot of people just so you know, the background is a lot of people do self manage their properties, right? 73% do. And many of those are remote. And so a lot of people ask us, you know, how do I manage my property from a distance, there are a couple of key rules that you have to set up.
     
    And very first one is setting yourself up as a professional and as a property management operation. And not considering yourself just a landlord of a single individual working with the tenants, your local service professionals, a leasing agent, really making sure that you're set up professionally from an operations perspective.
     
    So Mike, if you want, I'm happy to go through some of those details. And some examples,
     
    Michael:
    That'd be great. I'm just curious, you say that 73% of remote landlords self manage?
     
    Dana:
    73% of landlords in general self manage their properties. And so the Census Bureau did a study on…
     
    Michael:
    Wow, I didn't realize that was so high.
     
    Dana:
    Yeah, majority do self manage majority do not use full service property manager. And and you have to think about it, Mike, when you're buying a physical asset, right? It's a lot different than stocks that are very passive, where it's not a physical asset, or a REIT where you put money into something to real estate, but you never see it. It does become emotional. You know, if you think about it, you go on roofstock, you see this property? And you're like, Oh, I would change those carpets and put hardwood floors and at some time, Oh, those sinks, I need to change those, right? That's a real estate investor. When it's physical, like
     
    Michael:
    That paint color!
     
    Dana:
    Yeah, the paint color, why would they choose that horrible green color? You know, I want to change it from puke green to gray or whatever, you know, off white color that real estate investors want these days. But yeah, so it does become much more of something where you take a little bit more ownership. But that doesn't mean that real estate investors want to do everything. Like they don't want to do the showings, they don't want to go and fix the toilet. You know, all of that stuff they don't want to do but they definitely want to be more hands on. And so that's why I do see a lot of investors come up with much more creative ways to manage their properties. And then how they tap into that is is what we're here to discuss today.
     
    Michael:
    Awesome.
     
    Tom:
    Yeah. And I guess to that point, you know, that statistic around 70 some odd percent, I bet you historically, a lot of landlords have come into landlording. More like accidentally, I think probably the vast, vast majority of our listene

    So You Won a Judgement? But How Will You Collect?

    So You Won a Judgement? But How Will You Collect?

    Winning a judgment on a tenant that has trashed your property is one thing, collecting on that judgement is entirely another story. Did you know that only about 10% of judgments are actually collected?
    In this episode, Steve White from RentPrep drops some serious wisdom on what you can do on the front end to increase your chances of being in that 10% of landlords that actually collect!
    Website: https://rentprep.com/?utm_source=roofstock&utm_medium=podcast&utm_campaign=steve-media-outreach-2021
    The "RentPrep for Landlords" Podcast: https://podcasts.apple.com/us/podcast/rentprep-for-landlords/id851540886
    The "RentPrep for Landlords" Facebook Group: https://www.facebook.com/groups/RentPrep
    ---
    Transcript
     
    Michael:
    Hey everybody. Welcome to another episode of remote real estate investor. I'm Michael album, and today I'm joined by Steve White, who is the founder and CEO of rent prep. And on this weekend wisdom, Steve's going to be giving us some insider tips as to better ways to collect judgments that we have against former tenants. So let's get into it.
     
    Hey, Steve, thanks so much for joining us on today's weekend, wisdom. Really appreciate you taking the time.
     
    Steve
    Yeah, thanks for having me on.
     
    Michael:
    Steve, we had you on another episode of the real estate investor, where we're talking about rent prep your company and some things that landlords can do to screen tenants. So stay tuned for that one, but wanted to give everybody a little nugget. And you've got some experience in collecting judgments, or winning judgment awards that landlords have put on tenant. So can you talk to us a little bit about some things, tips tricks landlords can do?
     
    Steve
    Yeah. So winning judgments is a lot easier than executing and collecting judgments, as you know,
     
    Michael:
    Yes, I know. I am all too familiar with that.
     
