Cash Flow Fight Club

Cash Flow. You love it. You want it! We’re all seeking it, but what’s the best way to generate it? Google Cash Flow and get instantly overwhelmed. With so much noise and marketing hype out there, how do you know which approach is the best for you? We’ve wrestled with massive amounts of research, opinions and experimentation trying to find the best methods. Now we’re on a mission to find the best methods and give you all the dirty details - Fight Club style! In our signature Fight Club matchups, we bring together the heavyweights of business and investing to debate the risks, rewards and the inside scoop on the best ways to generate life-changing cash flow that can put you on the path to financial freedom. And after battling it out in the arena over 3 rounds, we crown the Champion. We alternate Fight Club matchups by going In the Champion’s Corner, where we’ll discover what it takes to forge a champion. Mindset, high performance habits, best-in-class behaviors and more of what it takes to be successful – in your finances and in life. So whether it’s passive income, real estate, side hustles or cash-flowing business ventures, we’re bringing you all the details in the most informative and entertaining show on the airwaves. Join us to see who’ll reign supreme! Who will take home the title of Cash Flow Fight Club Champion. And the 1st rule of the Cash Flow Fight Club – hit subscribe and don’t miss even 1 battle among the titans of Cash Flow. It’s going to be epic!

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Episodes

15 hours ago

Real estate offers so much variety and many ways to earn outstanding returns, build wealth and generate passive income. Discover how adversity can spark success in real estate. In this episode, Brandon Cobb discusses his unexpected firing that led him to entrepreneurship. Now the owner of real estate firm HBG Capital, Brandon shares strategies for land acquisition, development approvals, and syndicating deals with investors. Plus, Brandon shares his outlook on real estate risks in 2024 and his goals to end veteran homelessness through development.
Here are some power takeaways from today’s conversation:
00:00
02:43 - Brandon’s background in sales and sports medicine
06:40 - Getting fired and deciding to pursue entrepreneurship
11:18 - Strategies for land acquisition, development approvals, and syndicating deals
20:10 - Addressing the supply imbalance for first-time homebuyers
21:09 - Leveraging technology and relationships to find development sites
33:45 - Syndicating land deals with investors to fund development projects
42:11 - Daily mindset practices and advice for handling adversity
44:15 - Outlook on 2024 real estate risks and goals to end veteran homelessness
 
Episode Highlights:
[04:54] An Unexpected Career Pivot and Path to Real Estate
Brandon began his career in medical device sales, enjoying his work in sports medicine. However, he was unexpectedly fired from his job one sunny Friday afternoon. Shocked and confused, Brandon decided to pursue entrepreneurship. He started a life coaching business and met his now business partner at a real estate meetup. Together, they invested in real estate deals in Colorado Springs.
[20:10] Addressing the Supply Imbalance for First-Time Homebuyers
Brandon discusses the growing opportunity in affordable housing development to address the supply imbalance for first-time homebuyers. He notes that 33% of home buyers are millennials seeking their first home, yet less than 10% of homes built cater to their price point. This creates a major supply and demand issue. Brandon also touches on how this presents opportunities for build-to-rent strategies due to the affordability of housing needed by this growing demographic.
[27:03] Leveraging Technology and Relationships to Find Development Sites
Brandon discusses his strategies for identifying land parcels for development. This includes using tools like LandGlide to map suitable properties and building relationships with local brokers and municipalities. He explains how to present initial concept plans to get verbal approvals before engaging engineers. 
[33:45] Syndicating Land Deals with Investors to Fund Development Projects
Brandon syndicates land development deals with investors to fund projects. He raises capital from private investors and structures deals to purchase land through syndications. This allows Brandon to acquire land upfront while mitigating risk through equity funding rather than taking on debt.
Resources Mentioned:
HBG Capital
LandGlide

