PODCAST EDUCATION

Six Ways Single-family Homes Can Pay You

Episode 013

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 the six ways single-family homes can pay you. Everyone talks about cash-flow, cash-flow, cash-flow…but do you know the other five?!

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

Episode Transcript

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

John Larson: Hello and welcome to another edition of Real Estate Cowboys. This is your host, John Larson.  I hope that everyone listening had a great 4th of July. It was good to spend time with my family. I hope everyone out there listening had a great time o the 4th of July and spent some good times and made some lasting memories with their friends and family as well. Uh, so this week we’re going to be talking about the six ways that real estate pays you. The up to six ways. um, I think I talk about this quite a bit on the show. Many investors are, when they’re analyzing a good single family rental opportunity, and many of them are always drawn to the cash flow, the rate of return from the cash flow, etc. etc. But in actuality, there’s many more ways that real estate pays you and there’s actually some more profitable ways than cash flow where real estate pays you.  

But for whatever reason, most investors are, it seems to me, chasing after a high rate of return or a high cash flow number, even when they’re putting a principal and interest payment involved in the model, in the numbers, in the acquisition strategy. Right? And so in today’s market, the landscape of the market today, it’s just, it is a seller’s market. We are in a seller’s market. I’m feeling that big time here in Dallas, which is why I’m, you know, actually even looking for some, some secondary markets to invest in here in Texas because I still believe that Texas is the number one state in America to invest in real estate right now. And I base that on all the job and population growth that we’ve been experiencing. And also the fact that there’s still a lot of land to develop here, and you know, the property values are still affordable in my eyes.  

And so with that being said, Texas; definitely number one market. But I can see how cap rates in the Texas market, in Dallas specifically, Austin, are starting to become compressed. And that is due to the rising prices because of the demand that we’re experiencing in the market, and also with the rising rates. But I do believe that there’s other opportunity to maybe achieve some higher cash flow numbers in a city like Waco. I was just doing some research, pulled the latest Texas market report, quarterly market report, and I saw that the two cities in Texas that were experiencing a lot of growth based on the current size of the city, and the cities that were experiencing the highest appreciation were Waco and Lovett. Both college towns, both smaller cities, obviously not as large as Dallas or Houston or Austin or San Antonio, but respectable.  

Um, and the property values there are affordable because of that, right? They’re not as large. They’re not receiving the type of attention that Dallas and San Antonio from corporations moving into the market. And so there’s still a lot of good opportunity in those markets, I feel like. And I think that by getting in now you have a chance to kind of ride that appreciation wave that we’ve been riding here in the Dallas and Houston markets for our investors, Dallas, specifically, when it comes to appreciation. So going back to six ways that real estate pays you; so cash flow. straightforward, um, when you purchase a rental property as a real estate investment and investment, the tenants pay a monthly rent and the rent cost is usually higher than the monthly mortgage payment. At least it should be, okay? Maybe not in California, but I’m here in Texas and other areas across the country that are labeled “cashflow markets.”  

The rent cost is going to be higher than the monthly mortgage payment, right? That’s the only way it really makes sense. The difference in the rent and mortgage payment produces an instant and consistent flow. Now, the point that I want to get across is, as far as cashflow goes, especially in today’s market, comes with a lot of variables. Um, and so do some of the other ways that real estate pays you, appreciation being one, which we’ll get into next. But there’s not a very high amount of cash flow to be generated from properties that actually work. Now, if you want to go buy the lie, as I call it, and by the 50, 60, 70, $80,000 property in Detroit, Indianapolis, Cleveland, Cincinnati, Memphis, uh, any part in Alabama, so on and so forth, you’re going to run into trouble. And those variables that I’m talking about, missed rental payments, late rental payments, evictions, lots of turnover, um, damage to the property.  

A tenant just up and leaving the property, leaving the property vacant. Now resulting in theft, break ins, vandalism, et cetera, et cetera. Those things are a lot more prevalent in those types of markets and that type of price point. And then that type of class of property. And so what I try to tell my investors, many times, there’s not a lot of cash flow to be had anyway and I’m sure your currently working and don’t really necessarily need the cashflow now, but you’re trying to set yourself up for a long-term strategy. So when you do need to access that cash flow, your properties are paid off or close to paid off, right? So I think what really investors need to look at is yes, you want some cash flow, you want to make sure that your expenses are paid and you want to make sure that you have a little bit extra each month so you can put that money aside because you know you’re going to have maintenance down the line. You know you’re probably going to have to replace a roof and so on and so forth down the line. Right? So it’s important that your property is generating some income just to set aside for that “rainy day” or when you run into some sort of problem, because it’s going to happen.  