    Steve:
    Yeah, I hear landlords get excited all the time and say like, Yeah, we got to judgment. Oh, my God.
     
    Michael:
    Good luck.
     
    Steve:
    Yeah, the struggle has just begun,
     
    Michael:
    Right, really the best way to handle it. And  I'm gonna say that your strategy needs to start way earlier than you would imagine the strategy needs to start at the rental application process. I know, a lot of landlords are okay with applicants skipping information on their application. And there's a lot of information that you wouldn't think is super useful in the application process, like for example, their references, like who's going to call a reference and expect that they're going to give you a truthful, objective perspective of if this person's a good tenant or not, you know, their mom is gonna say they're lovely, and they're great. They want them out of the basement anyway. So they're just gonna be like, yeah, they're awesome. But, you know, that rental application has a future life well beyond that screening process.
     
    So when you think about obtaining a judgment, or even executing judgment, some of the pieces of information that you might need are going to be hidden in that rental application. So for example, they were just evicted or abandoned, or whatever your property, where are they living now? Well, if they're short on money, they may not have a new apartment, they're probably living with whoever they listed as their next of kin or personal reference. So now, you know, now you know where to serve. And now you know where to you know where to find them at least.
     
    So those personal references are absolutely worthless. When it comes to the application process. Don't waste your time calling them and asking if they're going to be a good renter, call the previous landlords, that's worthwhile, but not the references, the references are worthwhile after you've screened them, and you're trying to track them down.
     
    Michael:
    Interesting.
     
    Steve:
    Yeah, employment information, right. So you cannot garnish somebody's wage

    • 13 min
    Why Cost Segregation Studies Are Powerful For Saving On Taxes

    Why Cost Segregation Studies Are Powerful For Saving On Taxes

    One of the major upsides of investing in real estate is the tax benefits you can take advantage of as an owner. This episode covers a powerful tax strategy, the cost segregation study. Scott Roelofs from RCG Valuations, explains how they work, who they are good for and why you might want to start employing this strategy now to save big on taxes. 
    Visit RCG at https://rcgvaluation.com/
    ---
    Transcript
    Michael:
    Hey everybody, welcome to another episode of the real estate investor. I'm Michael album, and today I'm joined by a very special guest, Scott Roelofs. With RCG valuations, and Scott's gonna be talking to us today about all things cost segregation study. Some of you may or may not have heard about, but let's jump into it. Well, Scott, thanks so much for joining me today. Really appreciate you taking the time, man.
     
    Scott:
    Yeah, man. It's exciting.
     
    Michael:             
    So I just have to ask, I mean, you've got a ton of letters after your last name. I'm just curious. What do they all mean? What do they represent? Let us know give us some insight.
     
    Scott:
    The big ones, CFA, Chartered Financial Analysts, you know, three years of study, average pass rate is 45%. So basically 8% of the people who try to get it actually do get those three letters. So that's kind of the big one ABV, that's
     
    Michael:
    Your alcohol by volume.
     
    Scott:
    Yeah, alcohol by volume. Yeah. It's an auditing. It's a construction, auditing. accreditation, then you have a IMS, which is asset management, AWS, which is a wealth management. I also have 679 1063 life health. It's actually funny, my cousin who is smart as I am, she comes up to me, and she's like, so are you done educating yourself? And I'm like, Yeah, I guess so. I guess,
     
    Michael:
    I guess I shouldn't be.
     
    Scott:
    So yeah, so I guess I'm, that's an…
     
    Michael:
    Awesome,
     
    Scott:
    You know, you may not know what they all look like, but you're like, there's a lot of them. So, yeah,
     
    Michael:
    Totally. So there's not a whole lot that you don't do in the financial world. That sounds like?
     
    Scott:
    I feel like I can walk into any room and hold down in any kind of conversation, whether it's, you know, in business or, you know, venture capital or anything like that.
     
    Michael:
    Awesome. And so did you are you the founder of our CG Valuation & Monetization?
     