Wednesday Apr 17, 2024

This episode of Cashflow Fight Club features two great models for building a successful real estate empire: private lending with Jay Conner and syndication with Jen and Stacy Konkey. 
Jay shares how he financed over 500 single family rehab deals by educating private lenders on the benefits of backing his projects, providing passive investors high returns. Meanwhile, Jen and Stacy talk about how they have acquired and operated over 2,500 multifamily units by strategically raising capital from accredited investors through various structures like joint ventures and 506C funds. 
Both models showcase effective ways to leverage other people's money and acquire assets at scale, proving the adage that OPM is the true superpower of real estate.
Here are some power takeaways from today’s conversation:
00:00
01:14 - Two great models to build your real estate empire
02:25 - About Jay Conner and Jen & Stacy Conkey
14:49 - Jay’s approach of raising private money through teaching investors
20:12 - Jen and Stacy’s approach to raising capital and scaling
28:12 - Eyeing new opportunities based on strategy and the economy
36:57 - Setting return expectations 
43:08 - How Jay controls the terms for private lenders
 
Episode Highlights:
[01:14] Two Great Models to Build Your Real Estate Empire
Using passive investors' capital - Investors' money can be pooled together via a syndication to make down payments on assets by taking a limited partnership stake. The remainder comes from bank loans. This model leverages the power of syndication to purchase and operate assets like apartment buildings and mobile home parks.
100% funding using private money - One or a few individuals provide the full capital to purchase assets outright, requiring no bank or financing. This direct private funding model is often used for house flipping, where a property is purchased, renovated, and quickly resold for profit.
[14:49] How Jay Raised $2.15 Million in Private Money by Teaching Investors
After losing bank financing in 2009, Jay Connor knew he needed to change his funding strategy. Rather than desperately pitching deals to investors, he chose to educate his network on private lending. This approach allowed investors to understand the opportunity and proactively commit funds. Within 90 days, Jay’s new "teacher hat" mindset successfully attracted $2.15 million from individuals simply by leading with knowledge, not salesmanship.
[20:12] A Mindset Shift in Raising Capital
Jen and Stacy discussed their evolution in raising capital over the years. Starting from her initial struggles securing funds for small deals, Stacy shared how her mindset shifted from feeling like she was asking for money to recognizing many people have capital sitting idle and desire real estate exposure. This helped Stacy view capital raising as providing an opportunity for passive investors rather than needing funds herself. The pair has since helped many new investors overcome similar hurdles by reframing the ask as giving others a chance to put their money to work.
[36:57] Setting Return Expectations
Jen discussed the typical returns investors can expect when investing in deals with her and Stacy. While stabilized assets alone offer lower cash-on-cash returns around 5-8%, they target properties that also have value-add potential to increase cash flow and property value. This allows them to provide average annual returns on investment of 11.5-13.5% including eventual sale proceeds. 
Resources Mentioned:
Jay Conner
Jen & Stacy Conkey

Wednesday Apr 10, 2024

Video virtuosos Danny “Coach Danny D” DelVecchio and Chay Nott go head to head in the ultimate marketing showdown! 
These two creative entrepreneurs know the power of video content but have very different approaches. Danny helps clients easily create video content for LinkedIn using virtual interviews, while Chay handles full physical production for e-commerce brands. 
Tune in to see who emerges victorious in this epic clash of video business models!
Here are some power takeaways from today’s conversation:
00:00
01:05 - Introducing for Danny and Chay
05:25 - Dan and Chay’s career backgrounds
13:18 - Round 2: Current business models for video content creation
16:47 - How Danny’s virtual studio works
25:23 - Round 3: Startup cost, challenges, and returns
39:50 - Strategies for finding clients
45:25 - Price points and finding their teams
 
Episode Highlights:
[05:25] About Dan and Chay
Chay had no prior experience with cameras but used the pandemic downtime to intensely learn photography and videography skills on YouTube. He gained experience through many free early jobs of varying quality. Danny comes from a sales background and had an early podcast that taught him social media marketing. The podcast failed its second time, but he pivoted to coaching and saw opportunities in video content creation for clients.
[13:18] Round 2: Their Current Business Models for Video Content Creation
Danny runs a virtual studio model, conducting research-based interviews with clients and handing off editing. He shares pricing ranges from $1,000 for a starter package, up to $8,000 for premium clients. Chay handles full physical production for e-commerce brands, managing all aspects from locations to post-production. He works with brands doing $2.5-3M annually and prices his packages from $5,000-10,000 depending on content needs. Danny finds most clients through organic LinkedIn engagement, while Chay leverages the platform plus word-of-mouth and location-based Instagram hashtags.
[25:23] Round 3: Startup Cost, Challenges, Risks, and Returns
Danny and Chay both note client budget constraints and finding competent freelance help as the major challenges they face in running their video companies.  Danny shares that clients often see video as a luxury rather than a necessity. Chay has invested more heavily in equipment due to physical production needs. While each has considered hiring employees, risks remain. They've relied on social media and referrals to build contractor networks. Dan and Chay are both optimistic that quality video content could deliver high returns in building brands and sales if marketed effectively.
Resources Mentioned:
Danny’s website: https://www.coachdannyd.com

