Over the past few years we've been growing and creating great educational products, free and paid. If content is king, Cash Flow Diary is the absolute empire of Real Estate Investing education, because we have more video content than anyone we know of in this space. Our written content isn't far behind. Now it's time that we let you pull back the curtain and look inside. Think of yourself as Dorothy about to get her first glimpse of the Great and Powerful OZ! There's a lot going on back there. And it's worth sharing. But maybe you don't need to see the inner workings to understand how valuable the content we offer really is.
If you are a regular listener of this podcast, you already know what you gain in the audio content. If you have ever browsed our site, you see lots of free information for the taking. If you are a member of the Cashflow CORE Membership, you don't need anyone to tell you about the massive amount of content, video training, video courses, tools and forms you get with membership. It's a gold mine of opportunity. In fact, did you know we have more than 200 hours of video content? And as we add to it, all the newest training content we create becomes immediately available to members. It's pretty exciting for us to be able to share so much. We want to teach as many people who are willing to take the time to learn. Then go out and earn! As a member you also get to network with some pretty cool real-life investors at all levels.
That's in a PRIVATE Facebook group. Deals are done right there! Checks are displayed, questions are answered, support is provided. If you've ever wondered how to do wholesale deals, get your hands on tax lien properties, learn how to buy and hold properties to earn ongoing cashflow via rents, invest in multi-family properties and commercial properties, host the ultimate Cashflow game, and get all the cool tools (like J.'s own P.A.Q. that you could explain on a napkin) and forms you need as an investor and learn exactly how to use them, it's all in the member area. We used to charge individually for many of the benefits and courses you find in the member area, but it's a new year and time for a new way of thinking. In this episode of the Cash Flow Diary podcast, you get a peek behind the scenes of our weekly Q & A with J, which has been running for the last year every Tuesday at 4 p.m., PST, and was until today available to everyone free of charge. As of tomorrow — Tuesday, February 2, 2015 — this popular weekly web show, where J. Massey answers attendees' questions about Real Estate Investing, their deals and their issues in business will only be available to Cashflow CORE Members.
If you have never been in the room for one of these unique LIVE Q & A events, you're missing out on a chance to ask absolutely anything and get your answers in real time. While past episodes will remain archived on YouTube and in the members area for 24/7 access, the only way to see any new Q & A with J. LIVE is to be a member. Those won't be found on YouTube. If what you hear in today's podcast episode of the behind-the-scenes look at the LIVE Q & A with J. show interests you, there's only one thing to do. Become a Cashflow CORE Member. Until then, grab a pen, sit back and get ready to take notes as J. rips deals apart for viewers and shares strategies for success. Listen to how he helps them determine if their deals are go or no-go! LISTEN NOW
On this episode of Cash Flow Diary, J gives you a peek behind the curtain of the members-only benefit in the Question & Answer session with J.
[04:46] Q1: Cash Flow Foundations course
[07:52] Q2: Decorative flakes
[08:57] Q3: Heating
[10:51] Q4: Exchange rate concerns
[12:46] Q5: Quadrant two
[14:05] Q6: Cash Flow 101
[16:12] Q7: Tax leans
[17:36] Q8: Wholesaling
[18:26] Q9: Tax lean strategies
[20:25] Q10: Cash flow quadrant
[22:57] Q11: Syndication
[24:24] Q12: Equity partners
[24:49] Q13: Rhonda’s scenario
[31:32] Q14: Late Fees
[32:50] J’s episode insight
[34:10] Q15: Starting Cash Flow games
[39:53] Q16: How to find the customer
[43:06] Q17: Rhonda scenario follow up
[52:58] Q18: Audio card critique
Questions and Answers:
Q: The biggest challenges when it comes to planning is putting dates to goals and having to put dates from smallest to largest. My challenge is to track my progress.
A: Stay accountable and on track with: i) private community on Facebook group, ii) the leader board for members.
Q: The property manager of my seven unit apartment in Memphis is suggesting painting over the existing VCT tile and adding decorative flakes. What is your advice?
A: It depends on the paint and who the customer is. You need to ask, “What is painting over the tile really going to accomplish?” This is not about patching the problem but rather about solving the problem, and go for durability. If you have turnover, you’ll have to do it again. Do a good job the first time, even though it will cost more.
Q: Units do not have heat. Does it make sense to install a central heat, or window AC and heat combo system?
