The CashFlowGuys Podcast teaches busy people how to use what they have, to get what they need in order to accomplish what they want. Using tips and techniques from industry leaders in Real Estate Investing and Financial Services, the CashFlowGuys are on a mission to educate the public on all things involving real estate and financial services. Your host, Tyler Sheff interviews experts from around the globe to help people improve their financial intelligence.
283 - Where My Money Comes From
Over the last several years many people have asked and wondered how I specifically earn my income. Was I a drug dealer? Did I have rich parents? Nope!
In this episode, I peel back the curtain for everyone to learn where my income comes from.
What's important about this episode, in particular, is that you understand that it's because I have multiple streams of income that I don't have to ever go back to work.
By focusing more on several smaller streams instead of one larger one I bet insulate myself from sliding backward financially because if one income stream suffers, the others continue to produce.
The same is true in real estate, it's not a bad idea to spread yourself out a bit, perhaps by investing in different types of assets or deals while also doing some passive and active investing.
As you see an opportunity, capture it, add it to your portfolio and then go out and get another.
282 - How To Overcome Fear of Confrontation
Early on I learned from my Dad that if you want something in life you better go get it because nothing will ever be handed to me.
He also taught me the importance of “going for the close” also known as asking for the business.
Humans tend to spend a great deal of time thinking about what they want and more time coming up with reasons they cannot get what they want.
Such thoughts often lead us down a rabbit hole of doubt which eventually leads to our belief that whatever we want is behind some sort of roadblock that we won’t be able to overcome.
Here are a few examples of what I am referring to:
Not applying for deal funding because you don’t feel you will be approved.
Not wanting to answer the phone when a potentially motivated seller calls because you don’t know what to say to them.
Being resistant to spend any time with a seller in fear you will look stupid by asking questions or not feeling like you know the right questions to ask.
Refusing to make offers in fear of being rejected.
Feeling that a larger valued deal is “too big” or “too expensive” for you to handle.
Fear of being rejected by a seller or Realtor because you “can’t afford” to buy anything worth having.
What I just mentioned only scratches the surface as you might imagine.
Here’s the reality of what’s happening in the seller’s mind:
Did I overprice this property?
Will people heckle me or be mean if I overprice my property?
What if I put a sign-out and nobody shows up? Well, I could drop the price but then I’d be admitting I overpriced the property to begin with and therefore look stupid for sure!
How do I really know I am getting a fair price for my property?
What if I sell it too cheap?
If it sells too fast doesn’t that mean I sold it too cheap?
If I think I sold it too cheap can I back out of the deal?
What if buyers bring Covid into my home
I don’t have the energy to clean up or organize and buyers coming through will judge me as a nasty mess for not being clean.
How do I know if I picked the right Realtor?
Should I even hire a Realtor or do it myself and “save the commission”
What if we are not yet at the top of the market, I wonder if I should wait a little longer?
Landlord Sellers think:
Buyers walking through my units will anger my tenants
If my tenants know the property is for sale they will all move out suddenly
What if the new landlords make my tenants move out suddenly?
All of this leads up to one thing...STRESS!!
Now that we covered all that, I think it is fair to say that both buyers and sellers are under tremendous pressure when trying to complete a real estate transaction.
Regardless of the current market conditions, the most effective way to overcome the majority of these issues is to position yourself as transparent. Be approachable, be willing to sit down with your fellow human, look them in the eye and work through the process.
No matter how hot or cold a market is, there will always be buyers and sellers with problems to solve. In 2021 face to face has become a less popular option but services like Zoom and other apps make it easy to communicate with others via video or audio.
Use these services, open up dialogue and talk things out.
When I am brokering a property sale transaction for a buyer or seller, I encourage all parties to get on the phone or meet in person to negotiate the transaction. I want active participation from all parties. It’s these meetings that bring forth the best results for all parties in most cases.
I realize that for many the thought of sitting down face to face with “the other side” as they say may be terrifying. I assure you that if you give it a try you will likely be pleasantly surprised by the end results.
I also realize that many people simply won’t agree to an open discussion or negotiation due to the crippling fear of conf
281 - The IRS Taxes Cryptocurrency!
For the last several years, many have enjoyed the rewards of investing in various forms of cryptocurrency under the assumption they could avoid the prying eyes of the government.
Some bragged about being able to conduct business and earn capital gains free of the worry of taxation.
Those days are over…
Last week I was listening to an episode of Rich Dad Radio titled “The IRS Versus Bitcoin” where I stumbled upon some shocking news reported by CPA Tom Wheelwright, a Rich Dad advisor.
Tom warned listeners by saying that anytime you use or trade cryptocurrency, it becomes a taxable event! He went on to say that if in 2020 you did ANYTHING besides buying cryptocurrency you must declare it to the IRS when filing your taxes, if you don’t, it’s a FELONY.
It seems that any transaction except buying bitcoin is subject to a tax beginning at a rate of15% for both the user of the bitcoin and the receiver. There is also capital gains tax that will apply to many transactions.
So much for bitcoin being unregulated!
We will have to wait to see if the IRS can gain any traction in regard to enforcement…but that never really stopped them in the past.