Now my recommendation is, and by doing this you’re also going to be able to achieve the six ways that real estate can pay you, is buy the higher end property. Buy closer to the median value in the market. You know, if 300K is is too high for you, you don’t want to spend that much money on a rental property or 250K or 200K. Well then, look for a market, you know, because that’s in Dallas. The median home value is $280,000. Well then look for a market that’s more affordable. So for example, Kansas city, the median home value is 190K. So you can buy a really nice property in a really nice neighborhood that’s going to attract really good tenants at 120K, 130K, 150K, right? And you’re still going to get some cash flow, but the property is going to be positioned in a better neighborhood where it’s going to consistently attract tenants.  Okay? And that is where your risks and your problems really goes down. And so at the end of the day, when you’re comparing markets and property classes, sure the C or D class property will show it’s going to have a higher rate of return on cash flow, or it’ll have a higher rate of return or a higher cashflow number. But we’re talking about maybe $100 difference from a C class to a high B property or $200 difference from a C class to an A property. So what is an extra $1,200 or $2,400 a year going to do for you? If the investment is just in a riskier situation, a riskier market, riskier tenants, and that that $1,200, $2400 could easily be dumped back into the property or more because of an extended vacancy, because of damage to the home, because of a theft or break in. So you really need to consider that stuff.  

You know, you really have to consider what is this extra $1,200 do for me per year, right? Just because I’m seeing a higher cap rate on this investment, of course it’s generally going to be as a result of a lower class investment, a riskier investment. And so I have a lot of investors that are coming to me and saying, John, there is no cash flow in the Dallas market. There is. There’s a decent amount of cash flow, but what these A class markets with these growing markets can get you is stability and consistency. Because I’m pretty sure you don’t need that cash flow right now. But when the property’s paid off an A class property that rents for $2,000 per month, will usually garner over a thousand dollars a month net when it’s paid off. So if you get investing early and your plan is a long-term goal, then let’s get in and get that 30-year fixed Fannie Mae right now.  Because honestly, five A class properties that are going to be truly passive for you when they’re paid off will generate over $60,000 net per year. Nine – Let’s say you have one personal residence, and then nine single family homes–and if they’re a class and have higher rents and give my investor a passive experience– nine single family homes can make 100,000 dollars net cash flow per year. So I have a lot of investors that come to me and they want, their goal is $5,000 in cash flow or $10,000 in cash flow, but they want to take out loans on all the properties. 

And then they’re looking for the properties that have the highest cash flow with whatever money that they’re putting out. But that’s really the wrong way to look at it because if you’re trying to hit a $5,000 number, but building a rental portfolio that’s going to come with a lot of risk, think about how many properties you’re going to have to purchase to consistently bring in $5,000. So let’s say, I mean in today’s market, let’s just say the average cash flow number, and this is probably going to be something that’s more borderline C class, is $300 a month. That’s after your taxes are paid, your insurance is paid, the principal and interest payment is paid and your management fee is paid. You’re generating $300 a month, and you want to get to $5,000 a month.  

So you’ve already maxed out your conventional loans. At this point, you’re now looking for alternative finance for your remaining five to six properties which are not going to get Fannie Mae finance for those, so best case scenario, you’re going to have $300 cash flow on those higher interest loans. And then you’re going to need all 15 of those properties to be operating at their highest and best at all times  to achieve $5,000 a month in cash flow. And from my experience with C class homes, 60 percent have a success rate. The other 40, you’re going to have problems with; sometimes 50/50. You know, if you’re buying C class properties in markets that don’t have high population growth, your property goes vacant in the winter. The property vacant for quite a while; 3, 4, 5 months.  Because people don’t move in those markets in the winter and there’s no new people moving in that need homes to live in. So you see those markets go stale, stagnant. So let’s say to achieve $5,000 a month in net cash flow, we need to buy 20 properties because you have to assume that well maybe five or six, you know, will be going through some sort of turnover vacancy or maybe I had a high expense on a turn for one of the homes. Maybe one of my properties got broken into and I had to re-renovate it, whatever it may be. Well, let’s just say now you got to get to 20, so now you have 9 to 10 properties with Fannie Mae finance, and now another 10 through conventional finance.  So it’s going to take you 20 properties to get to that $5000 number. Okay? That’s a lot of properties. That’s a lot to look after. You know, a management company is taking care of the homes. You know, it’s still something you need to look at. And so I guess it goes to how quickly can you get to 20 homes. That’s a lot of property. Let’s just say they’re all $100,000, let’s just do an average to make numbers easy. 20 homes at $100,000 a piece. That’s two million dollars in property. 

