Epic Real Estate Investing - How to Cash Flow 13 Properties in 12 Months | 1108

Episode Date: December 22, 2020

In today’s show, Mercedes, The Turnkey Girl is joined with Tim Ostrom, a busy professional who has no time to do real estate on his own, yet cash flows 13 properties in 12 months!  You ask yourself how’s that possible? Tune in and find out how! Learn more about your ad choices. Visit megaphone.fm/adchoices

This is Terrio Media. So you want to be a real estate investor, but you don't want to do the work. If there were only a way where someone else could do it for you, now there is. Tune in here each and every Tuesday on the epic real estate investing show for Turnkey Tuesdays with your host, Mercedes-Torres. So ladies and gentlemen, allow me to introduce, without further ado, Mr. Tim Oström. Tim, welcome to the epic real estate investing show. Our turnkey portion, happy Saturday to you, sir. How are you?

I'm doing great. Thanks for having me, Mercedes. You're so welcome. I'm so delighted to have you on our show, Tim. You are an exception to the rule. I've said that to you before. I remember speaking the first time on the telephone. And now, I don't know, 12 properties later, here you are.

So let's start off. by introducing yourself. Tell me a little bit about who Tim is and what you're all about. Sure. So I'm 36 years old, married to my wonderful wife, Laura. She's also 36. We live in Los Angeles, or for those that are closer to the area, Englewood specifically. We have two small children, one that's almost three years old and one that's almost one year old. And we've been living here for about, up to the Cases, 2004. And we got started, I'll say interested in real estate. I first read the book, Rich Dad, Poor Dad in 2004. That's what got me interested in real estate. And in 2004 is also when I started working at the company I work at now. The company is Raytheon. I guess you can call it

kind of a nine to five job, which I really enjoy doing. So that's when we first got interested in real estate and then I was you know since this is related to real estate I'll say it was about five years later until we made our first real estate investment which was a duplex here in Los Angeles that's just a little bit about me my background and where we're at right now awesome thanks for sharing so you mentioned that's your nine to five and I will say again you're an exception to the role because you actually enjoy your job from what I understand I speak to so many people that say, I hate my job. I want to get out of the rat race.

But you're a little bit different because you actually enjoy your job. But you did mention something that is mentioned quite a bit on our show is you read the book, rich dad, poor dad. And that changed everything. So tell me what in that book attracted you and really why real estate. Yeah. I think the big, it's true that I do love my job, but I also really like the idea of having the freedom. of not needing the job. And that's kind of the, that was, when I read the book,

like my only jobs I'd had were like, I'll call it service industry, like I used to work at Burger King, for example. So I had never, until I had this job, I never had a job that I actually really enjoyed. So that's really got me interested in it. The job I have now, I'll say it was a pleasant surprise that I enjoy it. And that's great. But I also like the idea of having freedom, financial freedom, at least.

And same thing with my wife. So maybe we'll get to talk about this, little bit more, but my wife, she's also, we went to school together, graduated together, and where right now is she would like to become a stay-at-home mom and not have to work anymore. And that's why we got interested in really, I'll say, ramping up passive cash flow to enable that. And the great news is we actually did that. We achieved it. Last week was her last week at her job.

So today she was now. Oh my God, congratulations. I didn't know this, Tim. Oh, I was about to mention something about being a stay-at-home mom, but congratulations, Tim. That is a really big deal. That was, from what I understand, one of the original milestones that you and I discussed when we had our first call, was it not? Yes, it was. So you hit the milestone. That makes me so happy. Very cool. Okay, so she quit her job. I hope that you guys celebrated with. I don't know, an over-the-top dinner and a bottle of wine. That's just how I do it. That's exactly. We did. Awesome, awesome.

Okay. So why, now I know why real estate. What you mentioned, I read the book and it took me five years to jump into my first investment. Why did it take so long, just out of curiosity? So it was a couple of things. One of them was, I'll call it slow and steady, maybe, in hindsight, maybe overly cautious. But the biggest thing was actually market dynamics.

