jQuery(document).ready(function(){ jQuery(".more-link").text("View More"); });

Today Matt continues his talk on investing in real estate with “wonder boy” Richard Haynes from Hermosa Beach, California. Richard is addressing your pressing investing questions on today’s show. Enjoy!

 

Recommended Resources:

  • It’s been great meeting you virtually. Would you like to meet in person? Our next live event is right around the corner! Go to EpicIntensive.com for the details.
  • Need money? We have secured more than $15,000,000 of funding for the Epic community, people just like you. Get access to fast cash for your real estate investing business with our “one-of-a-kind” credit-based funding program at EpicFastFunding.com
  • Need time? Work on your business rather than in your business by leveraging the time of others.  Access free information and find real estate-trained virtual assistants to help you free up your time.  Learn more at VAsForRealEstate.com.
  • Need training? The ultimate training environment for real estate investors: Version 3.0 of The Epic Pro Academy!  New look, new lessons & new content – we’ve got everything you need to know to get your first paycheck!
  • Need someone to do it all for you? If you’re an Accredited Investor, you can diversify your portfolio by hitching your wagon to our train and share in the profits. Go to EpicWealthFund.com to download the executive summary.

 

 

 

Podcast Transcript: 
(Voice Over):  Epic Real Estate Investing Podcast Episode 20.  You’re about to meet a man that can show you how he took control of his life and financial future and how you can do the same.  He’s never been on TV.  He’s not a millionaire.  He doesn’t know Donald Trump.  He is a full time real estate investor, newly discovered author, and family man.  He does not report to a boss.

He creates his own schedule and takes his family on a few vacations every year.  He got started investing in real estate with almost no money and a really crummy credit score.  And he’s going to show you exactly how he did it and how he continues to do it.  You will have to work. 

You will have to be responsible.  However, laying the beach, sipping fruity drinks is a reasonable goal.  Without further delay, your guru.  Sorry.  Your guide to a better life, the real estate investor, Matt Theriault.

Matt Theriault:  Hello.  Greetings from The Epic Real Estate Investing Podcast.  The podcast that’s going show you how to build wealth through creative real estate investing.  That’s what we will discuss today and for a long time to come so you’ll have the option to realistically retire in the next 10 years or less.  And enjoy the good life while you’re still young enough to do so.

My name is Matt Theriault, author, full time real estate investor and family man.  Now if this is your first time listening to the show.  You want to do two things.  First, go back and listen to Episode 1 for the ground rules of the show.

Two, download the Free Real Estate Investing Course – How to Do Deals, No Money Required.  You can get at FreeRealEstateInvestingcourse.com.  It’s a step-by-step course of where I unveil the mystery of doing deals with no money or credit.

Okay today, we’re going to jump right into it as we resume our interview with 26-year old Richard Haynes of Los Angeles, California as he answers your most burning questions.  You know if you missed the first half of the episode.  It’s highly recommended.  You go back and listen to it.

That would Episode 19.  So without further adieu, here’s the second half of the interview with Richard Haynes.  Enjoy.

Matt:  Richard, this has been an awesome interview.  You know what? I sent out a survey to all of the listeners. I know they’re getting a ton from this conversation but they sent in some of their most burning real estate investing questions.

I pulled out some of these.  I wanted to know if you could help me answer them.  Would that be okay?  You got enough time?

Richard:  Yeah.  That’s great.  For sure.

Matt:  Okay. Cool.  You know if you have an answer, great.  If you don’t really have a good answer, you can say pass.  I’m okay with that as well.

Richard:  Okay.

Matt:  I did pull or extract some of these questions based on what I know of you and what your strategy is so I think most of them will apply and that would kind of address as thoroughly as we can just to create an amazing valuable experience for our listeners.

Richard:  Great.  Let’s do it.

Matt:  Okay.  Cool.  So for someone that, this is why I pulled this one for you, for someone just about to graduate college or having just recently graduated: would you recommend they invest part-time to begin or jump into it full-time?

