Get Our Exclusive DFW Fortune Mag Headquarters Maps!

<p>Watch your email and check your spam!</p>

PODCAST EDUCATION

Investor Spotlight With Pioneer Homes CEO Al Beahn

Episode 054

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 to Pioneer Homes CEO Al Beahn about his experience in real estate from single-family rentals to multi-family expansion. Check out our Investor Spotlight!

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 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: And welcome back to another edition of the Real Estate Cowboys. This is your host, John Larson. This week we’re going to be doing another investor spotlight. I like to highlight investors who are having success or come with a lot of knowledge in the real estate space from time to time. Just because, you know, I’m sure you kind of get bored just listening to me get on my soapbox each week. So I like to bring other successful investors on and talk about their experience of investing in real estate and how it’s changed their lives and, you know, through that, you can get some other, uh, insight and expertise from other investors who are out there, uh, grinding every day. And, uh, one of the gentlemen that I’m going to have on the show today still resides in the Detroit area, still operates in the Detroit area, has been very, very successful in that market. 

John Larson: He’s produced almost 2000 units himself. He’s been investing since 2007 so he’s got over a decade of experience under his belt. He’s also a fellow Central Michigan University Alumni. So, fire up chips. Uh, his name’s Al Beahn and he is the CEO of Pioneer Homes and Pioneer is one of Detroit’s leading a turnkey providers. I will say that for sure. And uh, you know, it’s really Al’s attention to detail his systems, his team that makes him successful in a market like Detroit. And especially when you’re operating in like C class areas and dealing with C class tenants, you can run into a lot of, you know, extra troubles that you might not see in an A class neighborhood or an A-class market. Um, or A class buildings in general. Right. When you’re dealing with C properties, many times they’re older properties. I know a lot of the properties that Al has renovated and is probably continuing to renovate down in the Detroit area. They’re really, really old properties. You know, many of them can be old, so you know, you’re taking out plaster walls and replacing them with drywall and things like that and updating the property. But his renovations come out beautiful. I love them. And there’s such good architecture in Detroit. I mean, the bones of the homes are just, they’re really nice. That’s one thing I could always say about Detroit. They’re very durable, nice brick built homes. Um, and if you get the right team in there to renovate them and bring them up to today’s standards, you could really get some very, very beautiful properties out there. Now, you know, from listening to me, I don’t love C and D class properties, but I believe that there are providers out there that have really good systems and teams in place to where you can see success with a C class property. 

John Larson: You know, one of those guys, Terry Curry out of Memphis, I’m sure many of you have heard of him and another guy would say is Al from Pioneer Homes. I have a lot of respect for him. He’s been in real estate a little bit longer than I have. And he definitely comes with a lot of knowledge and he’s, he’s got some, a lot of inspirational messages. I’ll, I’ll tell you that I follow him on, on a few different social media outlets, I’d say. And he’s always posting stuff, motivating people to take action. And you know, so I’m excited to have Al on the show this week to talk about his experiences with real estate. And he’s also talking about how he’s starting to transition into multifamily, which is another thing I’ve been doing over the past year is transitioning more to multifamily and transitioning more to commercial properties. And obviously, you know, we’re, our private lending program has been more and more popular. It’s gaining more and more steam. So, you know, I’ve just felt this hunger to go after bigger deals and I, I feel like Al’s kind of on that same path. So it’d be good to talk to another gentleman out there who started in single family and starting to graduate into larger deals. So without further ado, I’d like to welcome to the show Al Beahn. Al, thanks for coming on. 

Al Beahn: Thanks for having me, John. I appreciate it. 

John Larson: No problem buddy. Um, first and foremost, I always like to ask my guests, you know, how did you get started in real estate? And I’ll just let you take it from there. 