So we live out here in Los Angeles. We started working in late 2004. And by the time, and we bought our primary residence, where we're recording this from right now here in 2005. And then after that, what we did was by the time we had saved up some money for a down payment on our first investment property, duplex. The market was extremely high. And I had done enough research and, I'll say, basic education to know I wanted to buy based on some decent cash flow.

And at the time when we were looking at things that we could afford a doubt payment on here locally, the cash flow numbers were very poor. Like properties barely cash flowed, if anything. So it was basically like, nothing looks good, waited, waited, waited, waited. Then the market came way down, prices came down, rents did not. Now all of a sudden the cash flow numbers looked reasonable. Yeah. And then it was in 2009 as we bought, yes, 2009 as we bought that first deplex. Yeah. So 2009 was a great time in our market. You're right. I'm lucky, Tim, I am local in your market. So many of our investors are local in that we live in L.A. and it's so difficult to cash flow in the Los Angeles, really Southern California market, which is one of the reasons why this term key operation started just because it's,

so difficult to cash flow here. So I understand your dynamic. So you bought the duplex. You held it. You held it for a little bit. And then you decided that that wasn't working so much. Like what happened that you decided, okay, we're going to sell this and buy term key properties? Yeah. So to get pretty specific, we bought that first duplex for 260,000. It appreciated, I don't remember how much, but after maybe three years or so, asset prices had run up, and we did a cash out refinance,

pulled out some cash, and then invested that in some other real estate investments, some passive investments, and kept it going, and it kept going up. But then shortly after, or I'll say shortly before you and I first spoke, so it's probably 2016-ish.

I was kind of evaluating the numbers, and we're basically sitting on a whole bunch of equity, but the cash flow is really low. this duplex is yielding, it's putting maybe $300, maybe, yeah, about $300 per month into pocket. Actually, not even that, probably like $2.75 once you normalize it out. And so when you look at like the cash flow on the equity, it's just not very good. That equity could be used much more efficiently in a high cash flowing market.

That was the, that was the order to getting interested in turnkey properties in, you know, better cash flowing markets. Awesome. Yeah. That's, you nailed it. So let's fast forward. You decided, okay, I need to start looking at passive income. Why cash flow savvy?

How did you find us? So I first got introduced to you and your husband Matt when you guys were on a panel, a panel discussion here in Los Angeles areas for investors, buy investors. And the topic was, I think it was like how to market real estate deals. Do you remember this? I do. Phoebe, yeah, we get to speak out our Phoebe groups quite a bit. We love our Phoebe groups, you know, in Orange County in L.A.

We do a lot of traveling. So, yeah, I do remember it, actually. Yeah. And so I didn't know either of you before that. You guys did an awesome job on that panel, by the way. That was really educational and informative. And that group's known for having really good panel members. So you guys lived up and exceeded that expectation.

Thank you, sir. And that was really good timing because I had already started doing a little bit of research on turnkey companies, maybe six or seven in total and actually talked to an interview at a total of four. And I also had already selected my mortgage broker and was talking to her about what else planning I'm doing and told her who I was working with. And she's like, yeah, we've worked with them before. Yeah, we've worked with them. Yeah, I worked with them. you know and she's and she said you know have you heard of cash flow savvy Mercedes Torres and I was like wow it's funny you should say that last week she was on a panel that's

first time she's like you should check them out they're awesome they're really good we have nothing but success with them and seems like investors do really well with them I said oh cool thanks for the tip I'll call that a third party endorsement and then probably a couple days after that is when I reached out and contacted you awesome so you reached out in contact with me. First of all, how did you reach out to me? Was I accessible? Yes. Okay. I'm sure it was email because I do everything to be email. That's I'm sure it's how it started. Awesome, awesome. Well, I do remember our first conversation and I do remember I met you at the Phoebe group and I thought, honey, there were a hundred people there. So then we started speaking and then I do

recall meeting you and I thought that's pretty awesome that he's actually practicing now what he's been learning for the last, I don't know, six years. So it was a breath of fresh air to actually see somebody taking, you know, from Rich Dad all the way to buying a duplex to understanding, it's not making me any money. Let me turn this into cash flow. So I'm honored, Tim, that you chose to work with us. So thank you for reaching out. Okay, so let's fast forward. I know this is going to throw people through a loop because When I met you, you, I think, had two properties in the LA area of which one you were selling. They were both investment properties, if I remember correctly.