Richard:  Oh that’s an easy question.  It’s part-time.  As much as I’m the big person saying “hey, become an entrepreneur.”  You know run your own business if you don’t have any experience in real estate.  You’re just graduating from college and really don’t have any business experience or know what it’s like being in the real world.

You know it’s tough out there.  You’re prepared.  I really highly recommend part-time because it would allow you to work for a company where you’re going to have a solid cash flow to help you pay for the bills and start saving up money, start your own business.

Additionally, it allows you to start researching and looking for deals without the pressure of having to do deals so if you didn’t or you’re doing it full time and you’re like I’m not making any money.

Let’s do this deal because it’s the best thing I found. I need to pay, you know, rent next month.  In the end of doing deals so I think 100% start part-time.  Start educating yourself.

Start building your database of bird-dog, vendors.  Start building your knowledge of the market.  Have your own job and make sure that you can be able to pay your bills and save up some money.  You’ll know when you’re ready to them.

Once you’ve done it long enough and done deals part time like one or two, you’ll know when you’re ready to break off from your job and do it full-time.

Matt:  Awesome.  Good answer.  You’d mentioned about little bit of your CPA and about your lawyer then this answer that just like this last question that you’d talked about.  You know building your network and bird-dog.

Here’s the question: what are the steps in growing and selecting your power team?  Who came first and why?  What’s a good way to structure payment of professional services or legal advice if initial funds are minimal?

Richard:  Okay.  I think it would be number 1 person to start when you’re building your team is a contractor.  The guy who’s going to do your fix up to flip or to get the property ready to rent.  Why I say that is because I think the biggest weakness of every beginning investor is once you’ve educated yourself on the market.

You know what it does is most people don’t have experience or can walk into a property and say “yeah.  This place needs $25,000 or oh yeah this place needs $50,000.”  They don’t know the difference between that.

So you really have to find a contractor that’s going to be able to walk through with you on your first couple of deals and educate you on what type of costs are along with someone who has a good reputation that you can trust that isn’t going to overcharge you on certain things.

So I think that is the first one that you got to find because it’s going to help educate you even more on deals and finding a great deal.  They won’t screw up with your budget.

Then from there, you know, developing your team.  You’re going to find them through networking.  In a way sometimes it’s guess and test with people. I mean I started with one eviction lawyer doing my first eviction.

He did an okay job. I found another lawyer and said, “hey. Let me try one for you.”  He ended up being incredible.  I used him all the time so you can kind of you know fluctuate from lawyer to lawyer, your accountant.

You know, try them out.  If they’re great handling your books, a lot of payroll things and they show you where they’re saving you in taxes and they speak to you and really help you learn how to run your business.

That’s an accountant.  You want to sit someone who doesn’t show you, doesn’t help you, and a little bit to get in touch.

You won’t.  So it’s really kind of organically your business through referrals of other people who send you, networking that you do, and just people that you meet.  Finally, to answer your last target question is funds are minimal.

The way that I kind of work when my funds are minimal and I tend to be you know younger guys so my circle also tends to be younger people but my lawyer is my age.  You know?  You graduate from law school about a year and a half ago.

But I know that his family does real estate up in Northern California.  He’s wanted to do real estate his whole life if he wants to be the top lawyers in California.  He works for a high price in a Beverly Hills Law company.

Well guess what?  He’s young. He has a year and a half of experience but he’s a got head lawyer that watches everything he does.

But I get charged, you know, with a 75% discount so the key is to when you have a minimal budget is to go find younger-driver people who can tell are smart but you get them at a discount because they’re trying to build their business.

You don’t have to go for 55-year old lawyers who are been in the business for 25 years charging a $1000 an hour.  You can get a guy whose got to be smart and a little bit less experience but being watched over by that guy and making sure he doesn’t make mistakes.  He’s charging you $200 an hour.  You’re getting the same type of legal advice.