Wednesday Apr 03, 2024

Are you looking to maximize returns while protecting your commercial real estate investments? 
In this episode of In the Champion’s Corner, commercial real estate and insurance expert Jeremy Goodrich discusses the ins and outs of CRE investing. Jeremy shares his unique journey from elementary school teacher to insurance advisor for large CRE portfolios. He offers invaluable insights into risk management strategies, agency compliance, and navigating the changing insurance landscape. 
Learn how to properly assess insurance needs for deals, avoid costly surprises at closing, and maximize returns over the long run. Tune in to hear Jeremy's advice on partnering with the right insurance professional, setting clear standards, and achieving financial freedom through entrepreneurship. 
Here are some power takeaways from today’s conversation:
00:00
01:39 - Jeremey’s career background
03:45 - The value of prioritizing risk management
06:57 - Understanding agency compliance requirements
09:57 - Finding the right insurance agent
12:07 - The cost of cheap insurance
16:47 - Insurance rate increases and their impact on multifamily property investments
20:29 - Insurance claims and losses due to hail damage
29:21 - How local factors impact underwriting deals
35:13 - A mindset shift towards financial freedom
43:12 - The keys to running a business successfully with your spouse
 
Episode Highlights:
[03:45] Prioritizing Risk Management and Tenant Safety for Optimal Returns
Jeremy emphasizes the importance of leading a discussion around risk management when engaging investors as an insurance advisor. He wants to ensure the safety of tenants, properties, and the investor's finances. By taking a proactive approach to risk management, an investor can achieve a better return on their sleep by knowing their assets are protected, as well as a better overall ROI. 
[06:57] Understanding Agency Compliance Requirements
Jeremy discusses agency compliance for Fannie Mae/Freddie Mac loans. Inexperienced agents sometimes provide cheap estimates without understanding guidelines. This often causes problems at closing. Jeremy ensures compliance upfront to avoid any insurance issues delaying the closing process, emphasizing that agents need experience with agency debt to submit compliant policies for a seamless closing.
[09:57] Finding the Right Insurance Agent for Your CRE Needs
When assessing which insurance agent is right, Jeremy recommends they be a specialist in commercial real estate who understands the industry from both an investing and advisory perspective. It's important they can explain complex insurance concepts simply and have relationships with multiple carriers so they can access the best options for clients rather than being limited to one company. Trust also plays a key role, as investors need to feel confident relying on an agent's expertise and recommendations.
[12:07] The Cost of Cheap Insurance
Jeremy shares a story of a client who chose a cheaper insurance policy over his own more expensive quote, saving $15,000 annually but having major coverage gaps. The property suffered a $500,000 loss from a fire six months later, and the client only received a $150,000 payout versus the near $500,000 they would have gotten with Jeremy's policy due to its more robust coverage. This illustrates how opting for a low price can end up costing significantly more in the long run if a claim occurs.
[29:21] How Local Factors Impact Underwriting Deals
When underwriting deals, it's important to understand how local insurance market dynamics in a specific area may impact costs. Jeremy notes factors like weather events, replacement costs, and litigation environment can vary significantly between regions. Properly assessing these local considerations is crucial for accurately gauging insurance expenses when underwriting a property in a given market.
Resources Mentioned:
https://creclarity.com/ 

