Jorge and Rafi discuss 4 reasons why investors prefer passive income.
They discuss rental properties, initial investments, hedging against market variants, and scalability.
Rafi: Good afternoon and welcome to another edition of Graystone Brownback Sessions. I am Rafi, Chief Operating Officer of Graystone investment group.
Jorge: I am Jorge, CEO of Graystone Investment Group.
Rafi: Don’t forget it, you know, where can you find us Jorge? Where can they find us?
Jorge: Rafi, they could always find us at homes4income.com. That is homes and number four, income.com.
Rafi: Don’t forget to subscribe to our YouTube channel. The links is in the description. As always, I want to thank the beautiful, the excellent, the always looking for detail, detail I mean that Stephanie, our producer, director you know, set extraordinaire. Hi Stephanie.
Stephanie: Hello guys.
Rafi: There you go, blonde now. People want to see her now blonde. So, we’ll find the reason to however maybe one of the next Brownback sessions. Before I forget I want to wish Amina, Amina Mohammad over were there in Canada, a quick and you know, full recovery. She’s a little bit under the weather. What we’re going to have today a session with her from Canada but we couldn’t do that. Amina, I hope you get better soon and we need you back. We need people like you, so, get well. Get well soon. Jorge, the theme today is great because we have an upcoming seminar where we’re going to talk about it. You want to talk a little bit about that seminar that’s coming up soon?
Jorge: Yes Rafi, of course, we have a seminar coming up next Saturday —
Jorge: December 9th, it’s going to be a pretty much all day thing. We’re very, very excited.
Rafi: The whole day?
Jorge: Pretty much whole day.
Rafi: So, these are people that are really committed to start or improve their investing in real estate, right?
Jorge: Absolutely. The beauty of it is we’re not selling anything. We’re going to be very transparent. We’re going to show you what you know, the good, the ugly and you know, try to break you in into you know, something that a lot of people want to do which is investing in real estate. They don’t know how to start. This is a perfect time the perfect platform to do so.
Rafi: Excellent, and we’re partnering with HIS capital from Orlando, Sam and Rick, thank you very much for you know, making us part of these great, great event of part of their educational seminary —
Jorge: We will have the link on the comment so you can register.
Rafi: That’s why Stephanie.
Jorge: She’s already going on.
Rafi: Stephanie is looking for it right now and she’s going to copy the link to the event invite which is event bright you know, platform. She’s going to copy that into the comment, so she’s going to be there. So, we’re going to partner with HIS and also Greg Simpson from — I forgot his —
Jorge: Out Fast Realty.
Rafi: Out Fast Realty is going to be there.
Rafi: By the way, the fact that you know, we have another you know, real estate company there, tells you what you need to know. This is not about trying to outsale the other guys. We really want to educate you guys and get you to either start you guys investing or looking for ways to improve you know, how you do it because the more people do it, the better we do. So, it’s something where we’ll share that knowledge, sharing experiences and making sure that the other day, it’s all about taking action. We want you to take action and do something.
Jorge: Yeah, absolutely. I think the team and Rafi and the people that are there are very passionate about what they do, HIS in particular, Sam and Rick, they’ve been doing it for a while. They have a lot of experience. They’re doing very well. They actually don’t need to do this stuff of seminars but they liked helping the community. Greg Simpson, Rafi, myself, we’re very passionate about helping the community and this is —
Rafi: This is going to be almost like 100 years worth of real estate investing —
Jorge: Hundred years, yes, yes.
Rafi: Experience in that seminar.
Rafi: So, it’s going to be great and I’m sure they have to pay like thousands of dollars to join right?
Jorge: It’s actually free. It’s actually free.
Rafi: We do all these one-day thing for free for these guys?
Rafi: He says. It’s free. So, again, we’re going to put the information there. It’s going to be in Tampa. So, for those of you that follow HIS, you know, it’s going to be in Tampa. I don’t remember exactly. You know what? Go to a link, the comments. You know, it’s in the comment section and your join us. You know, we would love to have you there. One of the things that we’re going to be talking about that makes real estate investing so enticing its passive income. What is passive income?
Jorge: To me Rafi, I was looking at the definition of passive.
Rafi: Don’t give me the eye of [crosstalk]. Don’t too technical of me.