So find young, talented, rising stars that are trying to build their business.  You’re going to get great service, great advice at a big, big discount.

Matt:  (laughing) That’s a great, great answer, Richard.  Thank you.  You’d said, you talked about the first person in your power team.  You’d said a contractor.  I’ve never, my answer has always been when people lose money in real estate.

They’ll typically lose it in two different places either through a bad contractor or bad property management.  The way you’d answer that, I never thought of that is the first people you should go find.  Do you agree with that?

Richard:  You’re saying that the contractor and property contractor manager the first people you have to find?

Matt:  Well, I’m thinking that I was just kind of putting my answer to people’s questions slightly different question of your answer of combining it with regard to building a power team.

Everyone has asked how can you invest in Illinois?  How can invest in Detroit?  Especially when you’ve never been there, you’ve never seen the properties.

Now I’m going to Memphis.  I’ve just purchased this property.  I haven’t seen it either yet.  I might answer to their answer is always: you know what? I invest where I have the relationships not necessarily because the primary place where people lose money in real estate particularly when investing across a state lines or out of their area is they have bad rehab team or bad contractors.

That’s the big place where you lose money.  Second is bad property management.  I mean would you agree with that part first?

Richard:  I, I agree with both of those because you know you have to have a contractor that you trust and you have to have property management that you can trust because those types of jobs that you need.

Those are the places or people that can really stick it to you and take advantage of you in terms of contracting and fees and how many things costs.  Then property management, you know, those are people who can just yeah who are collecting a fee.

You don’t know if they’re really attending to your tenants or not scamming money on the sides for the tenants that the tenants may not be paying rents or stuff like that.

So like you said you’ve got to be able to trust them.  You’ve got to know that team that has a strong referral or someone who’s done business with them that you can trust their word.  So yeah, I agree with you 100%.  Those are extreme considerations when you’re investing all across the country.

Matt:  Right.  My conclusion that I was drawing was when you’re going to the steps of selecting your power team. I mean those are two areas that you want to be ultra, ultra careful with.

Richard:  Yes.  You want to be very careful with that for sure.

Matt:  Right.  Right.  Let’s see.  Next question, kind of a unique question. I’m not sure if it’s going with this.  Obviously, I got a situation that’s applicable so let’s see what happens.  Can you work together with the competition in your area to get started and learn from them?

Richard:  Yes and no (laughing).  But it’s a great question.  Like you said very, very unique.  The reason why I say yes and no is no because your competition probably doesn’t want to work with you and teach you the business but let me tell you how basically I use the competition help grow my business and learn the business.

Basically, my first real business plan of where we were buying single family homes in LA, knocking them down, and building brand new duplex, and putting low-income tenants.

Into them, the business plan was written by me and all sorts of other things that was all original but there was another big time investor in LA who was already doing this business plan.

It was the biggest investor in this field doing it.  Why do I have to reinvent the whole wheel?  Why do I need to find some sort of unicorn in the woods plan that no one was doing given that I don’t any experience. I literally copy the duplex that he was building.

I found through different filing of architect who was I gotten to, you know, I lent the construction site when no one was there.  It was just the workers; the lead builder was on it. I basically acquired their whole team on who did the duplexes for them.

I basically you could steal; I mean I didn’t do anything illegal but I did what they were doing.  It gave me a lot of credit because they were successful deals. I knew that it would be successful deals because they were the great investors in the area.

It worked out well then yeah I have another circumstance when we started flipping homes.  The biggest home flipping business in Southern California, I ended up hiring on two people that used to work for them.

I drew a lot of information on how they do the flipping. I use a lot of it today.  I know the competition is not going to directly teach you anything but if you go hunt down what they’re doing, find people who have been score to buy them.

Figure out whom they use for their business.  You can learn a lot very quickly and do a lot of successful deals knowing that they’re doing the exact same thing.