And now you have 12 investment properties? Yes. Is that correct? Yeah. Awesome. And so did you acquire all 12 through cash flow savvy? Yes. Awesome.

Okay. So tell me what that process has been like. tell me why you decided to do the way you did it. And I just kind of want you to share your experience because, again, I've mentioned it a couple of times. You're an exception to the rule, but I love that what you did is extremely tangible to everyone. So share your story.

Sure, I'd be happy to. So let's see. You talked about we'd already, we had this first call, and I think on that first call, you walked me through the process about how it works, explaining how, I'll say from the beginning to end, all the way to when properties will start showing up, to evaluating, deciding yes or no,

putting on contract in the whole process. I actually remember it pretty clearly because I was on vacation with my wife and her family in the Gulf of Florida when we got to the point where the properties first started flowing in. But just reversed a little bit before that, we had that duplex. I talked about that.

Very first duplex was for sale. And it was scheduled to close somewhere around the 4th of July last year in 2017. And so we talked a little before that and said, okay, when you get a little closer, let me know. And it was probably a week or so before closing. What you did is started sending emails my way with potential properties. And the way that looked from my standpoint is I get an email from you. be like some links or some possible properties. And I click on them. It takes me to a nice little web page that has all the information, the numbers, which I'm totally in numbers, guys. That's like right

where I go to afterwards. And then when I really liked it, my wife would say, okay, now let's see the pictures. And then we look at the pictures. I love it. Usually, Tim, it's the other way around. The wife looks at the pictures first, then the husband looks at the numbers. So I love it. Yes. Well, that's probably because it came into my. email so I got it. I love it. But one thing I forgot to mention that was really important was we had talked about because I was doing a 1031 exchange and that first one we were expecting the when we sold our we were expecting our gain on sale to be it was something between 175 180k to come out of it and one thing I wanted to

have some confidence in is that there'd be enough properties identified quickly in that time period and you said yeah I don't think that'll be a problem. And you were right. That was definitely not a problem. You sent in a couple batches, and they all looked really good. And I was, you know, looked through and picked out which ones I thought made the most sense,

or I liked the most for various reasons. And then reply back to you, you know, yes or no, yes or no. And then from there, it's pretty straightforward. We put it under contract. So I think the next step is I'd get an email link from you with, docu-sign stuff that we'd go through and sign the usual contract documents, which was super easy with phishings. Like I said, I did this all while on vacation,

you know, from a laptop out of town and just click through all of it. And then, so then we were on contract. And I kind of remember the exact order, but in that first batch, there were seven properties total. And it was spread a problem between Birmingham, Alabama, and Indianapolis, Indiana. And we had also looked at some properties in St. Louis, Missouri, that also looked really good. And we kind of talked about, you kind of want to bundle it into limit to two cities.

So those are ultimately the two cities he went with. And then shortly after that, you introduced me to one of your teammates, Melissa. I forgot what title you used, transaction coordinator. That's exactly right. She's a transaction coordinator, which is a person that holds your hand through the entire process to make the process as seamless and as painless as possible. So hopefully Melissa or Ashley is who we have doing that helped you. And I think that considering you were on vacation,

she helps quite a bit setting up inspections and appraisals and all of that for you. Is that correct? Oh, yeah, absolutely. And that was something that's really valuable also and saved a lot of time, is that you guys have provided a list of, a list of, I call, recommended service providers, like inspectors that you had good reputations with, the background insurance brokers, and a couple other things.