Jorge: Well, pretty much passive is something that just happens, just happens without any type of influence from anything, to be honest with you. Passive. So passive income to me is something that you know, you put the original investment and the time or both.
Rafi: Time, money —
Jorge: Time, money, effort, whatever, and then that continues through the time healing returns whether is what type of returns. It could be free new giving you more time, giving you more money, so forth, but is something you don’t want pretty much. You do it once and you keep reaping the benefits for years to come.
Rafi: Absolutely, absolutely.
Jorge: Sometimes, generations to come and —
Rafi: I’m going to think about it, if you want put it in layman’s terms you know, stuff that people understand you know, easily good examples are you know, books.
Jorge: Books, yeah.
Rafi: You know, books, you have an investment in research. You have an investment in the money to publish and you know, create the cover and all that kind of stuff but then once you do that you basically push it out to Amazon, push it out to you know, their borders anymore. Yeah there’s no borders there.
Rafi: Amazon is killing this. Anyways, you push it through that and then you reap the benefits and if someone buys the book in the first week, someone buys a book a year later, someone buys the book 10 years later, certainly 10 years later basically out of the blue you get a check because you sold 100 copies of the book you know, back then. That’s why you see a lot of you know, people that once they get into high-profile you know, situations even if they’re not that big but you know, anyone for some of us covering the elections, now they have a book about the elections because they know that once you have that one book, again, it’s passive income. You did it. You did the initial research, the initial investment, and when we say investment, investment either or money, time, resources, okay? When you get back it’s either money, time, or resources. So, from the perspective of passive income initial high investment but then long-term smaller chunks of investments and of course if you do 10 books, guess what. Then we have 10 blocks of passive income coming in later on you.
Jorge: Your money is working for you guys. At that point, your money is working for you. You’re not working for your money.
Rafi: I liked that. Can you repeat that again?
Jorge: Your money is working for you. You’re not working for the money. So, and just like singers, you have a lot of singers to that only had a —
Rafi: [Crosstalk] yeah.
Jorge: –one song, one or two songs, 30 years ago and they still making money. So, this is obviously — The artist know this. They mega-wealthy know this. This is the opportunity to get some of that passive income as well.
Jorge: Real estate.
Rafi: Today, we’re going to actually take the passive income and put it more into real estate and we’ll talk about four reasons why investors in general prefer passive income. You may think it’s obvious but okay would you want to give you the top four reasons we think passive income is a must for most passive for most investors and it’s also it’s no coincidence that most of the wealthiest people in the world that you look at the top hundred wealthiest people, every single one has a passive income strategy.
Rafi: Okay? So, the first reason why investors prefer passive income it’s again, it’s an income from an activity where you don’t actively participate. What do you mean by that?
Jorge: Let’s talk about what is passive income to us. Rental properties, rental properties for investor —
Rafi: So, in real estate?
Jorge: In real estate, rental properties.
Rafi: Rental properties will be the equivalent of passive income. Why? It’s because you make an initial investment. You buy the house. It’s a higher investment. You may have to invest a little bit at you know, later but much less compared to the initial investment but then you get rent throughout the life of that properties. So, that’s why we say passive income.
Rafi: So what you say that it’s an activity that you don’t actively participate. What do you mean by that?
Jorge: Well, Rafi, when it comes to rental sometimes investors don’t find him as sexy as flips and stuff like that but rentals if you have the right team in place and you got your property, you shouldn’t be participating too much on your two, three, four, five, six, 10. Your original participation should be okay. You’re part of the acquisition process.
Jorge: The funding, they reveal the asset, etcetera, etcetera, but does should end pretty quickly if you have the right team, actually a month, maybe two months and then you never see the property again. You let your property manager do it. So you’re not actively participating in it at all. You shouldn’t be.
Rafi: When you think about it.
Jorge: If you have the right team you know.
Rafi: If you have a property manager for example and you have 50 properties you don’t hear about him until you get the check every month, right? If he’s a good property manager. Yup.
Jorge: Talking about process, if you setup the right process and you connect your CPA to your property management company not even for tax purposes you know, the manager could be sending here is the year report. Send him already to your CPA. So your involvement is hardly anything. Makes sense?
Rafi: Absolutely, and again, what we want is how can you leverage your time.