Matt:  Right.  Great answer.  Good story too.  Okay.  Let’s see.  What’s next?  The next question is what markets are easiest to rent houses, for example near college campuses for students, low income areas and cities, near better schools, school districts in the sub-urban. How do you pick your rental market?

Richard:  Wow.  That is a tough question. I know you have answers like this all the time because you talk a lot about real estate but as always the default answer is depends.  (laughs)

Matt:  Right.

Richard:  Because you know what?  I’ll buy in a college area if the deal is right.  I’ll buy in a low-income area if the deal is right.  It depends but an investor that I do read in one our periodicals.  She talks about, oh man, it’s escaping me but she basically calls them “islands of properties.”

So you got these islands where properties trade higher and you’ve got what she calls “commodity properties” or low-income properties where they just trade saying “hey, every one-bedroom apartment rent rate is $100.  You’re the same apartment in the next mile, you know as everyone else.

It’s really how good your marketing is so it depends right now I like and the reason I like lower income areas right now is Southern California there is a demand for low-income housing.

You know here in southern California where we’re a little bit more metropolis.  There are no more lands to build on homes so you have these low-income residents who need places to live.

During the boom, everyone is buying or building for the most part these brand new single-family homes.  No one was building apartments or areas or things for low-income so in southern California, I think there is a lack of low-income rentals.

That’s why I like to play in right now plus you get higher cash flow from them because people don’t want to deal with low-income areas.  But you know, in other areas where you live out kind of in more rural areas, you might want to place it closer to colleges where you know students want to be living close to the college or you want to the upper lawn place to rent out because no one wants to live in the dumps where you know it’s a rural area and there’s not a lot of renters out there.

So it really depends on your market, which you want to do and you just want to do your homework to figure out what really is the best place to start putting your money in and start renting it out property.

Matt:  Right. It just really comes down to supply and demand like where the demand is high is probably where you will get the best return.

Richard:  Exactly.

Matt:  Right so this is a perfect segue into the next question.  You talked about low-income tenants, you talked about college students, and they each come with their own pros or cons.  This question is how do you screen your renters?  How are you selecting mature people who will take care of the place?

Richard:  That’s another good question.  I screen renters more thoroughly depending on if they’re a market rate tenant or a low-income government subsidized tenant.  I obviously leave it here to the protected classes.

We don’t discriminate but in terms if you got low-income tenants that are on government subsidy where section aid where they’re paying a portion of their rent.

I don’t you know poke right it at reports because most low-income all have low credit score but the fact that they’re backed by the government.  The fact that I’m going to get my rent from them even though it’s a little bit more a hassle.  You know, I don’t check their credit scores.

So that’s, you know, the screening I do.  You know, I basically going if they’re application is sold out, you know, they don’t have a drug history, criminal history, and they pass all of the things that they need to pass on their application.  I’ll rent it to that someone.

Actually in some cases if you got your nose for the most part in section aid, the low-income, you’re getting offered a unit if we have it available for you and you’ve applied.

When it comes to market rates, tenants, college students, or you know a normal person like myself who’s coming up and applying a market rate apartment. I do credit reports. I do try background checks if I do have those resources and obviously my applications are a little bit tougher rates than tenants.

The reason for this is because you don’t have that government backing.  You know, there are professional renters out there who want to look for free.  So you really want to make sure you do your homework on them.  How do you pull credit reports as an investor?

I mean the government won’t even let me allow credit reports because you have to have certain security done. So I come in and inspect you so I actually pull my credit reports from the local Apartments Association.

That association has so many members.  They put up a credit reporting company within theirs.  It’s all by government guidelines and I can send in, you know, information on potential applicants to pull their credit scores.

Then go off with that.  Obviously you got to make sure you got a good rental application that people if they pass it then that’s it.

That’s how I do it.  It’s not an exact science but you just have to be careful out there.