And let’s say you put 20% down on 10 of them, maybe. I think after six loans you have to start putting 25% down. Let’s just say it’s an average of 30%. That’s 600K to get to that $2 million mark in property. So that’s a lot of money out. ot bui9ld that type of portfolio. So think about it. To get to that point, to where you’re going to get 5K a month; it’s going to take you some time. So I just want you to consider all that. And just understand, just understand the fact that the $5,000 a month is going to be tough to achieve if you’re buying a riskier investment because they’re going to have problems. So we’re going to take a quick break. Actually, I went on a tangent a little bit with cash flow. When we come back, we’re going to talk more about the five other ways that real estate can pay. So stay tuned for that.   

Welcome back to the Real Estate Cowboys. This is your host, John Larson. This week we’re talking about six benefits of real estate investing, six benefits that you can achieve through being a landlord through investing in single family properties. The six ways that these single family properties pay you. Uh, we spent a large time on the show talking about cash flow. That’s number one. We talked about the different variables that are involved with, uh, achieving high cash flow or perceived high cash flow with a rental property.  

So now we want to get into my number two, which is equity capture or instant equity. And I know it’s difficult in today’s market to find properties that have built in equity buying properties to be able to buy below market value and then have the appraisal come in higher than your purchase price. Um, but that is the way that your positions will acquire equity capture or instant equity in your single family property.  

And so, you know, you see that with wholesalers. They’ll go and find a distressed property, lock it up under contract, mark it up and still deliver it to a client, maybe myself, who buys hundreds of single family homes a year. And they’re just trying to take a portion of that instant equity. They went and found a good distress deal. They’re going to sell it to me. I can buy it at a specific number where they can get paid as well. And there’s instant equity to be had. They’re capturing some of that instant equity, right? If I found the deal myself, you know, I have an opportunity to get a chance to get that instant equity. And so, you know, when you’re working with a turnkey provider and you’re leveraging another team to find properties, do the renovation, all that that goes into producing a single family rental property, your opportunity for achieving equity in today’s market is far less great.  

It’s tough to achieve that. Now if you go and you find a deal on your own, let’s say it’s in your own backyard. You hire a crew to do the renovation. Watch that crew, make sure that crew is doing what they’re supposed to be doing. Um, you could have an opportunity to, once that property is completed, you get an appraisal done. You could have an opportunity to have some instant equity there. But there’s a lot of work that goes into finding these good opportunities and then watching these crews and making sure they’re doing what they’re supposed to be doing. They’re finishing the job in a timely fashion. That kind of stuff. That’s my day in and day out job is trying to locate good opportunities, good markets, and then find good crews, train good crews, and make sure that these crews are delivering on what they’re supposed to be doing, getting jobs done in a timely matter.  

I can’t tell you how many times, you know, I go to a job site and they’re behind or they tell me, Yeah, I’ll have the job done in four to six weeks, and we’re in week eight and job’s still not done. Um, you know, all that stuff costs money, holding costs, you know, overages on rehabs, all that sort of stuff can cut into your instant equity that you’re looking for with the property. But there are examples of instant equity. Uh, there’s one that just happened recently. I’ve seen it before with my clients where, you know, appraisal comes in 5 or 10K above. In this circumstance. A gentleman bought a property from me in east Dallas, in a gentrifying area of east Dallas. Uh, he’s got a great tenant in there paying $2300 a month. He bought the property for $285,000, uh, got a loan on the property, um, and when we went out and got the appraisal done, the property appraised at $305,000.  