Al Beahn: How I got started in real estate. Yeah. So this was uh, so I was the ripe young age of 21 years old, I believe. 21 or 22, I always forget. But yeah, so 2009 I was still in college. I graduated the spring semester of ’09. Um, and I moved home. I was in my parents’ basement for like three, four months and my dad was the kind of guy, you know, I was the oldest, so my dad gave me all the, all the crap about what I’m doing with my life and all that fun stuff. And my brother got the easy street treatment. Anyways, you know, living at home for three months and he’s on my busting my chops. Al, what are you going to do man? What are you going to do man? I said, I don’t know. I don’t know. So I ran into a friend of mine at a party, it was like that fall/winter of ’09. And I said, hey, you know, what are you doing? And the guy says, well, I’m flipping houses. And I don’t know what it was about that conversation, but it just kind of struck a nerve with me. And I said you know what, that’s what I’m going to do. So I think it was within three months of that meeting, I had raised a little bit of money, and this was back in 2009, you know, the market completely was crushed. Everything was bottomed out. So I always say I just, timing was more than perfect. I mean, if I would’ve started even a year earlier, I, you know, who knows where I’d be today. But anyways, when I bought my first house December of ’09, uh, did all the work myself, took me about three months; I treated it like a job. I was working 40, 50 hours a week. Get up, leave the basement, drive my, you know, 19 I don’t know, 1999 Mercury Sable, it was white. I used to strap ladders to the top of the, to the roof. Literally. That’s a true story. Hopefully, we can find some pictures. But yeah, so I did that. That was my full-time job for like three months. Uh, got done with that. We put it on the market. Uh, at that time the market had kind of started picking back up. We got a contract in about a month, closed I made 16 grand. And, and that’s kinda how it all started. And I immediately moved out of my parents’ basement and at, at the time I met a guy similar to my age, we kind of decided to link up and partner up. He had been doing some wholesaling and this was back in 2010 is really when things got ramped up and, and we were in the Detroit market and Detroit got hammered. 

Al Beahn: I mean it got hit so hard. This is the story you’re hearing how people buying houses for $1,000, $500 at the tax sale. Just crazy. The market was just out of control and that’s kind of where that turnkey model was developed. So we just got lucky. We landed a few clients, most of the time, most of them were out of state. I think our first year in business we sold like 50 or 60 properties. And then as time went on we scaled. And I think our biggest year was a little over 300 homes. Uh, and I think it was in 2013. That’s when I kinda, we split up. I went off and did my own thing and that’s where I’ve been for the last five or six years. But that’s kind of the quick little Al to big Al or at least current Al. 

John Larson: Well, I’ll tell you the, uh, your story is eerily similar to mine growing up in the Detroit area as well. I wasn’t in my mother or father’s basement, but I was in my aunt’s basement coming out of college. Also trying to figure out what I wanted to do. And uh, eerily similar in terms of, you know, the market really did hit rock bottom in Detroit, but it gave young, ambitious guys like us an opportunity to buy property at a real affordable value. Right. And if we were willing to put in the work, there was money to be made and you collect that first paycheck, that first $16,000 and you’re like, whoa. 

Al Beahn: Oh man, I was rich. I literally was thinking about retirement. I thought that was like, wow dude, this is like, this is the real deal. So yeah, totally. 

John Larson: Okay, that’s a that’s a good story. And yeah, it’s like I said, very, very similar to mine and also got a lot of my start in wholesaling as well. And you know, being in a real estate agent at Max Brooke and crossed paths with other mutual friends of ours, like Karl Dean and moved down here to Dallas and have been doing a lot of great things ever since. But now I’m going to go into my next question here. What excites you most about working with investors? 