Matt:  Definitely.  You know, these next two questions I just going to compile into one. I mean, this was an anonymous survey but I can kind of tell that these two questions probably came from the same person that just asked the last question.  They’re trying to get a specific answer so let’s try to get as specific as we can for them on this.

Richard:  Okay.

Matt:  The two questions: one is how do you garnish the wages of an ex-tenant.  The second question is how do you file a judgment on the ex-tenant to recover lost rent and expenses incurred by them?

Richard:  Okay.  That’s a good question and I can answers parts of it.  Just because as you know that I’m just learning real estate business for 3 to 4 years.  Right now, we only do low-income tenants.  This far, we’ve been lucky on certain individuals so I haven’t had too much experience.

I have evicted a few of them. I evicted some people from the foreclosures we purchased.  But basically the way you’re going to be able to get that type of information is when you’re doing an eviction with your lawyer.  Your lawyer is going to submit to the judge the amount of that rent and payments that the tenant owes you.

Then the judge will determine how much rent, you know, damages, security deposits owed and actually give you a court order judgment at the conclusion of the eviction trial.

And then you have to take that judgment.  Since I have an experience doing it but from what I know but don’t quote me on this because you want to consult with a legal professional who actually knows what they’re doing but I believe you have to secure on that person’s credit report.

I think you either do that, you know, through a credit company or you know as many investors do.  They like to get bank account for bank account numbers and driver’s license numbers from their tenants just before they sign the lease.  So they have actual information to then go and record these judgements and garnishments and they get their money back.

So I’ve heard of stories of where they are able to get their money quickly.  Others where people are buying homes seven years later and they have to pay off judgment that you secured on them to fund them mortgages. So sometimes you get paid quickly while sometimes you’ll be $2500 in rents that you’re owed 7 years later and feels good.

So I don’t know the exact details but those are the steps that you know I’ve heard in passing and talking with certain lawyers from time to time.

Matt:  You know, a lot of people when they hear about a buy and hold strategy and they hear about becoming a land lord, you know, everyone’s always attracted or always remember the horror stories of what they’ve heard out there by other buy and holders or other landlord or buy and hold investors and landlords.  How often do you actually have situations where you have to involve your attorney with a tenant?

Richard:  With buy and holding, if you do your tenants screening properly and you do it professionally you’re probably be having problems with 1% of your tenants.  I mean, right now ideal with low-income housing in rough areas of southern California, and you know those probably are tough tenants to manage a certain fee.

We had some issues and we settled it out.  You know, we’re really pretty good right now with our management.  So you’re going to see that 1% of your tenants really give you problems where you really have to get involve the legal help but you know, if you’re sloppy and you don’t do your applications properly and you’re not firm with your tenants when you get in there.

You know, they’re going to take advantage of you and you’re going to see a higher rate on that 1% but if you stay professional. Do what you’re supposed to do.  Abide by the law.  You’re just going to be fine.

Matt:  So it’s just 1% really?

Richard:  Honestly, in my opinion, that’s why I’m asking.  In the screening process, if you do screening your tenants properly, you’re going to have a problem with 1% of your tenants. I really don’t have that many problems now granted I’m not a huge, you know, 2,000-unit landlord yet hopefully.

I don’t have that many problems with tenants.  They’re all low-income so the thing, do we not plan for having bad tenants.  Of course we plan for that kind of stuff if you have a tenant that doesn’t pay you for 6 months then you don’t care about the rent for 6 months.  You’re getting crushed because you needed that money to handle your bills.

Well, you didn’t prepare yourself enough.  You know, there are investors who complained about getting unlucky or bad tenants.  You need to be prepared for when you get bad tenants or when something goes wrong and you need to have money for 6 months to handle your property because you’re not getting any income during that time.

So you certainly need to be prepared for it.  If you run your business professionally, you’re going weed out so much of those problems and hopefully you can keep that 1% down.

