Epic Real Estate Investing - The Big Question of Home Ownership! Chokehold or Checkmate? | 1272

Episode Date: June 29, 2023

Tune in as we unveil a real estate opportunity like nothing you’ve heard of for more than a decade. Picture this: stunning properties that combine convenience, comfort, and excellent returns. Whether you're a busy professional or an aspiring investor, this episode is your ultimate guide to hassle-free real estate success despite a seemingly uncooperative economic environment. P.S. Whenever you're ready... here are 3 ways I can help you become the healthy, wealthy, beast of an investor God designed you to be: 1.    Become an Epic community member at “Epic Real Estate Investing.” One of Mercedes’ and my favorite things to do is share with investors real estate trends, interesting guests, and housing market news. We do it every week, and you can listen in by subscribing to Epic Real Estate Investing on Apple Podcasts - Click Here. Or WATCH HERE on YouTube. 2.    Become an Epic partner (I'll pay you) If you want to go deeper and further as a real estate investor, looking into my partner program to help you get your first deal might be the move... take the first step here for free. 3.    Work with me One-on-One If you'd like to work directly with me on your business... meet me here, answer some short questions, and we'll hop on the phone to brainstorm some cool ideas for you and your market. Also...check these out :) FreeEntity.com (Need an LLC? Get one for almost FREE) DealEngineer (Most powerful data for finding motivated sellers) TrueProfit.net (Less stress and greater profits for your real estate business) Learn more about your ad choices. Visit megaphone.fm/adchoices

This is Terio Media. Ladies and gentlemen, get ready to witness an electrifying episode of the epic real estate investing podcast. Brace yourselves as we unveil the most explosive and game-changing real estate insights that will propel your investing journey to new heights. In the red corner, weighing in with groundbreaking potential, we have new builds that cash flow in 2023. Picture this, state-of-the-art properties strategically designed to generate cash flow like never before. These innovative constructions are set to revolutionize the way you invest, providing you with a golden opportunity to maximize your profits. Get ready to learn the inside secrets and strategies to tap into this gold mine of wealth creation.

Your financial future is about to experience an adrenaline rush like no other. But that's not all. In the blue corner, we have a heavyweight contender that is shaking the very foundations of the real estate world. the new corporate transparency act of 2024, life-saving guide to avoid jail time. Just imagine having a guide that could potentially save you from the legal pitfalls that haunt so many unsuspecting investors. This episode will equip you with the knowledge and wisdom necessary

to navigate the ever-changing regulatory landscape. Stay one step ahead of the competition, safeguard your investments, and ensure your financial freedom remains unbreakable. And let's not forget about our explosive undercard featuring the cash-flowing deal of the week. Discover the hidden gems in the heart of the Gateway City. It's time to ignite your investing prowess and seize the opportunities that await you.

Get ready to step into the ring of financial success as we deliver the knowledge, strategies, and inspiration you need to conquer the world of real estate investing. This is the epic real estate investing podcast where legends are made. Hey, strap in. It's time for the epic real estate investing. State Investing Show. We'll be your guides as we navigate the housing market, the landscape of creative financing strategies, and everything you need to swap that office chair for a beach chair. If you're looking for some one-on-one help, meet us at rei-aise.com.

Let's go, let's go, let's go, let's go, let's go, let's go, let's go. Let's go. Hello and welcome, welcome back. This is Mercedes Cashflow Savvy Queen, jumping in in the middle of Matt Terrio's podcast to tell you that we have an amazing treat for you. I decided to invite another podcaster on board from the Homeboys podcast, happens to be a personal friend of ours, but more importantly, our biggest provider in Indianapolis. Not only have I decided to bring him on board, but he's going to educate you all about the city of Indiana. Now, Scott Adams has served clients in real estate all over the map. Since 1997 and over the past 25 years, he's been a licensed real estate broker, an investor

himself, and enjoys providing just astronomical services to all of our clients. So without further ado, I'm just going to have him come on and tell us all about himself. So, Scott, welcome to the epic real estate investing podcast. How the heck are you? I'm doing great. Thanks for having me on. I love it. I love it.

So I understand that you are in the wonderful city of Indianapolis, Indiana. And before we jump into that, I just want to learn a little bit more about you. So tell me about Scott. Well, I'm very passionate about real estate. And I always have been. And I got into it directly out of college way back in 1997. So I've seen some market changes over those years. And when I first got into real estate, I thought it was simple as, wow, you can buy houses that are foreclosed for $10,000, put $10,000, fixing them up, and make a fortune holding them yourself.

Yeah. So since that time, I've gone through many market cycles and learned many hard lessons. And now my passion has been, besides continuing to build my portfolio, helping clients build theirs. and a lot of new investors all the way to season investors. I love it. I love it. So, Scott, tell me where you're from originally. So I was born here in Indianapolis on the north side, which is, it happens to actually be

one of the wealthiest counties in the United States. And my grandfather moved here because he was the first milkman in our little area. And we're still here to this day in Indianapolis on the north side here in Carmel Fischer's. Carmel Fisher's Indianapolis. So give us some perspective where specifically, if I'm looking at a map of Indianapolis, where specifically are you? Nor is a big, yeah, there's a big circle around Indianapolis called 465, the highway 465. And we're directly at 12 noon, basically, on that circle. I love it. I love it. Okay, cool, very cool. And so what inspired you to become a real estate investor? Well, it was money at the time. You know, I didn't have any. I didn't have any. I didn't. I didn't grow up with any. And I was at Indiana University's Kelly School of Business, which was, you know, was and is one of the top business schools. And so I was surrounded by some really, really smart folks and some younger folks whose parents were real estate investors. And I saw the power of real estate in college and it blew my mind.

