On today's podcast I talk about creating a life of financial freedom.  I think this is a very approriate time for me to be talking about this becauase last week I returned from a two month trip to the Bahamas where I was living on my catamaran.  I was interviewed by my students Fred and Andy on Sunday night on an IG Live that they were hosting, and one of their main questions on that interview revolved around how to create financial freedom, and what it means to build your life by design and to have a freedom lifestyle.   But their real question was "How do you manage to be off the grid in the Bahamas for two months and still have your real estate business run so efficiently? So I thought I would talk about this concept of financial freedom on today's podcast episode.  Building a life by design means having intent in how you want to live your life, and then creating that life and that lifestlye by purposely planning for it. Learning how to invest in real estate and building a real estate business that buys and sells real estate is the best vehicle to help you achieve financial freedom.  If you have any questions, leave them in the comments. Enjoy the podcast!  

On today's podcast episode, I talk about the current state of the real estate market and where I think the market is heading.  One of the questions I get asked the most is "what do you think of the market right now" or "do you think the real estate market will crash. This podcast episode answers those questions.  Disclaimer: I cannot predict what will happen. No one can. There are too many unknown variables like war, interest rates, the Fed, the dollar, stock and bond markets, etc. However what I can tell you is my opinion on what I see and how I interpret it. That is what this episode is about.  Prices have moved exponentially higher. I was looking today at houses that were worth $150,000 in 2000 that are now on the MLS at $300,000. In many markets, prices have doubled in two years. So be very careful of listening to the "Case Shiller Home Price Index" and other data that is put out by mainstream companies because a lot of this data is skewed because it's an "average" or "median" of the entire country. Different cities and different States have completely different demographics, population growth, job growth and demand (or supply). Averaging this data gives us a big picture. But we cannot invest in our local market with data based on the entire U.S. Real estate is local. If my market is Port St Lucie, FL I am not interested in what is happening in Phoenix, Seattle, San Diego or Philadelphia. I doubt prices in Buffalo or North Dakota doubled in the past two years. Because no one is moving there. But people are moving to Florida. Florida has been hot and Covid exacerbated that. The past two years have been absolutely insane and it seems like everyone in the U.S. was trying to move to Florida. For that reason many people that are local do not see a problem in our local market. However based on my own research I am seeing some cracks forming.  What I am seeing on the ground is a little disturbing. 1/4 of the listings of the homes on the MLS in some cities are new construction homes built by builders in the past few years. Many of these were "build to rent" homes which were supposed to be purchased by hedge funds and private equity funds (and home buyers). But demand has dried up. No one predicted that rates would move from 3% to 6 1/2%. So these builders are sitting on excess inventory and have had to slash prices. At the same time, their biggest buyers are drying up too. Many of the largest single family home buyer funds are not buying any more and have ceased their buying operation until they can get a handle on this market (and their inventory). Offerpad, Open Door and other iBuyers are hurting. Some of these operations even have going concern situations (Offerpad just dropped below $1 a share today). Invitation Homes and American Homes For Rent and most of the large Hedge funds have stopped buying too. They stopped buying around July/August of last year. Some only stopped buying at the end of last year. Now they know there is a problem. So if the largest private equity and hedge funds, titans like Invitation Homes and American Homes for rent are not buying then what are they doing. According to my research they are selling. They are reducing the homes on their balance sheet and they are increasing cash reserves because they know what is coming. Goldman Sachs put out a report just last week of 4 cities that could see a 2008 type of decline. Those were San Diego, Phoenix, San Jose, and Austin. None of those cities are in Florida, but often when troubles start in hot markets like Phoenix, that pain spreads to other cities and towns (and States). And prices being marked down affects their balance sheet, their financing and how much lenders are willing to lend. It looks to me like the smart money (Wall Street) is not buying houses and is selling houses. So So my question is who is going to buy all of these houses? The first time home buyer has seen rates moved from 3% to 61/2% in the past 12 months. The average home buyer has sticker shock when they see what their mortgage