PODCAST EDUCATION

Investor Spotlight with Graham Parham

Episode 019

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 invited seasoned investor, Graham Parham of Highlands Residential Mortgage to talk about his experience in the market and share some wisdom for new investors.

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 everyone, this is John Larson with another edition of the Real Estate Cowboys radio show. I’m excited about this week. We’ve got a great show. We have Graham Parham on the show. Many of my listeners probably know about Graham. I’m sure Graham might’ve done loans for some of my listeners. Uh, but we also had Graham on the show. He was the very first guest we ever had on the first ever Real Estate Cowboys radio show. So I’m excited to have him back on. This show though is about investor spotlight and some people might not know that Graham is also a real estate investor and so he practices what he preaches. He does loans for investors, Fannie Mae loans; but he also invests himself. And he actually owns a couple properties with my company, American Real Estate Investments and I believe we manage five or six homes for him in the DFW area through our management company, American Real PM.  

John Larson: So really excited to have Graham and excited to hear what he has to say and share some of his experiences with my listeners because he has been invested in real estate for quite a period of time and comes with a wealth of knowledge. He also works with a lot of the major turnkey providers, I’d say probably all the major turnkey providers in the US. And so he’s been out and visited these turnkey providers, visited these, uh, these cities and markets that they invest in. And so he’s seen a lot. And so I’m really excited to hear what he has to say about his own investments, his own investing experience, and just give us a little bit of insight on what he thinks about some of the other markets that he invests in because he does invest in a few different markets. So this is our first investor spotlight for any of my listeners who are listening to this show, who are also investors and would like to share their story.  

John Larson: I plan on doing more investors spotlights in the future. So if you’d like to come on the air and share your experience in real estate investing and how it may or may not have changed your life, I’m thinking most people, I’m sure real estate has changed their life to a certain extent. I know it’s changed my life drastically and so I’d love to have you on so you can share your story. Um, I think that the listeners would really respond well to that and I love hearing about people’s experiences and investing in real estate. I love hearing success stories. So I’m really, really excited to hear what Graham has to say. Um, so if you’re interested in jumping on the show anytime, any of my listeners out there who have a great story to share, just go to RealEstateCowboysDFW.com. Put in your information. Just send us a message, let us know that you’d be interested in, um and being on the show. And I’d be more than happy to give you a call and hear about your story. And if it sounds good, I’d love to have you on so we can share it with the rest of our listeners. But for time purposes, let’s just go, go ahead and get right into the interview. For those of you who don’t know, Graham Parham’s been a mortgage loan officer for over 18 years. He is a leader of financial expertise in the north Texas residential real estate market and has developed a significant following among home buyers and investors. Uh, as an active real estate investor himself. Graham has a strong insight on what his investment buyers are looking for to accomplish their short and longterm goals. He is well versed in the 1031 exchange rules and processes and is a great asset to the Real Estate Cowboys community. Graham’s team’s mission is to consult every investor based on those individual situations and goals. Graham was also ranked in the top one percent of all mortgage loan originators in 2017. He was ranked number four in Dallas, number 11 in the state of Texas and number 92 in the entire us. So that’s very impressive. So very excited to welcome back Mr. Graham Parham.  

Graham Parham: Hey John. Thanks for having me. I really appreciate it. I enjoyed visiting with you in many aspects, but I love doing the podcast with you as well.  

John Larson: Absolutely. In case some of the listeners don’t know, you were the first ever guest on the Real Estate Cowboys radio show, so you will always live in infamy for having that privilege.  

Graham Parham: Well, I remember listening to that after we got it recorded. Hopefully, this will be a lot better today,  

John Larson: So some of my listeners may not know that you are also an active real estate investor. You are practicing what you preach. You do a lot of investor loans for investors nationwide, but you also own turnkey properties as well. How long have you been investing in real estate, Graham?  