So I wrote a proposal my senior year and with the help of a couple of professors who I befriended. And I got a million dollar line of credit signature line of credit. based on a business proposal that I wrote my senior year. And so I literally left with nine credit hours left to finish college. It's all I needed. And I left and started investing in real estate from that point on. And when you first started, what did you start investing in? Well, really, I first started my sophomore year of college when I used my student loan money

to buy tax deeds at the courthouse. And it's one of those cases where I was luck. It's better to be lucky than smart because tax. Tax certificates can take 13 months before they even turn into deeds. And I got lucky and all three redeemed and I got my money back plus interest. But that was my first little taste of real estate. Before you go into that, for those listeners who don't know what a tax deed is, can you share what that consists of briefly?

Sure. So if somebody doesn't pay their taxes in many states, it's done differently in states, but they're all fairly similar. They're sold at a tax certificate sale. and what that is is you pay their taxes plus in our state you bid it up in some states you bid the interest in our state you bid up the price that you're willing to pay for that property and if the owner wants to save the house they have to pay their taxes plus the interest on the amount that the city is holding the overage that you bid so it's a way to get great returns

on money it's not the greatest way to acquire houses and it's in incredibly complicated and requires specific knowledge or a great attorney working by your side. It's very complicated. I don't recommend folks try it. The main people who invest in tax certificates are large institutions because they're simply chasing the interest rates. And I partnered with Transamerica Bank, so I was their exclusive partner in the state of Indiana in 98 through 2004, where I would do all their research for their tax sale, and then they'd come with a blank cashier's check and buy them all. And they wanted the interest.

And any properties that did not redeem, meaning the owner didn't pay their taxes and it became an actual house. Transamerica didn't want the house. They were just chasing those returns. So I then had exclusive access to where I got first dibs on all of those. So there are some unique ways you can do this, but to go out there with a pocketful of your cash and go to a tax certificate sale is incredibly dangerous.

and probably not smart. Right, right. So is tax certificates and tax liens the same thing? That strategy? Is it the same thing? Yes, well, the terminology can be, people use different terminology, but really there's a tax certificate,

which is the first 13 months, and then you apply for the certificate to become a deed at the end of that 13 months, is how it works in our state. Got it. Great. Thanks for the education. Okay.

So then you dove into it right after college. you got a million dollar line of credit, then what happened? How did you end up with this amazing operation that now exist that I get to benefit from? Well, I got this by doing all the wrong things before I got to this right thing. So I went out and I bought garbage houses and garbage areas with that line of credit, fixed them up just enough to refinance them, put 20 grand in my pocket every house, cash out refinance and pay off that my line of credit, whatever I had taken off that line of credit. And then I just would repeat. And a repeat. repeat and repeat. And back in those days, there wasn't just a 10 Fannie Mae cap. So, I mean,

we had lending. I had 111 houses at my peak. It's easy to remember, one-one-one. But 111 houses in my 20s. And every single one of them, I had made $20,000 cashed out of. So you can imagine the amount of cash that I had. I thought that I was going to ride off into the rainbow and never have to work a day again in my life after those first four years. But little did I know those houses are garbage and it's they become the cycle of death where you get a tenant in there. The tenant does not pay. They trash the house. You evict.

You re-rent it. It's over and over and over and over. And the houses bleed money. They literally bleed money. So I got out of that by really luck. I was selling a lot of them to other investors, local investors who wanted them, who they thought they could make them work. Maybe some of them did.

Maybe some of them didn't. I don't know. But there was a demand for them. And I got out by the skin of my teeth and had a little bit of money. I was telling you before we started this that I took five years off. Really, it was more like four years off where I just reset. And when I came back in 2008, the market was crashing and I still had a bit of cash in my pocket from everything else and great banking relationships. So I was able to dive in when everyone else was running.

So I got lucky the second time. I got lucky that I got out everything before the crash. and then lucky in a way that the crash happened right when I was ready to dive back in. Yeah. You know, I often say to just all of our clients, you know, you want to buy when nobody else is buying. Where everyone is running, you want to dive in. You know, interestingly enough, Scott, I started the same exact way buying garbage houses. Like when I started, I was buying $50,000 to $60,000 houses that were renting for $700 a month.