Al Beahn: Okay, great question. Yeah, I think, you know, and I always backtrack a little bit, you know, what I loved about investors in the beginning versus what I love about it now in the beginning, right? I was young, I was not super educated in the business and for me, um, you know, I, I needed investors to make money, right? So, in the beginning, it was kind of a, a one-way road for me, right? I need to use investors to make money and fast forward to today I am kind of on the opposite end and I’m, I’m actually educating people a lot more than I used to. And especially now with the new tax laws, um, with all this bonus depreciation, you know, it’s just absolutely amazing what we have the opportunity to do over the next four years. So you can use this new tax incentive through 2022. So now anybody who talks to me about investing, one of the number one things I ask them is, okay, well what are you doing to save your taxes? Right? Like, what are you paying in tax? Here’s how you can kind of offset your tax, right? Everybody hears this Trump thing, love him or hate him, you know, to me it doesn’t matter. The reality is the tax law was, or the tax code, it was written to incentivize entrepreneurs and business people to invest their money to start businesses, to own real estate because it stimulates the economy. So the tax law’s literally written so we can save money in tax. And a lot of people don’t understand that. So for me, the last few years I’ve really been just educating myself on that. The new tax law is, uh, you know, I’m not smart enough to read the whole thing, but it’s, you know, over 6,000 pages long, not the new one, just the tax code in general. So for me, it’s education. I talked to a lot of people about it. I’m very passionate about it. And I’ll tell a quick story about a friend of mine. He lives on the, on the west coast. He’s in a tech industry or in the tech industry. And, and um, and his business started three years ago, they just did a huge raise, and I’m not going to say the name of anybody, but they raised $20 million for their business. And, uh, some of the founders pulled around a million dollars out. And first thing I asked him, I said, hey, what are you going to do to offset your tax? He says, what do you mean, I’m going to pay my tax? I said, you’re telling me you’re going to go pay, what, 30, 40% of that million dollars in tax? And he’s like, well, yeah, man, what else am I going to do? So that was it. That turned into a two-hour conversation. Uh, I’m going to help him. I’m going to help him invest into the industry and utilize those taxes. So right now, my passion is really about helping investors, you know, save their, you know, really preserve their wealth, uh, and doing that through taxes, which is, it’s almost like ironic, but that’s, that’s how it is right now. 

John Larson: I, yeah, I feel like the tax benefits of owning real estate is sometimes forgotten and gets lost because cash flow is perceived as, you know, or the ROI on the property itself from cash flow is just perceived as the number one goal. When I talk about six ways that real estate pays you. Some guys say five, I talk about six because I also, I also talk about um, you know, equity capture, right? When you purchase a property, I mean think about it, offices, wholesalers getting started in this business, you know, how many deals do you think that you came across where you bought it for $20,000 under market value and you could virtually have just flipped it the next, the next day after buying it right and make 20 grand. So there’s a lot of different ways and I try to explain it to my investors. You know, if you’re able to acquire property under market value, you have to look at that as what I like to call it, instant equity in a property. But then also the tax benefits of owning property, the cash flow, of course from the rental income, the leveraging or hedging against inflation, right? Locking in 30-year fixed-rate loans at 4%, right? As interest rates continue to rise year over year, you’re basically hedging inflation. Either way that you’re paid. So there’s so many, so many ways. And then also having a tenant in the property paying your principal and interest payment each month cannot be forgotten. Okay. Even if you’re breaking even on your property every month and you have a loan on it, think about it. Your tenant’s paying down your loan, not you. You’re still winning. Right? And if it’s in the right market where you’re seeing appreciation, it’s, it’s a total winner. So I’m glad that you talked about the tax education because that’s another thing that I like to drive home to my audiences. Just all the ways that real estate pays you. 

Al Beahn: Yeah, so for anyone listening is interested in, in taxes, I’ll give Tom Wheelwright a free plug. He’s actually a company called ProVision. He’s our tax advisor. He’s got a book, it’s called Tax Free Wealth. And if you’ve never read anything about taxes, I highly suggest you, you go pick that book up and I bet you it’ll change the way that you look at the world. Um, you know, I had my wife read it and she totally changed her opinion on a lot of things. So it’ a really good book for anybody trying to learn about taxes. 

John Larson: Oh yeah. I just saw him again here in Dallas, had a Real Estate Guys, Secret to Successful Syndication seminar. 

Al Beahn: Okay. 

John Larson: Really blows my mind. 

Al Beahn: Yeah, he’s a great presenter. 

John Larson: He really is. 

Al Beahn: Yeah, for sure. 