Graham Parham: Well, I’ve personally been doing it probably a little over 15 years. I’ve been working with an investor a little over 20 and I eventually pulled the plug after I kept seeing all these tax returns come across my desk, trying to figure out, you know, what do these guys know that I don’t, and I had to say, nothing. They’re just doing it. And so I jumped in headfirst and bought my first one sight unseen from an investor that I’d been working with. And then once I got the first one on my belt, you know, I bought eight the rest of the year. And you know, it was, it was easy. But I just didn’t have a lot of the direction that I have today from people like you, making sure I’m buying the right product in the right area and so forth. But yeah, I’ve been doing it for about 15 years, so I’ve got a lot of learning on my belt. I’ve made some mistakes, but I kind of know what I have to do moving forward.  

John Larson: Great. And that’s why I had you on the first ever investor spotlight. And so earlier in the show, I was telling my listeners, if anybody out there listening to this show, if you have a good story or a good experience in investing in real estate, you want to share that with us. Reach out to me at the RealEstateCowboysDFW.com website and let me know what your story is and maybe I’ll have you on a show to spotlight your investor experience. But onto my next question. What do you personally like about real estate investing over the other traditional investment options out there? On my show, you know, we primarily are talking about passive income, real estate investment options, whether it’s the turnkey rentals, some private lending opportunities out of an IRA or 401K, and you also know we do some stuff down in Belize. But what do you personally like about real estate over the traditional investments that are out there? Stocks, bonds, mutual funds, annuities, so on and so forth.  

Graham Parham: Well, I have a full-time job and I do have a financial advisor and he will call me periodically. I may get a call once a quarter, Hey, this is where we’re at with this. We probably need to buy that, Fine, let’s do it. I don’t ever argue. I never tried to study it. I just say if that’s what you think we should do, I do it. But beyond that, since I get exposed to the properties that these guys are buying day in and day out, I see the appraisals come across my desk. It’s so funny because every time I see an appraisal, the first thing I do is look and make sure it made value. The second thing I do is I go down to the middle of the, uh, report and start looking at the pictures because I want to see the product itself. I want to see how the rehab was done. I’d like to go take a look at the neighborhood. So, you know, I like to see touch, smell the products that these guys are buying. When I see something that’s attractive, you know, I mean, I kind of cheat, you know, because I get to see the stubble. Man, I want to buy one of those, and sure enough, I do. Just like when I see reports come across my desk, your clients, John, that’s why I ended up buying from you last year because you guys do a great rehab. So I kind of cheat in that area. I know it, I breathe it. It’s, it’s been rewarding for me, especially after my 401k went to a 101K. It’s, it’s all been good, you know, I have no complaints and I’m going to aggressively get more each year for the next five years. That’s my goal. If I get back up to 25, 30 properties passive wise, then I should be fine. 

John Larson: Yeah, I mean, 25, 30 properties, you could definitely retire on, owning that type of portfolio. Um, so that kinda leads me into my next question. Uh, you’ve been doing this for over 15 years. You said you were at 25. How many properties do you own now, and what markets are you currently investing in?  

Graham Parham: Yeah, I did a redo last year with an exchange. Got rid of some properties that I felt were fully depreciated in some areas that I wasn’t real pleased with–the asset itself–and then ended up buying in several different markets around the country. Bought several here in Dallas, obviously some from you, uh, also, uh, in Ohio, Florida, Alabama, even down South in Houston. So, uh, you know, I’m fond of Dallas because I’ve been investing here forever and Dallas is just you know, a solid market all the way through. And one of the things that I discovered is, last weekend, I was stumbling across a collaborative website called the Bigger Pockets and I’m sure many of you listeners are participating in that and just happened to go over to my profile and noticed it was kind of naked and so I said, well, I need to update it. And it had a little slot there for my investments. So I said, all right, well I’ll throw some up pictures in there and start doing some homework on some of the properties that I own. The two I bought from you, John, last year, I paid, one was 175K and another one was 171K. That was a year ago. And today the 175K is worth 214K and the 171K is worth 202K. And that’s in Dallas. And I couldn’t wait to call you when I found that out because I bought the product because it was a solid product. The cash flows were good, it was in a good area. I live and breathe in Dallas, I know that our appreciation percentages are nowhere near like they are in other markets. But I gotta tell you, I mean we knocked out a home run on these two guys and then the other ones were just as good. So, you know, I don’t really base my decision in the markets that I go in on the highly appreciable areas. I certainly don’t want to see anything in a depreciating area like some of the east and west coast markets are going at. But most of the properties that are in our strong turnkey markets, just like here, that’s what bases my decision.  

