Hi, Leon, I apologize for such a huge delay. Can you believe I didn’t know there were comments here until today?! 🙂 So to answer your questions- since I used my HELOC for my first one, I was able to talk to a bank and do so since I owned that property outright. As for the LLC- it depends on the state, but in a lot of cases you can do a Quit Claim Deed (if your mortgager cares/allows it) to your LLC for most of the time a small fee. In Colorado it’s $10 but in Florida it’s quite a bit more. I hope you got that first rental!

Hi Earl – I have no doubt you have far more knowledge about RE than Sara, and certainly me, but I went back and looked at your posts and mannnn, your a miserable cus lol. I hope if I’m lucky enough to achieve the sort of things you have in this business, I am able to share some positivity and encouragement.

Hey Earl, We definitely appreciate opposing views and welcome yours. However, I thought I’d address a few of your concerns. First, who wants to listen to someone in the game only for a year? A LOT of people! The doctor/dentist analogy doesn’t work because basic real estate investing is case-specific and far less complicated than being a doctor. I learn from people who have been in the REI game for 6 weeks just like I might from someone who has been in for 60 years. Because it’s the lessons they are going through that matter. For example, in Sarah’s show, I was reminded of the simplicity real estate can provide for getting someone out of a job. How Sarah did it is exactly how I did it. Just pick up a few properties that provide positive cash flow (and yes, she says she’s getting positive cash flow) and you can fairly quickly get enough to pay your bills. Furthermore, I find newer investors are better at explaining topics to brand-new investors because they remember all the tough little details that experienced investors take for granted. In fact – there is a reason we don’t interview a lot of investors who are older than 50… because almost every one of them is TERRIBLE at explaining topics or talking about the stuff that matters to newbies. Anyway, keep listening Earl! Even you might pick up a little tidbit someday that could help your business!

Earl, each year there are new doctors, dentists and attorneys practicing and guess what… people go to them. Actually, some new doctors may be more knowledgeable than those who trained 20 years ago due to advances in technology and how readily accessible information is now. I believe Sarah can cash flow in her first year if she has found a good area to buy in. I live in Dallas which is an excellent area to buy and I cash flowed my first year and purchased property directly from the MLS. My first property was in great condition needed NO repairs and met the 2% rule. This business is only as difficult as you make it.

Personally enjoy hearing peoples success stories from new to the seasoned! I find the newer investors finding success motivates me to keep in the game. Remember, the audience is more than just real estate professionals with 20+ years experience! Enjoyed the interview Sarah, Josh & Brandon! Always learning something new from every podcast!

Hi, Earl, You make a lot of good points and I apologize for the delay as I just realized there were comments on this page. So let’s get to it: 1. I actually say this in my podcast- I was humbled to be invited on the show as I was still very new. A whole year later and I’ve learned a LOT, but still had positive cash flow enough to support my annual expenses, which is exciting to report! I also just finished summarizing for a future blog post about the lessons learned so far as well in hopes that others can take my adventure into account for their own. 2. I hear you on the property management point of view. I have a hard time trusting others who don’t quite have your same financial interests in mind. I prefer to manage my own properties if possible, but I am also lucky to have found a few people I trust with those. 3. A few I’ve been able to purchase at wholesale price, one was turnkey, and a few at market price. I purchased and remodeled a foreclosure recently and it was not quite my cup of tea. I find purchasing properties, giving them a minor facelift, and renting them out is much more my style. I do know people make wonderful livings off of wholesale/flipping, etc. though. Good for them and you if that’s the route you take! 4. Can you elaborate on what you mean for losing properties if the real estate market tanks if I used my HELOC? I assume you mean renters wouldn’t be looking for places and that the idea is I wouldn’t be able to cover my mortgages? I’d be happy to learn what you mean by this. As for the HELOC itself and the comment on being fully leveraged, I’m not 100% sure why you think that. Two years later, my HELOC is fully paid off due to the (positive) cash flow from my rentals and I’m able to get more properties if I want, but I’m content on my current situation. 5. Yep! Six properties, although now I have eight as I’ve acquired two since that podcast. Have you read Mr. Money Mustache or anything from the Minimalists? I’m a fairly simple person with few needs other than a preferably lofty travel budget. Life is pretty good and a year after this podcast, I’m still very pleased with how my business has grown/provided for my basic needs. 6. I agree that wholesalers, or anyone in general, may have a hard time finding slammin’ deals nowadays, but they’re out there. I’ve stopped searching for them as much now, but I keep an eye on the markets in case I find something I want to move on. You seem to be very experienced. What advice as a more experienced investor would you have for me based on the comments you wrote above? I’m sorry this wasn’t your cup of tea. I have really enjoyed learning about and participating in the world of real estate and wish you the best of luck!

Hey Brandon, did you catch my challenge to you? Hope to hear from you soon. Earl Minnis

Hi there! Sorry for the delay- I invested in the Destin area of the Florida panhandle. 🙂

Absolutely! I do a lot of hopping around on Zillow/Trulia to see what properties are in what areas (safety-wise), what are listed for rent and how much they were purchased for/renting out for, and plugging in with a property management place nearby who is willing to answer some questions. They also have the inside scoop often times on properties they’re managing coming up for sale. Most agreements say that if a property goes for sale, they’d be the selling agents and I’ve had a few deals come by that way. I went out of state to Florida because it was less competitive, and then to Michigan where I’m from because I could get similar cash flow for properties at 60K vs. 90-150K out here. I could use less of my own capital and get the same returns, so that’s why I broke into a new market.

I will absolutely keep that in mind- thank you for the tip!

Hi, Julie! Thanks for the comment. I suppose it’s achievable, but only seems simple in hindsight. 🙂 There was a lot of preparation into each deal but if you set up your business properly, I believe that per your words- it doesn’t have to take over your life.

Hi Monica! Thank you for reaching out. It has been a ride for sure! In fact, since I have considerable gains on a property I own, I’ve chosen to sell it and possibly 1031 exchange those gains into two properties for some extra cash flow. I’m not sure what I’ll do just yet but it’s a thought to have more cash flow without anymore of your own original capital going into the deal! 🙂