Investor Cheat Code Podcast with Mike Simmons

Today's Guest: Dave Dubeau

Dave is a real estate investor and the founder of The Money Partner Formula, which has helped 100's of real estate investors across North America (and even as far away as Australia, the U.K., and Korea) to quickly launch their capital-raising processes. His proprietary process lets you focus on taking care of your portfolio, finding great new deals, and meeting prospective investors while he works behind the scenes with his team as your capital-raising marketing department. Dave has shared the stage with people like Robert Kiyosaki, George Foreman, Robert Herjavek, Arlene Dickinson, Ted Thomas, and many more. He has been interviewed on over 50 different podcasts, including: "The Best Ever Real Estate Show" with Joe Fairless, and many others. Dave has also spoken for numerous Real Estate Investment Clubs, organizations, and groups.

Highlights From The Show:

We begin the episode with Dave sharing his background story and how he ended up in real estate. Dave shares that he is a Canadian but lived in Costa Rica for a decade, and that's where he started real estate investing with a couple of pre-foreclosure deals. However, Dave moved his family to Canada and sold his businesses in Costa Rica. He didn't have a lot of capital, had zero credit because he had been out of the country for so long, and had zero job opportunities because he had been self-employed for so long. Dave got into a course that assured him that he, too, could get rich with little or no money down. He did 18 deals for his first 18 months and got good at tracking motivated sellers. Dave shares that the strategy didn’t require much capital, but about 8 years later, when he was doing a different strategy that required coming up with a downpayment, he realized he really sucked at raising capital. He came up with The Money Partner Formula, which worked well for him.

We then discuss the common mistakes that people make when raising capital. Dave shares that the first mistake he made was following the guru saying, ‘find a good deal, and then money will find you.’ According to Dave, that is only true if you have a platform with a thousand followers. If you are a regular mom-and-pop investor, this is the worst advice. For Dave, when he first crashed and burned, he had self-financed his first few deals that required a downpayment and, like everybody else, ran out of cash and credit, and that was when the perfect deal landed on his lap. He had two weeks to find an investor. Dave was under a time crunch, desperate, and out of that, he repelled people with his capital-raising strategy. From his experience, Dave recommends that you get your money lined up first and then look for deals or, at the very least, do them at the same time. Don’t wait until you get a deal on the go to scramble trying to raise capital.

Dave shares that the second big mistake he sees people making all the time is when they are desperate, they figure that anybody with a checkbook could make a good potential investor. The big problem with going after strangers as investors is that it will be very challenging. If you are trying to get somebody to invest 50, 70, or 100 thousand with you, that person needs to know you, like you, and trust you with their money. Also, it is illegal for mom-and-pop investors to raise capital from the general public unless we’re licensed or set up with expensive entities or exemptions. Thinking of strangers as potential investors is a big mistake. Instead, focus on people that you already have a pre-existing relationship with.  

Dave shares that the third big mistake most people make is rushing in like the proverbial bull in a china shop. He shares that when he was trying to raise capital, he had an amazing deal with a two weeks time frame to close on it. Dave tried cold calling, but it didn't work for him. Networking also didn’t work for him because he was trying to raise money from strangers. The other thing that Dave did was to put together a list of 200 people and a one-page pdf overview of the deal. He thought the deal would sell itself if enough people saw it because it was awesome. Dave sent the pdf to all the 200 people on his list, and the response he got from people he had not talked to for even 18 years was not cool. The deal crashed and burned, but he had to figure out a better way to raise capital for his future deals. He knew there was a better way, and he was right.

Lastly, we talk about the right way to raise money for your deals and get people to pay attention to your deals and write checks. Dave shares that you have to be a little bit more strategic about things. You don’t want to wait until you desperately need the capital to start the whole process. Start by coming up with a large list of potential investors you have a connection with, and instead of charging in and trying to get money out of them, be a little classier about it. Reconnect with them on a personal level first before you start talking about business. This is a warm-up campaign, and it’s very simple. Start by sending out three emails over a week-long period, such as on Monday, Wednesday, and Friday. The goal of the warm-up campaign is to reconnect, catch up with people, get some back and forth, and set the stage to prime the pump for what will be coming down the pipeline with your regular marketing.

Make sure you don’t miss another amazing episode of the Just Start Real Estate Podcast with Dave Dubeau and get valuable information on the three things that are keeping you from raising private money!