John Larson: That makes total sense. With that type of appreciation, and from what I remember, and I’m sure as a loan officer yourself, you took advantage of finance to purchase those two properties in Dallas. And probably put what, 20% down on those homes? 

Graham Parham: Correct. I mean, even though I’ve been in the business forever; but I see the numbers and it only makes sense to use leverage. Leverage is your friend. Use it. And because um, I can send anybody that wants to reach out to me after this podcast. An example: If you take $150,000 and you buy a house for $150,000 cash versus splitting that up into five properties with 20 percent down, you’re going to make more than double buying the five properties in cash flow than you will in having that one free and clear. So leverage is a friend, use it. Even though I’m Fannie Mae’d out. I’m over the 10 mark. I’m still using leverage on my properties.  

John Larson: Absolutely. I mean, well look, through the power of leverage, let’s say if you refinance those properties that you purchased last year or you sold them and you made that equity that’s been built up in those properties tangible, you just made a 100 percent or greater returns on your money just through appreciation. And we’re not even talking about the five other ways that real estate pays you.  

Graham Parham: I know! Uh, if I didn’t love the property so much, I’d do it, but I like properties and they’re keepers. If this was five years down the road, I may consider that. But, uh, yeah, I’m just going to hang onto them if you don’t mind.  

John Larson: Yeah, I don’t mind at all because we’re managing them as well, so… 

Graham Parham: That’s true. You are managing them. 

John Larson: So I’ll keep taking that management fee and I have no problem with that. Alright, so Graham, so explain to me how your team at Highlands Mortgage, Let’s pivot. Let’s go to you in your professional life. Explain to me how your team at Highlands Mortgage is the best solution for real estate investors seeking finance for investment properties.  

Graham Parham: Before I talk about the team, I have to talk about the company and what we can do to deliver loans into the secondary market because that’s what we all do. You talk to the president of our company, he’ll say we are an originating company. You talk to the guy in charge of our operational department, the VP of operation. We sell loans. Okay. And we do. Everybody does. The big boys, small boys. We all originate. We sell them to investors. We bundle them up. Okay. Back in the ’07/’08 bust, uh, there was a lot of knee-jerking going on, a lot of things that have required lenders to throttle back a bit on their decisions about how they want to do loans; especially investor loans, because the investor loans themselves are a hot potato right out of the shoot. It’s just a fact because they’re higher risk loans and one of the things that some of the bad guys were doing out there during that time period, uh, some builders, were having a team of scam artists bringing in a straw buying where they had the lender involved, the appraiser, real estate agent, the builder, everybody, and then they would buy properties and act like they were going to rent them out and six months later they wanted to default. Because of that scenario, they came back and rewrote the Fannie Mae guidelines that actually will penalize that environment that was focused on the builder at the time. But unfortunately, because you, as a turnkey provider, you are the builder. You’re buying a piece of property distressed, you’re rehabbing it, you’re rebuilding it, and you’re selling it. And the guideline itself says they don’t like to see the people that are selling the properties be involved with the management post close. Now to me and you and I, John, we both know that’s a benefit. Well, because of the way it’s written in the guidelines, many of the lenders out there will misinterpret that. Which means consequently a lot of them out there will not do turnkey property loans. It doesn’t matter if you’ve got 800 credit scores. Million dollars in the bank, make a million dollars a year. It doesn’t matter, and if the property’s solid, the whole nine yards, they just won’t do it. Because that guideline can’t be interpreted correctly.  

