PODCAST EDUCATION

11 Signs Of A Profitable Rental Property

Episode 029

John Larson and the Real Estate Cowboys talk passive income real estate investing.

Hear new episodes every Sunday morning at 8 a.m. The Cowboys talk about 11 signs of a profitable rental property. HINT: It’s not just cash-flow.

Keep the #CowboyCoffee hot while listening to John, and the Cowboys talk about how to #BeACowboy and earn passive income in real estate.

Episode Transcript

Announcer: Have you thought about becoming financially free through real estate investing, but don’t have the time or knowledge to get started? Welcome to the Real Estate Cowboys podcast. Each week we discuss passive income investment opportunities in the red hot Texas market. John Larson and the Real Estate Cowboys will show you how to leverage their team to build wealth in real estate through passive investment opportunities. And now here’s John. 

John Larson: Hello and welcome to The Real Estate Cowboys podcast. This is your host, John Larson where we are talking about real estate investing and passive income each week. This week we are going to be talking about rentals again. We’ve been talking quite a bit about private lending opportunities, becoming a hard money lender being the bank on commercial developments and land developments in the Texas market, in Dallas and Houston specifically. But now we’re going to turn it back over to rentals which is another great way to set yourself up for retirement, create passive income. And as we discuss on the show quite often the six ways that real estate and single family homes can pay you. So basically you know, when you’re looking to choose a rental property investment what should you look for? How can you tell if one property will be more profitable than the other? While you can’t predict the future, there are ways that you can make an informed decision about which rental property to invest in. Once you’ve narrowed your choices down according to your budget and preferred city, look for these 11 signs of a profitable rental property that we’re going to discuss here this week on the show. First you’re going to want to keep in mind some of the many ways that rental properties can be profitable to landlords and we do discuss this quite often on the show. We talk about the six ways that rentals pay you quite a bit. When you finance a property you are able to take advantage of up to six ways that these investment properties rental properties can pay you. 

And so how can a rental property be profitable? What are the six ways? And so it’s a mistake to think that rental properties can be profitable only if it cash flows. Although cash flow is one way that rentals can offer the owner positive returns on their money, there are at least five other ways landlords can benefit. Some of them are direct such as cash flow some of them are indirect. So here once again are the six ways that rental properties pay you. Number one obviously is the cash flow from the rental income. That’s pretty simple and self-explanatory. Obviously you’re going to have expenses each month to run your property. Property taxes, insurance if you have a loan on the property you have a principal an interest payment that’s due each month and any maintenance that may arise will be an expense. So any money left over after all those expenses are paid is your cash flow. Rental income. Number two is going to be appreciation or equity growth. So keep in mind, landlords also profit from the rental property through appreciation, and historically property values trend upward. Despite short periods when values sink; which as we’ve discussed on the show quite often lately you know I do believe that a recession is coming here and I do think we’re going to be running into a period where foreclosures are going to start to hit the market and that’s going to cause property values in certain markets certain neighborhoods to really take a bit of a dip. 

Now I don’t know if it’s going to be as bad as it was in ’08, ’09 but definitely expect to see a dip in the property market. We’re already seeing some cooling when it comes to buying all across the country. So that’s one thing to definitely look at. You know, over time your rental property value is likely to appreciate as long as you choose wisely to begin with. And so with the appreciation you can sell and realize gains and borrow against the asset or simply hold it in your portfolio as part of your net worth. So appreciation’s another big one and that’s why I list that one as second on the six ways that real estate pays you. The principal pay down from your tenants is another way that these properties pay you so by buying a property in a good neighborhood that’s going to continue to continue to attract good tenants with good paying jobs it’s more likely that you’re going to keep those tenants, and those tenants are going to keep paying their rent on time. And each month so they’re not running into any evictions. Well, with the principal pay down from your tenant if you have a loan on the property keep in mind that that rental income they are collecting is going towards paying down that loan and paying down that interest payment. 