So $20,000. He purchased the property for $20,000 less than what it’s actually worth. So congratulations to him. That was a great, great investment. So he’s capturing cash flow, he captured instant equity, and by investing in the DFW market, he’s going to have a great opportunity to capture the next way that real estate pays you. And that’s apprecIation. And choosing the right market to invest in is crucial for a successful long-term real estate investment. It really is. Before viewing properties, you need to look at the communities, potential growth, the market’s potential growth, right? And see who else is investing in that market. Keep in mind, DFW and Houston are headquarters to almost 10% of the Fortune 1000 companies in the U.S. and over 5% of the Fortune 500 companies. So this is a great market to look at for those investors that want to capture appreciation as well.  

They want to capture all the ways that real estate pays you. So this particular investor is also getting the opportunity to see appreciating values. This property’s worth $305,000 today. Let’s see what it’s worth in three to five years from now. And let’s keep in mind, you know there’s a common mIsconception out there that rental properties are only just cash flow generators, and they’re all long-term holds. That’s not the case. You can achieve up to 100% returns or greater by just doing a short term hold. And you do that by leveraging the property, taking advantage of the Fannie Mae finance, targeting a market that’s on a high growth upswing, purchasing a property in a good middle class neighborhood that’s going to consistently attract a good tenant. And by getting in that market that’s growing rapidly, that has a ton of population growth over 100, almost 150,000 people a year moving into the market–DFW–then your likelihood to keep that property leased out consistently is far greater. And so really with the short-term hold, you know, you’re just looking at acquiring a property in a market that you can tell is on a growth growth spurt, it’s trending upward. You place a good tenant in the property so they pay all the bills for you while you hold it, while the property value goes up in price, and then you sell it or refinance it and pull that equity out. There’s money to be made that way too. These aren’t all legacy investment strategies. These aren’t all longterm hold strategies, okay? And like I said, in today’s market with the rising prices and the rising rates, there’s not much cash flow to be had unless you want to buy in a riskier market ,in the riskier property class and run that risk of your property going vacant consistently, not being able to keep good tenants in there, and the property going down in value in a down economic time, which we’re coming for.  

It’s coming like an iceberg. I see it. If you do that, you’re just sinking money into the property. That’s not the idea here. Think about the hedge funds that were buying in 2000, 10, 11, 12, 13, 14. Think about them. I’m thinking about them because I sold to them and I sold a lot of properties to them in the Texas market. Do you know what they’re doIng now? Selling. They’ve only been holding these properties for five to seven years. Three to five years. They’re selling. Are you familiar with Roofstock? Roofstock is a platform for them to broker deals from hedge funds to you. The majority of the properties that you are purchasing off Roofstock are just homes that are held by funds and they’re selling them to the mom and pops. They’re liquidating them. Why are they doing it? Because they see another downturn coming up and then that’s when they’re going to start buying heavily again. These guys that run these hedge funds are supposed to be some of the smartest guys in the world, right?  And they do short term hold strategies to make money. And so by putting 20 percent down, 25 percent down on a good property in a good neighborhood that’s going to attract a good tenant and you hold that thing short term and let that tenant pay down the principal balance, let that tenant keep paying down your bills. You bought the property in a good market where you’re not going to have to go through any vacancy or anything like that, or the risk to go through is very low. And then in five years that property just went up 25, 30 percent in value and you decide to do a sale. And you held it for three years, over a year, so now you qualify for the 1031 exchange, and you go and buy another property and you defer your capital gains tax. 100% return or greater on your money right there, just from appreciation. That’s just one. One of the six ways. And sure you made a little cash flow throughout there. Okay? That’s alright. $200 a month.  

Great. Nothing to write home about, but the tenant paid down the principal balance, the property went up in value because I bought it in the right market. I refinanced it, purchased another house, leveraged that property and purchased another one, or I just sold it, took the capital gains, put it into another property, didn’t pay taxes on it. 100% returns on my money. 