And on paper, and you're laughing because you probably did the same thing. On paper, they looked amazing. And then after the reality of, you know, what tenants did and how they handled or didn't handle their rents was just devastating. And luckily, I was surrounded by people that provided, you know, clarity for me. And then I started buying higher price point properties that on paper didn't perform as well as the lower price point properties. And what I quickly learned, I mean quickly within a matter of six months, okay, great. The higher price point properties that tend to give you a lower return in

comparison were the ones that were performing a million times better. And then I just thought instantly the price point of the rent, and often the property, dictates the caliber of your tenant. So instantly I turned my entire portfolio around. It took me about a year and I wasn't so deep into it at that time. But I quickly learned that, okay, you don't want to buy that lower price point, even if it looks like it's going to perform amazing on paper. Where were you when I needed you when I got 111 of those dogs with fleas all over them? You know what? I started in 2008, believe it or not, because I was part of the mortgage industry.

and so my bank shut down subprime mortgage to be specific. And so like you, I had built so many relationships. And the relationships were the ones that were telling me, okay, do this, do that. And my relationships were with real estate agents, title companies, brokers, and just loan officers. And they couldn't do a deal if their life depended on it. Luckily, I was a W-2 employee. I had saved a little bit, but I had started already fixing and flipping. because I was working for the bank. So I had a little bit of a nest egg, and I was living in California.

I knew that there were markets in Middle America where I could produce a return. And, you know, in California, what the price of an Indianapolis property is what a down payment is in California, and you can't cash well with that. So I quickly learned how to do that, but I quickly learned not to buy these lower price point properties.

Well, good for you. Yeah. So tell me a little bit of, about, you know, I lived in a market where I couldn't invest in my backyard where you're so lucky, you could invest in your backyard. And let me clarify that. I couldn't invest for what I wanted to do. I wanted to buy and hold and cash flow. And that was virtually impossible in Los Angeles. And it still kind of is. It doesn't make financial sense to buy and hold an asset unless you're focusing on appreciation, which is not my gig. But in Indianapolis, you usually.

have kind of the best of both worlds. So tell me about your markets specifically. Yeah, so Indianapolis is pretty unique. I think I was a buy and hold investor. I just bought and hold garbage that didn't work from the early beginning. That's one thing that has never changed is my belief in the buy and hold business model. I think it's the best real estate model there is. It's the greatest way to build wealth in the world. You know, you have a tenant paying down your mortgage. You capture appreciation, which is the cherry on top. And, you you make great cash flow. And markets like Indianapolis, which have, we're in the top,

we're in the lowest 15% as far as home values go in the nation, but we're in the top 50% for rents. Those statistics alone can help explain why Indianapolis and the other markets we invest in here in Indiana are so strong for cash flow investors. We're a pretty unique market in the fact that we have one of the most diverse jobs base in the country. And people don't understand, I don't think, that Indianapolis is a really large city. So depending on what list you look at, we're between the 11th and 13th largest city. And so if you take out the giant cities like L.A., New York, Dallas, Houston, you know, Atlanta,

we're that next top tier of city as far as size and quality. In fact, our quality of life here is very unique. It's the cost of living is so low and our jobs base, not right now everybody has a job space out, you know, nobody has unemployment. However, even in high unemployment times Indianapolis is ranked at the very bottom of unemployment. And the reason is we have these different sectors of employment again. So Eli Lilly is based here in Indianapolis and what they are is a giant magnet for the biopharmaceutical and health industry. So we're one of the largest pharmaceuticals pharmaceutical and biomedical health cities in the in the world i believe we're ranked as the second largest in that industry we're also the midwest so we have manufacturing you know good old

good old midwest can always count on manufacturing you know and then the third sector is sports and attractions which i know sounds crazy for indianapolis i know it sounds crazy but you've got ncdbara headquarters here we have this race called the indy 500 that used to be the largest a spectator event on earth. It may still be, I don't know, they don't say it anymore. So you would think they would say it if it is. We have sports teams, the Colts, Pacers. CBS Sports is located here. So that's a whole industry. All these race teams, it's an amazing industry in itself. And then in the last 10 years, we suddenly grew a fourth industry, which is shipping and logistics. So we built a new airport about 10 years ago, maybe a little longer. And now we sold our airport to FedEx.

So now we're the second largest FedEx hub in the country here in Indianapolis because they bought our old airport. And if you've ever flown Indianapolis, please look out your window starting about 10 minutes before you land and the warehouses start. They just start and they don't stop until you land. It's unbelievable. It's unbelievable the growth of that sector. Wow. Talking about unbelievable growth. You know, I often hear about just job markets growing.

but when you get something like a FedEx or an Amazon, you know that city is going nowhere but up. I mean, there are no alternatives. So that is awesome. So, you know, we talked a little bit about Indianapolis providing like appreciation and then depreciation and then cash flow. There are very few markets that offer both the appreciation aspect and the cash flow aspect.

