We have all heard the old adage that real estate is the fastest way to create wealth. My guest, Tim Denbo is a friend and community member who was involved in the real estate industry when he saw a pain point and decided to do something about it. He had the vision and skill set to create a tool that makes it easier to market real estate across the industry from selling, renting, residential, and commercial.
VirtualTourCafe is a tool that helps real estate marketers create websites, virtual tours, and flyers easier, faster, and better. Tim talks about all of the benefits of his tool from being more cost effective to the real savings of selling or renting faster. He also talks about staging, photography, his book, and virtual staging. He even shares a story where a seller was going to give up, then tried the virtual staging tool and sold the property in a week.
You can find Tim here:‘My book is just a better way to help our clients and anybody do a better job of taking photos and marketing their properties.’ -Tim Denbo Click To Tweet
- [01:08] VirtualTourCafe is to help people involved in real estate to better market their properties. Tools, presence, and exposure.
- [02:02] This is a system that makes things easy for people who aren’t tech savvy. Creates property websites, virtual tours, and flyers.
- [02:49] People can log into their own account and create tools that will help them do things fast and easy.
- [02:55] Tim also wrote How to Photograph and Market Houses to Sell Fast.
- [03:16] He wrote this book in response to people’s questions about how to get the best pictures for their listings.
- [04:12] Tim was affected by the crash of 2008. This gave him an opportunity to rethink what he was going to do with his life, and he got into real estate.
- [04:43] He noticed other agents needed help photographing and marketing their properties.
- [04:50] He had a lightbulb moment and decided to automate the process.
- [05:02] It took a team of developers and programmers about six months to launch VirtualTourCafe back in 2008.
- [05:26] Now they have users in every state and several different countries.
- [05:34] What is virtual staging? How does it work?
- [05:47] They just launched RealEZPhotoFix. Virtual staging is taking a digital photo and adding furniture to make it looked staged.
- [07:35] It is okay for realtors and real estate agents to use virtually staged photos as long as they disclose the fact.
- [07:57] In real estate, it’s all about disclosure especially if you are licensed.
- [08:36] Physically staging homes can cost thousands of dollars.
- [08:57] A digitally staged photo is $32.
- [09:38] Some buyers have a hard time visualizing what the room will look like. Having the perception of what it will look like can increase sales.
- [10:18] The real value is being able to sell the property quicker.
- [11:45] This techniques enables sellers to get the property on the market while it is still being prepared.
- [12:23] They can do 3D rendering and finish a room that is under construction. They can also be clutter a messy room.
- [13:17] When taking pictures, level the camera and keep it straight.
- [13:54] Lighting is also very important. Turn on all the lights and take photos that aren’t facing the window.
- [15:15] Put the toilet seats down.
- [15:32] With furniture less is more. Get rid of as much as you can.
- [16:58] Take a shot of the front of the house with some blue sky.
Links and Resources:
- Loral’s Real Money Talks
- How to Photograph and Market Houses to Sell Fast
- Ask Loral
- Get Your Free Report
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My company and podcast is about making money, keeping money, and investing money wisely. Communication is the key to increasing the potential of money and exploring the best options to keep, make, and grow money. I am a huge fan of neuro linguistic programming or NLP when it comes to having conversations about money that influence people in the right way.
Matt Brauning is a speaker, best selling author, and master NLP trainer. He became a self-made millionaire by the time he was 25. He runs seminars all over the world and has worked with Tony Robbins, was in the movie “The Journey” with Brian Tracy and Bob Proctor, and has worked with countless Fortune 100 companies. Today, Matt shares some of the amazing potential that NLP offers to improve our business and our lives.
You can find Matt here:‘Every habit whether good or bad has a trigger that starts it.’ -Matt Brauning Click To Tweet
- [02:48] What Matt and Loral do are so collaborative and integrative. NLP and communication is critical for success.
- [03:15] Matt started out in financial services and real estate.
- [03:22] When Matt was 18, he worked with brothers who were in the mortgage business. He learned everything about credit and mortgages and took his first vacation to Cancun at 18 and bought his first house at 19.
- [04:02] By the time he was 25, he had a five million-dollar portfolio and was a self-made millionaire.
- [04:28] After going to a Tony Robbins seminar, Matt fell in love with the concept of changing lives and changing patterns, and he knew that there was something more for him to do.