That got me thinking…in today’s brave new world it seems our elected leaders have the ability and the gall to pass just about any legislation they are paid to make into law. These policies and laws are often created without much thought to how they will impact everyone they represent.
It’s been said many times that if you simply pay attention to what the government wants you to invest in, you can enjoy a relatively tax-free or at least tax favored lifestyle. Those that complain about how things are an attempt to circumvent the system are often found out and severely punished.
Before your mind goes down a political rabbit hole, you must understand that the IRS does it’s thing regardless of who is in office, yes, the IRS’ activities are influenced by the White House, Congress, and Senate but that doesn’t change the fact that in a basic sense, taxation, for the most part, can be avoided.
Here is a stackable nugget of what I have learned thus far which has helped me legally reduce my tax obligation year over year, while never having to sacrifice my lifestyle to accomplish it.
The Government does not like you flipping anything, houses, apartments, businesses, whatever…they want you to earn in streams of income, not piles.
The Government wants you to provide housing, not buy and flip it and by doing so decrease affordability.
The Government these days wants you to invest in renewable energy sources, soon, expect the tax benefits of investing in oil and gas to be reduced or 67disappear.
When you generate piles, they are easy to see and discover, yet nobody is looking for streams to steal.
Many say that taxation in and of itself is a crime. So if you were a criminal looking to steal money, wouldn’t you gravitate towards looking for the easy to see and easy get piles to steal from? Of course, you would.
I’m not suggesting you hide income from the government, they will find it eventually so why hide it, instead, structure your affairs such that you mostly earn streams, and can turn piles into streams.
280 - How To Overcome Sticker Shock
Asking price does not matter
For Sale By Owner Properties are overpriced
Properties sold by wholesalers are overpriced
Bank Foreclosures are overpriced
Listed Properties are overpriced
ALL off-market properties are overpriced and actually “on market” so stop saying off-market people
All contractor bids are too high
All Real Estate Commissions are too expensive
All Lawyers are too pricey
All closing costs are too costly
All Lenders charge too much in fees
All Banks charge too many fees
Income Tax is a Ripoff
Sales Tax is Theft
Property Tax is a scam
All Cable bills are too costly
All water bills are ridiculous
All electric bills are feeding a monopoly
All new cars aren’t worth what they are asking
All Hotels aren’t worth the nightly rate
All meals at fancy restaurants are price gouging
Mixed drinks sold at a bar are a rip-off, the price of a cold beer is crazy…
Regardless, each and every one of us buys or pays for these things each and every day of our lives.
Look at the property anyway, find the value, if there is none then go look at another. Either way, if you allow the price of something to stop you in your tracks you will never cover any ground, you will remain stuck.
Listen in for some great tips on how to discover opportunity regardless of the “asking price” of an asset.
279 - What Questions Should I Ask Sellers?
This episode was born from a listener question in regard to what sort of questions should you ask when speaking with a seller. For me, this was a struggle in the beginning because I didn’t have any points of reference to keep me on track.
Many years in sales taught me to avoid scripts if at all possible so I could better craft the meeting into a more conversational style. I did not want to risk sounding like a robot, instead, I wanted to build rapport and ease into the conversation so that I could learn what I needed about the seller and their pain points without sounding like a lawyer in a cross-examination.
As a result of learning to get better at talking with sellers, I created my property information form. I looked at tons of examples I found on the internet and took bits and pieces from each one in order to craft one that best fit my needs. In fact, I still use the form to this day in each and every Seller encounter.
To obtain a free copy of the form visit my website at CashFlowGuys.com and click on the resources tab for the download link.
278 - 40 Year Loans - Crisis or Opportunity?
This topic for me began with a video I watched on YouTube Last night put out by a Youtuber who goes by “Meet Kevin”.
In case you’d like to watch the video on YouTube, here’s the Link: https://youtu.be/iepZC3HdS8E
The video was about the coming proposed changes to the CFPB’s policies as they relate to mortgage forbearance. The CFPB (Consumer Finance Protection Board) is concerned that in the coming months we could slip into a major foreclosure crisis spawned from the mass number of mortgages that will be exiting forbearance very soon.
Here is a link to the proposed ruling: CFPB RUling
Currently, there are approximately 3 million Loans in forbearance
1.7 million of those mortgages need to start getting repaid (forbearance expiring)
In short, their short-term proposal is to force loan servicers (lenders) to extend a borrower’s mortgage by as much as 40 YEARS. (480 months) That’s 40 years ON TOP of the remaining time you have on the mortgage.
It flat out says the borrow if affected by covid has a RIGHT to a 40-year extension.
The proposed policy change also suggests no foreclosure filings allowed until Dec 2021.
This is a very unique situation, after playing the audio from Meet Kevin’s video I break down what he said and hopefully provide some insight that will help you see the bright side of this situation as it pertains to us real estate investors.
Truly a five-star product.
Enough said. Period.
Awesome value to new and experienced investors
Tyler has provided awesome value to me when I started 3 years ago in real estate investing. He continues to give great information and direction to me as I am gaining more experienced. Always on point !!! Thank you Tyler!!!!
Always on target
Great advice and perspective on real estate and even for lifestyle advice, I always look forward to Friday to get this straight forward podcast