DIY to Done-For You | 602

How To Succeed in Real Estate Investing

Today, we have Lonny S. on the show. This bright real estate newcomer will tell you his story about how and why his business endeavors in the field turned from DIY to done-for-you experiences. Learn why trying to handle your first deal by yourself is tricky and risky, how we, at Cash Flow Savvy, can help you face the challenges, and what lessons and advice Lonny has for people who are thinking about getting involved into real estate.

DIY to Done-For-You

What You Will Learn About How to Make an Offer on a House without a Realtor:

  • What Lonny and his wife Tammy do for a living
  • How did they find the Epic Real Estate and why they decided to pursue passive income
  • Their DIY real estate experience and what went wrong with it
  • Why you should be wary of inspectors
  • What changed for them when they started working with Cash Flow Savvy
  • How Lonny and Tammy acquired their 2nd deal
  • What the ROI on each of their properties is
  • The biggest lesson Lonny learned along the way
  • Why you should reach out for help immediately as you start thinking about investing
  • Why we advised Tommy and Lonny not to buy one of our properties

Whenever you’re ready, here are a few ways we can help:

Work with me One-on-One

If you’d like to work directly with me on your business… go to REIAce.com, share a little about your business and what you’d like to work on, and I’ll get you all the details!

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  • Become an Epic community member at The Epic Real Estate Investing Show 
    One of my favorite things to do is share with investors the latest and greatest tactics and strategic friends I make. I do it every week and you can listen in by subscribing to The Epic Real Estate Investing Show podcast on iTunes – Click Here.
  • Grab my book, Epic Freedom ($1) 
    I frequently hear from people looking into investing in real estate for the first time, “How long is it going to take?” So much so, I wrote a short book about the 2 easiest and fastest strategies to a paycheck in real estate. You can grab a copy for $1 and I’ll pay the shipping – Click Here.
  • Join our Badass Investor Program and be a Case Study 
    I’m putting together a new Badass Investor case study group at Epic Real Estate this month… stay tuned for details. If you’d like to work with me on your real estate investing, go to FreeRealEstateInvestingCourse.com to get started.
  • Also, check these out:

Thanks!

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Transcript:

Speaker 1: This is Theriault Media.

So, you want to be a real estate investor but you don’t want to do the work. If there were only a way where someone else could do it for you? Now there is. Tune in here each and every Tuesday on The Epic Real Estate Investing Show for Turnkey Tuesdays with your host Mercedes Torres.

Mercedes Torres: Hello, and welcome. Welcome to Turnkey Tuesday’s brought to you by Epic Real Estate Investing. My name is Mercedes Torres and I am privileged enough to be partners in crime with Mr. Matt Theriault. The guy who created Epic Real Estate Investing.

So, for our repeat listeners, welcome back. Good to see you again. Make yourself comfortable. And for those of you who are just tuning in now to Turnkey Tuesdays, I created this show to really help busy professionals who are interested in real estate investing. I created it so they can learn a little bit more about how to do real estate without doing all of the work themselves. Having said that, we are very candid on the show and I welcome you. So, welcome aboard.

So, I want to take a moment to congratulate a few people just really quickly. Those people that purchase great properties with Cash Flow Savvy this week. Mr. James H. from Pennsylvania. He closed on his first investment property in Birmingham, Alabama. Congratulations, sir. We are neighbors because I own a property right down the street from yours. Lisa F. from the Bronx, New York purchased a killer two properties on the same block in St. Louis. Awesome properties you’re going to love them, and our St. Louis team is amazing. So, congratulations to you Lisa. Mary Anna S. from North Dakota. She purchased her third property in one year. She picked up another great home in Indianapolis, and this one’s a little bit on the suburbs so, it is going to be a perfect complement to your portfolio.

And last, but certainly not least, Lonny and Tammy S. from Colorado. They closed on their second investment property just yesterday. So, congratulations is in order. I am really happy for all of my investors who have just picked up cash flowing properties to really make a difference in your financial future. Now, speaking of Lonny and Tammy, they have a really cool story because I spoke with them about a year ago and had an extensive conversation with them. And at the end of the conversation they were gracious and thanked me for my time and they said, “You know, Mercedes, I think we can do this ourselves. You and Matt talk about it all the times and it sounds so easy, now we’re going to go try it ourselves.”