So talk a little bit about the markets where there is a healthy appreciation, what does that market look like versus what a cash flow play would provide for an investor? Sure. So, I mean, typically, historically, those are very two different markets. It's rare for them to be one and the same, which they happen to be in a few markets right now, Indianapolis in particular. And so historically, we're at three to four. percent appreciation. So we beat inflation. There's a little bit of appreciation, but we were more of

a cash flow market, meaning that if you bought a house for $100,000, then you would get $1,000 rent. That is amazing returns. And our taxes are incredibly low. So you get amazing returns. The reason you get amazing returns is because the houses weren't that expensive. So as soon as an area starts appreciating, usually cash flow falls off of the cliff. Now, we're in a unique time where during this appreciation recently that Indianapolis and some of these other markets have had rents have actually outpaced this appreciation which is bananas because the appreciation has been double digit in markets that are traditionally linear and rents are outpacing them so in a lot of ways we feel like there's a safety net under that appreciation and a lot of appreciation markets

you always have to fear the big pullback or the crash. Indianapolis, we never really had to fear that. And the charts can show you. All you have to do is look at a chart of the United States in 2008 housing values versus Indianapolis. And we're almost a flat, straight line where the rest of the nation falls off a cliff. However, we have the rents to support this appreciation that we've gotten these last few years. So it might be the best of both worlds.

It's a very unique time. I am in multiple markets tend to be exact, and Indianapolis is absolutely the best of both worlds. And I would even have to say the best of three worlds, because not only do we have the cash flow play, and when we talk about cash flow play, we are no longer in the garbage houses. We are like right smack in the middle of the road. And then we're also in the appreciating markets where, yeah, there's less cash flow, but there's a lot of room for appreciation, just based off of what. Indianapolis is doing. But I know, Scott, that the team has gotten into this new build opportunity

in another little sector of Indiana. I'm not even going to say Indianapolis because it's a little bit of a ways away. But I'm just loving what is happening with this new build stuff that we're working on. So share a little bit about what you're up to there. Well, selfishly, Clinton and I have been building a lot of properties for ourselves over the last 10 years behind the scenes. So a lot of, we just finished a few years ago with a 30,000 square foot mixed use building. We've built some restaurants and some other stuff that we just hold. It's just fun stuff for us.

And as the inventory kind of declined that we could provide our clients with single family homes, we started saying, well, you know, these bigger projects are too big for them, you know, say our 74 unit apartment complex that we're building. Let's skinny this down. and let's go to these markets that are the most underserved in the state where these big builders did not go, where rents have increased at exponential amounts, and that where we can get favorable taxes for our clients.

And that has led us to basically the two, the second and third largest cities in the state, which are Fort Wayne and Evansville in those suburbs, because we can get amazing value and we can build a high-end product. We're talking, as you know, Mercedes, duplexes brand new build for under $400,000, brand new builds with incredible cash flow rents. So we're building a lot of those.

Tell me about, let's talk numbers because we're all about the numbers here. So $400,000, how much are we collecting in rents for one of the duplexes? Now, I know we're building single floors and two stories. Tell me really good about the numbers so we can dive into those returns. So the $400,000 purchase price gets you around $3,000. rents. You know, as you go up from there, 439,000, you get up into, you know, a little over 3,200 in rents. And then when you get into the 450s, you're closer to, say, 35 to 3,600. So the returns are amazing. That is insane. That's about better than anything that we're getting

across the market. Now, our students are always thinking about the 1% world, which in today's world doesn't really exist anymore. But what you're talking about is anywhere from like a 6 to 8% cash on cash return, which is not, I mean, that's amazing. Okay. With brand new build. With brand new builds. And I'm sure there's some kind of, okay, I know we're working on something because

our listeners are always complaining about the high interest rates. And my conversation all day long, Scott, is, listen, interest rates are not. high. I started investing when interest rates were like at a 14%. So I will take a six and a half percent anytime twice on Sunday when I compare it to that. We just got spoiled that during COVID, interest rates were at a, you know, two, three, four percent, which is probably not going to happen again in our lifetime. If it does, we're in trouble. There's bigger problems. Exactly. I was saying almost guaranteed. And we don't want it to go. low because if it goes that low, we got problems. So hopefully it doesn't go that low. I don't think

it's going to just based off of trends and what history has done. But I know that you're working on something here that's going to offer an incentive to our buyers. So can we dive into what the promotional rate is or what we're doing to help the average American buy properties as an investment for their wealth? Well, what I did is I bought a block of money. This is becoming more and more popular with builders. It's not as popular with a lot of the turnkey providers out there just because it wasn't a product that they could actually do. And we're going to try to maybe start doing it on our individual houses as well. But the builder buys a block of money, meaning that they pay, say, seven points on a million dollars so 70,000

dollars. Yeah. And that buys the rate down for anyone who uses this lender for their purchase. So we're able to get rates in the 4.99 to 5.99 area on all of

our duplexes. As long as I keep writing those big checks to buy these blocks of money. And it works out for us in a lot of ways because we were already doing some incentives that we already had about $3,000 a building set aside for seller-paid closing costs, and we were able to get a tax abatement on this project, in particular the duplexes that we're talking about during the

construction period, and that saved us. I think it saved us about $40,000. And so we basically just turned around and took that $40,000 that the government saved us with this one-year tax abatement and just poured it into the project to be able to have our clients have access to this cheap money. And it's amazing. And it's a normal Fannie Freddie product, just like normal. We just happen to have bought down the rate. I love it. I absolutely love it.

You know, when it comes to taking a seller credit of $3,000 or buying down the rate, I will take buying down that rate any single time I can, especially because I encourage all of my buyers to do a 30-year fix. Now, most of our products don't have a prepayment penalty, which I'm thinking is going to be the case with you. Having said all that, you're buying a brand new product that is going to cash flow. And with what rents are doing and how Indianapolis is performing, Indiana in general, there's no way but up to go from here.