But you know, there might be other landlords that don’t have a problem with 10% but it just hasn’t been my experience.

Matt:  Right.  Well, good. That’s hopefully shed light on the person’s question.  I couldn’t think of a great answer.  It’s always nice to hear from someone that is actually like I say out in the court playing the game.  That’s on the frontlines and sharing real world examples.

The next question, we’re almost done, only a couple more.  Three rehab tips.  What are your three best rehab tips?

Richard:  Three best rehab tips.  Here they come.  Curb appeal, kitchens, and bathrooms.  In almost that order so what I mean by that your appeal is you got to have the place look great when people drive up.

There’s a lot of fix and flippers that I’ve seen who will try to save some money and reseed the front yard graft and when they lift it, it’s halfway grown in or certain patches have grown in.

I will spend the extra money to put in brand new sod and make that place look sparkling.  If it needs paint on front of the house, I’ m painting the front of the house.  The worst thing you can do is to give people a bad feeling in their stomach right when they drive up to the property.  They come in with a negative attitude when looking in the inside.

So number one, curb appeal. Make sure your property looks great on the outside to give a good first impression.  Number two, and then in the number three, what sells homes is kitchen and bathroom.

The reason why I put kitchen second, I mean kitchen is the centre point of the home.  People look for that.  People want updated kitchens where at least the better kitchen than what is in their neighbourhood.  That is going to sell the house.

You know, you’re going to appeal to a wife.  You’re going to appeal to families.  You’re going to a couple that maybe wants to start a family.  That’s really what people focus on because it’s the most expensive part for first time homebuyers to fix up and actually dream up.  It can be a little scary for them so if you handle that for them and make it looks great.  That’s a huge plus.

Then same thing for bathrooms.  No one like a gross, icky bathroom with weird grout and a stained toilet. I mean that just makes the house feels pretty gross.  You know, you want an epoxy-white tubs.

You know, put in and do cheap toilets for $75.  You know, make sure to clean up the vanity and those free aspects are going to sell your home because if you got a home where, you know, with bedrooms or closets, people would be like, “hey, we can fix the closet or we can repaint this room.”

You know, things of that sort.  So you really want to focus on that curb appeal.  You really want to focus on the kitchen second then bathroom as third.  I think you’ll have a lot of success in rehabbing properties.

Matt:  Awesome.  So on the other side of that, where would you say is the biggest place that you can waste money on a rehab?  Where should you not pay attention?  Or what if you seen people or where have you seen people lose money in a rehab or maybe even yourself where you made a mistake in a rehab where you know, “oops, I shouldn’t have spent the money there.  I’ll never do that again.”

Richard:  Sure.  These are things that people can’t see.  (laughing)  You know, you want to get most banks for your buck when you’re spending money.  As great as it is to put in the listing that, “hey, this place has brand new and updated electrical copper piping.”

You know, people are going to fall in love with how it looks on the outside and how it looks in the inside granted it’s fantastic having new, proper plumbing and updated electrical.  But you’re dealing with buyers’ emotions and what they see and no what they’re actually doing in day-to-day work.

Now granted we’re not throwing out plumbing and electrical, we’re making sure that all that works.  We’re making sure that if someone moves in that they’re not going to get a house on weeks on them and has things that you know plugs that don’t work and things of that sort.

But I have contractors early in my career sell me on updating the piping and sell me on updating the electrical.  It’s expensive.  You really, I mean the buyer doesn’t walk in there and see it.

So really, you know, hold off on spending money on the things that buyers don’t see because that’s where you’re going to spend a lot of money doing it and you’re not going to get that much of a bang for your buck.

Matt:  Got it.  Got it.  This is actually my favourite question. I think it’s a question that you know so many people can get valuable information from it or valuable insight.  If you lost everything today, Richard, and had to start from scratch, how would you restart?

