BB: I know a lot of people that lost a lot of money in the recession their credit score is below 600 and they have very little money – how would you advise them to start in real estate investing?
SG: You’re definitely right there is a lot of people that just got kicked between the legs during that recession. It either ruined them or basically near ruined them. But, we are now were moving forward and people are starting to get back on their feet and I feel a lot of people returning back to the real estate gammon. And, with that if someone is lacking funds I would never tell anyone to take all of their money and invest it. You definitely need to have savings behind you and something liquid to be able survive on in case of an emergency comes about or another recession. But, if someone’s looking to get in real estate without having to use a lot of money or no money at all there are a couple of ways to go about this. Number one – you can learn how to wholesale properties if we had a pie chart the majority of investors out there are landlords the second biggest slice of the pie are rehabbers that buy fix and flip and then all the other slices is everything else. So as a wholesaler like myself I can now start supplying those big slices of pie. I can supply those wholesale deals to a landlord, and I can supply a wholesale deal to a rehabber. Because the land lord and rehabber have their value add was either for the long term of supplying a nice house for a tenant or the value add for a rehabber is to take a dirty dog house an turn it into a doll house their value add is not extracting properties out of the market. And, so the wholesaler’s job is to extract those properties that are good deals and supply the rehabbers, and supply the land lords. So if someone doesn’t have very much money than they can learn how to extract those properties out of the market put them under contract and sell the contract or rights over to another investor. Now, depending what state you are in, depending what part of the state and on average here in California right now in today’s markets it’s about a $15,000 profit for that assignment of contracts. That way they can do the business, flipping properties without it having to take title, without having them use their credit, without having to use their money, without having to go through a hard money lender, and, basically their now doing real estate without the risk. The other thing that you may want to look at is possibly doing joint venture-ships. We do a lot of joint venture-ships for clients, we put them together, we also use them. And, with that for instance we got a project simple numbers $100,000 and someone says I don’t have a $100,000 to buy, fix and flip it. But, I have $25,000 so if we can group 4 people together and to kick $25,000 a piece that now cuts out the hard money lender we can buy that all cash which will give you a better rate of return and you only invested 25% versus the whole 100% which is a little bit more easier on your pocketbook. So joint venture-ships is another great way. And, then of course we all know OPM we are not talking about the drug but Other People’s Money. You know we can definitely start capping in to other sources where that person gains that knowledge gets a little bit practice under their belt and then they start soliciting investors that want a better return on on their monies and that way they can start lending money as OPM to that investor and they can start rehabbing a property and they can be a 50/50 partner. We do that all of the time at Black Belt Investors. So there is three solid ways that you can do it with very little money if no money at all.
BB: What is the best way our audience can learn about your program?
SG: Well Black Belt Investors we offer 9 different educational courses anywhere from wholesaling to rehabbing to land lording to business operations, entrepreneurship, we got a good selection there and then the other part of it is consulting coaching side you know you always want follow up, you need a coach – a solid coach in your corner just like how Magic Johnson, Kobe Bryant, Ty Cobbs and all of these great players, they all have coach why because you need someone to be able instruct you to make sure you are following the correct path and so we have the available. And, then we have the investment opportunities people that want to get involved in buying real estate whether they are flipping or they want to buy and hold and we have that available too.
So the best way to find out more about us is simply go to BlackBeltInvestors.com.
And, then for our properties we have RemoteRehabs.com or they can give us a call here at the office at 951-280-900.