And so I used inspectors that you guys had had good experiences with before, as well as one of your referrals for insurance, which was really good, which we've used for all of our recent, all 12 of the properties that we invested in. That was very helpful. So the inspection process was really smooth and efficient. So recall, I'm out of state, so I'm in California. These properties are in Alabama and Indiana. And previously, when I purchased properties where I'm the person buying them,

they've all been local so things I could go to and see myself, not the case with these ones. So the process was the inspector, the inspectors, one in Indiana and then one in Alabama. And then later on the next batch, one in Ohio. Cleveland, Ohio. For all of them, they would go do the inspections, send the inspection report, and then I get on the phone with them and ask me questions about it, they walked through, and they were excellent, very professional, and then it helped me see every little kind of

detailed question to answer to the property. I love it. I love it. Okay. So let's take it a step back a little bit, because now we got into the inspection process. But you mentioned that you did, you mentioned that you did a 1031 exchange with the previous sale of your investment property and to buy, to use the profits from that, to buy these new rentals. Explain to our listeners, what is a 1031 exchange? Sure. A 1031 exchange is basically once you have an investment property and you want to go sell it. If you have a gain on the sale, which we would have in these cases.

Like I said, they almost doubled in value in the time. You just sell it and then go put the money in your bank account. You have to pay taxes on it, whatever the capital gains tax rate is. A 1031 exchange allows you to take those proceeds and then roll that into future investments without paying taxes. So in the case of this first duplex, we sell the property, the whatever was, 180K of, gain that comes out of it rolls right into these seven

turnkey properties and there are people that are that are professionals in handling the process because there's a lot of compliance and stuff like that and we had a company

a 1031 intermediary they're called they do the paperwork they work with the mortgage company yourselves and make sure all that paperwork's lying flat super easy

it's like kind of signing some forms and not paying the taxes. That's exactly right. So just to clarify, the 1031 exchange doesn't mean that you don't pay taxes. It just means that you defer the taxes. So let's get that clear because there's just really no way around Uncle Sam. I hate to break it to you.

But yeah, you are deferring the taxes for as long as you hold your rentals on the capital gains. And when you and I spoke, I knew that you were going to purchase these properties to hold them for almost ever. And there is no limit to the amount of 1031 exchanges that you can do on investment properties. So just word to our listeners, if you're considering ever doing a 1031 exchange on a property where you're going to gain capital gains,

the 1031 exchange has to be established before the sale. Very important because you can't sell the property, get the gains, and then say, oh, I want to do an exchange. No, you actually have to identify that before. So you were able to identify that. You got to the exchange company, in this case the intermittent company

to help you with that paperwork. And then I know that we worked closely with the exchange company and ourselves to make this happen because there's no other way that this would have been able to happen. What was that experience like for you, Tim, being the actual client,

overseeing the process between the exchange company, our turnkey and then your transaction coordinator to make sure that all the moving pieces were happening. What was that experience for you? For me, I'll say frankly, kind of a sit back and watch because once the introductions were made and everybody kind of knew what the game plan was,

which is relatively straightforward. Sell this property, do a 1031 by these other ones. And the people involved are all familiar with that process. They know who needs to talk to who for what. So there'd be tons of emails flying that I would be on distribution for. But it didn't require much, it didn't require much activity for me. A clarifying question here and there. Right.

There's a lot that happens in the background, Tim. So I'm so glad that it was for you, sit down, relax and watch. But yes, there's a lot going on behind the scenes. And that's the whole purpose of a turnkey is to make it as easy as possible for our clients. So, yeah, I'm glad. you actually got to experience that, Tim, because you and I have never really had this conversation after you closed. So tell me, the first batch of properties, how many did you acquire total? It was seven total. There were four single families in Birmingham, and then Indianapolis,

it was two duplexes and one single family. I love it. Okay, so if you don't mind sharing with our listeners, tell me what do you cash flow with your first batch of seven properties? The first batch of seven is about 1,800 and change per month. Awesome. And actually, this is actually a really good point. It's like I mentioned before that was coming from that duplex, which was cash flowing less than 300 per month. So if I repositioned that equity, you went from 300-ish or probably the less to 1,800.

Yeah. And Tim, you're just talking about the cash flow. You are not talking about the tax benefits that you and Laura are benefiting from the end of the year. And from what I hear, we now have a stay-at-home mom because partly due to that. So that's awesome. Okay. So that was seven properties. And what happened that now all of a sudden you have, I believe it's a total of 12?