Wednesday Mar 27, 2024

In this episode, real estate investors Brandon Cobb and Alec Beardhall go head-to-head to compare the alternative investment opportunities of land development versus multifamily real estate. Brandon highlights the flexibility and multiple exit options of land investing whereas Alec notes the tax benefits and passive income potential of multifamily deals. 
Hear how Brandon forces value through rezoning vacant parcels while Alec increases rents and occupancy on apartment complexes. Get the inside scoop on these alternative investment strategies and learn which model comes out on top.
Here are some power takeaways from today’s conversation:
00:00
02:23 - Brandon and Alec’s backgrounds
10:14 - How apartment syndication works
14:29 - Four strategies for forcing land value growth
19:00 - The benefits of pre-selling developed land
22:32 - Ways to find their best deals
25:30 - Benefits: Land investing vs. multifamily investing
39:00 - The importance of investor experience
41:37 - Multifamily and development operations and investor communications
Episode Highlights:
[10:16] How Apartment Syndication Works
Alec explains how High Country Capital Partners does apartment syndication: they bring their own capital plus investor funds to purchase large apartment complexes. This allows individual investors to own real estate without hassles. They focus on "light value add" deals from 50-480 units, typically from 1980-2010. Investors receive 7-10% annual cash flow plus an equity payout when the property is later sold/refinanced.
[14:29] Four Strategies for Forcing Land Value Growth
Brandon outlines four ways to force appreciation in vacant land and extract value:
Force-depreciate the value of the land through entitlements like rezoning, then sell it to another developer for a profit.
Get the land entitled with utilities/infrastructure in place, then contract and pre-sell it to an end buyer who provides a down payment to fund development.
Develop the land yourself by building homes or commercial properties to sell.
Develop it and hold it as a build-to-rent community, using a multifamily-style business model to generate ongoing rental income.
[25:30] The Benefits of Land Investing
Flexibility with multiple exit strategies like reselling to another developer or building and selling homes individually. This provides more options than renting out an apartment complex long-term. 
Forced appreciation locks in land value upfront before purchasing. This protects investors from market forces that could impact a multifamily property, like rising interest rates.
Investors can control 100% of the investment with no debt until development begins. This allows projects to be paused if needed rather than relying on bank financing.
Land value is secured through entitlements and engineering work done ahead of time by the sponsor. This de-risks the investment compared to taking on a multifamily property requiring renovations.
[30:27] The Benefits of Multifamily Investing
Alec highlights two main benefits of investing in multifamily real estate:
Cashflow: Investors receive a passive, recurring return of 6-8% through quarterly distributions. This provides ongoing income without needing to actively manage the property.
Tax benefits: Large tax breaks are available through depreciation deductions and cost segregation studies. These can help offset other sources of income for investors. The government incentivizes multifamily investing through these tax advantages.
Resources Mentioned:
Alec Beardall and Multifamily Investing: High Country Capital Partners
Brandon Cobb: HBG Capital 
For a free e-book: Education Recourses - HBG Capital

Thursday Mar 21, 2024

Are your retirement funds stuck in the volatile stock market? 
Don't miss this exclusive opportunity to learn how private real estate investor Jay Conner has helped dozens of people grow their wealth through private lending on over 500 successful deals. Transitioning to real estate investing after leaving the manufactured housing industry, Jay now focuses on funding deals through private lending, bringing in capital from private lenders.
Discover how you can take advantage of safe, steady returns through real property – without being a landlord. Jay walks us through the process of evaluating properties, making offers, renovating, and paying back lenders with profits.  
Here are some power takeaways from today’s conversation:
00:00
01:30 - Jay’s background
07:06 - Lessons learned from early mistakes
11:28 - The power of a like-minded community
17:44 - Your target audience for a private lending event
21:02 - Automating the private lending event process
28:33 - How private lending works for real estate deals 
39:31 - Loan-to-value limits for private lending deals
46:57 - Leveraging technology and scaling your business
55:46 - The victor vs. victim mindset
 