John Larson: All right, Al, so tell me this, if today’s Al could go back to Al living in his parents’ basement, what would you want to tell yourself? Either as an investor or a business owner? 

Al Beahn: Yeah, good question. Um, man, that, that, that, that could go so many different ways, but I think going back I would have, I would have held onto a lot more real estate. You know, I, I say, you know, people ask me what, what was the best deal that I’ve ever done? The best deal that I’ve ever done is also the worst deal that I’ve ever done. I’ll explain that to you. Uh, the best deal that I ever did financially, it was a package of properties in the city of Detroit. It was 50 properties and at the time, and you’ll understand why this was, you know, kind of crazy that we didn’t hold onto it. But, uh, 50 properties at the time. We got these things for 28 grand a door and we sold it, we flipped it, right? So yeah, it was awesome because we flipped 50 houses at one time and made a boatload of money. But fast forward now and every time I drive through that part of town, I just, I’m literally like physically sick. So the same houses now are going anywhere from $120 to $150,000. Some of them are probably closer to $200. 

John Larson: Wow. 

Al Beahn: Uh, so, so the point is it was a very short vision on my end. Like I did not think about this long-term. And had I educated myself a little bit more when I was younger about the, you know, the benefits of real estate beyond like the quick cash, right? Like when you’re getting into the business, you want to get quick cash and yeah, wholesale and we do that. But the reality is that the way to build wealth and to get rich, rich is to hang onto this stuff. And I’m 32 now. If I would have held onto those assets, and by the way, they were all renovated and cash flowing, we bought it from an owner, he picked them up from the tax sale for pennies on the dollar. If we would have held onto those, I could have lived off the cash flow just on its own. And then think about the appreciation, call it a 100K per property times 50. 

John Larson: Oh yeah. 

Al Beahn: So imagine, you know, the cash flow. I could, A) live off the cash flow, B) live off some of the cash flow and pay off some of the debt and then refinance every three to five years. Uh, and I mean you, you guys know when you pull out refinance cash, it’s tax-free. So I can pull out a few million bucks every two years tax-free and just live like that. So I could have literally retired off of that deal had I understood the business more. So I guess to directly answer that question is I wish I would have educated myself more than I did in the very beginning. Uh, because had I done that, I’d be in a, in a much different position than I am today for sure. Hands down. 

John Larson: That’s once again, eerily similar. I feel like I’m looking at myself in the mirror. Um, you know, our company, American Real Estate Investments, you know, we started down here in Dallas in 2012 when we were operating in Dallas, Houston, and San Antonio. And that was just when the market started rebounding as well. You know, the financial crisis didn’t really affect Texas too much because there’s just so much, the economy here is so diverse, right? There was so many jobs here. So when other areas around the country, like Michigan, we’re losing people, right? Because job, job loss was occurring. Um, they were going to other areas around the country, like a DFW, like a Houston because there were jobs there. So the market didn’t get hit too hard, but also at that time, I feel like it was just the start of the boom 

Al Beahn: Right, your market is scorching. 

John Larson: Yeah. Scorching hot to where now, I mean, it just really doesn’t make sense for single family from a cash flow standpoint because also the property taxes are pretty high in Texas, which is why we have transitioned into, um, you know, more multifamily, right. And, and commercial real estate as well. And we’ve been doing that through our private lending program where we allow our investors to take the role of the bank and get a fixed double-digit return. And so you also, um, have been kind of changing lanes from single family to multifamily. Tell me a little bit more about that. 