So there was an additional five properties. What happened? How did that happen? Yeah. So after that first batch, that went really smoothly. So then we said, okay, let's repeat that for this triplex, the one we bought in 2011. Similar story, we bought that one for 253K. It had almost doubled in value.

So again, coming close to 200K worth of gain. We'd also, like I mentioned, I'd done a cash out refy previously on that. but same deal. That one was cash flowing probably around about 400, between 400 and 415 when you averaged dollar out. So we said, let's do the same process again. So again, I contacted you and said, hey, let's do the same kind of thing. And we explored some markets and settled on Cleveland for the next market. You were seeing a lot of good potential coming up in that area with properties. And it was a lot like the same process that I said before.

Yeah. I wasn't on vacation, but it was the same kind of thing. emails came in. We set up the properties and went through that whole process. And that was a batch of five properties in Cleveland. And I kind of know the area because I grew up in Cleveland or just east of Cleveland. So I was even a little more educated about that market, I'll say. And similar story.

Solar Triplex that was cash flowing, you know, 400 and change per month. and repositioned that into five properties that are cash flowing close to 1,700. I love it. I absolutely love it. Okay. So I remember when I was creating the Cleveland portfolio, I was a little bit more strategic because I was trying to capture properties within a city, but different areas and different purchase price points so that you can diversify within that city. and I think that I built several portfolios throughout my cash flow savvy career. And I'd have to say, Tim, your portfolio is one of my favorites. Every single one of your properties I would own in a heartbeat.

So I hope you're really happy with that portfolio because that just recently happened within the last three months. Is that correct? Yeah, that's right. Awesome. Awesome. So what was the time difference between the first set of properties and your second set of properties? So the first set of properties was in the, let's see, August to October timeframe of 2017. And then the last, the next batch, the bashing Cleveland was between May and July.

So what is that? 10 months or so overrun. Awesome. Talking about moving at the speed of instruction, you and Laura are kings and queens of moving at the speed of instruction. I love it. So you took, I don't know, a possible $500, maybe $600 cash flow into now almost a $2,700 a month cash flow just by taking the money, the equity that you have acquired in your LA properties and repositioning them with cash flowing assets using turnkey.

Is that accurate? Yes. And this was, you know, like I mentioned, like my wife just quit or retired. I was told we're too young to use the word retire. I love it. stop working. And when we had kind of laid out this plan, we said, well, what we want to do is we want to have cash flow that across all of our real estate that equals her income. And then after that, then, you know, she'll stop working.

And like I said, so we've done those first couple properties we talked about. There was one other and then some passive investments that we did for a while. And then this transition across these two 1031 exchanges from these duplex and triflex and these 12 properties was the tipping point as I just kind of walked through those numbers that bump that got us over that hump to now we have cash flow that surpasses or in. Oh, I love it. Actually, I had said it's $2,500. No, it's like $3,500 a month.

Yeah. Oh, I love it. I absolutely love it. Awesome, Tim. So I'm sure, you know, I'm listening to you tell the story. story and I was part of the story so I know that everything that you're telling me is

accurate. Some would argue that just what you experienced is too good to be true. I could hear people thinking that. What would you say to them? The people that are thinking, no, Tim, that really didn't happen because it was just too easy and it seems like it's

too good to be true. Yeah, I think it might depend where they're coming from. So I'm coming from the standpoint of I've already bought some properties and closed on them. And so that, like the very first property I purchased at Duplex, there was a lot of uncertainty, anxiety around that. I think most people will be, you know, a little concerned, apprehensive

when they're buying the first real estate investment. It's a big, you know, it's at least feels like a big thing when you're doing it the first time. After you do the first time, it doesn't feel like a big thing. I would say, though, you know, someone who's doing it, said someone the first time, I would say working with people that know how to do it really well takes a lot of the fear, concern out of it. That would be my number one, right? Awesome. What would you say was your biggest challenge that you had to overcome during this whole

process? Filling out a bunch of mortgage paperwork. I understand. But I think we tried to mitigate. We tried to mitigate. We tried to mitigate that a little bit and we tried to do everything all at one time so you wouldn't have to go out and do it multiple times. Did we not? Yeah, and I'm half joking about it. We didn't talk about this, but one of the things that we did was for that first batch of seven, we did all the loans in my name, and then the batch of five, we did them all in my wife, Laura's name, so that we're only using one of those Fannie Mae slots. For your listeners that might not be aware, there's a limit of the, I'll call it that really cheap debt, 10 per person.