Episode Highlights:
[07:06] The Value of Education: Avoiding Costly Lessons in Real Estate
Jay stresses the importance of education when getting started in real estate investing. Despite his background, Jay lacked training specific to real estate mechanics and funding strategies. This resulted in expensive mistakes early on that could have been avoided. Arming yourself with knowledge from experienced investors up front can help you sidestep costly lessons. Formalizing your education pays dividends and sets the stage for success in your real estate endeavors.
[16:15] Piquing Interest Without "Selling"
Jay shares an effective strategy for inviting people to private lending events. Rather than directly asking for money, he frames it as needing their help and support. This subtle difference activates people's desire to be helpful. Combined with buying lunch and portraying the opportunity as high returns for others, it piques interest without pressure. Jay also casts a wide net by inviting people even if they can't invest presently, allowing for future opportunities.
[18:30] Targeting the Right Audience for Your Private Lending Event
Jay recommends the following key target people to invite to a private lending event:
Retired individuals: They likely have retirement funds seeking better returns than traditional volatile options.
Centers of influence in the community: People like mayors, Rotary Club members, etc. who are well-connected.
Entrepreneurs/business owners: They understand business concepts like this private lending program.
The goal is to generate a list of 40 people across these categories who may be open to learning about the opportunity, even if they can't invest immediately. Casting a wide net allows capturing future opportunities as people's situations change over time.
[28:33] Private Lending for Real Estate Deals: How It Works
The investor provides capital for the purchase and renovation. They receive a promissory note and recorded mortgage/deed of trust as collateral. The investor is also named as the mortgagee on insurance and title policies for added protection. When the property is sold, the investor gets their principal back plus any unpaid accrued interest, and the process repeats with new deals.
Resources Mentioned:
www.jayconner.com 
For a free book: https://www.JayConner.com/Book 

Wednesday Mar 13, 2024

Tired of trading your time for money? Learn how to put your cash to work for you! Tonight we've got the ultimate masterclass on generating passive income through hard assets. Tune in for an epic matchup between two heavyweight investment strategies - precious metals and oil & gas production.
Experts Ben Nadelstein of Monetary Metals and Rey Trevino of Pecos Country Operating go head to head in this episode of Cash Flow Fight Club to discuss how both gold and oil can be used to generate life-changing wealth and passive income. Listen in for insights on unlocking the cash flow potential of hard assets through leasing and private placement deals.
Here are some power takeaways from today’s conversation:
00:00
01:23 - About Ben and Rey
09:46 - Generating monthly returns from precious metals
11:48 - How gold and silver leasing works
17:43 - Why gold holds value
19:55 - Understanding gold bonds
20:44 - Storage fees for physical gold
23:43 - Investing in oil production capabilities over the long term
32:42 - Returns on precious metals vs. oil & gas
43:06 - Analyzing potential risks and benefits
1:02:12 - The future of oil and gas
1:07:33 - Who wins today’s matchup?
Episode Highlights:
[09:46] Generating Monthly Returns from Precious Metals
Ben explains how Monetary Metals is unlocking the cash flow potential of gold and silver through their unique leasing programs. Traditionally, precious metals are seen as static holdings. But through their innovative model, clients are able to rent out their gold and silver inventories to businesses. They’re able to generate monthly returns without having to worry about price fluctuations. By eliminating the risks and costs normally associated with ownership, Monetary Metals has found a way for even small investors to earn interest on their holdings paid back in physical ounces of gold and silver itself.
[23:43] Investing in Oil Production Capabilities Over the Long Term
Rey explains that a typical producing well is capable of generating oil for 30 years. This underscores how those who invest in Pecos Country Operating through its private placement deals have the potential to see investment returns not just over the short or medium term, but for decades into the future. By tapping into multi-decade production from successfully drilled wells, investors are able to benefit from a wealth-generating asset that continues paying them month after month for generations.
[32:42] Returns on Precious Metals vs. Oil & Gas
While both precious metals and oil & gas investments have the potential to generate strong returns, there are some key differences in the return profiles:
Precious metals leasing through Monetary Metals aims to provide a more consistent, lower-risk return in the 2-5% range annually through interest paid in physical gold/silver.
Oil & gas private placements with Pecos Country Operating take on more project-based risk but also offer potentially higher returns, with Ray citing examples of 40-100% returns in the first year and a goal of recouping investments within 12 months.
[1:07:33] Why Oil & Gas Took Home the Gold
Black gold was named the champion for this matchup based on its potential for higher overall returns within shorter timeframes, backed by valuable tax benefits that can further boost after-tax gains. While both investments have merit, oil & gas private placements offered by Pecos Country Operating edged out precious metals leasing due to cited examples of 40-100% first-year returns and the longevity of income over 30+ years from individual productive wells, mitigating risk through their focus on established, revenue-generating assets.
Resources Mentioned:
Monetary Metals 
Pecos Country Operating