So, you know, you get the appreciation, you get the cash flow. And then you get all the tax benefits and the perk of having a brand new build. Like, how can anyone go wrong? I know. And we were going to keep all of these. So this whole project started. It was just another project because we built our 30,000 square foot office building. It has a law firm on the bottom floor, a restaurant, and then 12 units above.

Right. Literally, you could hit a golf ball to it from this project. And so when we finished that project, we had a waiting list of renters because there's only 12 apartments in it. And so we said, okay, well, let's just build some more until rental demand fall. off because there's this giant housing shortage down there, a giant housing shortage in this area, giant. And so we started building this, but then we had so many clients wanting these and hearing about what we were doing. And, you know, as you know, Mercedes, we sit around a chat. What are you up to? What are you up to? And the word gets out and we realized we needed to let our clients have these

because inventory for single family homes across the country is it's getting harder and harder for investors to get. And so we needed to make these available. So this was genuinely a project that I developed for myself, for my partner and I. So we're going to keep, we'll keep the last, the goal is to keep the last five. I don't know if we'll be able to because of so much demand, but we're at least keeping two each. Yeah. So we're in the long haul for this because we believe in this as a long-term product. That was the whole reason that we built it was a cash flowing investment. and we put some pretty strict guidelines in place for the designs of the outside with low deferred maintenance materials. We designed this project all the way down to how the lights are set up on the house versus having no lights in the front yards, no HOA costs like that.

I mean, this was designed from the scratch as a project for cash flow that's high end for the area. I mean, it's as high end as it gets for that area. Well, kudos to you, sir, because God, isn't building any more land. And the way our population is multiplying, there is no way in the world that there is enough homes to satisfy the population growth. I mean, it's just... Eight million, I think Fannie said?

Eight million short? Yes. There is going to be within the next two to five years a huge shortage on just inventory. There is nothing out there. So, you know, when people jump into my cue to see the... available inventory and properties, and they're worried that they're not going to get a double-digit cash on cash return. I always say, you're not getting it today. Wait to see what this is going to do tomorrow. I mean... For sure. Yes. And so I spend a lot of time educating on just buy now and

hold it. You know, and I'm not huge on buying at a loss, but if you're buying at a break-even or just a little bit of cash flow, just hold it. Warren Buffett says, don't wait to buy real estate, buy real estate and wait. So I'm going to be the next Warren Buffett that duplocates that term because the reality is there is not enough inventory out there for the population that we have. If we don't build it, we're not going to have properties for clients because we can't compete with owner occupants. Investors can't compete with owner occupants. Owner occupants will pay more. They will pay more than a property is worth.

and until there's a housing built up, we're in a market, we're in a spot where I completely agree with what you said, which it's, you look for the best deals you can, but I am all gas pedal right now. I do not care about the interest rates. I'm all gas pedal because we need housing and there isn't enough and cash flow goes up over time. One of my best properties is one of my worst. So back in 1999, I bought this kind of for myself, a little condo, and it had almost no cash flow because it had HOA fees and all of this. This is way back in 1998. I kept it instead of selling it when I moved to my next house. That property cash slows over $1,000 a month now because rents have gone up, but my payment has stayed the same. Yeah. And because I got a 30-year mortgage. And, you know,

The beauty of real estate is every year, not every year, but rents go up and appreciation happens, but your payment stays the same. It's such a beautiful concept. And time in market is the most important part. Yeah. And this is the time. I mean, I say this all day long. This is the time to jump in because, you know, people are not jumping in.

God isn't making any more land. Population is growing and there is a shortage of inventory. So when you find a house that can produce a return and it doesn't necessarily have to mean cash flow, return can come in form of appreciation or depreciation or the tenant paying down the rent. I mean, it's just a win all the way around. You mentioned about the interest rate, about this example that you just gave with your condo. This is why I'm a huge fan of locking in the rate for 30 years. But I just recently aligned with one of my lenders from, I interviewed him last,

last week on a podcast from Highland Residential Mortgage. And he created a product where we are now offering whatever client buys any turnkey property and locks in a rate. If the rate drops by at least a quarter, he will absolutely refinance the property at no cost to. Whoa. Right? That's what I said. So, you know, at this point, if people are going to complain about it. the interest rate and if it even drops a quarter now I don't know if it's going to make sense

because you still have to pay the closing cost and the title fees but he's not going to charge you anything for doing that and just that in itself I'm like how much more of a guarantee can you get you know yeah yeah I'm a big believer like you on that 30 year mortgage you know I know people can save a little money and it makes it look more attractive up front on those five-year arms and some of that stuff but I'm a big believer and you know I'm a conservative though I'm boring We believe in buying good, solid real estate and sitting back and letting it work because it does it all for you. We're just big believers in that passive income and have been for 25 years now. It could be boring, but you're smart as hell.

Yeah. I learned a lot of lessons the hard way early in my career, and I'm grateful for those. And I'm grateful when I get the chance to save people from making those mistakes. That's part of the joy that's less. for both my business partner and I, we genuinely built this entire company around helping clients. That's it.