Graham Parham: So we as a company, we know our delivery, we know how to underwrite these things. I have my own two personal underwriters that understand the concept and we have no pushback whatsoever from underwriting. We have no problems when we deliver these loans, getting them back. So that’s really the key to success for anybody that does turn key property loans or investment property loans. Now as far as the team itself, in my opinion, I think we have kind of a well-oiled system. We’ll interview and talk with the client upfront to kind of understand their needs and their growth and how they want to build their portfolio and try to guide and direct them in the right way. Once we’ve had that conversation, then we want to get them into a pre-approved position before they end up in your arena because you certainly don’t want to go down the path and they can’t get the loan. And 99 percent of the turnkey providers will pretty much work very much the same way. So getting preapproved is the key and our preapproval process, in my opinion, is pretty streamlined. We give you the link to the application page of the website, takes about 10 or 15 minutes to fill out, my staff calls you back that same day and makes sure everything’s correct. We get the basic items that we need to validate your earnings and assets, like tax returns and bank statements. Once we have those, it takes a day and a half to approve and then we kick out the approval both to you, John, as well as the client. You find a property, you execute a contract, you give it to us, we run an appraisal, get the title work, we go to close. I know it sounds kind of simple. Yeah, we are in somewhat of an overly documented world because of the Fannie Mae guidelines, but we kind of know what we’re doing. We get everything up front so we don’t cherry pick you. So having my staff understand this whole mythology of how it works. Uh, really it’s an easy process. We have a new dashboard for all of our clients that they can see where their loans are in real time. They can see it from not only their mobile app, but they can see it from the website. Okay. I’ve got all my documents in, the appraisals ordered. It came back, the title came back. I’m clear to close, we’re closing on this day. They can see it, they don’t have to call us and email us every day. So that’s kind of another good piece that we just kind of brought into play, but that’s kind of how our system works. We think it’s user-friendly.  

John Larson: Yeah. And I think the real thing here is, it’s investor-friendly. A lot of institutions, a lot of other banks out there, you know, I’ve worked with almost everyone under the sun, I feel like. And there’s some companies that, like you said, they won’t even do turnkey, but then there’s some companies that try and do these turn key loans and they’re just not very investor friendly. That’s the best way that I can put it. I mean even like the big boys, the Chases of the world, Wells Fargo, Bank of America, I just did a deal with Wells Fargo at the end of 2017. It took them 90 days to close the loan. It was ridiculous. I felt like even the actual buyer himself was getting frustrated because we felt like he was going through two or three underwriting processes just to get this deal closed. And so it took forever, which makes me as a seller, not really want to work with those lenders either because we all want to close on these properties, on these loans efficiently. And I do feel like Highlands does a very good job at that.  

Graham Parham: It’s so funny that you said that. I got a call last night at 8:00. Yes, folks. I am 24/7, I will take your call if I’m available. This guy was trying to secure three properties down in Alabama. So he was competing on a bid that he submitted and it was actually to a real estate company. And what was hanging him up, his preapproval was from Wells Fargo and the agent calling him back says we don’t want to do business with Wells Fargo. So he calls me. We got the app going last night. We got him preapproved about 30 minutes to go. We shot the preapproval over to the real estate agent over in Alabama. He got the three contracts.  

John Larson: Boom. That’s what I’m talking about. 

Graham Parham: Yeah. So I mean the big boys, they’ve stubbed their toe too many times and when the consumer finally starts to figure it out, because take a look at even Wells’ new rebranding campaign; they’ve got to do something to gain face again.  

John Larson: Right. So let’s talk about rates. you know, everybody wants to talk about rates, where we’re at currently with the market. What are you currently looking at or what are we looking at across the country and what would you say to people who are a little nervous to get in the game and start buying more property or buy their first property because they think rates are too high?  