Wednesday Mar 06, 2024

How do you break free from an ingrained survival mentality of scarcity so you can begin to see prosperity, even in times of want? 
This week, we've got a heavyweight bout you won't want to miss as we enter the arena to go toe-to-toe with an ideological firsthand account of what life is like under dictatorial communism versus that of capitalism. Leading us through the rounds will be none other than our champions Mike and Ligia Deaton. Growing up during a time of communism and authoritarian rule in Romania, Ligia knows its power all too well. But after facing the revolution and immigrating to the US, she's also experienced capitalism's impact. 
Get ready for an epic clash of economic systems as Mike and Ligia share lessons from both sides to help you overcome any mindsets holding you back from financial freedom!
Here are some power takeaways from today’s conversation:
00:00
03:21 - Growing up in Romania and what scarcity looked like
13:00 - Mike’s childhood in the U.S.
15:46 - The dangers of private property in communist Romania
20:56 - How their money stories shaped their mindsets
24:33 - Ligia’s transition out of poverty after the revolution
33:53 - How scarcity hinders creativity
38:02 - Breaking free from limiting beliefs
49:08 - Lifestyle differences in Romania vs. the US
54:53 - Exploring business and investment opportunities
 
Episode Highlights:
[03:23] Growing up in ScarcityLigia takes us back to her childhood in communist Romania. She recalls living in a society tainted with  fear and scarcity, with rationed food and utilities. Electricity and water were systematically cut off for undetermined periods. Through it all, her mother's resourcefulness helped the family survive.
[20:56] How Their Money Stories Shaped Their Personality and Mentality 
Although Mike came from a background of entrepreneurship through his father, he was more influenced by his frugal, savings-focused mother in his youth, instilling a security mentality. Whereas Ligia grew up facing constant scarcity in communist Romania that ingrained a deep poverty mindset, believing wealth was unattainable as she focused solely on needs. 
Ligia struggled more with residual scarcity thinking until actively breaking free through entrepreneurship. Their differing backgrounds demonstrated how formative early life can be on our money stories if left unaddressed, and it takes conscious reflection to transform our perspectives.
[33:53]  How Scarcity Inhibits Creativity
Living in constant survival mode profoundly impacted Ligia's creativity and ability to dream. With her focus solely on meeting basic needs from day to day, she did not have the mental space or energy to contemplate bigger goals and ambitions. The survival mentality left her feeling paralyzed and unable to envision a future beyond simply working to sustain herself. 
Scarcity can inhibit human potential by training the mind only on the immediate present rather than possibilities. In Ligia’s case, she had to break free of such a limited survival mindset for her to develop creative capacities and pursue prosperity.

Wednesday Feb 28, 2024

Financial freedom leads to lifestyle freedom. Bobby Larsen is using the power of real estate and multifamily apartment investing to build wealth, create cash flow and ultimately create financial freedom for himself, his family and his investors. 
Most investors only dream of the kinds of returns Bobby Larsen has achieved in his 15+ year multifamily career. In this latest episode, this industry titan is spilling all his secrets to success. 
Learn how Bobby navigated the financial crisis with capital protection at the forefront. Discover his strategies for maximizing returns in any market. And get an insider's look at how he launched Vanamor Investments to generate a jaw-dropping 57% average ROI! 
Here are some power takeaways from today’s conversation:
00:00
02:39 - Bobby’s career background
07:20 - The benefits of partnerships
13:00 - The tortoise approach to maximizing returns
16:20 - Why Bobby remains bullish on Oregon's growth potential
24:15 - Embracing adaptability for real estate success
26:38 - The challenges of property management
29:45 - Bobby’s real estate outlook
33:11 - Multifamily's long-term appreciation potential
 