    Scott:
    I am, yeah, I started doing cost segregation, kind of like in a selfish ways I had owned my own office and didn't want to pay as much taxes. So I started looking around and got introduced to it. And then I found a company that actually allowed me to do them, and like, actually kind of do the work. And they would help with some of the engineering and that worked out great for a while, but what happened is, is I started to look at things and go, okay, you know, you send me out with a measuring wheel and a measuring tape. And some of these places are huge. I mean, just my first one, which was our office, I own a portion of, like, the land of a whole bunch of offices, it was eight acres. And we had to, you know, count and measure, you know, is something like 2500 shrubs, you know, it was bananas.
     
    And I'm like, this is an awful way of doing this. And so I started searching around, I first found, I got into, like, the drones, which is kind of a hallmark of what we do. And then we added the interior, I saw commercial for matterport cameras. Yeah, that's kind of like used for real estate. And I saw that commercial, I don't, man, if that can measure, like, I really got something and turns out again, so well, voila. So now we have the, you know, interior exterior, you know, kind of all this stuff. So but what happened, and I think this is, you know, just an a general business since this is interesting. But I started to try to implement the technology with the other company. And we kept running into roadblock after roadbl

    • 36 min
    Is Now A Good Time To Sell Instead Of Buy Real Estate

    Is Now A Good Time To Sell Instead Of Buy Real Estate

    Housing prices have continued to rise over the past year as listings have dropped by about half. Given this super-competitive market, is now a better time to sell or should you continue your acquisition cycle? In this episode, we discuss the investing philosophy and considerations you should take when thinking about selling your property.
    ---
    Transcript
    Pierre:
    Welcome to another episode of the remote real estate investor. I'm Pierre Carrillo. And today I'm here with the usual suspects Tom, Michael and Emil. And today I'm going to be asking them about rising home prices in the markets right now. And if it's a good time to sell instead of buy, so let's jump into it.
     
    Pierre:
    Alright guys, so, like we talked about previously, my brother and I are working on buying some houses right now. And one of the things that we're seeing is that compared to last year, active listings on the market are down 52% the prices of homes are climbing continuously, there's like 16% up year over year and they're continue to climb. A lot of the projections are saying that they're not going to drop anytime soon. Is this a good time to sell? Are you guys selling? And if not, like when is a good time to sell?
     
    Michael:
    Yeah, such a good question. Tom do you want to take a first crack at it?
     
    Tom:
    What's the acronym that Bitcoin guys say hodl, hudl, huddle? Do you know I'm talking about?
     
    Emil:
    HODL!
     
    Michael:
    We're not all Bitcoin guys. Now, Tom, we don't know what that is.
     
    Tom:
    I'm sorry. I'm excited. I bought my first little fractions sliver of one. And I just am using their acronyms now HODL.
     
    So yeah, Pierre good question on, you know, looking at some of the stuff I think for myself, and I would assume also for Michael and Emil, is that we're pretty long term bullish and going through year over year, like there are going to be some trends. But like, over the long time, like, the way that I think about building my real estate portfolio is I just want to build this big cash flow machine. And like, yes, there's going to be fluctuations on like, what's available for sell prices are doing but looking at my North Star is just building this long term growth machine. Like I can't be like chasing a car just like falling metrics. And like, Oh, I should sell right now.
     
    So it's like having a long term perspective. That's not to say that I don't sell because I think sometimes it is opportunistic to sell. A lot of my more recent dispositions have been consolidating in specific markets. So let's say I have a property in like a corner where I don't want to have any scale in that market, maybe it makes sense to sell it, maybe I've caught some nice appreciation, you know, I had a property in the corner of market where they have like, I didn't have a lot of properties. And also there was like, some, like legitimate, like weather concerns of like floods and stuff and like I don't want to sweat that out every single time if I'm not planning to get you know, the right kind of insurance to protect myself against that. So my meandering answer of a question is you know, sometimes there is a place to sell but I you know, I won't sort of panic sell and in monitoring those metrics, because I use my North Star to hang on to so enough pontificating Tom, somebody Michael Emil jump in quick.
     