Graham Parham: Well, I’m going to fall back on some of the tenure of what I’ve done and working with investors for 20 years. You talk to any of the seasoned guys out there and they’ll all tell you anything below seven percent on an investor rate is a good rate and that’s still true today. The problem is we’ve all been spoiled by rates over the last eight or nine years and so we are seeing them go up a bit. You know, we’re definitely out of the fours on investor rates, we’re still on the fours on owner-occupied, and always keep that in mind because there’s always a difference between owner-occupied and investment. Could be anywhere from a half a point to say three-quarters of a point on any given day. So there’s four things that factor into the rate. It’s the percent of down payment, whether it be 20 or 25, the type of property, whether it be a single family or a multifamily, the loan amount, and then, of course, the credit score. And credit scores are thresholded by the highest of 740. They’re broken down into 20 point increments. So I just locked in one just a few minutes ago where there were down into the 680. They didn’t get quite the rate they were on the 740. Well, I’d say that was pretty close to being the same rate. They just ended up having to pay like a half a point or three-quarters of a point. I can’t recall exactly what it was because of that adjustment on the fico scores. So to answer your question in a nutshell, John, I’m off to give you a range. We could be anywhere from say five and an eighth to five and three quarters with no points and the five and an eight obviously would be the 25 percent down. Whereas the higher scores with the 20 percent down. That’s pretty standard for all lenders across the board, throughout the whole nation. So we are in the fives. The numbers still work even in the fives, so I wouldn’t get too nervous. They’ve gone up to the upper fives in some areas.  

John Larson: Right. And Yeah, I know some other groups like Highlands where their rates are actually even a little bit higher, so I was surprised to hear that. That’s really good. That’s in your favor. Now I’d like you to put your Nostradamus hat on. What do you predict rates will be, and maybe let’s say this next six months or to finish out 2018, do you think there’s a good chance they’re going to continue to trend up? Could they get above six or do you see them may be kind of holding at where they’re at for the remainder of 2018 or do you think there’s a chance that they could potentially go down again? 

Graham Parham: Well, if I had the true answer I’d be living on Wall Street. But the fact of the matter is, that there’s a lot of factors that are coming into play on how these rates are being determined. Obviously, economy has a lot to do with unemployment, so forth. Even our administration is starting to get a little more positioning in the Treasury Department with the number of people that are on that staff. They’re all, and I say Republicans, so, you know, I think, uh, our president is concerned about, you know, making sure that they’re stable. Uh, other factors and other rumors and economists, they’re all saying that we’re going to have another blip, you know, sometime in the third quarter. I’m probably going to say we’re probably going to get another blip in the third quarter. And the blip may put us right at six, maybe a little over, but I think we’re not going to go too much higher. I hope not because I’m buying a new house myself and I’m trying to continue to buy properties myself and I don’t want them to get too crazy. And once again, I’ll go all the way up to seven on an investment rate. I really will, uh, so I’m not too terribly concerned about it as an investor.  

John Larson: Yeah. No. That’s a great point. And yeah, that’s typically what I hear in the industry as well. Anything below seven on an investor loan really still is a solid rate. I mean, think about what rates were 30 years ago. It’s night and day. So, um, last thing I want to ask since you have over 15 years of experience with being an investor yourself, and 20 years of experience providing loans for investors, what, any advice that you would like to give new real estate investors? Many of our listeners, some of them are new, some of them are seasoned investors, some of them maybe only own their first one or two properties. What advice would you give new real estate investors and is there anything that you wish you could have done differently when you first got started in investing in real estate?  

Graham Parham: Yes. John, you and I’ve talked about this several times. It comes down to knowledge. Part of my job is to be an educator for my clients, to bring them into the world of lending. In today’s lending environment. I’ll send them out a guy and I’ll try to explain everything to them correctly, but that’s my job. Your job, obviously John, is to educate your bar, whereas in your clients on the products, the returns and so forth, and one of the things that I didn’t do, when I was getting started, is I didn’t educate myself. Real estate agent says, Hey, here’s the duplex, wanna buy it? I’d say, Sure, man! I’m in the market to buy, and of course, I bought it and sold it last year because it was a dog. But if you are looking around the country, even in your own backyard here, John, and if you guys want to do business here, I highly encourage you, jump on a plane, go down, shake hands with John, look him square in the eye. Let him show you some products. Get to know him. Welcome to come to my office, do the same thing, but you can do that in every market that you’re looking at. Okay? Get the knowledge, get the education, feel comfortable with those people that you’re doing business with. Because here’s what’s going to take place, is being the supply and demand right now, It’s kind of limited. So you know, you can have down here look at a property that John’s about ready to put on market, but somebody has already bought it. Okay. At least you get a feel for what type of products he’s selling. So when that next one comes up, you’re going to be shot an email saying, hey, look at this property. Here are the numbers. What do you think? Because if you don’t like it, 20 minutes from now, somebody else is going to buy it. Okay, and that’s the same way it is across the board in all markets. Okay? So educate yourself, be prepared, don’t delay when you see something that’s a good opportunity. Do not get your analysis for houses hat on because it’ll kill you every time.  