Notable Quotes:

“Get your money lined up first, and then look for deals. Don’t wait until you get a deal and have to scramble to raise capital.”

• Dave Dubeau

“Crashing and burning is a great way to learn but hearing about people's mistakes allows you not to crash and burn and also shortens your learning curve.”

• Mike Simmons 

“Thinking of strangers as potential investors is a big mistake. Instead, leverage your network, get the low-hanging fruit, and squeeze all the juice out of the contacts you already have.”

• Dave Dubeau

Thank You for Listening!

• Connect with Mike on Twitter, Instagram, YouTube, Linkedin, Facebook

Help Out the Show:

• Leave an honest review on iTunes. Your ratings and reviews really help, and I read each one.
• Subscribe on iTunes.

Resources and Links From Today's Show:

Money Partner Formula.

Dave on LinkedIn

Highlights From The Show:

Welcome to this version of the Just Start Real Estate Podcast! I am excited to bring you another replay of my Live Question and Answer sessions. For those people that are unable to join us live, this will provide an opportunity to hear the awesome questions I am fielding about business, taking risks, real estate, and so much more!

This presentation is the live Q&A that I did the week of October 19th and each Thursday we will offer you another chance to take advantage of listening to the answers to our guests’ fabulous and compelling questions! Don’t miss this new episode of the Just Start Real Estate Podcast!

Notable Quotes:

“Let’s build your company, scale it, and automate it in any market.”

“Everyone is freaking out and wondering if they can do real estate in a recession, with the interest rates rising and property values going down.”

“This market that we are going into is as good as the one we just left, just in different ways.”

“I prefer the market that we are going into and I think it works to our favor as investors.”

“Get back to blocking and tackling, get back to the fundamentals.”

“Its acquisitions… it is almost always acquisitions that is the hardest seat to fill.”

“There is an opportunity cost with acquisitions.”

“Your ARV has to reflect a declining market.”

“I like acquisition people who have a strong work ethic and are competitive.”

“How often does anyone really go through and clean their house really well? Probably when you have a party.”

“I would not give anyone a discount in the peak season of your short-term rental.”

Thank You for Listening!

• Connect with Mike on Twitter, Instagram, YouTube, Linkedin, Facebook

Help Out the Show:

• Leave an honest review on iTunes. Your ratings and reviews really help and I read each one.
• Subscribe on iTunes.

More Resources From Mike:

• Level Jumping: How I Grew My Business to Over $1 Million in Profits in 12 Months
• WINNING DIRECT MAIL - How to CRUSH IT with direct mail!
• 7 Figure Investor Video Course - Scale your business to 7 figures. I'll show you how!

Today's Guest: Avery Carl

Avery bought her first rental property at age 26 on a $37,000 salary. Through strategically investing in short-term rental properties in mature vacation rental markets, she was a millionaire by the age of 31. She now owns a portfolio of 28 properties and is the CEO and founder of The Short Term Shop, a real estate team that helps investors acquire short-term rental properties in the most recession-resistant markets, and trains them on the same methods that led her out of the corporate rat race and into financial freedom.

Highlights From The Show:

Avery begins by telling us about her background in which she worked as a marketing manager in the music industry. Completely uneducated in real estate investing, she and her husband decided to purchase a home for a long-term rental in the hopes of selling it to pay for college for their future kids. Quickly, they realized that they should do more investing and came across the idea of short-term rentals. They have now grown their portfolio into 28 properties, split between short and long-term rentals. Avery’s business, The Short Term Shop, grew from the necessity of having to become an expert in this type of investing as so few people are and she found very little support.

Avery talks about how her focus has been regional, driveable, vacation-rental markets because they are more recession-proof. Very applicable currently, as we are still dealing with the COVID-19 pandemic, these types of rentals are very attractive when people are unable to or cannot afford to get on a plane, but still want to get away from home. She said that an easy way to think of areas that might be attractive to have short-term rentals are places you may have visited as a child when you rented a house rather than stayed in a hotel. Avery also said that metro markets can be undesirable because of regulations imposed stemming from the competition of nearby hotel markets.