So you know the caveat is that the property needs to be occupied first this to work, obviously. And if you successfully identify the signs of a profitable rental property and have a good experience with high occupancy rates over the long term you can conceivably get a property without ever having to make a principal payment yourself. So think about that. That’s pretty awesome. You get 30-year fixed debt on a property. You only put 20 percent down and you keep that property occupied to where that tenant is paying off that 80 percent loan and interest payment that you’re paying on the property. It’s a pretty good way to to generate income and another big way that rental properties pay you. Number four would be hedging inflation. So once again, locking in that long-term finance through Fannie Mae. 30 years at, let’s call it five and a half percent, you get that rate for 30 years at five and a half. It’s not moving. So as the buying power of the dollar diminishes you have already hedged your bet by locking in that long-term fixed debt at 5 1/2 percent. So another big way; that’s one that my buddy Keith Keith Weinhold from Get Rich Education likes to talk about a lot. Number five would be what I call equity capture. And so equity capture or it can also be called instant equity, is when you purchase a property and it immediately comes in, the appraisal is higher than what you’re purchasing the property for. So example, you buy a house for 150,000 dollars, the appraisal comes back at 170,000, essentially you have twenty thousand dollars of instant equity. At that point you can resell the property and profit instantly or retain it as an equity asset. Obviously you can rent it out and still borrow against equity to obtain funds to purchase another rental property for your portfolio. The property goes up in value or you buy a property with instant equity and it goes up a little bit and then you decide to refinance that home, pull that equity out and then use that as a downpayment to purchase another home. Great way to leverage your own properties, your own portfolio, to buy more real estate. Single family homes are like one of the best ways to help grow your portfolio from within. The last way that real estate pays you is obviously tax benefits and that’s a big one. And so the 1031 exchange is a big, big tool. So within a 1031 exchange you and your heirs can profit, you know, by deferring out your taxes each time you sell a property. So to do a 1031 exchange, keep the rental for a minimum of a year. When you’re ready to sell and do a 1031 exchange you can avoid the capital gains tax. And if you rinse and repeat this structure you can quickly climb the real estate ladder with higher value properties with each transaction and never pay capital gains tax. So your family will inherit the last rental property purchased but they won’t pay the capital gains tax either if they decide to sell. It’s basically called the STEP cost basis. So if you keep performing a 1031 exchange and you pass away and leave your property to your children, let’s say there’s five hundred thousand dollars of equity, two hundred thousand, one hundred thousand, whatever, in the property and then your child decides you sell that home. The IRS is only going to look at the actual value of the property when your child or heir took over ownership, inherited the property. So pretty pretty cool trick that the government, the IRS gives you for real estate investing. And there’s numerous other tax deductions and advantages that landlords also enjoy. And although it’s an indirect way to profit, the tax benefits can be substantial and we talk about this on the show quite a bit. Tax deductions encompass everything from the marketing of the property to the purchase of items to maintain the property. So maintenance and things like that, management fees, the deductions also help offset other income which the landlord has to pay taxes on. Those are the six ways that real estate can pay. And those, we love talking about those. Now once again if you’re just simply looking for cash flow we love our hard money lending, private lending opportunities, our debt syndication so to speak. So you and a group of other people lend on a development in Dallas or Houston, the borrower of that development–us– we’ll pay you a double digit fixed rate of return just like we would pay a bank. So cash flow, great option. Private lending model. But if you want to take advantage of all these other ways that real estate can pay you, and the tax benefits being a big one, then single family homes is a great great route for you. So when we come back we’re going to talk more about, or we’re going to get into the 11 signs of a profitable rental property. So as I said with rentals if you leverage them they can pay you up to six ways. Now let’s talk about how to identify the right property so you can consistently be paid these six different ways through your rental property. So we’re going to take a quick break when we come back we’ll dive into those 11 signs of a profitable rental property. Stay tuned.  