Everybody who works here, they genuinely care about helping people. So it's crushing for us when we see somebody go out and buy a garbage property, our client, and try to make it work because we want our lessons

to apply to them. But I understand it also. I mean, people told me the stove was hot like 30 times and I still stuck my hand right on it. As hard as I could, and then I held on

for as long as I. I could. So I get it. But yeah. It's painful to watch our students struggle. My clients, you know, try to go do it on their own. And, you know, I say if I had to do it all over again, I would, to this day, I would go turnkey a thousand percent. I will say, Scott, the last five years, Matt and I acquire real estate all the time. And we still buy directly from sellers. But I tell you, I will buy from my turnkey providers much faster than I buy from directly from seller. It's less work. It's already all done for me. It's better cash on cash return for me because I don't have to worry about a thing and my time is way too valuable. I agree. I wish somebody existed like me when I was trying to do this.

Well, that's where you and I created something like this. True. True. We were early adopters, weren't we? Yeah, we were. I started in 2000. I started real estate in 2003, but I didn't start this operation until 2008. But I started it because I was so burnt of being burnt that I'm like, I cannot allow this to happen to another individual. It just, like, I talk about it and it just burns me. I'm like, just, you don't need to reinvent the wheel. Come and learn from us. We'll hold your hand.

If you then want to do it yourself, go for it. You probably won't. We talk about you on our social media all the time. I think I told you this before we started this show talking beforehand. But it's true. You have a quiet presence out there in the market. There's a lot of people who have a lot of flash. and they're well known.

And you just kind of cruise under that radar, knocking it out, doing what you do, sharing this pretty conservative information that actually works. That's the beauty of it. It actually works. And maybe it's not all flash and it's fun to hear, but it's really neat seeing somebody like you who was an early adopter who really figured it out, share it with so many people, and finally really catch fire over the last 10 years where, you know, people are finally, you know, perking up and they've got their ears open to what you're saying.

And it's neat to see that finally because it's, there's a lot of the wrong thing being preached out there. And so we get really excited when we see folks like you preaching this really good information, this true core information and caring about what happens to these folks and giving that message. There's not enough of that out there. So kudos to you. It's been real joy to watch. Oh, Scott. Thank you so much. I think we've been working together, I don't know, eight, nine years. Yeah, a while now. Yeah, it's been a while.

And I remember walking into the office and, you know, speaking to you. And you probably have people sit in front of you all day long. And so it was an honor. And so I built my little portfolio in Indianapolis. And I tell you, it's not a huge portfolio, but it is solid. Yeah, that's awesome. Yeah, it's a solid little. Of course I remember.

You know, it's rare. You and I both are in front of all kinds of real estate people. all day, every day, and interesting people and successful people and shysters and a whole mix. But you and I clicked the moment you walked in my office. When you left, we were both saying we were working together. We knew it from the first conversation. I did at least. Yeah, no, we did.

And like three months later, we were already working together. Correct. You know, there's something to say about that. You're right. You know, Matt and I are not flash. You don't see our cars on Instagram. You don't see our houses. You don't see our trips.

And I often say, because none of that matter. to anyone. What's important is that I'm teaching you how to do something that potentially can make a difference for the rest of your life and legal legacy. I wish someone would have taught me that when I was young. I grew up dirt poor. So to me, it's more of than just Mercedes and Matt making money. It's about make a difference because if you make a difference in someone else's lives, it's going to make a difference to our world. It's 100% true. People don't understand that real estate is not just for the ultra wealthy. It's not even for the wealthy. It's for people like Mercedes and I who started with nothing, literally nothing. In fact, I started negative because I had student loans and not a college

degree. So I started, I hit the ground with negative. And if an idiot like I can do it, then we can help, then listening to Mercedes and following these steps, it works. It builds, generational wealth. And then the problem doesn't become, you know, how do I get out of this cycle of poverty or, you know, not having money generation after generation. You start to have new problems, which are, oh, shoot, I've created generational wealth. What kind of path am I leaving from my kids? And then that's another problem too. Having no money is a problem, but having a lot of money and a lot of real estate and passing it to your kids is another problem. We would rather see everyone in our boat where the problem is, how do you do that? Yeah, yeah, that's true.

We do spend a lot of time with how do you do that. And I do spend time making sure that I could provide what is available to other people. So I think that I'm about to share what Scott and I have created together for you, the listener, because we couldn't just stand back. And like Scott said, you know, he built this new build for he and his partner, but he's gracious enough to offer it. So what we have decided to do is we have decided to offer you the opportunity of coming to Indianapolis and actually diving into not only the properties that we have in Indianapolis, but definitely the new build. So Scott, do you want to talk a little bit about our property tour that's coming up on

August 4th and 5th, 2003 in Indianapolis, Indiana? and actually in Scott's office. It's being put on together by Cashless Savvy and Scott's team. So Scott, tell me a little bit about what our property tour is going to look like on August 4th and 5th. Well, first of all, we have a great time. So I'm going to start with that. So it's a fun time. But you're going to get to meet our entire team.