I asked Avery to talk about what I perceived as the downside of short-term rentals, primarily having to deal with people and answer questions very frequently. She said that many different software platforms have risen out of this fairly new type of investing called channel managers that automate a lot of this process. Avery also said that providing as much information as possible in your Airbnb or VRBO listing to try to answer as many questions ahead of time as possible. She also explained all of the technology they have in place for monitoring their rentals.

I wanted Avery to explain the finances involved in the different markets that she is in. She went through the numbers she has seen in her experience and some possible expenses, such as property management, which she does herself. Avery said that more bedrooms make for a higher return on investment, so we talked about this and other details a bit. 

I wanted Avery to talk about some of the mistakes she had experienced herself or seen with her clients that new investors should be aware of. Evaluating properties to buy is different in that you want to look at asking price versus what you can make in rentals, instead of what you would make when you sell it. As far as management, she said you have to be aware that because the renters are on vacation, they may not be on their best behavior, but that doesn’t mean they are trashing your place and you have to be careful about calling them out on it. Avery also talked about some of the software tools available to short-term rental investors for management.

I then asked Avery to explain to our listeners the service that The Short Term Shop provides. She said that she is a realtor and has teams in three different markets in Tennessee, Florida, and Alabama. They help investors make sure that the properties they are evaluating would make profitable short-term rentals and walk them through the whole process to run a vacation rental.

Even though Avery owns and runs a business to help people get started in this kind of investing, she was completely transparent and gave us all the tips and tools she uses for her own properties! Don’t miss this fast-paced interview, chock-full of great information with Avery Carl! 

Notable Quotes:

“Short-term rentals provide turbo-charged income.”

• Avery Carl

“You definitely want to treat your cleaners like gold because they are your eyes and ears.”

• Avery Carl

“Don’t micromanage.”

• Avery Carl

“The more people you can sleep, the more money you can make, and the higher the cash-on-cash return.”

• Avery Carl

“It’s better than sitting in an office every day.”

• Avery Carl

“Normal real estate investors are looking for super deals all of the time.”

• Mike Simmons

Thank You for Listening!

• Connect with Mike on Twitter, Instagram, YouTube, Linkedin, Facebook

Help Out the Show:

• Leave an honest review on iTunes. Your ratings and reviews really help, and I read each one.
• Subscribe on iTunes.

Resources and Links From Today's Show:

The Short Te

Highlights From The Show:

Welcome to this version of the Just Start Real Estate Podcast! I am excited to bring you another replay of my Live Question and Answer sessions. For those people that are unable to join us live, this will provide an opportunity to hear the awesome questions I am fielding about business, taking risks, real estate, and so much more!

This presentation is the live Q&A that I did the week of October 12th and each Thursday we will offer you another chance to take advantage of listening to the answers to our guests’ fabulous and compelling questions! Don’t miss this new episode of the Just Start Real Estate Podcast!

Notable Quotes:

“1000% YES. Buyers are still buying from us.”

“It is a big fallacy that people are pulling back and holding off because we are in a changing market.”

“Our job as investors right now is to point the sellers to the facts.”

“Our buyers are asking for reduced pricing.”

“The job of the house flipper is to dial in their process and not let a renovation take 6 or 9 months.”

“I know a lot of people that have been trying to figure out wholesaling for months or years and they still don’t 100% get it.”

“If you try to explain the entire wholesaling process to a seller in a 30-minute conversion, you are not going to get a lot of deals.”

“When you give people too many options or too much information, usually the result is they do nothing. And by doing nothing, they are essentially saying no.”

“We set the expectations right up front.”

“When selecting a property manager, I want to know they have a pretty good-sized portfolio of properties that they manage. I don’t want to be their first.”

Thank You for Listening!

• Connect with Mike on Twitter, Instagram, YouTube, Linkedin, Facebook

Help Out the Show:

• Leave an honest review on iTunes. Your ratings and reviews really help and I read each one.
• Subscribe on iTunes.

More Resources From Mike:

• Level Jumping: How I Grew My Business to Over $1 Million in Profits in 12 Months
• WINNING DIRECT MAIL - How to CRUSH IT with direct mail!
• 7 Figure Investor Video Course - Scale your business to 7 figures. I'll show you how!