payment will be. They simply cannot afford it. So either rates have to come down or prices have to come down. Listening to the Fed Chairmen Powell, I don't think rates will come down too much. He says rates are going up (he said that yesterday). So do I foresee a price decline? You bet I do. I see prices that are already down 10% to 15% in my local market. The Core Logic Us Home Price Insights Report (which came out yesterday) shows a that home prices increased 6.9% from 2021 to 2022. That data tells us nothing about what prices have done in the past 6 months. Prices could have gone up 16% and then dropped 10% resulting in a  6.9% year over year increase. In my local market I see declines at 10% to 15%. New home builders have slashed the prices of new homes from $420,000 to $380,000 in just the last 3 months. That's a 10% decline. Core Logic says prices will down 3% for the next 12 months. I would really like to believe that - but I don't. I think it's more likely that they are down that amount in 1 month! Be careful in this market. Pay attention to what the home builders are doing and how they are pricing their new homes. If the prices of new homes are being marked down, then what does that do to the price of existing older homes?  Watch the iBuyers and whether or not they start buying again and whether or not some of them go out of business. That will affect demand and supply. Listen to the earnings calls of the large publicly traded companies and read their reports and what is written in them. Pay attention to details. I believe that prices will come down and that 2023 and 2024 will be a great time to buy real estate. At some point the Fed is going to have to pivot and start lowering rates again. And when they do (whenever that is) it will be the start of another run up in real estate prices. And the hedge funds and private equity funds will be ready to pounce. So Be patient. Wait for the right price and then when you see deals that make sense buy them. Buy anything that will cash flow for you. And don't forget to keep an eye on interest rates. These new homes if they decline another 10% to 15% would look like really good long term buys to me. Keep an eye on that and their prices (and price per square foot).

On today's Podcast, I interview my friend Brandon Bateman about Pay Per Click (PPC) and SEO For motivated sellers. I first met Brandon at my Collective Genius mastermind when I was introduced to him by a mutual friend. Brandon is running the PPC and SEO campaigns for some of the biggest real estate investors in the country (including many of my friends in my mastermind). Since we spoke about motivated seller marketing on the last podcast episode on this show, I thought it would be a great time to ask Brandon to come on to the podcast so that he could share some of his PPC and SEO Wisdom with all of my listeners. This episode is packed with a lot of information related to marketing to motivated sellers. We talk about Google Ads (PPC), Facebook Ads, Search Engine Optimization (SEO), website design and many other concepts related to motivated seller marketing. Brandon is an expert in PPC and SEO, so get out your notepad and make sure you take some good notes from this podcast episode! OUR REAL ESTATE TRAINING PROGRAMS If you are brand new to real estate and want to learn more about our real estate training programs, investing in real estate, buying rental properties, wholesaling real estate, and fixing and flipping houses then please register using the free webinar training links below: FREE WHOLESALING TRAINING https://www.lexlevinrad.com/webinar FREE FIXING AND FLIPPING TRAINING If you want to learn how to fix and flip houses, I have a free fixing and flipping houses training webinar at this link: https://www.lexlevinrad.com/fixandflipwebinar DON'T FORGET TO SUBSCRIBE TO THIS PODCAST TO BE NOTIFIED OF UPDATES SUBSCRIBE TO MY YOUTUBE CHANNEL http://www.youtube.com/lexlevinrad?sub_confirmation=1 CONNECT WITH ME ONLINE http://www.lexlevinrad.com http://www.facebook.com/lexlevinradrealestate http://www.twitter.com/lexlevinrad http://www.instagram.com/lexlevinrad http://www.linkedin.com/in/lexlevinrad http://www.pinterest.com/lexlevinrad http://tiktok.com/@lexlevinrad/ DOWNLOAD A FREE COPY OF MY BOOK ON WHOLESALING BANK OWNED PROPERTIES For more real estate tips about property investment, investing in real estate, and how to start wholesaling, download a FREE copy of my best-selling book "Wholesaling Bank Owned Properties" at https://www.lexlevinrad.com