Now, knowing what I know of new investors dabbling in their first investment on their own, I really from the bottom of my heart said, “Good luck to you. It’s a lot of work, good luck,” and I said, “If there’s anything you need, feel free to reach out whenever.” Sure enough, Lonny and Tammy called me back about nine months after our initial conversation. And they said, “You know, we tried it ourselves and it just didn’t work. We got a property under contract, we live in Colorado, the property was in Atlanta, long story short, it wasn’t the greatest experience the deal went south and here we are.” So, we helped them with their first property and then now just yesterday they closed on their second.

So, they came back to us and I have a really huge treat for you because Lonny is joining us today on our podcast to share not only his experience but his journey and his story with acquiring the two properties of which the first one he tried on his own. So, without further ado, help me welcome Lonny to our show. Lonny, are you there?

Lonny: Hey, there, Mercedes. Yes, I can. How’s it going?

Mercedes: Fantastic. You sound amazing. Thank you for joining us.

Lonny: Well, thank you.

Mercedes: Awesome. And I know that we are missing your wife Tammy. She’s the one that has a reputation around our office that she is hard to get. So, even if Tammy is not joining us, we’re going to talk all about her so we’re going to make her feel bad that she didn’t join us.

Lonny: Right, that’s right.

Mercedes: So, welcome to the show, Lonny. How’s it going? How’s it going where you’re at? I don’t know what you’re located. I don’t remember.

Lonny: Oh, I am in the beautiful city of Denver, Colorado.

Mercedes: Oh, is it snowing today?

Lonny: Oh, no. It’s nice. It’s sunny. It’s just a good day to be doing this and be out and about. So, it’s a beautiful day in Denver. Beautiful day.

Mercedes: Awesome. So, it’s actually a really cold day here in Southern California. And when I say cold, it’s like at 59 degrees today and that is freezing to us. So, for those of people that are freezing in other parts of the country, please forgive me, I am a Caribbean queen and 59, 60 degrees is freezing for me. Don’t laugh. Including you, Lonny. Don’t laugh. So, Lonny, tell us a little bit about yourself and your wife.

Lonny: All right. So, let’s see, a little bit about us. We met about 14 years ago, been married for 11 years. I met her at a Banana Republic store working in retail. And yeah, she caught my eye right away. She’s an amazing woman. Like I said, 14 years later we’re married and super happy to kind of, we balance each other out incredibly well. She is my better three quarters without a doubt. And then we have a new son by the name of Doug, he is actually our first son person, but he’s an Australian shepherd that’s about five months old or so and he is learning how to be a dog, and we’re learning how to be dog puppy parents.

Mercedes: Oh, I love it. Four-legged friends are the best. So, funny that you say Australian shepherd. Matt has had three dogs in his life and they have all been Australian shepherds. And now Mateo has been talking about getting a dog to join our family. And of course, the talk is that we’re looking for an Australian Shepherd. So, anybody out there that wants to donate an Australian Shepherd to us we’ll consider it I have a rule that we are not going to buy a four-legged friend we are going to adopt one. So, that’s the rule and thank you for letting me share that I want to hear all about Doug.

By the way, I love when dogs have people names. I just think they’re part of the family, they should have a people name. I like Doug better than [Spot 00:07:08]. So.

Lonny: Yeah.

Mercedes: So, tell me. Tell me, what do you do for a living, what is Tammy doing for a living?

Lonny: Okay. I’ll start with Tammy. Tammy is an executive assistant for a big industrial supply company. That’s why she can’t join us today. She’s actually on an airplane flying out to a big conference. I myself work for an underground mining company. It spreads internationally actually, but I work on the underground side. I am a senior supervisor level guy. And what I do is just make sure people’s lives are good. So, that’s kind of what I’ve been doing. I’ve been doing it for like 20 years. So, hopefully, I’m good at it by now. Really good at it. But there’s still room to grow obviously, and I’m sure my peers would tell you that.

Mercedes: Oh, I love it. I love it. So, you are the dude that actually goes underground? Is that you?

Lonny: Yes.

Mercedes: Wow.

Lonny: I am that guy. Yeah.

Mercedes: So, you sell them to see the light of day.