We are talking about this week on the real estate cowboys, we’re just about to get into 11 signs of a profitable rental property. These signs, some are easier to spot. And you’re going to have to do research on others. But whatever you do, we talk about this a lot, don’t skip your due diligence. Always conduct your due diligence. And if you don’t have the resources to find the answers that you need to determine if a rental property is profitable or not, seek professional assistance; Realtors in the area, whatever it may be. So let’s get into the 11 signs of a profitable rental property. Number one would be a healthy neighborhood. So what does that mean? You know the neighborhood, it doesn’t need to be pristine with manicured shrubberies and mansions on every corner. But it does have to be a reasonably healthy neighborhood. And so what does a reasonably healthy neighborhood look like? Well, it means it’s not falling apart. A healthy neighborhood typically has a higher rate of occupancy. In other words, you know, the lawns aren’t dotted with For Rent signs or For Sale signs and there aren’t homes that are boarded up. You know, a healthy neighborhood typically always has higher owner occupancy rates. So you have more owner occupants in the neighborhood than renters. You know,so I’m talking about those high B to A class neighborhoods. And if the majority of the occupants are homeowners that usually indicates it’s a desirable neighborhood where people want to raise a family. And it also sets you up for what we like to talk about, exit strategy on the show. 

If you’re purchasing properties in good neighborhoods where owner-occupants want to live, if you decide to sell your property one day or you know these are usually the areas where you see higher appreciation with properties as well and you want to cash in on the appreciation aspect of the six ways that real estate pays you, then I recommend buying in these high B to A neighborhoods where owner-occupants you know are living in and it’s heavily owner-occupied. Because you know you could quickly exit out of it by selling it on the retail market to a homeowner who doesn’t care how much it runs for or what the cap rate is. They just want to move their family in there because it’s a good neighborhood, good schools, amenities, so on and so forth. Now a healthy neighborhood is going to generally be clean looking; the neighborhood should look like the residents take care of it and there shouldn’t be litter and graffiti up and down the street which are things that could deter tenants or only attract tenants that you don’t necessarily want living in your house. And that’s what you’re going to find with a lot of these low C to D neighborhoods that look great on paper for cash flow. Oh they look excellent but then you buy it and you start to discover this isn’t what I bargained for. This is not what I signed up for. All I’m having is problems. And I bet if you go with your family and drive through that neighborhood you’re probably going to feel pretty uncomfortable, okay? And so that’s why number one we like to talk about a healthy neighborhood. Number two would be the amenities; plentiful amenities having a lot of amenities nearby. And so you’re going to also want to check out the surrounding areas where you’re buying your property, you know are there amenities like simply sidewalks, nearby parks, street lights. Street lights are important especially when you know, more high crime neighborhoods you don’t have street lights and it’s really dark at night, you can see more thefts in these areas and things like that. So those are little things that you want to look at. You got to start thinking about how you would market the rental property, you know. What is appealing about the area. What could you say in the advertisement? Is it close to public transportation. Is it near major major shopping areas, gyms, cafes, the local cultural scene? These are all things that would make a potential tenant more likely to sign a lease. Is it close to businesses and jobs and you know things like that? And so remember the more amenities around the property the better chance of keeping the rental leased out year after year. Thereby ensure ensuring that it’s profitable, right? So amenities are important. It’s a big deal. You know obviously properties that are near like, you know, a downtown type area where there’s a lot of retail and restaurants and you know some businesses. Those are always going to be in demand. You know they’re always in high demand but those are going to typically be your A class type of neighborhoods, you know? So the cash flow on those might not look where you want them to look right but the appreciation is there, the opportunity to consistently keep the property leased out with good tenants, that’s there, you know, so you can’t just look at it about cash flow. 

Ladies and gentlemen, you want to cash flow, do the private lending. You know, I can’t say it enough. If it’s just cash flow you’re looking for, a debt syndication with first lien position is the best way. Taking the role of the bank is the best way to build a passive income stream because you know what we’re going to make each month to the penny. But if you want appreciation, you want a tenant paying down your principal balance because you want to leverage an investment, 80 percent of value, then rentals is definitely the way to go. But suddenly investors come to me with this misconception that rentals are huge cash flow generators. It’s not necessarily true especially if you’re getting a loan on the property so if you just want a cash flow, that’s your only priority, that’s your only goal is to supplement income, replace income, private lending is a good option. 