    Michael:
    So I think it's a really good question, too. And so I actually am in the process of selling a couple properties. I think I've talked about it on a couple episodes in the past, but I have a six unit out in the Midwest that I'm under contract to sell. And then I just sold a luxury condo in Southern California.
     
    Tom:
    Oh, congrats, man. That closed.
     
    Michael:
    Yeah, that close. So I was super excited, thanks for short story long is that they asked for a reduction in rent, because of COVID, which we were happy to give them. The property wasn't cash flowing. Really b

    • 21 min
    Here's What You Need to Know About Selecting Reliable Renters

    Here's What You Need to Know About Selecting Reliable Renters

    Selecting strong renters can be the difference between a cash-flowing property or an alligator. Even if you can get a judgment on a tenant that owes you big, collecting on that judgment is not a guarantee. 
     
    On this episode, Steve White From RentPrep gives us the scoop on how you, as a landlord, can do the proper due diligence on your applicants to save you time, money, and headaches. 
    Website: https://rentprep.com/?utm_source=roofstock&utm_medium=podcast&utm_campaign=steve-media-outreach-2021
    The "RentPrep for Landlords" Podcast: https://podcasts.apple.com/us/podcast/rentprep-for-landlords/id851540886
    The "RentPrep for Landlords" Facebook Group: https://www.facebook.com/groups/RentPrep
    ---
    Transcript
     
    Michael:
    Hey everybody, welcome to another episode of remote real estate investor. I'm Michael Albaum and today I'm joined by Steve White, founder and CEO of rent prep. And today Steve and I are going to be talking about all things tenant background check related. And we're also going to delve into some things that you can do personally to boost your credit score. So there's a lot of fun information in here. Let's jump into it.
     
    Well, Steve White, thanks so much for joining us today, man. Really appreciate you taking the time.
     
    Steve:
    Yeah. Thanks for having me on. I appreciate it.
     
    Michael:
    Absolutely. So you're the founder and CEO of rent prep, right practice? Yes, I really want to want to dive into what that is. But I would love to get a little bit about your background first, and how you got into the space?
     
    Steve:
    Sure, yeah, I'm totally on accident. I never intended to be doing background checks at all. So I, I got out of the Marine Corps, I served eight years took an opposite direction. And most of the guys that I knew that were getting out and becoming police officers, or getting into law enforcement in some way, and I sort of went the corporate america route, and I worked for a company that played a really niche role in a legal process called a replevin order. Nobody's probably ever heard of that. But…
     
    Michael:
    No, what is that?
     
    Steve:
    So if you can imagine, as you're driving down the road, and you see these really big, like, street paving machines, that, you know, like construction equipment that are usually like a million dollar piece of equipment, the company, if the company stops paying for it, and the bank wants that piece of equipment back, you can't just go and pick something like that up. And so if you
     
    Michael:
    Take a put on a tow truck,
     
    Steven:
    Right, no, it's a huge process, you usually got to break it down into pieces and ship it in on multiple vehicles. So what we were doing was arranging those replevin orders that were that had to be organized in the local municipality. So we would have to coordinate with the sheriff's department and local attorneys and, and get all this stuff organized. So I was doing that, you know, on the corporate side, kind of in the banking world and decided I could do it on my own and started a company that did exactly that. And I started it in 07, which was perfect timing for the big financial recession that happened two years later.
     
    Michael:
    Right!
     
    Steve:
    And, yeah, that definitely put a damper on things and made us get really creative for looking outside of the box with different business ideas. And we had a client that that basically came to us and said, hey, I've got rental properties. And you guys are using software to track down pieces of equipment and figure out where you know, where job sites are, where people might be where people might be hiding things, do you think you can tap into that or use some of that same, you know, access that you have to let me know if somebody would be a good tenant or not. And like any good entrepreneur, I said, we can absolutely do that for you before I knew how to do it.
     
    So the business started there re

    • 52 min

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