Today's Guest: Stefan Tsvetkov 

Stefan is a financial engineer turned multifamily investor, analytics speaker, live webinar host, and the founder of RealtyQuant - a company that brings data-driven and quantitative techniques to the real estate industry. They utilize a data-driven approach to seek inefficiencies in the U.S. multifamily market. RealtyQuant Analytics uses a collection of state-level and county-level reports and data to assist investors in best gauging overvalued real estate markets and their appreciation potential. They have also developed statistical predictors for market appreciation and a valuation metric to gauge market downside risk. With RealtyQuant, Stefan is on a mission to add industry value through education, investment, technology, and analytics. 

Highlights From The Show:

We begin the episode with Stefan sharing his background story and how he ended up in real estate. Stefan shares that he’s from Europe. He came to the States at 22 years old to pursue his master's in financial engineering in New York City and worked in finance for about a decade. Stefan shares that for the last couple of years, he has been investing in commercial real estate in the Midwest. Stefan is also the founder of RealtyQuant, a data analytic industry in real estate, where he does different property and market analytics. He has done studies on prior market recessions and published market evaluation metrics for every single county in the country. 

We then discuss what is happening and Stefan's outlook on what will come in the next 18-24 months. He shares that the most distinctive thing he has seen that shows we’re not yet in a recession is that inflation is high, and it goes heavily down in recessions. The second distinctive factor he shares is that the National Bureau of Economic Research (NBER) metrics that show whether we are in a recession or not are very subjective to factors such as personal expenditure. According to Stefan, what he is interested in as a marketer and investor is the market he’s investing in and understanding if he will be able to carry down the risk if it hits a recession at some point. They do studies in these areas, and they have appreciation predictors which account for population growth, income growth, and so forth to show the kind of appreciation to expect in different markets. According to Stefan, understanding market relations is key. It’s not about having a doomsday perspective if you have negative exposure in a recession but more about what will be your relative performance.

Next, we talk about how the politics of a state can affect the over and undervaluation of properties in real estate. Stefan shares that politics have an effect on the population, demographics, and migration shifts. Stefan also explains that being protected in a recession is not about investing in strong markets which decline at a higher rate. For instance, during the previous recession, very desired markets like California, Arizona, and Florida declined, while undesired markets like West Virginia and Mississippi had no decline in the real estate crisis. Stefan shares that strong markets are generally riskier when it comes to property depreciation during recessions because they tend to become overheated.

Lastly, we talk about how states and regions are overvalued, and those that should look out for that are undervalued right now. Stefan shares that the undervalued regions tend to decline very little. Normally the drop is 10 to 12%, but in the undervalued states, the average decline was only 4%. For instance, if you had a property in North Dakota, it had 0% depreciation because it was very undervalued at the time. According to him, with evaluation, you can invest at any time in a very educated way, and the best top ten states, which are also the best markets, are the western and southern states. In terms of undervalued, he recommends you look for poorly performing states like Illinois, North Dakota, Louisiana, and Connecticut. 

Make sure you don’t miss another amazing episode of the Just Start Real Estate Podcast with Stefan Tsvetkov and get valuable information on the most undervalued markets you should be investing in now!

Notable Quotes:

“We’re not yet in a recession, inflation is high, and it goes down heavily in recessions.”

• Stefan Tsvetkov 

“Strong markets are generally riskier when it comes to property depreciation during recessions because they tend to become overheated.”

• Stefan Tsvetkov 

“Having comprehensive data is important when things are moving; you need to know what is happening and look ahead, but you can’t just look a year behind you to know what will happen a year ahead of you.”

• Mike Simmons 

“If you stay under the same market cycle, you will continue to appreciate.“

• Stefan Tsvetkov  

Thank You for Listening!

• Connect with Mike on Twitter, Instagram, YouTube, Linkedin, Facebook

Help Out the Show:

• Leave an honest review on iTunes. Your ratings and reviews really help, and I read each one.
• Subscribe on iTunes.

Resources and Links From Today's Show:

RealtyQuant

Finance Meet Real Estate 

Stefan on LinkedIn

Stefan on Facebook 

More Resources From Mike:

• Level Jumping: How I Grew My Business to Over $1 Million in Profits in 12 Months
• WINNING DIRECT MAIL - How to CRUSH IT with direct mail!
• 7 Figure Investor Video Course

Highlights From The Show:

Welcome to this version of the Just Start Real Estate Podcast! I am excited to bring you another replay of my Live Question and Answer sessions. For those people that are unable to join us live, this will provide an opportunity to hear the awesome questions I am fielding about business, taking risks, real estate, and so much more!