Lonny: I do. So, I’m down there for about four to five hours a day when I work. So, yeah. It’s definitely interesting. It’s a whole new atmosphere so to speak. You have space, you have underwater, you have underground and you have on top of the earth here.

Mercedes: Wow, that’s pretty amazing. That’s a world in itself. That’s not space, that’s a world.

Lonny: Yes.

Mercedes: Awesome. Okay, so tell me, how did you find Epic Real Estate?

Lonny: Right. So, I started listening to Matt and Epic, is do over guy. So, this was about six years ago maybe, four years, I don’t know. Anyhow, about then.

Mercedes: Try nine years ago.

Lonny: Nine years ago, wow. That’s crazy. So, time flies. Anyways, I really liked Matt because he was bald. So, I like that a part of Matt, but the other part I liked about Matt is he really gave people credit for, he gave you credit for doing more than the typical guy that you want to listen to that’s going to control your finances or a girl, he really pumped you up and talked about passive income and then how logical it is to go after passive income. So anyway, that’s what I really liked about Matt. I liked his mantra. I kind of liked how he was doing things himself personally up to including using passive income and then renting his house. I do that. So, yeah, he’s a pretty cool guy.

Mercedes: Awesome. I would absolutely second that motion, he is an amazing guy. You said passive income, why passive income? You’re a minor, you’ve been doing it for 20 years. I’m sure you make really a decent living and your wife is really good at what she’s doing. She’s an executive assistant. She is now traveling. So, you guys make a great living. Why did you decide to consider passive income?

Lonny: We do and we’re very comfortable. It’s just that, I’ve just seen this is my own personal family experience. I’ve seen my grandparents actually, they save and save and save and save, and then you get into later years of your life and you just see that savings go away just because has to take care of them or my grandma now. So, I’ve just kind of watch that happen and as hard as they worked and everything else that they did, there’s nothing else to supplement that. And I think that’s what a lot of people are still doing to this day. So, passive income made sense because like I said, it gives you credit. You can actually go behind passive income, it’s not that difficult to do. You just really got to put your mind towards it, but it’s really not super difficult. And it’s very logical. That’s why I liked it. I was like, okay, it makes a ton of sense. Why would I want this chunk of change when I can have 300 bucks a month, 400 bucks a month, or whatever it is, but for the rest of my life.

Mercedes: Yeah. You know, Lonny, it’s great that you talk on that because I can’t tell you how many people I speak to that have had that personal experience where they save, save, save and save, and then they jump into retirement at 65, 70 years old and what they’ve saved only carries down for about five, six years. And then what? You’re 76 years old by this time. What happens after that? So, I love that you’re thinking that already. Do you mind me asking how old you are?

Lonny: Not at all. I’m 44 years old and I want to retire by the time I’m 50. I want to be done. I love working, I like what I do, I like working hard, but I would rather do this. I’m just hanging out on my couch right now talking to you. And there’s a lot of other things I could be doing on a day to day basis besides getting up and hitting the grind.

Mercedes: Yeah, I love it. So, your goal is to retire within the next six years.

Lonny: Yes.

Mercedes: Is that correct?

Lonny: And my

… wife, of course, so it’s our goal.

Mercedes: Awesome.

Lonny: We want to be spending some little bit more time in some warmer climates, and then, of course, here in the summer.

Mercedes: Awesome. Now you guys are relatively young, so I will attest to it can be done. It can be done in six years. I would argue that you guys could do it in four, but okay. I’ll give you that, six years. You can retire in six years. Tell me, I know why passive income. Tell me about why you specifically decided to work with Cash Flow Savvy. Tell me about that experience.

Lonny: All right. So, we had spoken a long time ago. We had a nice conversation, nice long conversation, and you kind of gave us the ins and outs on how this would work, when we looked at Cash Flow Savvy. So, and then I looked and it’s like, “Huh, I wonder if I could do this ourselves?” So, this is, I’m just being honest here for the audience. So, we went out and we said, “All right, we can go buy.” So, we went and found property. We went to Atlanta, Georgia to do this. We went to Atlanta, found this property, and we thought it was pretty good, thought it was solid.

