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All the Reasons You Should Invest in DFW

Episode 079

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 getting the most out of marketing your vacation rental property.

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

Keith Weinhold: Hey, this is Keith Weinhold from the Get Rich Education podcast. You are listening to my friend John Larson and the Real Estate Cowboys. Don’t quit your daydream.

Robert Helms: Hey everybody. It’s Robert Helms, host of The Real Estate Guys Radio Show and you are listening to the Real Estate Cowboys.

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. We’ll 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 everyone. John Larson from the Real Estate Cowboys back after a little bit of a layoff. Been spending a lot of time traveling back and forth between Dallas and Denver and back to Detroit. But I spent a lot of time in Denver lately getting our CBD facilities online, our CBD extraction facilities. It’s just been a very long work in progress. Been taking up a lot of my time. Uh, needed to be up there, needed to have my eyes on the ground up there and making sure everything’s running according to plan. But we are back with some more great content. Started the new year here. It’s 2020 very excited to get started on a new year here, making all my investment goals for the year, making all my personal goals for the year as well. Goals that I have set for our CBD business Mile High processing in Denver and the Denver area. I have two facilities up there in Colorado, so we’re just really, really excited to get everything going off the ground there and just hitting the streets, looking for good investment opportunities for our investors, for our private money lending program.

We’re just about to close out a couple opportunities. One with our farm, if you’ve been following me, you know that we have a farm down in Belize, where we’ve started to grow hemp or processing to a CBD isolate or distillate in Belize. We have a, an extractor that’s being shipped down there as we speak. So we’re going to have a really solid operation down there coming, uh, within the next 90 days, pretty much. We just put seeds in the ground at the farm. We’re starting to grow hemp out there, planted our first 200 acres, which we will then take that hemp and process it to a crude oil and then refine it to a CBD isolate and distillate, which we will then sell to the big companies out there that are putting the active ingredient in all these products that everybody’s buying.

And we also have CBG on our radar, CBN on our radar. Those are additional cannabinoids that come from the plant that are also very, very, uh, finding out through research are, have very strong cancer fighting agents in those, in those cannabinoids as well. So we’re seeing that that’s the future of this business and we’re also trending towards that and making sure we’re staying on the cutting edge. So very excited about the possibilities and the opportunities that we have in the CBD industry and basically the cannabis industry moving forward. But we don’t want to steer too much away from real estate. Real estate’s still in our blood. Still big fans of real estate, private money lending program has been very successful since we started in May of 2018. We’ve raised over $20 million thus far. Many of these deals are starting to mature now and we’re going to be starting to pay back investors, hopefully roll their initial investment into future deals moving forward.

So I plan on having multiple opportunities in 2020 for our investors, uh, whether it be on the real estate side, which as you know, real estate deals are fewer and farther between, especially in the DFW area where it’s just such a hot, hot market. And that’s why this this week I wanted to talk about all the reasons why you should invest in DFW. I thought that’d be a great first episode to kick off 2020. Talk about all the great things in Dallas Fort Worth. But then also the, a lot of the great things that we are seeing in the cannabis space as well. There’s lots of money to be made, huge returns to be made for investors if you invest with the right strategic partner.

Not going to lie, there’s been a lot of bumps and bruises getting involved in this industry. Just the set up of the equipment in general has been, it’s been tough to say the least, but the light is at the end of the tunnel. We’ve just started processing our first batch of hemp. We have crude oil coming off the line that we’re selling to refineries or we’re taking to a THC-free distillate that we’re then selling to the companies that are putting it in in the products that everybody’s purchasing every day. So lots of opportunities there.

But I want to kind of circle back into real estate. Talk about Dallas Fort Worth. Why Dallas Fort Worth is such a great market to invest in, especially on the real estate side. I think that DFW is still a smart place for real estate investors to put their money. You know the stock market is reactive, but Main Street in Texas is proactively making DFW more and more attractive to industries, corporations and small business owners and individuals. People and companies are flocking to North Texas in droves and it’s not just for the sunny weather.

There’s tons of reasons why Texas is welcoming and here are the reasons why I think you should invest in DFW. And the number one reason is that the economy here is booming. There’s been a recent influx of new investors which has led to the diversification of the economy in DFW. There are many more Fortune 500 companies that have made their headquarters in this area with plenty more looking to invest. Even though this area is traditionally known for oil, there has been growth in numerous other industries as well. Some examples include communications, education and technology. Hearing a lot, a lot of news out there that Dallas Fort Worth is starting to become more and more involved in the tech industry. You’re seeing more and more tech companies moving here and you got to believe it’s because the low cost of living, an abundance of real estate here and there’s a lot of people here and there’s a lot of people moving here, so if you’re looking for positions to fill, this is definitely a place that you want to be. The workforce is very, very strong here, but with so many of these industries growing rapidly and innovation, reaching new heights in the Dallas area, this has led to a rapid influx of new jobs, right, leading to a quickening pace of economic growth and this provides an outstanding opportunity for investors, for sure. You want to invest in property where you know people are moving to, where you know jobs are moving to. It only makes sense.