This presentation is the live Q&A that I did the week of October 10th and each Thursday we will offer you another chance to take advantage of listening to the answers to our guests’ fabulous and compelling questions! Don’t miss this new episode of the Just Start Real Estate Podcast!

Notable Quotes:

“1000% YES. Buyers are still buying from us.”

“It is a big fallacy that people are pulling back and holding off because we are in a changing market.”

“Our job as investors right now is to point the sellers to the facts.”

“Our buyers are asking for reduced pricing.”

“The job of the house flipper is to dial in their process and not let a renovation take 6 or 9 months.”

“I know a lot of people that have been trying to figure out wholesaling for months or years and they still don’t 100% get it.”

“If you try to explain the entire wholesaling process to a seller in a 30-minute conversion, you are not going to get a lot of deals.”

“When you give people too many options or too much information, usually the result is they do nothing. And by doing nothing, they are essentially saying no.”

“We set the expectations right up front.”

“When selecting a property manager, I want to know they have a pretty good-sized portfolio of properties that they manage. I don’t want to be their first.”

Thank You for Listening!

• Connect with Mike on Twitter, Instagram, YouTube, Linkedin, Facebook

Help Out the Show:

• Leave an honest review on iTunes. Your ratings and reviews really help and I read each one.
• Subscribe on iTunes.

More Resources From Mike:

• Level Jumping: How I Grew My Business to Over $1 Million in Profits in 12 Months
• WINNING DIRECT MAIL - How to CRUSH IT with direct mail!
• 7 Figure Investor Video Course - Scale your business to 7 figures. I'll show you how!

Today's Guest: Mark Podolsky

Mark, who, armed with only $3,000, gut-wrenching fear, and absolutely no real estate experience, bought his first few parcels of raw land in 2001. Today, Mark is the author of Dirt Rich, the ultimate guide to helping you build a passive income, and owner of Frontier Properties, a very reputable and successful land investing company. He is also the host of two popular podcasts, The Art of Passive Income and The Best Passive Income Model. By focusing on working smart, not hard, he has completed over 5,500 land deals with an average ROI of over 300% on cash flips, and over 1,000% on the deals he sells with financing terms.

Highlights From The Show:

Mark begins by giving us a little detail on how he got into land investing. He was working as an investment banker in mergers and acquisitions and had a co-worker achieving incredibly high ROI by investing in raw land. Mark couldn’t believe the numbers, so he tried it himself. After about 18 months, he was able to exceed his corporate job income and was able to quit in order to invest full-time.

I asked Mark to walk us through his investing model. He starts by going to the county treasurer in a particular area and gets the list of everyone who owes back taxes on land. He said that this advertises two things to him: the owner is not emotionally attached to the land and he is financially distressed in some way. Mark then looks at comparable sales, takes the lowest comparable sale, divides by 4, and offers that fraction to the owner of the land. Because this is cash, and better than nothing, 3-5% of the people will accept it. Once bought, Mark wants to make the property cash-flow, just like if he had a rental home, and he usually has guaranteed buyers in the neighbors. If they have no interest in the property, he has an extensive list of buyers and sites to sell it.

Mark talked a lot about selling to his buyer’s list, so I asked him how you build a list for land. He commented that he has a huge raw land market and explained some of his marketing strategies. He also employs a 90-day return or exchange and 365-day exchange program so it removes the risk for his customers. He then explained how he has automated both the front-end and back-end systems. He says he only has one hour in this business a week when he conducts his team meeting.

I asked Mark to lay out what his team looks like. He has an Acquisitions Manager who decides on a market after extensive research, gets the delinquent tax list from the county, and then works with a guy on Fiverr, who Mark says is an “excel ninja.” He scrubs the list and uploads it to The Land Geek’s proprietary software LGPASS, which sends out direct mail offers. Then the Intake Manager takes over as the offers come back, to ensure they are actual deals, and to try to negotiate a lower selling price, in addition to the actual closing. The property due diligence is performed by a group in the Philippines associated with an American title company, and then they have ad writers for major selling outlets like Craigslist and Facebook Marketplace. Mark also employs Virtual Assistants (VAs) to work with the Acquisition Manager handling administrative duties.