On today's podcast episode I talk about marketing to motivated sellers. The main difference between new real estate investors, and expert real estate investors is the willingness to spend money on marketing. And this really boils down to understanding marketing costs and how marketing to motivated sellers really works. The first thing that you need to understand is cost per lead. If I mail out 10,000 postcards at a cost of 42 cents per postcard then my mail campaign cost me $4,200. If I get a response rate of 1/4 of 1 percent then that would work out to be 10,000 x 0.0025 which is 25 leads (sellers). If I spent $4,200 to generate those 25 seller leads, then my cost per lead is $4,200 divided by 25 which works out to be $168 per lead. So with that marketing campaign my cost per lead is $168. If after speaking to those 25 sellers, only 10 are truly motivated to sell and I decide to go on 10 seller appointments then the cost per seller appointment is $4,200 divided by 10 which is $420 per appointment. If I can close 1 out of 10 appointments then I would be able to buy 1 house and my cost per contract (house) would be $4,200. If I could buy 2 houses out of the 10 appointments then my cost per contract would be $2,100. Currently this is what our average cost per lead looks like for the past 30 days Pay Per Click $236 per lead Facebook Ads $78 per lead Direct Mail $203 per lead I find the most consistent deals to be from direct mail and pay per click (Google Ads) A good acquisitions rep can close one out of 7 to 10 leads. An average acquisitions rep can close one out of 15 rep. And a not so great acquisitions rep can close one out of 20 leads. If your average lead cost is $200 and it takes you 20 leads to close a deal then your cost per deal is $4,000. If you are good, you should be able to bring your cost per deal down to half of that. I have found that on average most deals cost around $3,000 to $5,000 once you factor in everything. If you add in overhead and payroll then that number can go up to $6,000 or more. But if you are just starting out, and you don't have overhead and staff you should be able to get a house under contract for a marketing spend of $5,000. So to be conservative, you should be willing to spend $5,000 to generate a deal. Let's look at it another way. If you are buying houses to fix and flip or keep as rentals from wholesalers that are marking a deal up $20,000 or $30,000 then you are paying $20,000 or $30,000 more for that house. You just don't feel it because you didn't spend the money in marketing to generate the contract. But if you had spent $5,000 to get that same house you would actually have saved yourself $25,000. That is how you should be looking at it. That's not to say that you shouldn't buy from wholesalers. You should buy any good deal you can find. But you will find more deals at better prices if you are marketing to motivated sellers directly. Do you want to be competing with every other cash buyer out there looking for deals from wholesalers? Or do you want to learn how to get deals yourself? At the end of the day, regardless of whether you are wholesaling, buying rentals, Airbnb's or fixing and flipping houses you are better off marketing to find the deal yourself since you will eliminate a lot of competition. And if you are going to be marketing to motivated sellers, then you need to understand that there is a cost to generating a contract. And you should be willing and able to spend that marketing money to generate those deals. If you are just starting out and you don't have a marketing budget yet then use guerilla marketing methods like bandit signs and driving for dollars to generate your first few deals. OUR REAL ESTATE TRAINING PROGRAMS If you are brand new to real estate and want to learn more about our real estate training programs, investing in real estate, buying rental properties, wholesaling real estate, and fixing and flipping houses then please register using the free webinar training links below: FREE WHOLESALING TRAINING https://www.lexlevinrad.com/webinar FREE FIXING AND FLIPPING TRAINING If you want to learn how to fix and flip houses, I have a free fixing and flipping houses training webinar at this link: https://www.lexlevinrad.com/fixandflipwebinar DON'T FORGET TO SUBSCRIBE TO THIS PODCAST TO BE NOTIFIED OF UPDATES SUBSCRIBE TO MY YOUTUBE CHANNEL http://www.youtube.com/lexlevinrad?sub_confirmation=1 CONNECT WITH ME ONLINE http://www.lexlevinrad.com http://www.facebook.com/lexlevinradrealestate http://www.twitter.com/lexlevinrad http://www.instagram.com/lexlevinrad http://www.linkedin.com/in/lexlevinrad http://www.pinterest.com/lexlevinrad http://tiktok.com/@lexlevinrad/ DOWNLOAD A FREE COPY OF MY BOOK ON WHOLESALING BANK OWNED PROPERTIES For more real estate tips about property investment, investing in real estate, and how to start wholesaling, download a FREE copy of my best-selling book "Wholesaling Bank Owned Properties" at https://www.lexlevinrad.com

On this podcast episode I talk about one of the most frequent questions I am asked lately, which is: "Is the real estate market going to crash"? While I don't think it's going to be like 2008 (although there is a very small chance it could be), the more likely outcome is a pullback in prices that will entice buyers back to the table. The main difference between 2008 and now, is that the reason that we got into the financial crisis back then was because banks had made very bad loans to borrowers that should not have been getting approved for mortgages. There were No Income/No Job Loans (Ninja Loans), and No Income/No Assets (Nina Loans). Literally anyone with a pulse could get approved for a mortgage and "stated income" and "no doc" loans were very common. Many of these loans were adjustable rate mortgages which reset at a higher Interest rate and some of them were even negative amortization