John Larson: Absolutely. I’m a firm believer in that myself. I know some investors that bought sight unseen or invested with the guy because he was on Fox News or whatever it was and they thought he was a good guy and turns out that the whole thing went south and it’s because they just didn’t do the right due diligence. They didn’t go out and meet the team, meet the property manager that’s going to manage the property, meet the provider. Look at the neighborhoods, look at the properties. When you’re first getting started. That is so imperative. Um, once you get one or two homes under your belt, you know, and you know, maybe you got a referral from somebody that said, hey, this is a good company. I’ve been seeing a lot of good returns from them. Their services is good. Maybe buy something sight unseen once you get a little bit more sophisticated, but early on, definitely fly out. Definitely meet the team that you’re working with and definitely go look at the neighborhoods and the properties that you’re investing in. I think that that is so imperative because if you don’t, you’re gonna… It’s just like any other investment, you know, there’s, there’s things, there’s pitfalls with every investment option out there. And with real estate, if you’re going to buy outside of your own backyard, you got to go look at it and you got to meet the team that’s responsible for managing the property and renovating the property and so on and so forth. So I think that that’s really great advice.  

Graham Parham: Oh yeah, I mean, like I bought three this year and I have yet to see the two of the three and I’m hoping to before year end. I just haven’t had time to jump on a plane and head out there. I’m not too terribly concerned because I know those people that have bought them from. So it does happen. I mean, you will own real estate that you’ve never seen and you know, some of the regulators, if they’re listening on board now, they go, oh my God, we hate to hear that because that’s what some of the things that put the downfall to the ’08 bust. That’s a bunch of bunk in my opinion.  

John Larson: Well that’s great advice Graham and it’s great to have you on the show to talk more about Highlands Mortgage and what they can do for investors, but also talk about your experience as an investor. That shined a new light on you for our listeners and I really appreciate you being on and we’re going to have you on again soon. I’m sure. So, uh, I appreciate it buddy.  

Graham Parham: No problem. And uh, if you guys need some additional help, you can reach me anytime. Like the guy last night at 8:00, you know, he called my toll free number. I just happened to be available. So you can reach me anytime at my toll-free number which is at 855-326-6802. If I’m not in the office it will hit my cell phone.  

John Larson: Perfect. And yeah, I’ll have your information up as well on the RealEstateCowboys.DFW.com website. Once again, Grandpa Parham. Thanks a lot.  

Graham Parham: Thanks, John. I enjoyed it.  

John Larson: Alright, that was great to have Graham back on the show. He’s a good friend of mine and he does a great job over at Highlands Mortgage and it was just great to hear about his experience investing in real estate because he’s definitely practicing what he preaches. Helps investors secure loans to buy turnkey rental properties. And he’s also out there investing in turnkey rental properties as well and works with a lot of the providers that I’m sure many of the investors are working with all over the country, including myself. So let’s take a quick commercial break and when we come back we’re going to wrap up this week’s episode of the Real Estate Cowboys radio show. 