This episode is about so much more than land investing! Mark walks us through his entire process, which is such valuable information for any investor! Join us for this powerful episode of the Just Start Real Estate Podcast!

Notable Quotes:

“Now we are working because we want to, not because we have to.”

• Mark Podolsky

“No renters, no rehabs, no renovations, no rodents.”

• Mark Podolsky

“The game that we play is can we create enough of these land notes so that our passive income exceeds our fixed expenses.”

• Mark Podolsky

“Happy customers guaranteed.”

• Mark Podolsky’s business philosophy

“What used to take me hours and hours, now takes me one second because of automation.”

• Mark Podolsky

“You just have to show up - it is a consistency game.”

• Mark Podolsky

“COVID is definitely changing the way we do business. We might not have the same success rate closing deals over the phone, but it is dwarfed by the volume of deals when you are doing it virtually.”

• Mike Simmons

“We are learning how to do things faster and better.”

• Mike Simmons

“Owning land is kind of like man-jewelry.”

• Mark Podolsky

Thank You for Listening!

• Connect with Mike on Twitter, Instagram, YouTube, Linkedin, Facebook

Help Out the Show:

• Leave an honest review on iTunes. Your ratings and reviews really help, and I read each one.
• Subscribe on

Highlights From The Show:

Welcome to this version of the Just Start Real Estate Podcast! I am excited to bring you another replay of my Live Question and Answer sessions. For those people that are unable to join us live, this will provide an opportunity to hear the awesome questions I am fielding about business, taking risks, real estate, and so much more!

This presentation is the live Q&A that I did the week of September 28th and each Thursday we will offer you another chance to take advantage of listening to the answers to our guests’ fabulous and compelling questions! Don’t miss this new episode of the  Just Start Real Estate Podcast!

Notable Quotes:

“I’m using ‘data-nerd’ as a term of endearment.”

“It is vital for you to know what type of market you are in, not necessarily all of the details and numbers.”

“High-level metrics and high-level data you should know.”

“You have to know what to say to the sellers when you are in their home and knowing the market is key.”

“You should have a one or two-week due diligence period if you can negotiate it in.”

“I don’t like doing flips after fires because smoke damage is real, man. It gets into everything.”

“It is homeowners insurance for sure, but you need to get a vacant policy”

Thank You for Listening!

• Connect with Mike on Twitter, Instagram, YouTube, Linkedin, Facebook

Help Out the Show:

• Leave an honest review on iTunes. Your ratings and reviews really help and I read each one.
• Subscribe on iTunes.

More Resources From Mike:

• Get Your Tickets to Flip Hacking Live Today!
• Level Jumping: How I Grew My Business to Over $1 Million in Profits in 12 Months
• WINNING DIRECT MAIL - How to CRUSH IT with direct mail!
• 7 Figure Investor Video Course - Scale your business to 7 figures. I'll show you how!

Today's Guest: Jake Clopton

Jake is the Founder and CEO at Clopton Capital, a serial entrepreneur, author, and economist. He founded Clopton Capital in 2009 as a way for property owners and operators to efficiently access both debt and JV equity for commercial property deals. The company focuses on small to middle-market space and all asset classes. Since its inception, Jake has arranged billions of dollars in financing for borrowers across the country. Jake is also the owner and operator of several apartment communities serving residents across the Chicagoland area. He also manages Clopton Insurance Services, a national insurance agency focusing solely on commercial property and business insurance.

Highlights From The Show:

We begin the episode with Jake sharing his background story and how he ended up in real estate. Jake shares that before he got into real estate, he traded product features in Chicago. However, with the financial crisis in 2008, the interest rates went to zero, all the markets dried up, and it was hard to make money. Jake's idea in the crisis was to help people find capital for deals, even though he didn’t have a background in banking. He started making calls to banks, lenders, and anybody he could find to help him put the money out there. That was 15 years ago, and now he has a capital-raising company that has evolved over time, and Jake fell into the real estate side of it. 

We then talk about how Jake’s company helps people raise money for deals. He shares that his company is a liquidity provider in real estate. They do straightforward mortgages for commercial properties, bridge loans, and creative capital. He shares that their typical clients are small market real estate operators, but they also get involved with institutions to help them raise JV equity.  However, according to Jake, you will need more as you scale the different types of deals and assets, and how you raise money will change. He also shares that when you start getting bigger, your ability to look for more deals will be taken away as you service the properties you already have in your portfolio, especially when you have multiple investors.