- [05:03] Matt wanted to change people’s lives and became a life coach.
- [05:29] New seasons and coming into the season change. Whether you’re going into real estate or getting out of real estate there are seasons and times for change.
- [05:43] What is NLP and why is it important? The lost user manual for the brain.
- [06:43] The way we imagine our memories both past and future visions are what NLP centers on quite a bit. A shift in the way we internalize processes and the way that we internalize memories.
- [07:08] Reliving memories over and over again make them more vivid. Pretty soon we are reliving lives.
- [07:16] The ways that our brain works is so complex. Science hasn’t even scratched the surface.
- [08:31] NLP is about looking at what my subjective interaction with my environment is.
- [08:57] NLP is a study of why we do what we do and how to change deep unconscious habits that don’t serve us.
- [09:33] Why having a high awareness is so critical for being successful.
- [09:57] People think of NLP and personal development in general as just goal setting or positive thinking.
- [10:20] Positive thinking isn’t the message. The message is positive habits.
- [10:35] Our habits are everything. The behavior we do over and over again. What do we do with surplus money in the bank. We all have unconscious desires and habits.
- [11:47] Rewiring the mind to conquer severe phobias. Judging things by what the outcome is.
- [12:56] Phobias are habits. Look at the unconscious neural pattern that establishes the habit in the first place.
- [14:51] Unconscious or deep ingrained phobias. Surface level and deep level.
- [16:46] It’s too late to intervene when you’re already in the middle of the behavior.
- [17:25] Go back to the exact moment when you are doing the undesired behavior and then go back an hour before that behavior. Find the exact trigger second in time. Scramble that picture in your mind, and you can’t play the pattern again.
- [19:22] Every habit whether good or bad has a trigger that starts it.
- [19:54] It’s all attitudes and habits. But before that there’s always a trigger. We need to get to the heart of the trigger.
- [20:13] These skills will enhance your life, your education, your relationships, and your ability to create wealth and money.
- [20:27] These communication and presentation skills have enabled me to raise large amounts of money.
- [21:24] How to get started with NLP.
- [21:36] Find an immersive seminar type environment. Find a live place to learn and try this information.
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The economy is soaring, and the real estate market is hot. According to our surveys, 83% of the people surveyed not only want to learn how to do real estate but also want to invest in it. Justin Bennett is someone who I do real estate with in the Kansas City market.
I brought Justin here today to talk about his real estate market, and why he decided to get involved in real estate. He also owns a carpeting and flooring company, and he is an entrepreneur at heart. Justin realized that a corporate job wasn’t for him. After starting his business, he discovered the value of real estate and hasn’t looked back.
You can find Justin here:'Over 90% of the most successful people in the world invest in real estate in one way or another.' -Justin Bennett Click To Tweet
- [01:34] When Justin started out, he had a great corporate job working for 3M. It was a good job, but it felt like there was no end in sight.
- [01:51] He found a great business partner and started the floor restoration company, and things just took off from there. He then began investing in real estate.
- [02:04] His partner had a construction company, and they invested in real estate on the side for a while. Then they decided it was time to do things the right way.
- [02:38] There is serious money being made through all of the different aspects real estate every year.
- [02:47] Justin became involved in the investment side of real estate because there’s so many different strategies you can use. You can buy properties and flipped them for fast cash. You can buy properties and renovate them and rent them out for cash flow.
- [03:09] You can also invest in properties to hold not only for cash flow but also for appreciation.
- [03:24] There are so many different ways to invest in real estate. The possibilities are just endless.
- [03:57] The Kansas City market is so investor friendly because the economy is booming right now. Justin understands the neighborhoods and the market and doesn’t have to waste any time on his investments.
- [04:44] There is also an affordable cost of living and middle-class families can thrive.
- [05:07] Justin likes to invest in the buy and hold side of real estate.
- [06:02] The city is going through a huge revival and tons of jobs are being created in Kansas City, TN. There is even free streetcar service.
- [06:55] The strong economy and the projected growth make it a no-brainer to do business there.
- [07:15] Justin’s favorite play is the single-family residence where they fix and hold them.
- [08:40] He loves to target neighborhoods that have multiple homes for sale. That way he can control the quality of several homes on the same street.
- [09:10] If you can control your rent you can increase cash flow.
- [09:41] When you buy a block of real estate you can completely change the community.