So then, this is the 4th one. So we talked about cash flow, equity capture, appreciation, principal pay down like I just discussed. Let’s not lose sight on how important the principal pay down is with the rental property. Everybody wants to go get loans. Why wouldn’t you? I don’t see a lot of investors buying cash. Everybody wants to take advantage of the Fannie Mae finance. Why wouldn’t you? America is one of the only countries that allow you to take out a 30-year fixed loan that’s that low, to buy single family homes. But let’s keep in mind that the property’s not going to cash flow very much, okay? But don’t lose sight of the importance of your bills and principle balance while you’re holding this property. And if purchased in the right market, they pay down the principal balance while the property goes up in value. Wow. Talk about hedging your bet. The steady cash flow from rental income from tenants goes straight to paying down the loan principle which accounts for 80 percent of the value. That to me is the most important thing. I have properties that I don’t cash flow anything, or cash flow $100. But they’re my best performing investments because I virtually have no turnover because I bought these properties in good neighborhoods, I don’t hear a peep from my tenants other than a check deposited into my account ,and my principal balance is getting paid down. My wife has asked me a couple of times, “hey, do you think we should sell them?” 

No. I’m not going to sell them. Because I bought them in my mid 20s and when I’m 55 they’re going to be paid off. But I bought them in the right neighborhoods where I know I can consistently attract those good tenants. I bought them in a market where I have extremely low vacancy because there’s so many people moving in and there’s so much demand for homes. Let’s not forget about the importance of that. There’s too many people, too many gurus out there that are driving, forcing this cash flow play down people’s throats. Forcing this, “Don’t bank on appreciation.” WHAT? WHAT? Don’t bank on cash flow. You’re selling this high cash flow market with no people moving into it. No real economic drivers. you’re just selling affordability and a rate of return from rental income but. that property is not going to capture the six ways that real estate pays you and it’s going to come with so much more risk. So the extra cashflow that you perceive on the spreadsheet is just as easily going to be rolled back into the property with vacancies, maintenance, thefts, break ins and problems.  And when the property is vacant, you’re paying the principal balance. Is that a good investment? I don’t think so.  

So the next one. Ta write-offs. So the maIn reason why real estate is so popular for Americans; real estate investing is so popular is because of the tax write offs and the tax shelter that it provides. You make some extra income this year? Put it  in real estate or pay the government. It’s up to you. Once you own the property and you’re a landlord, you have about ten or more tax write offs available to you.  

The best one, appreciation. And the 1031 exchange that I discussed is also a tax benefit. Deferring your capital gains when you sell the property. When you sell one investment and purchase a like investment with the capital gains, you can defer paying the taxes. If you make an extra $50,000, $100,000 this year because you killed it at work at your day job, put it in real estate.  Or pay 25, 30, whatever percent it is. Wherever you are, tax bracket wise, pay it to the IRS. The smart investors that I know, that invest in real estate and work with me; if I really get down to the nitty gritty of why they want to invest in real estate, it’s for the  tax shelter. Cashflow? Cherry on top. Appreciation? Boom. Awesome. Equity capture? Great. But what they like? Tax write offs and the tax shelter. And they like the fact that somebody else paying down their principle balance so they don’t have to. So they’re not. If it cash flows, if you have a great year of cash flow? Great. If it goes up in value, even better. So you have so many write-offs available to you by being a landlord. Appreciation’s huge, there’s a property management write-off if you hire a property manager, mortgage interest is a write-off, travel costs to see your property, write-off, maintenance, write off. So a lot of write offs available to you, and that tax shelter that it provides to you is far and away the best thing going.  

And then the last one is inflation profiting. So, unlike other investments, conventional loans are at fixed interest rates, which protects your bottom line. People cringe at the word inflation, right? But inflation is real. So you look At the stock market, “Wow, I made five percent of my money in the stock market this year.” But also your dollar, the buyIng power went down five percent.  

So what’d you really make? Unless you’re staking your money in real estate, and you’re hedging your bet, and the property goes up in value and the tenant’s paying down your principal balance, and maybe you purchased the property and it appraised for $10,000 more than what you purchased it for. Wow. Now, even with inflation, that is a great return on your money. So a good example on inflation hedging or inflation profiting would be, you borrow $100,000 to purchase a home and after two years at 5% inflation per year, the total inflation is 10 percent. The payback is really just $90,000 in real, inflation-adjusted dollars. And then of course you have the tenant paying down the principal balance, and so on and so forth. So that is why I love real estate so much. And so that’s your 6th way, inflation profiting. And that’s locking in that long-term fixed debt. And we all know that the buying power of our dollars diminishes year over year. And so, once again, 5% returns in the stock market is not very good if you’re buying power is diminishing year over year. Real estate is a great way to hedge against inflation. So we’re gonna take another quick break. When we get back, we are going to sign off. I hope that everyone is enjoying the benefits of real estate investing and the six ways that real estate pays you.  