Al Beahn: Yeah, so, um, again, this kind of goes back to the education piece. You know, I really started reading maybe, call it three, three and a half years ago. And, and that’s really when I started learning about multifamily and then this new tax code, right? Like, um, the, the, the bonus depreciation. So, so I said, okay, how can I scale business and how can I go on this hypothetical? How can I go from zero to a thousand units? Okay. And doing that in the single-family world is, is an insanely tricky task. Okay. And so I actually did a one-on-one coaching session with Grant Cardone, it’s been, I don’t know, maybe a year and a half ago. This was at the time literally, I mean, I was in talks. We had, um, I think we’re getting there like a PPM together. We’re going to do a fund, we were going to raise $50 million for this fund and we were going to go out and buy all these single family houses. And on paper, the number was like a thousand houses. Okay. So I sit down with Grant and I say, hey, you know, or he asked me, what, what are you doing right now? I said, oh, well, hey man, you know, I’m walking in on Mr Hot Shot. You know, I’m raising $50 million for a single family fund. And he like looked at me cross-eyed like, are you crazy? He’s like, oh, that’s a thousand closings, a thousand addresses, a thousand different, uh, lawns to cut, a thousand roofs to maintain, he goes, why would you do that? And I tell that story not because that was like the turning point for me, but I want that to put it into perspective to the listeners, because anybody that wants real estate to be your vehicle and, and, and going back to the other question, what I would have told myself, I would have said to transition into commercial real estate way faster than I did because the scalability is just, you know, GC says 10X, it’s like way more than 10X. It’s a hundred X. 

John Larson: Right. 

Al Beahn: So, uh, so for me that the multifamily, it’s all about scalability. It’s about economies of scale, right? I mean, imagine taking 50 single family houses scattered around the city versus taking a 50 unit building and putting it on one plot of land, right? Like it’s just totally different. The cost is less, the dynamics, the logistics are all totally different. And it’s so much easier to raise money for multifamily. You know, you and I were just talking about raising money before we got this call going. But for me, raising money in single-family is so much harder than it is for multifamily. You know, the banks are completely different. They don’t need you personally. They don’t need to care. They don’t care about your past, your, your financial situation. All they care about is the asset, right? 

Al Beahn: So for me, if, if you just take a list, a T-chart, and go pros and cons of, of single-family and multifamily, there is no way that you can win this argument with me. And at least in my eyes, I just can’t see how a single family is going to be better for you long-term if you’re the guy that wants to own a lot, right? Like my goal is to retire off of real estate. So, um, and, and that’s in large numbers and to me, just multifamily’s just the only way to do that, you know, or a commercial real estate doesn’t have to be specific multifamily. But that’s just the way that the mindset of the American is now with renting and buying and all that stuff. I think multifamily is going to get more and more popular. So, um, we’ll see what happens. I’m not a psychic, but I think the market’s kind of telling us what, uh, what we’re seeing, so. 

John Larson: No, absolutely. And I agree with everything that you said and I mean, you know, when it comes to any cash flowing, asset management plays a crucial role. And now that I own some commercial buildings where my tenants only occupy the building 40 hours a week, 50 hours a week, right? The management, the time put into management is so much more insignificant. And then what we see is on managing, like you said, 50 single family homes. So the time and effort that goes into having to manage 50 single family homes, which are spread out over a geographical location as opposed to, um, managing just 50 doors and a multifamily apartment building, right? It’s, it’s unbelievable. And as I’m getting older, you start to realize, you know, how much your time is worth. And in my opinion, you know, as, as I’m getting older, it just makes more sense to go that route because the time and effort that goes into the management of the asset, uh, is, is, like I said, it’s less significant than what you’re experiencing on a large single family portfolio. And that’s funny that Grant Cardone said that to you because that makes so much sense. I mean… 

Al Beahn: Yeah, yeah, it was, it was, uh, just helped put into perspective, you know, I mean, sometimes you, you talk to guys who’ve been doing it for 30 years, um, you might want to take it for what it’s worth. Right? 

John Larson: Absolutely. Absolutely. Um, and so that’s, that kind of leads me into my next question then. Who’s influenced you the most in your career, would you say? 