And so we were strategic about that. And I'm only half joking. There's a lot of paperwork associated with mortgage stuff. Using one mortgage broker for all of it, that helps a lot. Yeah, a lot of compliance and paperwork. That's just part of the process. Yeah, somebody asked me, how many documents are in one closing? And it kind of, the average is about 150 pieces of paper.

Now, you don't need your signature 150 times, but each property is a stack of paper. Now it's all electronic, so the process is a little easier. But the closing, literally, we still have to send a closing agent to your home or office. And I do know that they have to fill or they have to have you sign the bulk in actual blue ink. So we try to make it as easy as possible, and we try to send one notary at one time to do all. seven and I think we accomplished it with two runs maybe. But yeah, you're right. It's a lot of paperwork, a lot of signing, and there's a reason for it.

So congratulations that you got over that hump. Awesome. So what would you say that now that you've gone through the process twice, we strategically planned that you purchase certain properties, your wife purchases, other, so that you guys still have more buying power left in your portfolios, if you will. What would you say that you would do different, if anything,

because you may not want to do anything different. I think, I mean, we're right now. Actually, it's related to the thing I was saying about the loans. The only thing maybe a little bit different would be trying to optimize for the larger properties, a little bit larger, in order to, I'll say, kind of get the most use out of those cheap 10 loans. So we had talked about, you know, we saw like a range of properties that we looked at.

I feel good. I feel good about it. And now we're also thinking about, okay, what next? Because now we've used up nine of my 10 loans total and six for Laura, all school, everything we have. And so that's the only little thing. Got it. Got it.

So you wish you would have purchased bigger properties with your first four slots than what you have purchased. now. I wouldn't, actually it's too strong to say I would have done that, done that differently. That's just what I'm thinking about for the, like, for what's to come in the future that I might you differently compared to the previous ones. Got it. We've gotten out really good. I'm very happy with it. Very happy. Good numbers. And I'm just looking at, for those loan slots, we're almost running out of them. So we'll probably get kind of stretch from as far as possible. Trust me, I have a plan for the next step for you, Tim. That's a whole different part.

because it talks about converting your personal loans into portfolio loans. But we only talk about that when you get to your 10 because it's a whole different conversation. But there is a strategy, Tim, because I've done it with Matt. So when we get there, or like Matt says, travel as far as you can see. And when you get there, we'll see further. All right. I like it. Yeah, yeah, yeah.

So tell me about, so some would argue, oh, my goodness, you guys have 12 properties. you're in three different markets. That's a nightmare. You have three different property managers. What's that experience like for you? Tell me about the property management experience and collecting your rents because they come between the 15th and the 20th of each month. So tell me about that.

Yeah, it's definitely not a nightmare. It's really easy. So all of the, all three of these property management companies are well-established, very professional. They have standard processes. Up front, there's some pay. paperwork to fill out, set up account, stuff like that. And then they all have their web-based portals.

And literally what happens every month is they will transfer the funds that came from the rental income, directing to our account. Online, they have all the reports and things like that associated with what's happened. So it's really straightforward. Like you expect from pretty much any property management company, there are basic run rules about if there's a possible expense over a certain threshold, they'll contact the owner to get approval, that type of thing. So that happens when it happens.

But it's pretty smooth. It's not a nightmare. I love it. So when a property manager contacts you, you've been doing this for a little bit over a year, how many times have you been contacted by property management because there's a devastating issue happening. There hasn't been anything devastating. Awesome.

That's good to hear. I've read enough books, listen to enough interviews. No, there are horror stories out there. I think we've only been contacted maybe three or four times for approvals of expenses or maybe to like sign something, some paperwork or something. Yeah.