Then, when it came time to get the inspection we just had a nasty falling out with the real estate agent and it was just due to us … What had happened is, once again being candid, is it was inspection time and we did not get any type of information back regarding the inspection, how things went. So then, upon questioning that and it being just too much time had passed without her contacting us, questioned that and she just pretty much told us to trust. Then, kind of gave her the understanding that our expectations were that we hear from her more regularly, and we got a little bit of negative feedback and started questioning my integrity, Tammy’s integrity, and then that was it. We were done.

It was a bad experience, no joke. Then, I was like that’s … We thought we might be able to put things together ourselves, but then it came crawling back, and called you, Mercedes, again, and you were more than gracious and kind of helped us move forward after kind of a nasty experience. But I think it helped us grow a lot in just understanding, “Hey, this isn’t easy.” But, when you put the right team around you it makes it look easy.

Mercedes: Yeah, I harp about the team, but I do wanna say congratulations for inquiring about an inspection and not taking someone’s word for it. I commend you for that, especially as a novice investor. I mean, I talk about this ad nauseum, it’s all about the team. You can ask questions, and if your team is not answering your questions, well then you don’t have the right team. I commend you for that. When you get your inspection, inspections are crazy. I’ll tell you because, I mean, I’ve done over 2,000 transactions. I have seen over 2,000 inspections and sometimes they’re not pretty. But what I do know is when I walk a property and I compare the inspection to a property, the written word sometimes is so different from the actuality of the experience. The reason is that the inspector has to over-disclose because their license is on the line. Regardless, you should always look at your inspection as nasty as it may seem. There’s something that they were not wanting to share with you because every real estate agent should be willingly giving you the inspection. It’s your right, it’s your property. I commend you for that.

Lonny: Well, thank you. It turned out this one is in a significant flood zone.

Mercedes: Oh, well, ding, ding, ding. What am I talking about, yeah, okay? There you go. I’m big on that just because I’ve done my share of inspections. It’s so important. I remember speaking to you guys the first time. You guys had amazing questions lined up. You were very thorough, you had questions written down, and Tammy was … You would ask a question and then Tammy would dive in a little bit more. Then, I remember you were like, “We’re gonna try it out on our own.” You were very honest about that, so I appreciated that. I was like, “Oh, that’s interesting, sometimes it works. Most of the time it doesn’t.” And when you called me back, it wasn’t like I said to myself, “Oh, I told you so.” I really thought, “Thank God he’s back,” because I know what you’re gonna get with me. So, thank God you came back.

So, tell me, fast forward to what did you get to me? You actually got two properties, you just closed on your second one yesterday.

Lonny: Yes.

Mercedes: That makes me so happy. Then, your first one was in Alabama. Your second property, or actually your first property was in Cleveland, your second one was in Alabama. But I want you to tell me, walk me through the process, after you came back and said, “Okay, I’m gonna work with Mercedes and the Cash Flow Savvy team.” Tell me what that process was like.

Lonny: Yes, so once again, you explained everything spot on, then it was just providing some earnest money, or a small down payment of $2500, $1500?

Mercedes: Yes, it’s a $2500 deposit to place you into the investor queue, yes.

Lonny: So yes, and bam, we’re in the investor queue and we’re getting all these properties sent to our email address. What’s nice about that part is you don’t just see the property, you see all the stats that go along with that property, the research that you guys have done. So, then it just becomes … it takes the emotion out of it, which I love. It takes the emotion out of it and just becomes a decision, a financial decision. Of course, you’ve got little things, like you see houses and you see the style of the house and you look at certain other little things that draw you to certain properties more than others. But, at the same time, you still have the stats to back it up, which was really nice. So that was that part of it.

You sent us the information, we decided on the house that we liked, and still, really like. It’s a little Cape Cod in Cleveland like you had said. See, what else? We went through the closing process.

Mercedes: Tell me about the lender. How did you … What happened to the lender?

Lonny: Okay, so we had chosen our own lender at that point in time, and we kind of … It was just miscommunication, it was just tough. I would just say you guys probably had … He hadn’t worked directly with you at all, I don’t think, in the past. There were just some things that we had to tie-in, a lot of tying together, a lot of gaps in communication here and there. That was really it. I guess we can all fast forward to the next property is we used your lender the second time because we learned from the first time. Anyways, I’m gonna jump back now.

So that was just another learning experience. Once again, we thought we might be able to still guide ourselves a little bit, but really, it’s just better when you guys handle that. It just makes it easier.