So we have a large company because we keep property management in-house. We manage about 1,000 doors. And you're going to get to meet a lot of those teams. We're also going to cover a lot of information about why Indianapolis more in depth than we could go to on this podcast, but more in depth on our market so people can understand the fundamentals. We're going to look at some properties. We're going to look at some single family homes that we've done. We're going to look at some finished product. And we're going to look at some available single family homes existing.

We're also going to go over all of these new build projects that we have all over the state. And we're not going to be able to – I don't have a helicopter, unfortunately, that fits, you know, 40 people. So we're not going to visit all of those projects, but we are going to cover them with a ton of media. We've got a whole media wall that we can show all the drone footage of these projects. You'll be able to walk away after this weekend, knowing everything that we're doing and what might fit for you, what questions you have will be answered. And we're going to have a good time doing it all. Yeah, we absolutely do. There is a lot of everything.

There's a lot of great food. There's a lot of great conversation. there's amazing mindset exchange with people that have the same mentality that you do. And then Scott's team is amazing. They are literally filled with just selfless at sharing their knowledge and just filling you with just everything that you need to make an educated decision to jump into a property in Indianapolis. So to get more information about our property tour, you can go to cash flow savvy. That's savvy with two Vs and click on the icon that says property tours and all of the information with our properties and the dates and how to sign up. It is coming up August 4th and 5th, 2003.

I'm saying the year because you might be listening to this out of sequence. But I would love to meet you there. Scott would love to meet you. Scott's assistant and partner Clint and Jamie and the entire team. We're going to be there for two days. on our website, you'll get all of the details of what the schedule looks like and what you'll be doing. Well, you'll be flying in all of that fun stuff. Scott, what else do we need to cover?

Did we miss anything about Indianapolis? What do we need to say? No, that's it. Just, you know, it's been a true pleasure. If anybody wants to learn more about Indianapolis in particular, they can always listen to the Homeboys podcast, which is a podcast, my business partner I put on. We talk a lot about it, Indianapolis. We actually talk about Mercedes on that podcast. podcast too, quite often. And because we're giant fans ourselves and we know we have a very similar

mindset and we're big, big preachers of what you're doing. So when people ask questions about, well, how do I learn? How do I learn? We always talk about Epic and what you're doing out there. So if people are interested in that and our perspective on the commercial buildings, we share a lot of that in the Homeboys podcast. Yeah. Please do. Please go on there. Give him a review. Reviews totally help his ratings. So do that. Five-star reviews are allowed. Do the same for cash flow savvy and the Epic Real Estate Investing podcast. To my listeners, I want you to know that we are here to give of our experience so that you don't make the same mistakes that Scott and I made. So we're all about that. Scott, thank you so, so much for taking your time. I know we went a little bit over time,

but taking the time to just share your story, but more so the amazing thing. that you're doing and the selfless act of building something for yourself and offering it to my clients. Thank you. That is awesome. My pleasure. Thanks again. Awesome. So to the listener, I look forward to seeing you in Indianapolis, but if not, I look forward to seeing you on the next episode of Epic Real Estate Investing Podcasts where cash flow is queen. We'll be back with more right after this. is delayed 50 minutes. Ugh, what?

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We have an absolute gem that will captivate busy professionals looking to invest in real estate without the hassle. Allow me to present to you a property that defines convenience, comfort, and an excellent return on investment. Step into this inviting home, and you'll be greeted by a pleasing exterior that sets the stage for what lies inside, boasting three spacious bedrooms and one and a half baths, this residence offers a very comfortable living space, whether you have a small family or a larger one. This home is designed to accommodate everyone snugly, ensuring that quality family time and relaxation become an everyday luxury. Built in 1961, this charming abode has been meticulously updated to meet the demands of modern living. The recent renovations include a new furnace, a new

AC unit, a new hot water heater, two new plumbing stacks, a new electric panel, new windows, and even a new fridge and stove. Every inch of this property has been given the care and attention it deserves, providing a seamless living experience for its fortunate occupants. When it comes to everyday essentials, residents of this home will find themselves in close proximity to the Spanish Lake Market, catering to all their grocery needs. Moreover, the surrounding area leaves no stone unturned, boasting an array of malls, small shops, banks, and parks. Everything your tenant needs for a convenient and fulfilling lifestyle is right at their doorstep. Before we wrap up, it's important to note that this property is currently occupied with a lease in place through February the 28th,

2024. Furthermore, the attractive rental price of $1,095 per month makes this an enticing investment opportunity for those seeking lucrative returns. Busy professionals who want to reap the benefits of real estate without the time-consuming tasks will find this property an irresistible choice. For more information on this exceptional property and others like it, I encourage you to grab a free investor package from cashflow savvy.com. Ever hear someone say, I have too much money? Me neither. Let's get you some more.

Back to the show. Joe Moore here. Rideline Development LLC. A little public service announcement here. Hey, business owners, did you hear? Your anonymity has been revoked. Big Brother is about to impose themselves into your affairs. What?

Is everybody going to know everything that I own? How much do they want to know? Do I have to reveal all my secret business strategies in the beneficial coercion information? What do you do when the beneficial owner's? skip town, leaving you all in the bag. I heard there's an army of inspectors on their way to my door to dig into my business. Is that true?