Number three is a garage. Simple as that. If the property has a garage or even a car port you can charge a little bit more for rent which helps the rental property to be more profitable. You know, there are some things that some people take for granted. But honestly if I’m going to rent a property you know, I want a garage. OK. So I see if it’s in you know a state where it snows, you know or a state or a property that doesn’t have a basement, you know, a garage is a great way to have some extra storage. So that’s some things that tenants look out for. So when you’re looking out for rental property you at least have a carport, especially if it’s in, you know, an area where it snows because it’s a pain to have to clean off your car every morning. Trust me, I lived in Michigan, I had to deal with that. You know, that’s something that’s simple but I think is something that is needed to have a truly profitable property. You know, if the property has a driveway but no garage you can still consider that a good sign because you can advertise it as an off street parking which is another value feature for most prospective tenants. You know if you have to park on the street that’s not that attractive. You know at least there’s a driveway there as well but hey maybe building a carport; that would help. You know but if you want to make sure you’re hitting all these 11 profitable signs, you know, look for one for a garage and at least a carport for sure. So number four would be positive job growth in the area. If you can find a property in an area with positive job growth that’s going to be a good sign that the rental can be profitable. People are always going to follow jobs. If you see companies moving in that’s a strong sign for expansion and hiring. So that’s what we see here in Dallas, lot of job growth which is driving the population growth. Positive job growth is also a good sign because it means your future tenant has a good chance of not losing their job over a poor economy. To research job growth in an area pay attention to the local business news, job board web sites and browse the U.S. Bureau of Labor Statistics website. That’s a great way to see what type of job growth you’re seeing in the area. 

I’m a firm believer in following jobs for good investments. There’s companies moving into a city for a particular reason. It’s a great reason to look for a rental in those those markets and that could prove to be a very profitable rental. And so that’s what we’ve been experiencing in Texas and Dallas and Houston specifically is so much job growth that’s causing so much population growth that makes it a lot easier to keep our properties leased and also are causing property values to go up. So our investors that bought with us years ago are seeing a substantial amount of equity in their property at this point. 

Number five is going to be renovations, reasonable renovations. So a rental property can have almost all the characteristics of being profitable. But if the repairs and renovations are going to drain your bank account ultimately you’re going to lose money on the deal. This is why you should never invest in a rental property sight unseen. Additionally you should always have a thorough inspection done to determine the extent of the necessary repairs and renovations that will need to be completed before it’s in rentable condition. If the renovations are within reason even a fixer upper could turn out to be a profitable rental investment. Always conduct your due diligence, always get a third party company, a third party inspector to go in and check the property out. Just cross your T’s, dot your I’s. That’s all I’m saying here. And you know there’s going to be people out there that are going to do, you know they’re trying to cut corners on rehabs. It’s just, it’s the nature of the business. So you want to make sure that you’re buying a property, especially if you’re nearby sight unseen, definitely have the third party inspection. You know what I recommend, hey if you have time, go out with the property. That’s also a tax write off for you, flying out to a city to check out the property, travel costs. You know things like that, because you’re investing or investing in the property or you own properties out in that area already, you want to go and check out another one. It’s a write off for you. 

Number Six would be a good reputation. Certain neighborhoods and cities develop reputations as being more desirable than the others. These reputations can stem from intangibles like being a cool, trendy or Up and coming place. If you hear good things about an area, chances are there’s a stampede of people wanting to move into the neighborhood, right? You may pay a bit more to buy in a neighborhood like this. But there’s also a great chance that the rental property you find will be more profitable simply because the area’s reputation. You likely won’t have to worry about the property going vacant for any great length of time. In a place like this when one tenant leaves there’ll usually be a line around the corner with others wanting to move in. And that goes back to the amenities right. You buy close to, like it reminds me of where I grew up. In Detroit there’s an area called Royal Oak where it’s you know really cool, hip and trendy place and you know the homes in the neighborhood, a lot of them are older properties that have been, you know refurbished and renovated and now they’re brought up to cool kind of trendy standards. And those houses, they sell like crazy and they rent like crazy. You know, but you’re in walking distance from downtown Royal Oak which has got a bunch of restaurants and nightlife and things like that. So that’s where you would see this good reputation that I’m talking about here. 