Mercedes: Yeah. What we had learned just throughout the process is when we, in the past, have used other lenders, it became such a challenge for our clients because the lender wasn’t used to working with a turnkey property provider, or they’re not licensed in the state. It just became such a fiasco, we now have a rule that you have to use one of our lenders to buy one of our properties because the process is seamless. Now, you can talk a little bit about the process of your second acquisition, we’ll talk about your property in a moment. But what was the process like when you went through the acquisition the second time with our lender, compared to the first time with your lender?

Lonny: Okay, so the first time took, I bet it was two and a half months to close. I wanna say something like that. It was already tenanted, so at two and a half months you’re thinking, “I’m losing out on money a little bit here,” right?

Mercedes: Yeah.

Lonny: So second time, let’s fast forward to the second time like you said. That time it was a month. We closed yesterday. It was a battle month, it was fast, it was seamless, it was great. In fact, I got off the horn with Aaron Chapman just before we got on the phone, about an hour. He called to check on everything and say congratulations from him and his team. He said you were the most bad-ass person he knows.

Mercedes: I love Aaron.

Lonny: He is just a high energy awesome guy, and his team is, they’re solid. They are solid. Everyone we had an interaction with was solid and on top of it, and helping us through, and asking for this, and asking for that. It was quick. I mean, I’d come home from work and we’d have three more documents, or whatever it was. But we rocked it. It was a month later.

Mercedes: So I did a little research, and your closing was done in 26 days.

Lonny: Oh, 26.

Mercedes: Yes. 26 days. Yeah, our record is 21 days. We were closing a property in 21 days. 26 days is what we did. Normal turn time is 30 days, just FYI, if the property is ready to go. But, yeah, Aaron Chapman is one of the most knowledgeable leaders in the turnkey space. We’ve been working together for about, I think, eight years, and he and his team they’re just diligent, and they work really, really well with us. A lot that just our listeners and our clients don’t know so much happens behind the scenes to make your experience easy and flawless, and it’s not easy and flawless on the backside of it, behind the scenes. But we make that for you. So, we speak to Aaron and his team probably about 20 times a day, because that’s how much business we’re doing. So, they cater to our clients because we absolutely, all of us, understand each other, we’re comfortable with each other, and in turn, it makes your process easy. I’m really happy that you said that. Cool. So, tell me about your second property. The first one was in Cleveland, your second one is in Birmingham, Alabama.

Lonny: That’s right. That’s right. Never been to Birmingham in my life. Never been to Cleveland in my life. I’m gonna have to go check them out.

Mercedes: Wait a minute, wait a minute. So, you have not seen the two properties that you’ve purchased from me?

Lonny: Oh no. So, we went through, and I mean, I’ve even asked you for a second clip on the first property. We went through, looked through it. Like you said, the inspectors actually overstate things so you get really comfortable on that side. But no, I mean, I saw the videos and saw the property, very nice property. Really quick, I’m gonna … The Cleveland property is beautiful, I still like that house. I would personally live in that house, and that’s kind of what I ask myself when I look at these properties, “If you’re gonna rent it to someone, would you live there?” In this case, absolutely I’d live there. The Birmingham house, same deal. I would live in a Birmingham house. It’s amazing the value, in Denver, it’s amazing the value you get in Birmingham, Alabama or Cleveland in regards to property. I look at it and something like that here in Denver would … It would be astronomical, so it’s just such a solid investment. So yes, the place in Birmingham, it looks very nice. It looks very nice, it looks like a very nice property, like I said, that I would live in. It’s tenanted already, she’s really nice. So as of today, we’re switching over all that information to us, as far as from the property management side.

Mercedes: Yes, because you just closed yesterday, so nothing has been sent over yet. Yeah. By the way, Lonny, we do a lot of that for you, so you don’t have to worry about that. I love the fact that you said, you have not physically gone to Cleveland or Birmingham to see your properties. But they were tenanted and you’ve been cash flowing on your original Cleveland property from the beginning. Have you had any nightmare, have you had property

… management call you at 3:00 in the morning?

Lonny: Nothing like that. We’ve only had a couple of small repairs happen as of right now, which is actually nice. I actually like that. There was a little something under the sink, and they were all over it and had contacted the property management group. Then, at that point, they handle it, which is really nice. All you do is give a thumbs-up or thumbs-down, which, yeah, give a thumbs-up. They handle everything for you.