Al Beahn: Yeah, I mean, I could probably make a list, but I would just say if I had to narrow it down, I mean, uh, the, the Rich Dad Poor Dad book, I think when I first read that, that really put things into perspective. Uh, but when I, you know, call it three, four years ago when I was kind of going through a funky time of my life, I, I really was unsure of, of what I wanted, where I was going. I was, um, you know, I was actually at the time doing really well in the single-family business, so it just was not satisfying me. And, um, and yeah, that’s honestly when I, when I think Cardone kind of popped on the scene and I don’t say my whole life would be, he’s the most influential, but I think he’s helped me through last, you know, three, four years or through that weird time in my life. And again, it kind of got me back on track. And I think that is kind of why I feel the way I do. But, you know, man, that guy, he, he, he, uh, he pitches a lot of real stuff, uh, unlike a lot of other people out there that are doing the influencing thing. So I think to me that kind of helped a lot, but, um, you know, some things a lot of people don’t like about them, but, but for me, the things that I liked were enough to make me feel that way. But yeah, it was, it was really just a kind of get me through a funky part in my career. But, um, I would say, you know, between him and that Rich Dad, Poor dad, I’d say those two things for sure. 

John Larson: And what Grant Cardone preaches is, so it’s a lot of the same basic principles that we do, you know, in the single-family space and, and you know, our mindset, right? As an investor and an entrepreneur, he just kind of shows you a way to go bigger, faster, right? 

Al Beahn: Yeah. You know, the 10X thing, I mean, a little cliche, but really, I mean, you know, that meeting I had with him, and that actually happened a couple of years after that time in my life. But yeah, I mean, you don’t just sit and talking to him and you know, he’s got a very interesting vocabulary. He goes, dude, you want to get effing rich? He said, uh, he said, you got to go on into effing rocket ship mode. And he goes, he goes, and it’s all about multiplication and division, not adding and subtracting. And for me, that was, you know, like put it into perspective. Like I got to sell like 150 houses a year to do those, or whatever. Or you get into multifamily or commercial real estate, you do that forced appreciation and you just explode the equity and refinance or sell and, and that’s, that’s what basically they’re doing. And that’s the strategy, right? So, um, so yeah, it just really put a lot of a lot of things into perspective and it also forced me to, to start educating, like, believe it or not, maybe this is why, but like 10X rule was probably one of the first books I legit actually read. And I don’t even remember why. It was, I couldn’t even tell you what, I don’t know if I liked the way it looked. I have no idea. But it was like the first book that I legitimately sat down to read probably in five years. And I’m like, this is crazy, right. Now. You look at my house. I mean I’m sitting in my home office, I got, I don’t know, 300 books on my bookshelf here. So that kind of sparked that part of my life as well. So it’s just kind of weird how that all panned out. 

John Larson: That uh, that’s going to lead me into my next question. Name a good book that you read recently that you’d like to recommend to the listeners? 

Al Beahn: I would say it’s a book called Profit First. It’s actually a lot of people have that same answer. It’s called Profit First. Mike Michalowicz. I always get his name wrong, but it’s a very interesting accounting technique that I think most entrepreneurs struggle with. I think you know, the finance and accounting side of, of, I mean if you go dig into an entrepreneur’s books, who knows what you’re going to find. Right? And that book really put into perspective how to preserve some of your capital. Cause I always used to say, I’m like, I’m really good at making money, but we’re not good at keeping it, right. So I used to say, oh man, we keep the money in the business, it’s like a black hole. Who knows where it’s going to go. Nowadays when the money goes in, it gets divvied up into certain accounts so it doesn’t get spent on the wrong thing. And it also forces you to cut out all that ridiculous, you know, unnecessary spending. So that was a really good book for me. 

John Larson: No, that’s, that is, that’s good points that you just brought up. That’s how a lot of businesses fail sometimes too, right? 

Al Beahn: Yeah. I mean, half the time people don’t know where the money is or where it’s gone or what something costs. I mean, especially in our business, right. The fix it, I mean, tracking renovation costs is tricky. 

John Larson: It is, you start spending it faster than you’re making it, right, if you’re not careful. 

Al Beahn: Right. 