A: This is a cost benefit analysis decision. It depends on if you already have some of the ducting for the central air. If yes, it’s probably okay to do that. If you don’t have some of the ducting, then it’s probably not going to work given the amount of rent you will have to charge.
Q: What financial vehicles exist, or which tactics could I employ, that would help me respond to their concerns about the exchange rate?
A: It depends on the exchange broker that you are working with, and they are going to have concerns about the exchange rate. There are some brokers for a fee, freeze, or guarantee the exchange rate for an extended period of time. You are looking for a broker who does currency exchange and forex at the same time.
Q: Conceptually, I understand the profit analysis quadrant, but I’m not clear on how it applies in a practical way. Does quadrant two mean that the depreciation payment I receive goes to the investor, or do they claim it on their taxes as they’ll have ownership stake in the property?
A: You can give away or keep any portion of the four benefits. Depreciation is the most complicated. Yes, in order to pass it along to someone, they have to be in an ownership position on that entity or asset.
Q: I have another Cash Flow 101 game this weekend. What should I ask the group to stir up some leads?
A: Listen to J’s recordings, skip to the end, and see J do the call to action so you can generate appointments for yourself. The members’ area also has the PowerPoint and Keynote version of what J does so you can download and follow.
Q: Wholesale and tax leans. Would you only sell it for face value even though the lean is selling at a premium?
A: Value is always in the eye of the beholder. Standardize your fee so it is always the same, and you don’t have to try and recalculate all the time.
Q: I am aiming at wholesaling as my business target. If I find private funding resources, should I be thinking of it as a resource for my buyers?
A: Yes, that is a great way to put it. Until you are ready to use the capital, don’t waste the lead, and just serve the person. You will still earn credibility points.
Q: Tax lean strategies. What kind of investor is willing to wait two and a half years to make one thousand dollars? If people were interested, would they have to have a self-directed retirement plan?
A: The investor identity is a person who is willing to wait. On the investor identity scale there is a piece called the Time Horizon. When you interview the person, the question to ask is, “When do you intend on using the money again?” The investor doesn’t need to have a self-directed retirement plan.
Q: Is it a coincidence that ‘B’ and ‘I’ are in the left quadrants, and ‘E’ and ‘S’ are in the right?
A: This refers to course video #6 and the cash flow quadrant made famous by Robert Kiyosaki. J is not sure if there is a coincidence.
Q: What is syndication?
A: The Principals of Real Estate Syndication book is what you need to read. If you want the short cut, go to episode 90 of Cash Flow Diary.
Q: When do equity partners get their cut?
A: They don’t have a guaranteed payment. They get paid when you get paid. When there is a distribution, everyone gets paid.
Q: I’m working on getting a fourplex property under contract this week in Philly. Here are my three offers, all cash: i) $45K close in 4 weeks, ii) $33,350K down with seller finance of balance (80 months, $503 per month), iii) Private capital deal. Need some help, please?
A: Do not put a close date as part of a three offer method. Always lead with the total dollar amount.
Q: I was viewing a property manager’s collection process, and noticed a clause in which they keep late fees. Is there a clause option in which the owner collects the fee?
A: An offer is an invitation for a conversation. The agreement is an offer to you. This is what is called a perverse incentive.
Q: How do I get organized and courageous enough to start Cash Flow games?
A: The Cash Flow core membership is optional, and will help you on how to set up the room and checklists. You will want to review foundation video #5: The Four Levels of Learning, and #14, which will help you understand the types of people that will be coming to your game so you can be prepared for anything. Also, go to Toastmasters.
Q: How do I find ‘the customer?’
A: J teaches lead generation strategies in his additional courses. Income Infusion is about sales and lead machine. You can also go to a networking event and say, “Hi, my name is X, I’m a wholesaler. What that means is I buy property at a discount, and I sell property at a discount. What type of investing are you looking to do?” This will make a huge difference.
Q: How did Rhonda go from fair market value of $50K, to an offer of $67K?
A: The seller may decline but it doesn’t matter, you aren’t trying to get a yes but rather get the conversation going. All retailers are trained to ask, “Would you like anything else with that?” Next time, say, “Yes, a 10% discount please.” There are always time when you will pay more for a particular service than someone else.
Q: I am running a number of ads and hope you can critique my audio card.
A: Take one benefit and drill it deep. There’s a benefit on the audio card that is missing ‘before they can.’ It should be, “I [action verb] [target market] [benefit] so they can [benefit].”
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Links to Resources Mentioned
Real Estate Syndication (Ep #90 of Cash Flow Diary)
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