You can even set what that amount is. If it’s under X, they just fix it for you, so that’s really nice. It all goes into a little slush fund to fix your property if you choose to do so, and they just use that.

Mercedes: That’s exactly it. Awesome. Then your second property was tenanted, so you closed yesterday, and as of yesterday, you were already cash-flowing on your second property. Is that correct?

Lonny: That’s right. That’s right. Number two as of yesterday. That’s two in two years, actually under two years. That’s two in eight months, I want to say.

Mercedes: It has been eight months, correct.

Lonny: Two in eight months. We’re on pace. We’re on pace to get this retirement thing done.

Mercedes: Our typical client buys three properties in one year, and I will make sure, Lonny, that you fit that third property in within the next four months.

Lonny: All right. Deal. Deal.

Mercedes: It makes a huge difference at the end of the day. Lonny, do you mind sharing, and you may not know these numbers off the top of your head, but do you mind sharing the ROI on each of your properties?

Lonny: Yeah, I want to say Cleveland’s right at 11, 12%, something like that, in between there, which is fantastic. Alabama/Birmingham came in at 9%, but I think we actually got a better interest rate than I first thought, too. I think we came out a little bit better on that one, I want to say. Those are both great.

Then, not to dive into it too much, but we actually used some of our money from a 401K, so we pay ourselves back 6%. Then you factor the taxes in, those breaks. We don’t even mention equity build, but the property in Birmingham, to your guys’ credit, because we had our appraisal done and sent to us, our appraisal was done and sent to us, but it came out higher, so thank you.

Mercedes: You’re welcome. So, if I can clarify those numbers for you, your Cleveland property is at 11.2 cash-on-cash return. Your Alabama/Birmingham property came in at 9.8 with equity.

Lonny: Oh.

Mercedes: Yeah. Now it came in at 9.8 because you did get a lower interest rate. I don’t know if you got lucky or if you bought the rate down, but it’s music to my ears that you’re using money from your 401K, and you’re paying yourself back with interest. It makes me so happy. Not only are you double-dipping, the reality is you and Tammy are quadruple-dipping. You’re not only getting the cash flow, you got equity, you’re paying yourself back with interest, and you are in an appreciating market. I’m just counting that 9.8% cash-on-cash return, but the reality is, it’s going to be substantially higher than that. Thank you for sharing all that with me. Tell me, what would you say has been the biggest challenge in this whole ordeal?

Lonny: Oh. Shiny things, I would say. I get distracted. Like that’s just how I work. Tammy is much better at that than I am. She will stay focused, but I get distracted. I see a house in the Denver market, I’m like, “Ooh. Do I go to buy a house in the Denver market?”, but, no. The challenge is really containing your enthusiasm and saying, “All right. Let’s just stay on pace, do what we said we’re going to do,” continue working with you guys to buy that third property within the next year, rather than doing something here and talking all that potential, all that liquid, and using it the wrong way, and invest it with you guys and use it the right way. I think that’s the hardest part is just exercising patience, not getting distracted by the shiny things.

Mercedes: That’s so well said, Lonny. We are all big on making piles of income because they’re so sweet to make a lump sum of money. Like you said, dripping in $200 a month, 250 a month, it’s not so exciting, but the reality is, there’s more to that $200 a month. So, I commend you for looking past that, because I tell you, I personally experience that every day, and I have a full portfolio. I get a deal on my desk, and I think, “Should I flip it and make $50,000? Or should I make a $200-a-month cash flow?” It’s hard, Lonny.

Lonny: It is, yes.

Mercedes: The fact that you’re focused on the goal is huge. I commend you for that. Do not keep your eye off of that big retire in six years. When you keep thinking that over and over to yourself, you’re going to remember, “Okay, I need streams of income. I need streams of income.”

Lonny: That’s right.

Mercedes: Awesome. Awesome. Now that we know your challenge, tell me what was the biggest lesson that you got from this whole experience.