If there's only someone who could explain this to me like I was five. Hey there, kiddos, Captain Cacharoo here. Looks like you got the memo. So brace yourself because starting January 1st, 2004, there's a fancy new revision to the Corporate Transparency Act that's going to shake things up. The LLC reporting for 2024.

It's like a roller coaster, but instead of fun, you get forms. and more forms. But don't worry, I'm going to guide you through this exciting process step by step. Let's dive in, shall we? The Corporate Transparency Act of 2004 brings us the joy of filling out a beneficial ownership information form. It's going to spice up your life with rules and regulation. You get to share all your personal information with the government. It's like a trust exercise that never ends. Thanks for your cooperation. So here's the scoop. It has been a common practice for a long time that the owners of certain types of businesses like corporations,

and LLCs could keep their identities a secret. This means that they didn't have to tell anyone who actually owned the business. This law, though, it's an equal opportunity troublemaker. It doesn't care if you are a corporation, a limited liability company, or even a limited partnership, so buckle up. It's going to be a bumpy ride. If you're in charge of making important decisions for a business or own a big chunk of it, say goodbye to any anonymity you may have enjoyed.

That means, kiddos, you can't hide it anymore. If you don't follow their reporting rules, the penalties are serious. Jail time is even on the table if you don't follow the rules. And they're serious about enforcing them. And it's the Financial Crimes Enforcement Network that's watching. They have a new requirement in their Finsen reporting. Yeah, they named it after themselves. You see, the governor wants to know who's involved in your business

because it helps them keep track of any suspicious activities and makes sure that everything is being done legally. They're particularly interested in people who own $2,000, 25% or more of a business or have control over it. The information that they want, it includes things like your name, social security number, your date of birth, your address, and how much of the business that you own. This helps the government identify who's behind these businesses and prevents everyone from keeping secrets.

They say it's all a part of the U.S. Treasury that's responsible for fighting against things like money laundering and terrorism financing. But we know from experience that stuff like this, it doesn't stop the bad guys, but it does slow down the good guys as they're given their very own thrilling opportunity to tackle their very own American Ninja Warrior course, complete with an abundance of red tape, paperwork, trampolines, and hoops to jump through. Now, there are some important deadlines to reporting that you do not want to be late for, and I'll get to those in just a second, but while the primary goal is to target bad people and prevent them from hiding their stolen money, it will also impact

the good people. But not all the same. How this law affects the good guys, it depends on the size of the business, its structure, and how often ownership changes hands. So your experience, it might be different from your neighbor's experience. For those lawful businesses with absolutely nothing to hide, you angels you, the impact of the Corporate Transparency Act might be all about just paperwork. So get ready to comply with the new reporting requirements and spill the beans about your owners to the government. This new reporting process, it's going to take some extra time, some extra effort, especially for new businesses or when the ownership changes.

Now the deadlines. If a business was created before January 1st, 2024, they have until January 1st, 2025 to report the owners. But if a business is created after January 1st, 2024, they only have 30 days. 30 days. January 1st, that's game day. After that, it's too late. But here's the five-step game plan to help you minimize the financial damage, the punitive damage,

and especially the brain damage. Number one, step into the spotlight. Find out if your LLC falls under the reporting requirements. Embrace the fame. Freeentity.com will help you out with that for free. Two, gather your team. Collect the necessary information about your beneficial owners. It's like assembling an Avengers team, but just with more paperwork.

Number three, fill in the blanks. Complete the beneficial ownership information form accurately. Remember, precision is key to compliance. For, embrace the deadlines. Know the reporting deadlines and submit your form within the given time frame. I mean, who needs free time anyway? And number five, seek expert advice. Consult legal and financial experts who can navigate this bureaucratic maze for you.

I'm sure you've got a guy. But if you don't, my guy at freeentity.com will help you out. No charge. There are some specific wide-sweeping exceptions, too. None of this may apply to you in your business at all. If you want more information about these new regulations, or if you have questions about your own closely held business, you can contact my friends at freeentity.com.

Go there, book a free consultation, and ask away. The questions and answers, it's all free. Like, if you want to know, can a non-US entity be considered a reporting company? Or what specific information do I have to report to FinCent? Or what specific information do I have to report on the individuals in my business? Or who is considered to exercise substantial control over the reporting company? or who is considered to have ownership interest, or what are the exemptions, or who will FinCent share your information with, or just who can we contact with any additional questions on the CTA?

Go to free entity.com, book a free call, and they'll answer all of your questions, whether you choose to do business with them or not. But if you're there, give them a shot. They know what they're doing. And that wraps up the epic show. If you found this episode valuable, who else do you know that might too? There's a really good chance you know someone else who would. And when their name comes to mind, please share it with them. And ask them to click the subscribe button when they get here and I'll take great care of them. God loves you and so do I. Health, peace, blessings and success to you.

I'm Matt Terrio. Living the dream. Yeah, yeah, we got the cash flow. You didn't know home for us. We got the cash flow. This podcast is a part of the C-suite Radio Network. For more top business podcasts, visit c-sweetradio.com. Thank you.