John Larson: Well, now I just kind of want to end off here just to talk a little bit more about your business. Um, I know that you’re in the Metro Detroit area. I know you’ve done a lot of properties in Detroit, but that’s not just, you’re not like a one trick pony. You’re not just operating in Detroit. So you know, I know personally as well coming from the Metro Detroit area in Michigan, still home for me. There are a lot of good a hidden gems and good opportunities out in that area. So maybe kind of elaborate on some of the markets that you’re working in and just where the business is headed. I know you’re talking about doing some multifamily, but I don’t want the listeners to be confused that you’re just, you know, an operator in metro or in the city of Detroit. 

Al Beahn: Yeah, for sure. So, yeah, so historically my business has been the turnkey model. I’m sure your listeners understand what that is. And so I’ve been doing that for 10 years. Uh, it’s a, it’s a big part of our business currently. We still do a lot of these turnkey properties in the Metro Detroit market. So we’re not necessarily in the Detroit proper area anymore. We’re, we’re kind of out spread out in the suburbs. So more of like the B class, you know, 80 to 150K asset that’s going to kind of fit that 1% rental rule. Um, so yeah, so I think that’s been, uh, you know, for me, Detroit was always a high volume city, right? You got to do a couple of hundred deals a year to be successful. So, um, we’ve kind of changed our model a little bit, We call it quality over quantity and so that’s on the turnkey front. Then you have the multifamily. Um, you know, that’s the syndications. So we’re going to be uh, you know, we’re cosponsoring deals and uh, you know, raising a bunch of money. So that’s a, that’s been a fun part the last, call it six to 10 months of our business. So yeah. 

John Larson: Well, I’ll say I have a couple rentals in Saint Clair Shores and they’re some of my best-performing assets, to tell you the truth. 

Al Beahn: Yeah, I believe it. I mean Saint Clair Shores, man, that market has just exploded over the last five years. And then I think I heard like 200 bucks a foot or something. Okay, that’s wild. 

John Larson: I stole a new construction home there for $118,000, that thing’s got to be worth at least $180 I’d say right now. And that’s in a B class area, you know. So you see that type of appreciation, a B class test type of pocket of Saint Clair Shores. That’s pretty impressive appreciation. Well, Al, I loved having you on the show buddy and um, so I guess the last thing I’d like to leave listeners is, you know, if anybody is interested in finding out more about what you have going on in the Metro Detroit area or learning more about what your company has the offer, what’s the best way for them to reach you? 

Al Beahn: Uh, you can get me on my email. It’s Al@PioneerHomesUS.com And that’s my personal email address. 

John Larson: Right on. All right, Al, well, I appreciate you being on the show, man. A lot of great insight and uh, hopefully, we can do it again sometime. 

Al Beahn: All right John, great talking to you. I appreciate you having me. 

John Larson: All right buddy. I’ll see you when I’m up in Detroit. 

Al Beahn: Awesome. Perfect. 

John Larson: All right, we covered some great stuff with Al there. I really appreciate him coming on the show and it’s, I really love talking to guys that have the same type of philosophy as me. You can see that a lot of good little gems of maybe you picked up on from that conversation, but it is kinda crazy that Al and I are both from the same area, went to the same college. Um, you know, my wife went to the same high school as him, so, uh, it’s really exciting to see all the great things he’s been doing, um, with real estate as well. And, uh, I hope that you got some great information out of that from another successful real estate investor and that’s why I brought him on for this investor spotlight. 

John Larson: So if you like what you heard, you have Al’s contact information. Um, if you’re interested in learning more about what we do down in Texas and in DFW, specifically with our private money lending program where you can get fixed rate, double-digit fixed rate of return on your money. And if you lend through a self-directed IRA or 401k, you are going to get those double-digit fix returns to you tax-free or tax-deferred depending on the type of account that’s set up. If it’s a Roth, it’s tax-free. Traditional accounts that are self-directed, you can defer those taxes. So great, great opportunities that we have out here. You hold first lien position as the bank and get double-digit returns on your money. Uh, sounds like a no brainer to me, but if you’re interested in learning more, go to our website, AREIUSA.com or RealEstateCowboysDFW.com. Um, this is John Larson signing off for this week. Once again, everyone remember, what is your return on life. Have a great week. Everybody see you next week. 

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.