Yeah. Minimal. I love that. That's good to hear. here. So your property management's take care of you. Yeah. Yeah. They're all really good. Yeah. You know, Tim, I say this often. I probably say it every week because I get kudos about our team. You know, Matt and I have spent years not only finding our teams and creating them, but perfecting them so that they understand our typical investor, our client, which you're the typical model

of our client. You're a busy professional. You have your own family and you just want cash flow. And so we drill it into our property managers. You have to take care of these investors. And I get praise for them all the time and it makes me so happy because it's taken me so long. And Matt and I share often the hardest part of our job is creating our teams on the ground. Truly, it's the hardest part. And so when you tell me that you're in three different markets handled by three different property managers and they take care of you, it's like music to my ears. So thank you for sharing.

So what advice would you give Tim that new investor, maybe not necessarily the one looking to do a 1031 exchange, but just a new investor thinking about turnkey or thinking about cash-flowing properties. What would you tell them to? Yeah, I think we'll see two things. So one is I didn't invent this.

I think I heard this probably either from reading a book or maybe a podcast in the real estate guys. And I might not get this exactly right. But this kind of order of first know why of what you're trying to achieve is the first step, then market, then team, then property. And so that why would be the, okay,

is it like in my case, the example, I gave cash flow, so my wife, Laura, I could stop working, someone trying to build equity for networks, that might give them different approaches. That's really important. And then the other thing is, especially if they're new, it would be to work with folks that are experienced and really qualified at working with new people, helping them get through the process.

So I'm a big fan, at least now from this experience, I'm a big fan of Turnkey, just in general, that concept. Because it can take a lot of that uncertainty out and get someone to help people get through that process. Yeah, awesome. You know, at the end of the day, Tim, you said, you know, I was interviewing four or five different turnkey properties and, you know, I ended up with you. I'm honored and I'm humbled. What was the one thing out of the other companies that you were interviewing? Wow, I need to work with cash flow savvy. What was that tipping point? It wasn't one thing. It was a few things. Yay. Do you mind sharing? Yeah. One of the things was,

First of all, I got a really great feeling talking to you. You're highly recommended. That goes a really long ways. I mean, this would be a really important decision. But even with there were some other qualified reputable ones, it was a couple things. One was that of your seamless access to really good cash flowing market. There are other turnkey providers that are kind of anchored to their one market.

That's where they do their business, whether that market's good or bad. type of thing. That was one thing. And then when you walked through the process, it was crystal clear to me. And I could very easily understand exactly how it play out. And for me, it was tied to the 1031 exchange. I wanted to have high confidence this process would run through smoothly. I got the best feeling of confidence after you and I spoke.

Awesome. Awesome. Thank you so much for the kind words. And really, Tim, thank you for spending this much time. with us. I know you are a busy man. You're an entrepreneur. You've got your own team to run. Plus, you have 12 investment properties that are cash flowing. So thank you so much for your time, for your knowledge. And really, for just sharing so openly, I know that there's somebody out there listening that said, hey, if Tim can do it, I can do it too. So that's awesome. Tim,

thank you so much for our audience listening. Thank you for tuning in. I truly hope that Tim and story inspired you in some shape, way or form. Laura now gets to be a stay-at-home mom, which was their goal to be grin with, and that is just music to my ears. Whenever you're ready, feel free to go to cashflow savvy.com, that's savvy with two beads. Download your frustrated investors guide to passive income or with a call with me. I am truly a phone call away, and I'm happy to speak with you and see how I can help you quit your job too. This is Mercedes Torres with Cashflow Savvy.

Brought to you from Tario Media and Epic Real Estate. See you next week. Tim, thanks so much. Thank you, Mercedes. Your portfolio has seen better days. But this too shall pass. And the best for you is yet to come. Together, we'll get you there faster. We're cash flow savvy. And we'd like to share some information with you that will show you how you can take control of your financial future and accelerate its arrival. Go to cashflow savvy.com. More building, less waiting. Cashflow savvy.com.

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