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The Farming Fix: How to Turn Community into Consistent Lead Machine · The Real Estate Agent Playbook

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  if you've been taught that building long term wealth
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  through long term rentals is the way to go
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  good for you that is where I sit
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  I absolutely
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  love the fact that I have cash flowing rentals
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  long term rentals
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  but I'm also very aware that I was able to
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  finance those in record low interest rates
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  because of you know
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  coming off the pandemic and all of that
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  I understand that that's not what everyone is
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  and now I'm starting to see that
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  my equity just isn't working hard enough for me
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  that I've built in those properties
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  so we're going to dive into a strategy that
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  I'm taking the bull by the horns
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  and going to absolutely dive into that
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  I want to share with you and a mindset shift
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  what's up guys I'm Jeremy Kane with the XP Realty
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  living in the Denver suburbs
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  thank you so much for tuning in today
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  uh if you need anything at all
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  you know me I'm here to help
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  I've helped people just like you
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  build wealth through real estate
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  whether that's buying their first home
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  buying their first investment home
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  buying their sixth investment home
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  all of those things
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  I've helped people just like you make those changes
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  make those decisions in their life
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  and turns out I'm pretty good at real estate
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  so if you have any of that
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  those needs please reach out DM
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  call me all the information is below
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  but let's dive into this piece
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  first and foremost to set it and forget it
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  rental income is not necessarily that we have tenants
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  termites and toilets not so much termites in Colorado
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  but we do also have other things that happen in homes
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  I always tell my clients that when they buy a home
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  like homes break so don't spend your last
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  last hard earned dollar on that down payment
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  because you need a rainy day fund
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  homes do break
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  while rental income is great while it's you know
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  fairly easy to come by uh
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  it's fairly consistent
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  it's it's just not a set it and forget it
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  and even more so now when we are pushed to the limit
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  right we're pushed to the limit with those
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  if we're using
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  a traditional mortgage to buy investment properties
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  which was an absolute play five years ago
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  not so much anymore
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  because of those higher interest rates
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  that are even higher
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  based on investment property purchases
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  and so we have to understand that it may be great
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  it may be awesome it is awesome for me right
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  I thought 5 k a month from 5 doors was a success
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  until I started thinking
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  how much money is just sitting on the sidelines just
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  you know
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  getting growing based on the principal buy down
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  which it's gonna grow by anyways
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  how can I put that money to work right
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  and I had a game changing moment when I went to a um
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  a broker open house
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  it had an educational piece by wealth by real estate
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  Michael Griffin uh
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  his wife Brianna wasn't there
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  but they are absolutely amazing
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  I've seen him give the exact same speech
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  I've talked to him personally several times uh
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  you know at this point a colleague of mine
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  whatever and it just didn't sink into me
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  but at that broker open this last Friday night
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  residual income isn't always monthly right
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  it can be strategic and so that was
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  that was something that I was like okay
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  you know start to think about that
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  and he started his presentation off
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  with his retire now number
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  and when I started thinking about that
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  and obviously this needs to be residually um
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  I was like okay uh
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  what's that number and I came to a number in my head
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  and the truth is I wasn't all that far off of it
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  but most people
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  when it comes to residual income are way off of it
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  right because they don't have any
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  the only residual income
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  they're paying is their credit card
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  you know interest rate uh
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  so as far as residual income
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  I was like okay
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  like let's think about that
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  and ultimately
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  I'm about 35% of the way to my retire right now number
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  and I'm 41 years old that's pretty good right
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  so
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  and it's growing and I've only grown that over the last
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  you know well
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  my rentals have been you know
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  20 years but
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  but ultimately the revenue share
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  piece with my company has only been you know
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  four years so that retire right now number
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  if you had that coming into your mailbox
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  every single month what would that be
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  think about that and start to think about okay
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  how's this look right
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  and the real game changer for me right
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  I always knew I could access the equity and
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  roll it over into my other rentals
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  and I did that right
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  I did that at a strategic time and place
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  when first and foremost I didn't have a ton of uh
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  risk tolerance and short term
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  long term rentals were absolutely crushing
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  because the interest rates were so low
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  and rents were you know high and always improving
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  and now the the
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  other benefit of that is the mass appreciation
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  we've seen over the last five years
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  so sitting back and really thinking about this
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  I'm like okay like how's this gonna look