Welcome back to the Real Estate Cowboys. We’re going to wrap up here. We have been talking about the benefits of real estate investing and the six ways that real pays you. And I think we got over some of those misconceptions out there where, you know, real estate is just a long-term hold or investing in single family rental properties is just a long-term hold strategy; it’s strictly based on cash flow. That’s not the case. There are investors that are receiving 100% returns on their money out there or a greater by doing a short-term hold strategy and buying in the right markets, that are experiencing the growth, they ride that growth upswing, they’re buying properties at the right value, you know, middle class properties, middle class neighborhoods, uh, that are attracting good tenants. And they are seeing these very high returns by making sure that they’re investing in markets that are conducive and property classes that are conducive to these six ways that real estate can pay you.  

And  we gave an example of the hedge funds that do this. This is a short term hold strategy for them. They’re buying, stabilizing, holding for a certain period,  letting the market go up and then selling and waiting for the next downturn. And typically, as they go through that cycle, you kind of see that they’ll buy on the upswing, stabilize as the upswing is continuing on and then selling off as the market seems to have plateaued again, which I feel like we’re in that situation. And then once the market corrects itself, they’re ready to buy, and very hungry to buy again. And I believe at that time is coming, but for the investors that are listening out there, there’s an opportunity for you to act just like the hedge funds, but you also get the Fannie Mae finance at your disposal. And through using those loans that are available to you, you can also do this short term strategy; buy, hold, sell, buy, hold, sell, bringing the equity, free up the loans to keep doing it again. It’s not just all about this long-term hold strategy. I do like the long-term hold strategy, but don’t expect to see these high cash flow numbers. They’re just not there. Not when you’re adding a principal and interest payment, not in today’s market, okay?  The idea with locking in the debt, the fixed debt, is to stick a good tenant in that property that’s going to consistently pay that principle balance down, so one day that property is paid off. And hopefully in your lifetime you can experience owning that property free and clear. Imagine the return on the cash flow at that point.  You put 20 percent down on a $250,000 asset but you’re out $50,000. That’s your down payment. You’re only into the property for $50,000. You bought the property in the right neighborhood, that tenants consistently paying off your property. It’s now paid off. Now your property is generating over a thousand dollars a month. It’s generating, let’s call it $13,000 a year. Well, if you’re generating $13,000 a year, divide that by your $50,000 initial payment. Now you’re talking about some serious returns on cash flow, 30% or greater,  

So you got to keep all that in mind. But there’s ways to make money with a short term hold opportunity as well. And so I hope that everybody found this information informative. I hope it’s opened your eyes to other opportunities, other ways that you can make money with single family properties. And like I said, I think many investors out there, the common misconception is just you buy properties for cash flow. There’s five other ways you can make money on these properties. And so if you like what you heard, go to our website RealEstateCowboysDFW.com. We have some great information on that website. Put in your information. Join our list. You’ll get access to investment opportunities that are available to you. Passive investment opportunities in the Texas market, single family homes for equity, single family homes for cash flow. We have private lending opportunities, especially for our IRA and 401K crowd that wants to self direct, and get their money working in a private lending scenario or in a high fixed rate of return that goes back into the account tax free or tax deferred, or we have vacation rental opportunities in southern Belize. Belize is booming right now, but there’s great opportunity to get into the market while it’s still underdeveloped. So if any of these opportunities make sense to you, go to RealEstateCowboysDFW.com, put in your information, join our list to receive updates on great passive income options, and also we have our passive income starter kit there, where you can get information on all these great opportunities, and learn more about these opportunities. And we also have our passive investor quiz, so I recommend you go take that quiz because if you don’t know where you want to invest, you’re not sure, am I single family rental investor, does private money work better for me, or maybe vacation rentals is where I need to put my money and earn passive income through real estate. Go and take that investor quiz. I believe it’s just a short 10 question quiz. Find out what type of investor you are. So go to RealEstateCowboysDFW.com, if you like what you heard today and I hope you’ll tune in next week. We’ll be talking about more tax benefits involved with real estate, specifically the 1031 exchange. So looking forward to next week. Everybody have a great week. This is John Larson signing off. Thanks. 

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.