Richard:  I would start over and if I go out there, just like every new real estate entrepreneur has to do and go out and raise money.  You’ve got to raise money because the interesting thing in this country is if you work hard, they can make good living but the ones who make a lot of money are the ones who raise a lot of money and take a splits of profits or charge fees towards, you know.

There’s someone who can work just as hard and just as smart, you know, being a salesperson where they’re just a one-man team or you can be like a guy on The Wall Street to run the hedge fund. They raise a billion dollars and they charge a 1% fee on the billion dollars.

Then they get, you know, splits of the profits if they outperform.  So it’s really those guys who leverage other people’s money and are the ones that get rich.  So what I’ve learned is the faster I can raise investor’s money and the more money I’m going to make because if I’m charging a percentage or making split of profits, you’re going to have more transaction or you’re going to have more profits with more volume that you’ve raised.

So the first thing I would do if I have to start all over again is to work that investor network, raise as much money as I can as quickly as possible because it’s leveraging other people’s money that is going to make you more money in the fastest way possible.

Matt:  Got it.  Good answer.  Easy answer.  Raise money.

Richard:  It’s a dub that’s the first that came to mind.

Matt:  No.  It’s a great answer.  It brings up a second question is what are, to go out and raise money particularly for people who never done it before.  I know it’s a fear for a lot of people to ask for large amounts of money especially the type of money that you need to invest in real invest or to help you to invest in real estate.

I don’t want that silly thinking that you need money but what skill or skills would someone want to work on and develop to become a better money raiser?  What character qualities or character attributes about themselves should they nurture and be conscious of when they are raising money?

Richard:  You know what?  I think, you know, that’s a really tough question to answer but you’re going out there to raise money.  You’re definitely want to work on your sales.  What I mean by that is not becoming a sleazy car salesman and trying to be smooth but you really want to try and have some sort of idea of the selling.

So when you’re going in there in a presentation or trying to raise from someone, it’s not “let’s jump right into it.”  You want to establish rapport with the investor.  You want to talk to them and show them you’re a person you are.

You want to ask them about their business.  Number two when you’ve established good rapport, you’re going to want to understand the need of the investor that you’re soliciting money to.  What I mean by that is why are they investing.  You know, what are they investing now?  What type of risks are they coming on?

You know is this investment that they are looking for it to save money for their kids’ college fund?  Or is it because they own, you know, 3% municipal bonds that are paying them more.  They are looking into making a 15% return on their money or is it vice versa?  They already have a ton of risky investments.  They want lower investments for a low return.

So you really have to understand the need of that investor. Then you have to sell that need of that investor.  You can take pretty much any business plan as long as you’re good at finding out what that investor’s needs are and what they’re looking for then you’re going to be successful.  Then you can sell that business plan to that need and really appeal to the investor.

So do some homework on how to be an effective salesperson. Then it really, it just also comes down to experience in knowing what people want and delivering your presentation more and more.

I mean your first investor’s meeting; you’re going to into.  You’re going to be sloppy.  The more meetings you set up, the repetition doing it then you’re just going to get better and better at it.

So I think I’ve answered maybe part of one part.  What was the other part that I’m missing here?

Matt:  That’s the skill part.  How about the character or the quality or character attributes that someone should be conscious of?  Is there anything there they should nurture?  Is there anything that they should add or enhance or is there anything they should, you know, kind of not do?

Richard:  Like as in your character as a salesperson that they should work on?

Matt:  Uh-hmm.

Richard:  Okay.  You know?  Just character coming in, you want to be polite.  You want to have manners.  You want to ask for the sale when you’re done but you don’t now.  You want to ask a few times potentially but you don’t want to if they declined a few times.  You don’t want to be a jerk on the way out.

You know, you want to be nice to everyone. I think good character qualities are especially to setting it up. When you’re setting up the meeting, confirm the meeting in advance.

Then also ask, which is also going to share a lot of good characters and the qualities that you displayed on the investor is to tend to think that you know when you’re done with them.