Number seven, low crime. Typically with C class neighborhood, D class neighborhoods, they’re are going to be high crime areas and so low crime areas are always going to attract good tenants. High crime areas are generally going to be tenants that you’re going to run into evictions and problems. The better your tenants, the more profitable your rental is going to be. Low crime areas are where prospective tenants with families feel safe enough to live long-term which equates to reduced vacancy rates for you as the landlord. Pretty simple. Also ,low crime areas provide you the security of knowing that there is little chance of break ins and theft in your property should the property become vacant in between leases. We talk about that a lot too. Because I’ve seen that a lot of times. You buy a property in a not so good area and the tenant moves out or gets evicted, the property is vacant. You’re doing a turnover. You put in a new fridge, you put in some new appliances, you do whatever. Also the property is vacant so you know you could steal piping whatever it is or just people break in and just squat in there or vandalize the place just for the fun of it – kids. You know that’s typically what you’re gonna see in high crime areas. So that’s a great way to just go ahead and light some money on fire; to buy a property in a bad neighborhood that’s got high crime. Low crime indicates that a neighborhood in general is better and property values are likely to either maintain or grow over time. So, you can check crime rates for an area with a simple phone call to the non-emergency line of the local police department or by checking online statistics. One that I like to use Trulia. That’s a pretty good crime indicator. It’s got a map where you can see, there’s like red shaded areas that you really want to avoid because there is very high crime in those areas. If you’re looking at an investment property in a neighborhood and it comes up green, you know, on the map, then you should be in a good neighborhood. But it’s always smart to do a little extra due diligence as well. And you know that goes into driving out and going in and seeing the areas and seeing the neighborhoods. You know people have a general feeling of, “Hey I feel safe here. This feels like a safe neighborhood.” You know, so that’s why I always recommend it’s good to go look at the neighborhoods and look at the areas that you’re investing in. 

Number eight is do not buy in a flood zone. So I’ve accidentally bought in a flood zone before, or flood zones have changed while I’ve owned a property and that kind of stinks. But you know another sign of a profitable rental property is not being in a flood zone. Flood zones cause extra insurance. You know, they’re going to require you to carry flood insurance which is something that will eat into your profits. And so even though home insurance premiums are tax deductible they can be very pricey and when possible you want to purchase a rental property where extra insurance isn’t mandated. Like even buying in some areas of Florida, if you’re on the ocean or any coastline you know where hurricanes are prevalent, they’re going to require you to have this extra storm damage which can really eat into, you know, costs and things like that and profits. And so you have to be careful about that. 

Number nine, pretty self-explanatory, but good schools. It’s a huge plus if your property is located in good school districts. That typically means that you’re going to get good family-type tenants. People that are more probable to stay long-term, less turnover you know stable families with kids in school are going to be attracted to those type of rental properties. And like I said, it’s going to minimize your risk for vacancy innovations and things like that, you know, and also schools they tend to go along with the overall quality of the area which equates to less vandalism, things like that. And also it helps you with a better exit strategy as well. You know if you own a property in areas with good school districts you shouldn’t have a problem selling that home one day and selling that home for a profit. So you can get good school rating information online; Zillow is a good indicator but Greatschools.org is probably the best way. It’ll give you more schools that are in the area. So sometimes Zillow will just poll, just the nearest elementary, the nearest middle school, the nearest high school but there’s actually other schools in the area where, you know, these children can also enroll into. So Greatschools.org is a good one to go to. 