Also, the rapid population growth in the Dallas Fort Worth area, which I just touched on, with the rapid influx of new jobs into the Dallas area, it should come as no surprise that the population of the Dallas area is growing as well. Historically, the city has had its roots in farming. However, with the discovery of oil, the population of the city exploded, right? This has been going on for years, decades. In the mind of many of the population growth has never stopped in Dallas with so many new industries coming to the area, new jobs are coming with them. This means new individuals and families as well. Denton and Collin counties are witnessing an unprecedented growth in construction industries thanks to new homes and apartments, a sign of a growing population. Denton and Collin County are North of Dallas, North of Dallas County, and that’s where you’re seeing Frisco, Plano, Prosper, areas like that that are just booming and have been booming for years. Statistics even show that the Dallas Fort Worth area is growing faster than any other location in the entire United States. As a result, investments are prime to provide a solid return on investment for all investors out there looking to invest in real estate in the Dallas Fort Worth area.

Another thing that I sort of touched on is Dallas has a lot of land. Of course, if construction companies are going to put up new apartments and homes, there needs to be land to do so. Right? Fortunately in the area around Dallas, there’s plenty of room. There’s an abundance of land in the Dallas area. It’s just, there’s so much untouched land out here, it’s crazy. But Texas is the second largest state in the country and construction companies are cashing in on contracts to build both public and private lands. For this reason, many people are looking to purchase land in Dallas, right? Just buying and holding land. The return on this investment has the potential to be of historic proportions if you buy it in the right area. Imagine if you owned land in Frisco, you know, just 20 years ago. I mean Frisco has blown up just in the past decade. There’s amazing opportunities to just grab some land in some areas that are not booming right now, but you see the potential for growth in the near future.

Another thing is, Dallas has a low cost of living. I think from the outside looking in, people think that Dallas is expensive to live. It’s really not. People are taking jobs here and moving out of California because of the low cost of living. There’s a tremendous amount of financial stability in the Dallas area, thanks to the low cost of living and comparatively high average salary. There’s a lot of jobs here. It’s home to the most corporate headquarters in in America. Tons of Fortune 500 fortune, 1000 companies reside here in North Texas. Because of that, you know, they’re quality paying jobs, they’re high paying jobs. So you know, you’re seeing the average income on the Dallas area is relatively high and when you pack that in with the fact that it’s relatively inexpensive to live here, you know, people are living a good life. That’s why people keep flocking to this area. That’s why companies want to move here. No state tax. There’s tax incentives for moving to Dallas, but it’s also, you know, just the quality of life that these companies can provide their employees. If your employees are happy, they’re gonna work harder for you. Right. Whereas in California, I mean it just feels like everybody’s living paycheck to paycheck. It’s so tough to live there because the cost of living is so high. It’s not like that here in Dallas. And I see more and more people moving here from California every day. It’s insane. Through talking with them, sure they miss the beach or they might miss the, the weather, you know, it gets quite hot here in Texas in the summer, but they wouldn’t trade that in for the quality of life that they’re experiencing here. So, and, and I would attest to the same thing.

Uh, this means that residents in the Dallas area may start to borrow at increased rates because there is a high higher chance of loan repayment, right. Um, this is reflected in a high rate of mortgages registered to the residents of the Dallas Fort Worth area, thanks to outstanding credit scores.

Finally, also the low cost of living means that residents of the Dallas area even have the potential to purchase property with cash, right? ‘Cause homes here are a lot cheaper, a fraction of the cost of what they are in California. The low cost of living in Dallas is powering numerous sectors of the economy leading to unprecedented growth. This has led many people to consider investing in the Dallas area as well. Right? We have a lot of people moving here. A lot of companies looking to relocate here, but also investors nationwide worldwide are also looking to invest their dollars in the North Texas area.

Let’s touch on the new jobs that are coming to the Dallas area. With the influx of companies and the rapid pace of economic growth in Dallas. It should come as no surprise that there are plenty of new jobs as well. The city of Dallas has ranked highly when it comes to job growth. Recent reports out there have shown that the Dallas area ranks first in job growth rate in the United States with the second highest number of jobs added this year. This job growth has powered the housing market as well. With so many new opportunities, job opportunities, the growth of the city is only going to continue for this reason. Many people are looking to invest in the Dallas real estate market as well. Right?