Or follow up with them when you’re done just to say, “Hey.  Thank you for the opportunity.”  Whether they invest with you or not, you do that with some new investing or not because you know they go, hey.  Look.  Once I said no to this guy.

He walked out of the door.  He doesn’t have to respond to me or make contact with me ever again.  It works really well with people’s character.  That guy will remember you.  They got a friend or next neighbour who’s looking for someone that just like you.

They pass along your information to them.  So I think those are good things to live by while addressing your character and being good in front of the investors.

Matt:  That’s great answer.  Great tip.  So last question, Richard, this has been an awesome.  It’s gone much longer than I thought it’s going to be but I just got you on such a roll that I didn’t want to stop you because you are wealth of information and real world information that I think is so important to share.

What is in Richard Hayne’s future that you’re really excited about?

Richard:  (laughing) You know what?  My future, I’m really excited for the short-term future and mid-term future.  I’ve got some long-term ideas but those don’t get your clients excited because they’re long-term but short-term.

You know, my business partner and me, we are raising a large multi-million dollar funds to flip homes in southern California.  I’m hoping to flip anywhere between 60 and 80.

If we get lucky and raise the money that we want to do, hopefully 100 homes a year in southern California with the team.  We will hiring employees.  We think it’s going to be really successful so that’s what I’m really excited for in the short-term future.

In the mid-term future, in 3 to 4 years, I’m excited to hopefully raise a 2nd fund that will be bigger and you know, buy up a bunch of real estate to hold.  Hopefully, that will be the bottom of this real estate market.  You know, we will look back on it in 10 years and say, “hey. Those were the best buys we’ve ever done.”

That’s kind of the dream.  Yeah.  I’m flipping homes.  You know?  As a smart investor once said I got it from Mr. Keller’s book on “The Real Estate Investing Millionaire.”  The guy said I got rich flipping homes but I got wealthy owning apartments.  So I’m excited to be flipping homes here in the near future but I’m even more excited for the midterm.

Hopefully, I can acquire a lot of multi-unit properties and rent it out to single-family unit homes for cash flow and appreciation for the long term and be wealthy.  So that’s kind of short mid-term future that I’m really excited about.

Matt:  Awesome.  I’m excited for you.

Richard:  Thank you.

Matt:  Yes.  It’s fun to watch.  It’s fun to do.  Yeah.  It’s awesome.  Today has been absolutely amazing.  Thank you so much for your time.  I know you’re really busy.

You took out almost an hour and a half for us here.  You know, in the future, would it be okay if we kind of check in with you and see how things are going?  And ask you to come back?

Richard:  Sure, Matt.  I’d love to come back and thanks so much of thinking of me and taking the time to interview.  It’s really a fun time.

Matt: Cool.  Thanks, Richard.  Take care.  We will talk soon.

Richard:  Alright, Matt.  Talk to you later.  Bye.

Matt:  ‘Bye.

Awesome call. I hope you enjoyed that as much as I did.  Next episode, we will resume this interview series with true players of the real estate investing game.  No fans.  No sideline sitters.  No coaches.

No Monday morning quarterbacks.  Just players.  And players with nothing to sell, no blogs, no books, no seminars, no nothing.  Just straight talk with generous and successful real estate investors.

That’s it for today.  Until next time, as a very wise person once said, “success doesn’t come to you.  You got to it.  Those who say that it can’t be done shouldn’t interrupt those that are doing it.”

To your success, I am Matt Theriault.  Living the dream.

(Voice Over):  Thank you for spending this time with Matt Theriault and the Epic Real Estate Investing podcast.  When you have time, stop by iTunes to leave your comments and let us know what you think of this show. 

And if you haven’t done so already, get started investing today by visiting FreeRealEstateInvestingCourse.com to access Matt’s free course on how to deals, no money required.  Until next time.  To your success, to your success, to your success.