Episode Highlights:
[12:05] Bobby’s Investment Philosophy
Bobby cites Warren Buffett's two famous rules of investing that have strongly influenced his approach:
Don't lose money. This rule shapes Bobby's focus on capital protection over maximizing returns, taking a conservative approach to underwriting deals in order to withstand downturns without losing investor capital.
Don't forget rule number one. This reinforces the importance of avoiding losses at all costs. Bobby applies meticulous risk analysis and debt management strategies to his properties to ensure they can weather disruptions like recessions.
[13:00] The Tortoise Approach: Slow and Steady Wins the Race
Bobby takes what he calls the "tortoise approach" to maximizing returns - going at a steady, conservative pace focused on long-term stability over quick gains. He underwrites deals to withstand potential downturns through a 7-10 year hold period. While others chase higher returns through riskier strategies, Bobby believes his measured tactics will generate strong, reliable performance over an entire real estate cycle. Just as the tortoise eventually surpasses the hare, Bobby is content to achieve steady growth in his portfolio without jeopardizing capital. 
[24:15] The Power of Adaptability
There are many facets involved in running a business from an operational perspective like administration, asset management, and more. Bobby emphasizes the need for an adaptable mindset as an entrepreneur - being willing to take on different roles and responsibilities quickly as needs change. He stresses the importance of flexibility to transition between functions smoothly. This trait is especially crucial in the early days of a startup when learning on the job.
[29:45] Where the Real Estate Cycle is Headed
Bobby shares his outlook that the market is closer to bottoming out than peaking after recent disruption from rate hikes. With construction slowing from inflation and cap rates improving, he feels positioning is strong for a new upcycle over the next 7-10 years. However, Bobby retains a long-term view, aiming to navigate short-term fluctuations and optimize returns through the full real estate cycle.
Resources Mentioned:
Vanamor Investments

Wednesday Feb 21, 2024

Today on the Champion’s Corner,  we're joined by real estate investor and educator Patrick Grimes. Patrick has lived an inspiring life journey going from engineering whiz to real estate millionaire, proving that with grit and determination, you can bounce back from even your hardest falls. 
Strap in for an adventure as we go behind-the-scenes of Patrick's engineering days, real estate ups and downs, and his ultimate reinvention through education, travel, and strategic partnerships. 
You won't want to miss this inspiring comeback story!
Here are some power takeaways from today’s conversation:
00:00
01:38 - His career background 
04:05 - Getting back up after losing everything during the real estate crash
07:51 - Patrick’s outdoor adventures
16:14 - Travel & entrepreneurship
20:38 - Real estate investing and risks
23:34 - Why tap into recession-proof markets
28:36 - A look into debt funds
31:07 - Finding complementary partners
37:16 - Giving back with passive investing strategies
41:30 - Tips for partnership success
 
Episode Highlights:
[16:14] The Benefits of Travel in Entrepreneurship
Broad perspective: Travel allows entrepreneurs to gain a broader perspective by experiencing new places and cultures outside their normal bubble. This helps open their mindset to different ways of doing things that can be applied back to their business. 
Personal growth: Travel also aids in personal growth and realizing what's truly important beyond just profits. Facing the world independently through travel builds confidence, an important skill for those venturing out on their own as entrepreneurs. 
[24:09] Targeting “Hard to Move” Industries
Patrick looks for areas with diversified employment across industries that are less vulnerable to sudden downturns, such as healthcare, finance and logistics. These "hard to move" sectors are more stable than those dependent on high tech, tourism or manufacturing. By not relying heavily on just one or two boom-based industries like hospitality, properties in these balanced markets hold their value better even when the broader economy contracts. This is because jobs, populations and demand remain more consistent.
[29:55] A Look into Debt Funds
Rather than focusing on risky construction or flip loans, his real estate asset-backed debt fund targets performing assets with conservative loan-to-value ratios around 50-65% of current property value. This approach aims to capitalize on banks pulling back from lending while minimizing risk. The properties are already cash flowing and any downturn would have to drop values significantly below current levels to threaten losing money. It generates steady income through short to medium term loans on low-risk performing assets in recession-resilient markets.
[31:07] Finding Complementary Partners
Finding the right complementary partners can dramatically accelerate any business venture. By leveraging different strengths and expertise, partnerships allow companies to scale more quickly and take advantage of new opportunities. The key is identifying partners who share the same vision and values to ensure long-term strategic alignment. 
Resources Mentioned:
www.investonmainstreet.com 
www.passiveinvestingmastery.com 
For a free book check out www.passiveinvestingmastery.com/persistence-game-changer/

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