Number 10 is going to be, buying at the median range, right? Like the median home value is what I like to talk about here on the Real Estate Cowboys. I like to buy properties that are at, or very close to whatever the median value is in the market that I’m investing in. And you know everybody wants to get a great price on a rental property. However, a great price doesn’t equal great value, okay? So if the median home value’s two hundred thousand dollars in a market, I’m not going to buy property at 100k even though I think it’s a good deal and the numbers look great on a spreadsheet. If the median value in this market is 200K, a $100,000 house is not going to be in the best neighborhood which means it’s probably not going to hit any of these 11 profitable signs of a rental property, okay? And it’s not going to be able to get you the up to 6 ways that real estate can pay you. So that’s a very, very important thing. It’s a strong sign of a profitable rental if the price is within a few thousand dollars or a few tens of thousands dollars of the median home value in the area. So if the median value’s 200k and you buy a $150,000 house are probably still in a pretty good neighborhood. But 100k would just, in my opinion, be deviating far too below whatever, you know, that median income there; which means the property is not going to be positioned in the best area, okay? And when you buy within the median range you can be assured you’re buying a high B to A class property that has the best potential of giving you a high rate of return and not just, not just cash flow. The appreciation, the fact that you can keep the property leased more consistently, the fact you are keeping the property leased with good tenants,right? So you know, you need to, you need to make sure you’re avoiding buying too high over the median value as well, because this is definitely going to impact your bottom line, right? Properties that are well above the median value, those are going to negatively cash flow, probably, And so you’ve got to be cautious of that as well, right? You get a loan, the loan, the principal and interest payment is much higher also, that’s going to cut into your profits, right? Your rent might not be able to cover all of those expenses; your loan payments, your taxes, so on and so forth. So just like I’m saying don’t get yourself into trouble by buying too far below the median value. Don’t get yourself in trouble by buying too high over the median value. right? 

The final thing at number 11 would be curb appeal. And so prospective tenants appreciate when the rental property looks desirable from the outside. You know there’s a lot of times where I put sod in my property because there’s a lot of just, you know, bare patches, and we all know that a well manicured lawn with, you know, nice grass is always going to be attractive, Right? I’m not saying go crazy on the landscaping because you don’t know if the tenant’s going to take care of it or not. But it’s nice to plant some bushes that, you know, don’t need too much maintenance, and it’s nice to put some new mulch down, maybe build a little retaining wall. You know something like that just so it’s got a nice little cute kind of feel to it. That will help you really lease a property quickly. You know the outside looking nice. And I’ve had tenants, it’s crazy you know we do these high B to A class properties in Dallas and Houston and I’ve had tenants that move in and they actually do their own landscaping. 

They make the house look nice themselves just because it’s a better quality type of tenant. You know, they make better income and hey, they want a nice house too, even though they’re renting. And although the landlord didn’t put the expenses for it into the landscaping doesn’t mean that the tenant won’t do it. Hey, and if they do that that’s an added bonus for you right because they’re not taking that landscaping with them when they move out, more than likely. So you know that’s a pretty important thing. And I myself, you know, I even look back to when I’m looking at houses or when I’m looking, you know, when I was looking to rent houses or properties in general; the outside and the curb appeal of the property played a big role in my decision. You know if they had a very cool, nice, inviting outside I was more apt to rent that property, right? And I think my property management team, if they were here, they would say the same thing. Decorative touches like landscaping, painting the house, a fresh coat of paint, window boxes where you could put flowers in. You know that stuff, it seems trivial but it does add up. And this sometimes can lead to better profits. So I think curb appeal is a very important one. So we’re going to take another quick commercial break and when we come back we’re going to wrap up here with another episode of The Real Estate Cowboys. Stay tuned. We’ll be right back. 

And welcome back from that commercial break. This is John Larson with the Real Estate Cowboys. This week we have been discussing once again the six ways that rental properties can pay you. But then also 11 signs that can point you into a profitable rental. And the last one there was curb appeal and how important I believe that curb appeal is. Yes inside the property. Nice. You want that to be nice. Obviously you want to have your mechanicals in good working condition so you’re not having a lot of maintenance costs and things like that. You don’t want your tenant making maintenance requests every month. That’s going to cut into your profits, especially on the  cash flow, right? But you know, having a nice outside, you know, putting some flower boxes, like I said, planting some bushes that are easy and easy to maintain. New mulch. You know, if there’s a lot of patches in the front lawn and, you know, just having a nice lush lawn really goes a long way. And so you know to finalize this whole thing you know the 11 strong signs of a profitable rental property. You know if you can check off all or most of these indicators chances are the property’s worth a closer look. And so of course you’re going to want to consider your financial circumstances and the advice of your trusted financial professional before making any final decision. But, you know, if you’d like some assistance on finding a profitable rental property or turnkey rental property you can always contact our team here at the Real Estate Cowboys or at American Real Estate Investments, which is my turnkey company. 