Lonny: I think we touched on it a lot earlier, and it was just stick with the plan. You guys have done it. Don’t try and reinvent your own wheel, because just beg and borrow … Just borrow everything that you guys have done, and use you guys instead of trying to do it yourself. I think that’s pretty much it. That was the biggest lesson, hands down, and lesson B in this case. I waited; I drug my feet for two years. If I wouldn’t have drug my feet for two years and just made a move, we’d be ahead. We’d be two years closer to where we are now. That was just the risk-averse side of me kicking in, but it’s really such a logical process, that even being a risk-averse person, understands that, “Hey, just do it.”

Mercedes: Yeah, it’s so true. You said that about two years, you drug your feet. I see a lot of people, I talk to a lot of people that are self-proclaimed analysis paralysis, or they’re self-proclaimed terrified, and completely understandable to be terrified of a new endeavor, but had you started two years ago, the property that you purchased yesterday would’ve been your sixth property, and it’s your second. Just to our listeners, he himself said, “I wanted to think about starting two years ago, and I didn’t, and it’s cost me four properties.”

Lonny: It did. Yeah. Without a doubt.

Mercedes: Awesome. So, tell me, what would you recommend, or what advice would you give to a new investor that’s on the fence just like you? They’re thinking about it, they want to dabble, they’re afraid, they’re suffering from analysis paralysis. What would you tell that new investor?

Lonny: I would say, just reach out. You don’t necessarily have to commit, but just reach out to your team, because you guys are going to be able to answer a lot of those questions that the new investor has, and you guys are super honest. Super honest, to a point where we didn’t even bring up another property that we had talked about, Mercedes, but that one is the one you told us to stray away from. That’s what I really appreciate with you and your team is the honesty and the trust that you provide.

Someone new to this can call you up, you will give them the positives and the other things to consider when they’re making this, what would be considered, what is, a big step towards financial freedom. I would just say reach out. You’re not committed by just reaching out to you guys and talking to you.

Mercedes: Lonny, I totally forgot about the property that I told you not to buy. Tell us a little bit about that. It was actually right before the second property that you just closed on, right?

Lonny: Yeah. The returns were phenomenal, I was like, “Ooh, look at that.” That was a really good property, but then we had asked you a little bit more, say, “Hey,” it was in the flood area, and you just said, “I will not let you do it.” I don’t think we would’ve anyways, but you just being like, “Hey, you cannot do this. I won’t let you do this.” It just doubles back on, hey, you guys aren’t in it just for you guys. You guys are in it for the people like me. So, thank you.

Mercedes: You’re so welcome. I do remember. By the way, that property is not in a flood zone, but it is really close to one, and I didn’t want to run the risk of you buying a property that could potentially have flood insurance tagged onto it in a few years.

Lonny: Yes.

Mercedes: We still own that property, and I’m not going to sell it. I won’t sell it to one of our people; I’ll sell it to another investor outside of our world if need be. It’s cash flowing just fine, but I don’t ever want to put one of our investors in a position where it’s going to eat up your cash flow because the whole reason we’re doing this is for you to create cash flow for your financial freedom. Thank you for bringing that up, because I totally forgot about that.

Lonny: Yeah, I kind of did, too. I guess it gets lost in the shuffle, so to speak.

Mercedes: No, it’s part of your experience. You’re growing, so I love it. Final words to our Cash Flow Savvy audience and to our new investors, what’s the one piece of advice that you would give that new investor?

Lonny: Be cautious, but do it. Be cautious, but do it. That’s really all I have. I wish I would have, and your team is great, super easy to work with, and everyone that surrounds you is phenomenal. The sooner you do it, the sooner you’re going to get to that spot where you want to be. I didn’t think I was going to be able to do it. There were always reservations because I had certain programming, but eventually, we will be financially independent. Not eventually, sooner than later.

Mercedes: I’m going to be here to watch it. Lonny and Tammy … I know Tammy’s not with us, thank you so, so much for your candidness, for opening yourself up to allow our audience to listen to your story, but, more so, to be able to resonate and relate to it, because Lonny and Tammy, what you guys have done, more people need to do, and the fact that you’ve broken it down and shared candidly your experience, is going to touch somebody out there, and I know it’s going to make a difference, which is the whole reason why we do this show. Lonny, thank you so much. Have an amazing week. I look forward to number three. Take care, buddy.

Lonny: Thank you so much. You have an amazing week.

Mercedes: All right. Take care, buddy. Bye-bye.

Lonny: Bye-bye.

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