- [10:12] Kansas City is the top five in the country for out of state investors because they understand the kinds of deals you can get here.
- [10:31] They rate properties on a level one to five. They usually focus on the level three properties. These are three-bedroom one or two bath houses. That will rent for $600 to $800 a month.They will also hold their value and appreciate each year.
- [11:21] They also pick up level four homes at auctions. These homes are one step down from the level three homes.
- [12:17] They will also get the level two duplexes. These properties appreciate even though they have less cash flow.
- [13:11] Forced appreciation by adding enhancements. Millennials want to live downtown. Fix these properties up according to what the millennials want. The difference between a tile bathroom and a laminate floor can be $200. Yet, it can get a higher rent.
- [15:43] Rejuvenating neighborhoods and improving the value of homes is also a great form of advertisement for your real estate investment business.
- [16:31] The diverse kinds of deals that you can do. There are multiple options from debt positions, equity positions, joint venture opportunities, and more.
- [17:43] Justin’s team is usually able to offer double-digit returns to his investors. Justin has investments starting at 10% and up.
- [18:31] There are also multiple things in place to protect the investment or the investor.
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A topic that comes up over and over when we are doing business is Canada. My husband is Canadian. There are a lot of Canadians that want to do business with us here in the US. Here to talk about doing business with Canada is Dave Hare who is a licensed CPA both in the US and Canada.
Dave is a cross-border CPA. He has done corporate business both in the US and Canada. Then he decided to leave the corporate world behind and venture out on his own. He owns 5 multi unit properties and is a successful real estate investor. He recently signed a 5 million dollar deal. Dave talks about the differences between US and Canadian tax entities and cross border investing to maximize your money.
You can find Dave here:'One of the things that I learned through Loral was raising money, and I became pretty good at it.' -Dave Hare Click To Tweet
- [01:24] Dave got his degree in Michigan. Then he worked for several years for public accounting firms. After he became a CPA, he went over to the Canadian side and work for companies like Caterpillar and Volkswagen.
- [02:01] Eventually, Dave decided to branch out on his own and do his own thing instead of working for corporations.
- [02:18] Dave approached Loral about investing in real estate about a year and a half ago. He signed up for the big table. Now he has five multi unit properties.
- [03:10] Dave learned how to raise money through Loral, and he became pretty good at it.
- [03:26] Dave became part of Loral’s team in September. Dave drove 37 hours to get to Tahoe and begin working with Loral.
- [03:47] They have been working on some solid deals including the marina deal and major renovations. He also recently signed a $50 million contract.
- [04:31] Dave surrounded himself with the right people and the right team. Build a diverse team that will provide you the expertise you need.
- [05:09] It’s tough to find it’s cross-border team members.
- [05:21] Three business structures that apply in Canada are partnerships, limited companies, and sole proprietors.
- [05:50] Partnerships are where you join with someone to set up a business. You will have a partnership return. Each partner does their own taxes. The tax write offs go to your personal tax returns. Any money you make on the partnership returns go straight to your taxes.
- [06:20] You have to be careful because of liability issues and tax issues.
- [06:36] Sole proprietorship’s in Canada give you write offs towards your T4 income. This is a great tax strategy from that standpoint.
- [07:57] You want to make sure you protect your personal assets like your house and your vehicle. You have to be careful with liability issues with a sole venture.
- [08:55] As a sole proprietor, you may be able to write off 10 to 20% of your house if its use for your business. If you use more than that you might be able to use it as a carryover.
- [10:12] With the company, the carry forward losses can be used now and in the future.
- [10:29] If you have T4 income and you start making more money your taxes will be high, so you might want to look at other entities at that point.
- [11:12] You might want to move into a limited company. You will have more flexibility on write offs.
- [12:04] If you work from your house, your business will take a 10 to 20% of your house expenses.
- [13:05] In Canada, you can now write off entertainment expenses if you take out the entire office. You can now write off 50%.
- [13:56] For business driving, you can use electronic tracking and write that off. You need to be very careful about your record keeping and the rules.
- [14:36] As a sole proprietor, everything is questioned.
- [15:05] The benefits of setting up an entity in getting Incorporated. Set up a limited liability company to protect your assets. You will also have more right off opportunities. You can also protect yourself by having an operating agreement or contract.
- [16:23] If you have a company in Canada, you can also set up a US structure like a c corp.