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  how are we gonna do this but I always thought like
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  well now I have these great interest rates
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  I can't do a cash out refinance and yeah
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  we can play the he lock game and you know whatever
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  but if I'm gonna access that equity
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  even with a heelock and doing it the roundabout way
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  like how is it gonna make a lot of sense
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  because my mindset was
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  rolling it into a long term rental
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  and then having this rental pay for this mortgage
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  and then the heat lock or the equity
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  you know cost over here and that you know
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  ultimately just pushes down your cash flow
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  or your break even point even further
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  and so I was like okay
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  but he started talking about short term rentals
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  and flipping and using that money for short term money
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  right
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  if you're gonna do a flip or you're gonna do this
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  you can use that money
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  the equity that you're accessing and put it in
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  you could get hard money
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  you could you know pay cash with the the uh
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  equity that you're using for this property flip it
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  improve it make it better sell it
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  but then you need to return that cash right
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  you need to put it back into the property
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  that it came from and ultimately
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  this started to make a lot of sense for me
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  when I was like oh
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  if I'm gonna access that equity
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  it needs to be for short term instead of long term
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  so then we start going down the
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  the idea of short term renting
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  which has nothing to do with the short term money
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  borrowing here
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  but it is another strategy that people are utilizing
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  and Michael and his his wife utilize as well
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  and it was really interesting to hear
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  kind of their concept and ultimately
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  if I can buy a flip with the equity
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  that I have from my other rentals
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  and I improve it
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  then the risk isn't really there right
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  because I know that I can pay for what I bought it for
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  if I do the math right
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  and I have the right formulas and all that
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  and return that money there
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  but how much can I gain here right
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  how much can we gain on the
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  the work and the con you know
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  making that place better and say for instance
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  it is in a a zone that allows for short term rentals
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  which Michael and Brianna have great success with
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  um then we can look at that and we can run the numbers
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  but only if the numbers work
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  do we not just put it back on the market and
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  you know have
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  start to build that cash account and bigger
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  so that
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  we don't have to leverage as much of our rentals
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  so that we can pay off you know
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  homes and things like that as we go
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  but ultimately when that equity was just sitting there
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  it was just sitting there
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  and if we can start to leverage it wisely
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  then that's what we're going to do
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  so using that was an absolute game changer
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  and ultimately the 30 year cash out
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  refinance piece just doesn't make sense anymore right
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  so you had to have that short term equity piece whether
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  you know whatever you do
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  don't break any rules don't do anything crazy
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  but if you can access that equity in a different way
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  and you don't have to pay it back over 30 years
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  and you can just pay it
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  back after three months or six months
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  or whatever it is
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  that's where you can really start to gain momentum
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  because cash is king right
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  and so if you can purchase property with cash
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  maybe you can get it a discount
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  you can do the improvements with cash
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  that's gonna be great and then hopefully you'll
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  you'll have that profit
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  and that amount where you can really
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  really grow some real wealth and grow more real estate
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  right
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  and so ultimately we're gonna work on getting a flip
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  we have to get contractors
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  to get a lot of stuff in place before we can
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  and hopefully the the main
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  hope is that we can turn it into a short term rental
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  and see how it works because
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  some of the numbers that this guy is throwing at me um
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  based on what they're doing
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  based on their model and their structure
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  absolutely incredible and they have beautiful homes
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  that they're doing short term rentals on
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  or they sell them
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  it depends but the nice thing is at that point
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  you have options because you have the beautiful home
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  the beautiful home sell for more money
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  and you're pretty much good to go
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  so and you also have the ability to hold it
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  if you do hold it then obviously
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  you're gonna do a cash out refinance at that time
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  make sure you're paying the money back
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  and doing it again
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  but starting to build those liquid assets
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  in addition to just the real estate assets
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  so pretty cool concept something that I hadn't fully
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  pieced together in my brain
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  because I was so focused on long term rentals
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  and taking that money and not paying it back for
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  you know the term of the loan
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  which is obviously not ideal
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  so if you have any questions
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  please let me know please like comment subscribe
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  we'll be back live next week
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  um but thanks so much for hanging in there
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  and I can't wait to share some of my experiences
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  with you
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  if anything I said sounds interesting in this video
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  please comment below and I'll keep in touch
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  and definitely keep you in the loop with our story
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  we'll see you next time bye bye