loans. We all know how that ended with the 2008 financial crisis (very badly). I suggest you watch the movie "The Big Short" to learn about what happened back then. I think that the banks learned from their lending mistakes in 2008, and so the lending criteria were much stricter after the financial crisis. So in theory, the quality of loans out there should be much better than the last financial crisis. There are also very few adjustable rate mortgages, and most of the mortgages are fixed rate mortgages, so there are much fewer mortgages that can reset. Also prices have gone up so much that many homeowners have substantial equity and could simply sell. So that's the good news. The bad news is that the foreclosure moratorium has ended, and that has created a backlog of millions of people in foreclosure. These foreclosures and pre-foreclosures will need to run their course through the market. Many of those houses will go back to the bank and become bank owned properties. And those bank owned properties will be listed on the market at a discount in order to entice cash investors to buy them. That is your opportunity as an investor to buy those houses at a huge discount. Those houses need to be sold, and that increase in inventory of houses listed on the market will put substantial downside pressure on pricing. I am seeing many more pre-foreclosure, foreclosure and short sale leads, something we have not seen in many years. Learn how to market to homeowners in pre-foreclosure. The increase in interest rates from 3% to 6% (and now back down to 5%) has made housing affordability a huge issue. Many borrowers have been "priced out" of the market or cannot afford the mortgage payment for a home at current interest rates and current prices. So something will need to give. Either the price, or the interest rate (or both). I expect rates to move higher and prices to move lower. This is yet another reason why we will see more inventory, more sellers, less buyers, and more pressure on prices moving down. And that assumes current interest rates. If rates go up substantially from here then that could be a big problem. We don't know what rates will do but there are economists that are predicting rates could be as high as 7% or 8% by year end. If that were to happen, prices will decline more. So do I expect a real estate market crash like 2008? No, but I do expect a pull back of prices of maybe 10% or maybe even to to be as bad as 20% to 25% lower than where we are right now. To put that into perspective, a $300,000 house that declines by 25% would make that house worth $225,000. So if you are looking at ARV, and saying to yourself that a house is worth $300,000 then consider what it might be worth in 6 months or 1 year from now (lower). Any price decline will result in more sellers getting nervous and more sellers putting their house on the market. Sometimes human psychology can create a market hysteria which causes people to not act rationally. Homeowners that are negative or have little to no equity might decide to "walk away" from their mortgage - although I view that as not that likely considering that so many people locked in low rate fixed rate mortgages. However, if that were to happen, that increase in inventory can put even more pricing pressure on the market. If you are buying houses now, I think it makes sense to build in a 10% to 20% safety margin on your purchases. So if you were buying wholesale deals at 70% to 75% of ARV six months ago, I would decrease those offers to 60% to 65% of ARV now. And whatever you do, make sure you are buying for cash flow and not appreciation. On fix and flips, assume the house will be worth 20% less than what current comparable sales show you. On rentals, if the house cash flows at current rates and you are buying at a discount of 65% to market value you will be fine long term. The biggest issue in the market right now is that there is a gap between seller's expectations and what they think they can get, versus what cash buyers are willing to pay. Seller's are still dreaming about getting the Zillow estimate that they saw online 6 months ago. A few months from now, they will realize that is indeed a dream and is not possible, and they will become more realistic and this gap between sellers and buyers will close. The price decline will be met with many savvy buyers stepping in to take advantage of the fire sale discount. In the last financial crisis hedge funds and private equity funds were not buying single family homes and residential real estate was not an asset class on Wall Street like it is today. Today there are 30+ Billion Dollar Private Equity Funds ready to buy single family homes as soon as prices decline. Black Rock, the world's largest asset manager has created a $50 billion distressed real estate fund that was created specifically for the purpose of buying real estate in the next decline. So any decline will probably be swift before prices recover. So how do you, as an investor play out this market? Adjust your purchase prices down. Learn how to market to pre-foreclosures and foreclosures and learn how to buy short sales and bank owned properties. And then take advantage of this dip in