Husband, Father, Entrepreneur, Realtor... a long list of other titles and descriptions... and Landlord!
Welcome to the... and Landlord Podcast - with Jonathan Taylor ("J.T.") Smith... Following a road-map to financial Freedom through residential rental real estate. Here you'll learn how adding "... and Landlord" to the litany of titles and descriptions that speak to who you are and what you do may be the greatest opportunity to achieve financial freedom available to the average person today. Where someone else pays the bills (the Tenant) and someone else provides 80% or more of the money (the Bank) and where you get 100% of the cash-flow, all future appreciation and the tax benefits. All on an asset that's insured against loss, and that cannot be worth ZERO short of an Alien Invasion or the Zombie Apocalypse, ultimately resulting in a FREE HOUSE for YOU (the Landlord) - that will kick out cash-flow for the rest of your life and beyond! You try getting any of that from the stock market or your 401K. So be all that you are... and Landlord!
Change Of Schedule Due To COVID-19
CHANGE OF SCHEDULE DUE TO COVID-19... That's not just the title of this episode, but also an announcement. Because I'd rather not talk about Corona-virus week after week (and some other reasons) - I'm temporarily changing the schedule of the show from a weekly Tuesday release, to be a little more flexible and random. For the next month (or few), I'll still be releasing episodes, but maybe not weekly (at least once per month) - and not always on a Tuesday.
Now It's All About The Home
In this episode of the... and Landlord Rental Real Estate Investing Podcast - I talk about the home, and how it has become the center of our universe. And then what that may mean for the future. What does it mean to be a Landlord in a time when it seems the government has positioned itself to start covering the expenses (including RENT) for those who now cannot work due to no fault of their own?
And what will this mean for the future once this concept takes hold? Well, that's a bit political - and so I explore why I am willing to move forward with purchasing properties, even now amid all this economic uncertainty. I'm buying now (while I can), but with lending terms changing daily, that ability is quickly coming to an end. So I'll be working to get set for buying even more properties, once things start to open up again. Because I want to own as many properties as possible once the government starts paying everyone's rent - or whatever becomes the system to make sure that we're not in this same virus inflicted financial crisis all over again.
Can Your Tenants Pay Their Rent?
Today is March 31st... One day from now is April 1st, when RENT IS DUE in the USA. But on this Aprils Fools Day - will Tenants even be able to pay their rent? People have largely been unable to work for the last two weeks. And more people than you may be aware are working from paycheck to paycheck. And those government relief checks have yet to arrive. So what's it going to be between April 1st to the 5th?
Section 8 vs. AirBnB
April Fools Day is a little more than a week from now. But what that day means to me, is the same as any 1st of the month... It's the day RENT is due. But on this April 1st - the joke may truly be on me (and all Landlords)... Because there may be no rent coming in due to COVID-19.
But this episode of the... and Landlord Rental Real Estate Investing Podcast is about how half of my rental units are occupied by Tenants who have Section 8 Vouchers. Thus, a portion of my monthly rents come directly from the Government. This means the joke won't be completely on me. At least I'll have some amount of guaranteed rental income. But for my non-Section 8 Tenants...
The World has essentially shut-down. Most businesses are closed (or greatly reduced), so those workers aren't getting their normal paychecks. Some businesses are running reduced hours and altered workloads, but even those must often layoff workers in a situation like this. You can't keep all those employees on payroll when there are no customers. And if those now un-employed (X-employee's) are your Tenant's - how are they going to pay rent to you?
And then compare this to those who are invested in short-term rentals (AirBnB). No one is travelling - so they have basically lost 100% of their rental income. Yet mortgages and leases remain due for payment. Maybe payments will be waived or some sort of forbearance will be granted. But in this episode of the Landlord Podcast, I contrast my situation with Section 8 Rentals to those who have Short-Term (AirBnB) Rentals.
Just saying... Right now, I'm happy to know that I'll have some rental income in April. And I think I'd be freaking out right now if I was singularly and all-in on AirBnB.
The Rich Buy Assets, While The Poor Buy Toilet Paper
When the Coronavirus hit, as with most things, I had jokes... I posted on FB the question of if this might be the Zombie Apocalypse virus or maybe the Planet of the Apes virus - and what should be my primary weapon of choice in either case. For instance, should I go with a crossbow or the shotgun to take out the resulting Zombies or talking Apes.
Jokes aside, while this is not that level of crisis, it is a challenging time none the less - and we could be on the verge of an economic recession of epic proportions. And while I certainly do not intent to make lite of being prepared with food and other items for the household - it occurs to me that while some people are rushing to the stores to buy toilet paper (among other things), others are buying the discounted assets (or preparing to do so) - that result from apparent crisis situations like this.
So hence the title and topic of this 51st episode of the... and Landlord Podcast - "The Rich Buy Assets, While the Poor Buy Toilet Paper". Fortunes are often made when there's fear, panic or even blood in the streets. And there is a quote that says "Observe the masses, and do the opposite." - well the masses appear to be focused on buying things like toilet paper. When they should be looking to buy the discounted assets that are certain to result from an economic downturn or recession.
The Stock Market is down big-time - but another way of looking at it, is that the Stock Market is having a sale. Real Estate is also likely to be on sale soon, as all-time low interest rates will increase purchasing power. We may also enter another round of short-sales and foreclosures as another economic downturn (or full on recession) causes financial stress for millions.
So I recorded this episode just to get you thinking - that while you certainly need toilet paper and other household items to get through the sort of thing we're experiencing now with this virus - you also need to be thinking about how you're going to come out the other side better off. Because the rich are buying assets while the poor (and middle class) are buying toilet paper.
Do You Think Your Market Is Too Hot?
Do you believe your local market to be "Too Hot" to start investing in Real Estate? No deals to be had where you live? If only you lived "there" - where deals are plentiful, because prices are low and rents are high - there. But where you live... Nope! Sucks to be you... Your Real Estate investing dream will have to wait for another day - when it's not such a "seller's market". Or at least, that's what I hear...
My local market is Durham, North Carolina. I'm both a Durham Realtor and an Investor in Durham. I started Investing in Rental Properties here in 2015, and I'm still buying in this market right now, for both myself - and for client's who I represent as their Durham Real Estate Agent.
In this episode of the... and Landlord Rental Real Estate Investing Podcast, I question those who think their local market is "too hot" and that there are "no deals". Yes, competition has increased across the nation. How could it not, with house flipping shows on every 10th channel? But are you not able to out perform someone who just watched a TV show and then said "hey, let's flip a house!"
If not, then your problem may NOT be just the "Hot Market". Maybe you also need to improve your systems and process. Or maybe you need to partner with an Investor's Agent - like me! Or at least if you're investing in Durham, North Carolina... Outside of Durham, I can't help you.
But I'm convinced that deals are available almost everywhere. So don't fall for the "grass is greener" syndrome. The grass is fine where you are also - but maybe it just needs some care. Likewise, maybe you just need to apply some consistent effort in your local market or work with a local professional to get a deal done.
Excellent and genuine
Currently working with JT as a realtor through a partner. He is very committed to bringing you exactly what you are looking for and looks out for your best interests.
Love this - More episodes please!
Eagerly awaiting for more podcasts to come
JT seamlessly combines good information, succinct examples & levity to create an impactful podcast. I recommend the cast highly to new landlords, real estate investors & entrepreneurs.