Also, we’re seeing low crime rates in the Dallas Fort Worth market. You look at areas, other areas of the country where there’s a lot of I guess population, a lot of job opportunity like Chicago for instance, very dangerous place to live. Crime rates are extremely high in Chicago. It’s not the same here in Dallas. So even though there’s been a tremendous amount of growth in the Dallas area, the crime rates have remained low. And you know, every city is going to have some minor crimes. Dallas is an incredibly safe area though when the city is safe, individuals and families look to move to that area. We have a lot of families that live within in Dallas, uh, within the uptown area that borders up to Dallas. And then the suburban areas that border right up to the city itself. Uh, many families live in these areas because it is relatively safe. That’s exactly what’s happened in the case of, of Dallas for sure. And people are looking to move to this area both to rent and buy. And like any metropolitan city, there’s going to be some areas that people should stay away from. However, there are numerous, numerous safe areas such as Capital Hill, North Dallas as a whole, University Park and more. There are tons of people who are looking to take advantage of the safety of the Dallas area. That makes this region and outstanding investment as well.

A forecast of the housing market in the Dallas Fort Worth area in 2019, one of the biggest reasons why so many people are looking to invest in Dallas Fort Worth is the forecast of the housing market. Land value in Dallas continues to appreciate as do the buildings that are built on top of this land. The sales numbers show that the housing prices are going to continue to rise. One of the reasons why these prices are going up is the young professionals that continue to move here and start their lives. So many transplants move into the Dallas area each day looking for opportunity, being relocated here for jobs because so many companies are relocating to Dallas. It’s been amazing. In the five years that I’ve lived here, I’ve seen so much growth year over year and so many new buildings, so many new areas, so many new apartments.

It’s just, it’s amazing how much growth that I’ve seen myself in just a five year period, but the demand itself for rental units in this area is only going to continue to increase, so it’s a great time to invest in the Dallas housing market. Most people that move here right away, they’re looking to either rent apartments or rent homes. They’re not really necessarily looking to buy just yet. They are new to the area. They kind of want to feel it out, see how the job goes, see what area they want to move to. Dallas is a very large city. I can’t imagine many people that move here, especially if you don’t have a family, are looking to buy right away. You’re probably interested in renting, which is why Dallas has like, led the nation or second in the nation, only behind maybe New York city, for new apartment development.

Just because of that fact, so many young business professionals moving here. I really believe there’s never been a better time to be a Real Estate Cowboy and invest in the DFW market. There’s better landlord friendly laws here, the booming economy, enormous real estate potential. I really believe investing in North Texas has never made so much sense before. It’s truly amazing.

So you know if you’re interested in learning more about investment opportunities at the Real Estate Cowboys and American Real Estate Investments, if you’re interested in learning more about how you can get involved in investing in the booming cannabis industry, we have many different options available to you. We have a great option right now up in Kansas City. Also, I couldn’t pass up on this deal on the Kansas side and a city called Lenexa where we’re doing a land flip. We’ve identified some land right in the middle, a huge development called the Lenexa city center that’s already been underway. Shot a great video up there. Definitely check it out. If you’re interested in taking advantage of a private money lending program right now that’s paying 10 and a half percent over 18 months. And then really the only reason we need the 18 month term is just land purchases and land sales can take a little bit of time. You know you have to get surveys done, environmental stuff taken care of, you know you have to get plans approved by the city, so on and so forth. We have an opportunity to buy a big chunk of land right smack dab in the middle of this Lenexa city center and you can look this up on Google just to see the old development as a whole and why it’s such a special development. Even the city of Lenexa’s is putting their public libraries there, their city buildings where their city officials are working are all in that city center as well.

And then it’s also mixed with high end retail, multifamily, retail and restaurants, so on and so forth are all being built in in companies are moving into that one next to city center. So we identified a piece of land. The seller is a gentleman that’s held land for a long time. Uh, we got an in with that seller to purchase the land at a very low price, which we could literally instantly flip for a profit. So it’s a really, really exciting opportunity. If you’d like to learn more about that, you can go to put your information in, we can get you out the PPM on that opportunity if you’re an accredited investor. But we have many other deals as well. We’re just finalizing the raise on our Mayan Farms. Raised down in Belize we only need a couple more thousand, I believe, to close that deal down. So if you want to get on that deal, that deal pays 15% annually. That’s an awesome opportunity as well. If you’re looking to get involved in investing in some real estate opportunities, becoming a private lender, just go out to a put your information in and a member of our team will reach out right away with more information on how to get started. But that’s all we have this week. This is John Larson signing off from Real Estate Cowboys, and always remember what your return on life. We’ll be back again next week for some more great real estate investment information. Have a great week, everybody.

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 heard 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, caps, mortgage or real estate advisor. As the information is not guaranteed and investment strategies have the potential for profit or loss.