the market to buy as much real estate as you can! This will be an amazing opportunity for savvy investors. There will be houses for sale at substantial discounts. Will you be one of the smart investors buying up these houses? Will you be ready? If you are a new real estate investor, I recommend that you attend our Wholesaling Real Estate Boot Camp and our Foreclosures, Short Sales and Bank Owned Properties Boot Camp to learn how to buy these houses at a huge discount. The opportunity is coming and you need to be ready! OUR REAL ESTATE TRAINING PROGRAMS If you are brand new to real estate and want to learn more about our real estate training programs, investing in real estate, buying rental properties, wholesaling real estate, and fixing and flipping houses then please register using the free webinar training links below: FREE WHOLESALING TRAINING https://www.lexlevinrad.com/webinar FREE FIXING AND FLIPPING TRAINING If you want to learn how to fix and flip houses, I have a free fixing and flipping houses training webinar at this link: https://www.lexlevinrad.com/fixandflipwebinar DON'T FORGET TO SUBSCRIBE TO THIS PODCAST TO BE NOTIFIED OF UPDATES SUBSCRIBE TO MY YOUTUBE CHANNEL http://www.youtube.com/lexlevinrad?sub_confirmation=1 CONNECT WITH ME ONLINE http://www.lexlevinrad.com http://www.facebook.com/lexlevinradrealestate http://www.twitter.com/lexlevinrad http://www.instagram.com/lexlevinrad http://www.linkedin.com/in/lexlevinrad http://www.pinterest.com/lexlevinrad http://tiktok.com/@lexlevinrad/ DOWNLOAD A FREE COPY OF MY BOOK ON WHOLESALING BANK OWNED PROPERTIES For more real estate tips about property investment, investing in real estate, and how to start wholesaling, download a FREE copy of my best-selling book "Wholesaling Bank Owned Properties" at https://www.lexlevinrad.com

On this podcast episode I talk about creative finance methods that are working in today's market and how you can employ these methods to make you a better real estate investor. The biggest issue in today's market is that there is a gap between seller's expectations and what they think their house is worth, relative to what a cash investor is willing to pay. The reason for this is because prices went up so much for so long that sellers became accustomed to getting close to market value (or close to the Zillow estimate). When there is a gap between what a seller is willing to accept and what the cash investor is willing to pay, then often turning to creative financing methods will help bridge that gap. One strategy that helps sellers get closer to retail is the Novations Strategy which we spoke about with our guest Eric Brewer on a previous podcast episode. This works well if the seller wants a price that is close to retail, and will not come down to the price you are willing to pay for a cash offer. Another strategy that you want to be able to employ is buying "subject to the seller's existing mortgage" which essentially means taking over their mortgage payments. To do this right, I suggest you do it with an attorney and have the attorney handle the closing for you. Another strategy that is very useful is seller financing where the seller is financing your mortgage. This works well if the seller is older and is okay with receiving his payments over time. This allows you to give the seller his price as long as you get good terms (a low interest rate and a long term mortgage). The key thing to understand is the position of the homeowner relative to their equity. Do they have positive equity, no equity or negative equity? If the seller's equity is close to what they owe the bank, then their goal is to simply walk away from the house and pay off the mortgage. In a situation like this it would benefit you to know how much the mortgage payment is, whether that payment includes taxes and insurance and how long is left on that mortgage. This strategy is especially useful if the property could rent for a lot more than the mortgage payment. If the seller is negative equity, then the only thing you can do is a short sale. I suggest you hire a short sale negotiator and pay them a fee instead of trying to learn how to put a short sale package together yourself. If the seller has a lot of equity, or if they own the house free and clear, then you should be looking to see if they would be willing to do seller financing where the seller will finance the mortgage for you. You can do this by offering to pay them a fixed amount for a certain number of months, or by simply creating a fixed mortgage with an amortization schedule. The easiest way to do this is by using an online mortgage calculator to calculate the payment schedule. With so many leads currently being foreclosures and pre-foreclosures, it's a good idea for you to make sure that you understand how foreclosures work in your State. Many homeowners in foreclosure are emotionally "done" with the property and simply want to "walk away" (if they can). As a real estate investor you need to figure out if there is a way for you to buy their property, pay off the bank and let them walk away from the emotional headache that comes with being in foreclosure. You must know how to use creative finance methods when you