John Larson: And welcome back to the Real Estate Cowboys. This is your host, John Larson. This week’s episode, we have focused on an investor spotlight of Graham Parham of Highlands Mortgage, and as I said earlier in the show, if any of my listeners would like to come on my show and talk a little bit about their experience investing in real estate and kind of give us some of the highlights or maybe even some of the lowlights lowlights as well. I greatly welcome that. I would love to have you on the show to talk about your experience investing in real estate and if that’s something that’s interesting, go to our website RealEstateCowboysDFW.com. Drop us a message and just let us know that you’d like to be on the show and give me your contact information. I’ll give you a call, we’ll have a conversation about what you’re doing and if everything sounds good, I’ll have you on the next investor spotlight, But a great show. Great to hear from Graham. I thought that he dropped a couple of different golden nuggets. Number one, you know, he said if he could do it all over again, he would have definitely went out and flew out to see the property that he purchased and meet the team that was providing the property, meet the team that purchased the property, did the renovation. Basically meeting the provider. He said that that was very, very important and I truly believe that that’s very important as well. Anytime you start a business relationship with anybody, I think you should definitely meet them face to face and when you’re investing in real estate, you really need to go look at the property and look at the neighborhood. Just because the spreadsheet says that it’s going to be a good investment. You know the numbers look good on the spreadsheet. It’s not always actual with real estate. If that property is in what I would call a war zone, bad neighborhood, it’s always gonna attract bad tenants that aren’t going to pay their bills. You’re going to deal with evictions, you might run into some theft and break-ins and things of that nature that can turn your investment into a really big negative, and turn it into a money pit and you definitely want to avoid that kind of stuff. So you really need to go out, do your homework, do your due diligence, especially the first go around working with any company. So I thought that that was great advice from Graham. Was also happy to hear that his two properties with us in Dallas, I think he purchased them a little over a year ago. It wasn’t exactly a year, but to see that type of appreciation. I mean, on the one property you’re talking about over $30,000, that’s just amazing. You know that right there. That goes back to what I’m talking about six ways that real estate pays you. Just in appreciation, we’re not even talking about the tax benefits. We’re not even talking about the cash flow that he’s earning right now. We’re not talking about the principal paydown of the tenant pain down his loan. We’re just strictly talking about appreciation. And if Graham was to sell those properties right now, and trust me, there are properties that are in retail neighborhoods where a retail home buyer would gobble those up easily. He’s getting 100 percent return on his money right there and we’re talking about 16 months, a 100 percent returns or greater. Greater with all the the ways that real estate pays you. So I was really, really happy to hear that.  

John Larson: And it was funny because what prompted me to do this episode is, he called me and he was all excited. He was like, it was Christmas morning and he was 10 years old again. Call me, John. You’ll never believe that the two houses I bought from you last year, they’ve already appreciated over $30,000. He was so excited and I said, Graham, I’ve got to get you on the show. I need to do an investor spotlight on you because that is the kind of stuff that I’m talking about. That is what I’m preaching. That’s what I want for all of my investors, is to see 100 percent returns or greater on their investment. That’s what I’m going for. So if you’re interested in that, if you’re interested in following the same path that Graham has, go to our website RealEstateCowboysDFW.com. Put in your information, get access to our properties, to our available inventory, to all of our passive income real estate investment options that are out there. Not just single family homes, but for my IRA 401k investors. If you’re self directed or if you’re not self directed, we can get you self directed and we can get it to where you can start loaning money out of your IRA or 401K, extremely passively. Earning double digit fixed returns on your money back into the retirement account, tax free or tax deferred. If you want to see 100 percent returns or greater on your money, let’s talk about buying properties in fast growing markets like DFW where we’re seeing great appreciation because of all the job and population growth that’s just being infiltrated into this market and if you’re someone who’s retired, on the cusp of retirement, you have a family, you’re looking for a vacation opportunity. A lifestyle investment is like what we like to call it. Then maybe Belize might work well for you. We’ve got some great opportunities and Belize I believe, Belize is one of the best areas in Central America right now to invest in a vacation rental, vacation home, private island, whatever it may be. All of these options are available. Just go to the RealEstateCowboysDFW.com website. Put your information in. There’s a ton of great stuff on the website as well. If you’re just looking for education. We got some great videos there. You can also go back and listen to old podcast of the Real Estate Cowboys radio show. In my book, The Passive Income Guide. It is almost ready. I know I’ve been teased and everybody’s saying it’s almost out. It’s right there. It’s going to be out on Amazon, I would say in the next week or two, so look out for that. I’m really excited about that book and once again, thank you all for listening to the show. We’ll be back next week with another edition of the Real Estate Cowboys. Remember what is your return on life. I’m John Larson. Thanks for listening. 

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.