- [18:55] Be careful of withholding taxes when setting up entities for businesses that are cross-border.
- [19:59] Make sure you set things up right from the beginning.
- [20:21] You can avoid exchange rates by keeping your money someplace where the tax rates are lowest like the US and then using a US credit card.
- [22:42] To talk to Dave,you need to think about trusts, whether you have children involved, whether you can send money down to the US, and possible insurance products. The plan needs to be individually tailored to you.
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Jesse Brewer who is one of my partners in teaching off Wall Street investing is here today. Jesse grew up in Northern Kentucky, and he built a multi-million-dollar real estate portfolio. Jesse grew up in the real estate business, and he shares his real estate investing strategies in this interview.
We talk about the difference between equity and debt investing, and why Jesse prefers multi family investing. Everyone who is a millionaire invests in real estate. This episode will show you some ways to up your real estate investing game.
You can find Jesse here:'I found my niche with the 4 to 20 unit properties.' Jesse Brewer Click To Tweet
- [01:37] Jesse has been involved in real estate since he was 22 years old. He basically grew up in the business.
- [01:58] His dad owned real estate and have some investment properties. Jesse was a police officer who started buying rental properties.
- [02:42] After five years, he had 30 rental properties. That’s when he decided to go full-time into real estate.
- [03:06] 83% of Loral’s community is interested in real estate.
- [03:12] There are so many different types of real estate strategies.
- [03:36] Jesse started off in the single-family racket. It was a grind. Logistically it was a nightmare, because he had to drive all over the place.
- [04:48] He had never really looked at multi family because there was a lower barrier to entry was single-family.
- [04:49] Then he started doing some multi family deals.
- [05:12] His niche is the 4 to 20 in a properties. This is his sweet spot because it weeds out some of the competition from all the single-family buyers and then the big institutional buyers who like the larger unit properties.
- [06:09] Jesse’s market is a cash flow market. Where he invested, property values didn’t shoot up really high, but they also didn’t crash.
- [08:52] To have a property management company you have to have a real estate broker license. Jesse has a real estate brokerage which has a sales and acquisition arm and a management arm.
- [09:13] It’s one big company but he runs it as two separate divisions.
- [09:25] The third arm is the project management arm where they do renovations and repairs.
- [09:50] There is a marketing arm on the brokerage side because they are looking for deals.
- [10:35] When people want to invest in real estate, but they don’t want to be landlords they can invest in one of Jesse’s deals or funds.
- [11:14] The last deal they did was an equity fund where they raised $500,000. With an equity fund you get part of the returned such as you own 10% and no matter how well the deal does you get 10% of the profits.
- [11:36] They also do debt funds where you get a fixed rate of return such as 8% no matter how well the fund performs.
- [12:28] A lot of sponsors prefer debt funds because you know how much are going to get. Jesse prefers equity funds can seize along for the ride.
- [12:44] With the equity fund they purchased several different properties. All of these properties were in disrepair. They purchased the properties for cash because they aren’t leveraging the buy.
- [13:43] Then they renovate the properties. The properties are usually in disrepair, mismanaged, and have bad tenants.
- [14:12] They do a full-blown renovation on the property and bring them up to date and make them look nice.
- [14:41] It’s important to know your market. You need to be able to look at the deals and know what value you can get after your renovations.
- [15:16] After the renovations, they get new tenants coming in and cash coming in. Because this is an all cash buy and renovations are done, you don’t usually get any money back the first year.
- [16:04] Jesse likes urban properties. He likes to be in an area where boutique shops and bars are opening up. This is where the millennial’s want to be. The people approximately age 24 to age 34.
- [17:42] It’s important to understand them as renters because there’s such a large sector of the population. There are as many millennials as there are baby boomers.
- [18:16] they try to cater to the millennial’s with location and amenities. Things like butcher block counter tops and USB ports make the difference.
- [19:04] When buying a single-family home your appreciation is tied to what the neighbors appreciation is.
- [19:21] In a multifamily property you can force appreciation by increasing your cash flow.
- [21:53] The benefits of staying in one area. You need to know your market. If you’re in seven different areas there’s no way you can know the market unless you have a staff and then there are extra fees involved.
- [23:05] By sticking with one area, you will know the sub market.
- [23:40] You can maximize your value by knowing your market.
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