are negotiating with sellers. You never know if a seller will be negative equity, breakeven equity, in foreclosure or whether they own a property free and clear. As an investor, you should have a solution for every one of these situations. OUR REAL ESTATE TRAINING PROGRAMS If you are brand new to real estate and want to learn more about our real estate training programs, investing in real estate, buying rental properties, wholesaling real estate, and fixing and flipping houses then please register using the free webinar training links below: FREE WHOLESALING TRAINING https://www.lexlevinrad.com/webinar FREE FIXING AND FLIPPING TRAINING If you want to learn how to fix and flip houses, I have a free fixing and flipping houses training webinar at this link: https://www.lexlevinrad.com/fixandflipwebinar DON'T FORGET TO SUBSCRIBE TO THIS PODCAST TO BE NOTIFIED OF UPDATES SUBSCRIBE TO MY YOUTUBE CHANNEL http://www.youtube.com/lexlevinrad?sub_confirmation=1 CONNECT WITH ME ONLINE http://www.lexlevinrad.com http://www.facebook.com/lexlevinradrealestate http://www.twitter.com/lexlevinrad http://www.instagram.com/lexlevinrad http://www.linkedin.com/in/lexlevinrad http://www.pinterest.com/lexlevinrad http://tiktok.com/@lexlevinrad/ DOWNLOAD A FREE COPY OF MY BOOK ON WHOLESALING BANK OWNED PROPERTIES For more real estate tips about property investment, investing in real estate, and how to start wholesaling, download a FREE copy of my best-selling book "Wholesaling Bank Owned Properties" at https://www.lexlevinrad.com

On this podcast episode, I interview my student Andy Saintilus and we talk about his success as a real estate investor, and how and why he transitioned from long term rentals to short term rentals. Andy is just 33 years old. He attended his first real estate training event with me around 5 or 6 years ago. Shortly after that, he signed up for my one on one coaching program. Over the past 5 years, Andy has purchased 10 rental properties in Miami using the Buy, Repair, Rent and Refinance strategy (BRRR). I loaned him the money on all 10 properties - which is one of the benefits of my coaching program. In the past few years, he has transitioned his long term Section 8 rentals into short term vacation rentals that are listed on Airbnb. He now has all 10 properties in Miami listed as short term rentals on Airbnb. Andy now generates over $50,000 a month in income from Airbnb. He has also increased his net worth by almost 2 million dollars. And he is only 33 years old! In November, Andy quit his corporate job for good. He now has a life of financial freedom. His story is truly inspiring. If you are a new real estate investor, listen to his story and get the motivation and inspiration that you need to start learning how to buy rental properties with other people's money using the buy, repair, rent and refinance strategy. Andy will be at our Airbnb and Short Term Rentals Boot Camp next weekend. If you want to attend call our office at (561) 948-2127

On today's podcast episode, I talk about the opportunity that will be created as a result of the ending of the foreclosure moratorium. The Foreclosure Moratorium ended in September 2021, however the CDC recommended that banks not pursue homeowners in foreclosure until the end of the 2021. Most banks waited until the end of last year. Many States require a 120 day "grace period" before the bank can sue or foreclosure on an individual that is not paying their mortgage. That expired at the end of April 2022. So we are now going to see many homeowners who have not been paying their mortgages start receiving notices of default (NOD) or Lis Pendens (foreclosure lawsuit). The net result is that many of these homeowners will have to face some hard realities. They will have to either sell their home or lose it to foreclosure. These homeowners who have not been paying their mortgage (some since March of 2000) are going to have only 3 choices which are: 1. Have the bank agree to a loan modification 2. Sell their home before the bank takes it 3. Don't pay and lose their home to foreclosure The net effect is that we should be seeing more inventory from these pre-foreclosures, as well as more short sales, and more homeowners listing their home for sale on Zillow. The end result will be foreclosure auctions at the court house which turn into bank owned properties. In many ways, this is a perfect storm. Interest rates have increased by 2 percent in just the past few months. War and inflation have created havoc in the financial markets. It will be very hard for real estate to remain resilient in the face of all this. I anticipate more foreclosures, more short sales and ultimately more bank owned properties. The net result will be more inventory along with less demand. As an investor, you should start by learning how the foreclosure process works in your State and you should start marketing to motivated homeowners that in foreclosure. This is also a good time for you to learn how to buy pre-foreclosures, and how to complete a short sale package. Start learning how to buy bank owned properties and get familiar with the sites that banks use to liquidate these properties. The opportunity is coming. Are you