Also my development company where we’re developing office buildings, single family lots down in Houston and selling them to A class builders like Lennar and Century Homes and all the big publicly traded builders here in America. We have a lot of options for you and if you’re interested in earning passive income and starting to generate passive income, you’re looking to supplement income, you’re looking to replace income. You’re looking to build your retirement account. You’re looking to build your financial future so you can retire early or retire comfortably. We have a ton of great options and the two best ones I would say is definitely rentals and our private lending opportunities where we, that are basically debt syndication opportunities where we let a group of investors common lend on a commercial or land development in Dallas or Houston, which you know I love these markets because of all the job growth and the diverse economy that we have here. Texas being the 12th largest economy in the world. It’s a very positive sign and great markets to lend money on for developments to earn a double digit fixed rate return on your money and monthly dividends that you know you can rely on to the penny. Private lending is just one of my favorite favorite models right now for my investors who are looking for just a solid consistent cash flow stream. So if any of these opportunities sound good to you, you can go to RealEstateCowboysDFW.com Put in your information. We have reports there and packages that talk more about our opportunities you can find these on on Real EstateCowboys.com or on AREIUSA.com. There’s a ton of information on both sites; blogs, videos, quizzes. You know, finding out what type of investor you are; if you’re not sure what route’s best for you, take our short quiz. It’ll tell you what’s the best option for you based on the answers that you give us. And then also we have the Passive Income Guide available, that’s a great book to read. The hard copy I believe, it’s only $6.99. You can get the the web version, it’s only like three dollars. It’s a great read. A very quick read, but talks a lot more about what we talk about here on the show. So if you’re interested in private lending there’s great information in there; what’s the benefit of investing in stocks versus real estate. There’s great information in there. 89 questions you should ask any property management company before you decide to hire them. That report is in that book. We talk about our lifestyle investments as well, stuff that we’re doing down in Belize, vacation properties, if that sounds like a good option to you. Something that you can use when you want, when you don’t want to use it, you just rent it out to a multitude of people that come to us through VRBO, AirBNB, so on and so forth. Actually, one of our islands, Little Harvest Cay, was picked up by a company called Thrillist which is a news and media company and they post a lot of stuff on Facebook. They have 6 or 7 million followers on Facebook and they posted a video about one of our islands, the first island that we ever did in Belize and it’s up to over 30 million views so we’ve just been getting bombarded with rental interests for our islands and our vacation homes down in Belize. So that’s interesting as well. We do tours every month down to Belize. We take investors down there to show them the opportunities that we have on the vacation rental side. 

And so if you’re interested in that, RealEstateCowboysDFW.com, put your information in. We have three great options; rentals that can get you the six ways that we named today. Six ways that they can pay you. If you want just cash flow, I definitely recommend our private lending opportunities, look into that. We’re finalizing a raise right now that I believe’s going to close this week. Another deal in Southlake Texas which is a wealthy suburb of Dallas. That one’s about to close. But we’re about to start another raise right here at the start of November. So, it would be a great opportunity to get in on a new deal by becoming a private lender and joining our private lending program. Because it’s not just this one investment that you can lend out. We can continue to roll your initial investment into future deals and just keep that money working for you. And if you have a self-directed IRA or 401K, then that money is going back to you tax-free or tax-deferred depending on the structure of the account. If it’s a Roth, tax free; traditional self-directed account through an IRA or 401K, those taxes will be deferred, right? So great options. Visit our website. Put in your information if you want to learn more and speak to a member of our team. But for now, this is John Larson signing off. Always remember, what’s your return on life. Have a good week everyone. 

Announcer: All opinions expressed by the host of the show are the opinions of American Real Estate Investments LLC and do not reflect the opinions of guests or sponsors. No personal or professional advice on this program should be considered an endorsement to follow a real estate financing or investment strategy. Before acting on any information, seek advice from your financial tax, mortgage or real estate advisor, as the information is not guaranteed and investment strategies have the potential for profit or loss.