Next, we talk about the interest rates, where they are going, and what you can expect. Jake shares that the market is a little different now, and a lot of what is going on is just uncertainty in the system. Uncertain risk makes people pull back and question their decisions. According to Jake, the volatility and the higher risk are based on the credit spread, and we’re not in a recession as many people presume. Banks are very solid, and there is an enormous amount of liquidity out there. He shares that you should not listen so much to what people are saying about the market crashing because they have been jolted so much into that, and it’s creating a lot of uncertainty. Jake’s perspective is that when you finally get clarity on how far the Fed is going to move the interest rates and understand where it’s going to stop, it will solidify your certainty and stability in the market. 

We then talk about what is coming up in the market and how Jake is bracing his company. Jake shares that they provide capital, and in times like this, when things are a little bit trickier, they do a lot better. According to him, asset prices didn't go down when the entire economy shut down during the pandemic. There are more debts, but there is a lot more liquidity, and we are starting from a much better place. Jake also touches on the residential market, and he shares that what happened is that it got ahead of itself and became hypercompetitive. There was a surge of demand from investors for residential housing, and 20% of all homes sold were sold to investors. This was an abnormal amount of this year's demand. Jake argues that it was not necessarily that the market was losing value but had a demand problem.

Lastly, we discuss the commercial real estate market and why you might want to look into it. Jake shares that the reason people go from residential to commercial is all about scale and doing bigger deals. According to him, moving from different classes of residential properties, single-family, duplexes to multi-family and then transitioning to commercial real estate space can happen very fast, but not everybody does it. In his books, Jake helps people understand that the residential and commercial markets are very different in terms of finances, equity, and capital raising in order to make a great transition. 

Make sure you don’t miss another amazing episode of the Just Start Real Estate Podcast with Jake Clopton and get valuable information on the state of the market and where interest rates will go in the coming months!

Notable Quotes:

“Every deal is different, and raising money for every deal is different.”

• Jake Clopton

“Sometimes we tend to wait so long to peel off some responsibilities in our business that by the time we’re hiring, we should have done it a long time ago.”

• Mike Simmons

“Residential and commercial markets are very different in terms of financing, equity and capital raising.“

• Jake Clopton

Thank You for Listening!

• Connect with Mike on Twitter, Instagram, YouTube, Linkedin, Facebook

Help Out the Show:

• Leave an honest review on iTunes. Your ratings and reviews really help, and I read each one.
• Subscribe on iTunes.

Resources and Links From Today's Show:

Jakes on LinkedIn

Jakes on Instagram

Jakes on Facebook 

Jakes On Twitter

Jakes on YouTube

More Resources From Mike:

• Level Jumping: How I Grew My Business to Over $1 Million in Profits in 12 Months
• WINNING DIRECT MAIL - How to CRUSH IT with direct mail!

Highlights From The Show:

Welcome to this version of the Just Start Real Estate Podcast! I am excited to bring you another replay of my Live Question and Answer sessions. For those people that are unable to join us live, this will provide an opportunity to hear the awesome questions I am fielding about business, taking risks, real estate, and so much more!

This presentation is the live Q&A that I did the week of September 21st and each Thursday we will offer you another chance to take advantage of listening to the answers to our guests’ fabulous and compelling questions! Don’t miss this new episode of the  Just Start Real Estate Podcast!

Notable Quotes:

“Good news for you - I wasted my money and not yours.”

“I would go to the lending institution first because they are going to have some hoops you need to jump through and you might as well know that upfront.”

“Multifamily properties have a much longer due diligence period than single-family homes.”

“If you are a serious multifamily investor for the long term, eventually you will be trying to raise money.”

“It is unlikely that your tenants were awesome for the last owner and terrible for you.”

“It doesn’t sell a house quickly if you tell a potential buyer that the tenant doesn’t pay and is a total pain in the butt.”

“My suggestion is to give them a seven-day eviction notice and tell them that if they are not current with their rent by that seventh day, you will proceed with eviction proceedings and will not stop. Even if they become current on day eight.”

“It sounds harsh, but you must follow through with your proposed consequences. You tell them what you are going to do and then you do it.”

“Insert crazy, random - probably - lie.”

“Sounds to me like you may have done poor due diligence.”

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