going to be ready? If you are brand new to real estate and want to learn more about our real estate training programs, investing in real estate, buying rental properties, wholesaling real estate, fixing and flipping houses, and investing in Airbnb short term rentals then please register using the free webinar training links below: FREE WHOLESALING TRAINING https://www.lexlevinrad.com/webinar FREE FIXING AND FLIPPING TRAINING If you want to learn how to fix and flip houses, I have a free fixing and flipping houses training webinar at this link: https://www.lexlevinrad.com/fixandflipwebinar DON'T FORGET TO SUBSCRIBE TO THIS PODCAST TO BE NOTIFIED OF UPDATES SUBSCRIBE TO MY YOUTUBE CHANNEL http://www.youtube.com/lexlevinrad?sub_confirmation=1 CONNECT WITH ME ONLINE http://www.lexlevinrad.com http://www.facebook.com/lexlevinradrealestate http://www.twitter.com/lexlevinrad http://www.instagram.com/lexlevinrad http://www.linkedin.com/in/lexlevinrad http://www.pinterest.com/lexlevinrad http://tiktok.com/@lexlevinrad/ DOWNLOAD A FREE COPY OF MY BOOK ON WHOLESALING BANK OWNED PROPERTIES For more real estate tips about property investment, investing in real estate, and how to start wholesaling, download a FREE copy of my best-selling book "Wholesaling Bank Owned Properties" at https://www.lexlevinrad.com

On today's podcast I talk about understanding financial freedom, the velocity of money and how these concepts are both related to your mindset about money. If you could buy a rental property today for $100,000, that was rented to a tenant that paid you $1,000 per month in rent, and your cost to maintain that property was $1,000 per month would you buy it? Unfortunately, for most new investors, the answer would be no. Would you feel like you were not getting a return on your money if the property was just breaking even? Most people would feel that way. And that is because they don't understand the velocity of money. Let's look what would happen with that same property if you had a 15 year fixed rate mortgage. In just 15 years, the property would be paid off, and you would own it free and clear (with no mortgage). 15 years later, not only would the value of the property double to $200,000, but the rents would double as well (from $1,000 to $2,000). And if you owned that property free and clear most of that $2,000 rent would be going directly into your pocket. How many properties like that would you need to own in order for you to be financially free? If you owned just 5 properties, then in 15 years you would have $10,000 per month coming in. And you would have enough income to replace the income from your job so you would not need to work (if you didn't want to). Look at it another way. How would you save up $200,000 and create an income stream of $2,000 a month if you did not buy that rental property? Also keep in mind that the above is before you take into account the tax benefits of owning those rental properties. Each property that you purchase, will lower the amount of taxes that you pay. The reason for this is because the property taxes, insurance, maintenance, repairs, and depreciation are all tax deductible. So even though the property is 'breaking even" as far as taxes are concerned it is losing money. A large part of that is because of depreciation. And that means that you will pay less taxes. So the real question is not "can you afford to buy a rental property". But rather can you afford to NOT buy a rental property? You work hard at your job and right now you have taxes taken out of your paycheck and you have no control over your tax situation. Owning just one rental property would change that since you would now be able to deduct the expenses related to that property. If you add up the benefits of the increase in the value of the real estate, increase in rental income and tax deductions, then you will see that investing in rental properties is one of the easiest ways to create financial freedom. If you are brand new to real estate and want to learn more about our real estate training programs, investing in real estate, buying rental properties, wholesaling real estate, and fixing and flipping houses then please register using the free webinar training links below: FREE WHOLESALING TRAINING https://www.lexlevinrad.com/webinar FREE FIXING AND FLIPPING TRAINING If you want to learn how to fix and flip houses, I have a free fixing and flipping houses training webinar at this link: https://www.lexlevinrad.com/fixandflipwebinar DON'T FORGET TO SUBSCRIBE TO THIS PODCAST TO BE NOTIFIED OF UPDATES SUBSCRIBE TO MY YOUTUBE CHANNEL http://www.youtube.com/lexlevinrad?sub_confirmation=1 CONNECT WITH ME ONLINE http://www.lexlevinrad.com http://www.facebook.com/lexlevinradrealestate http://www.twitter.com/lexlevinrad http://www.instagram.com/lexlevinrad http://www.linkedin.com/in/lexlevinrad http://www.pinterest.com/lexlevinrad http://tiktok.com/@lexlevinrad/ DOWNLOAD A FREE COPY OF MY BOOK ON WHOLESALING BANK OWNED PROPERTIES For more real estate tips about property investment, investing in real estate, and how to start wholesaling, download a FREE copy of my best-selling book "Wholesaling Bank Owned Properties" at https://www.lexlevinrad.com