Rafi: So, again, using the example of the rental. Let’s say that you’re going to buy rental every month, so really what were you are doing is every month you’re investing a lot of time and effort into buying a rental. You do that, okay? You got to you 12 out the other year. Guess what. Coming January next year, what do you do? Not much.
Jorge: Right, right.
Rafi: Basically go to your phone and check your balance, and then your clue boom, oh there’s a turn. Okay. You know, a property was vacated. You have to turn it. The investment and the investment in time and invest money is much lower, okay? So again, actively you participate but actively not much. So, that’s what we want. Passive income, that’s we want, not active participation once you do that first. Now, the second reason why investors prefer passive income, we just talked about it, is design initial, have investment in time money on research but again in time those start coming back, okay? What do you mean by that?
Jorge: Well, Rafi the initial investment where you going to put your biggest investment is just going to be once. That’s what we’re saying with —
Rafi: That year one, right?
Jorge: [Crosstalk]. So, the big investment you only don’t do it once and then you reap the benefit for the next 30 years. So, it’s not something where you have to come out with 100,000 today, flip a property, come up with another 100,000 two years show now or every six months come up with 100, 200, total of flip. When it comes to rentals you only do that big investment once.
Rafi: Once again.
Jorge: As long as like Rafi says. We have the right process in the right team. You don’t have to worry about really putting any more money into it. If you already have it the right way you don’t have to deal with rules and things like that. So, you only invest on a once and you keep reaping the benefits from it for a long time.
Rafi: I liked that man. Yeah. I wish it was like for example at work. You know, if you’re working you know, it’s not like you go work the first month and then they keep paying you every month, that doesn’t happen. You have to show up every single day, every single month.
Jorge: Something that I learned from you Rafi is like even I understand some investors look at rental property says that’s not mean that sexy because they say at the end of the month, “I’m only going to make 200 in my pocket, 300 in my pocket.” But how much time how you devoted to that? So, you’re making 300 an hour, right?
Jorge: If you’re only put in 5-6 hours a year you know, just to manage your manager how much money are you maybe really —
Rafi: Absolutely, especially when you get to that point you have at least 10 purpose in your portfolio. That portfolio can excel feeds itself. You know, I always said when people start real estate investing you know, “Hey you know, what’s my goal?” I always tell them, “Try to get to that 10 rentals because once you have that 10 rentals they use an average of 700 net you know, for rental a month. You’re making 7,000 a month, okay?” Again, when you do that then that basically feeds itself because you can use some of that too from maintenance reserves so which you should and, hey, there’s a turn. You take it from there. So, you basically have almost no money to put there. So, you make that initial 10 properties and then after that it really fits itself and we have invested with 50, 75, and 100 but really when you get to the 10 that’s when you start seeing really the big expenses.
Jorge: Yeah, and Rafi, I agree 100% with that 10 number idea. If you think about it you spent 10 years but you can put half of your income on the stock market for 10 years and you’re not going to find freedom in 10 years. Real estate is something where you could actually little by little say, “Okay, how much do I need to replace my income?” Investment to me it’s number one goal. How do I replace my income first? Then, take more involvement if you want to know all the stuff.
Rafi: Excellent. We want to first acknowledge a couple that joined you know, Josie and Rivera joined. Say hi.
Jorge: Hey Josie.
Rafi: Matt and Naggie also joined, Carmen [inaudible].
Jorge: [foreign language].
Rafi: Jay Club also joined and Raymond Basden and of course Sam Ali from HIS and he has a very, very good question. His question is, “Okay, gentlemen. Here’s a question for later. I was just asked this question by a first-time investor.” I like this. People that want to start like that. Should I have a property management company even if I only own one property? That’s a very good question. I haven’t answered but I want to see, which one’s yours?
Jorge: Absolutely, absolutely. I think part of the way that we believe is when you have zero property, you got to start looking for your team. You got to start looking with who’s going to be the person you’re going to you got to build a relationship with and how better than to give them the first property to show that you know, that okay, that willingness to say, “Okay, I know I don’t need you know, because the property’s next to my house I could do it on my own but here it is, because I want to build the relationship with you so you can help me grow anything on the next nine properties.” So yeah, to leverage, leverage on our relationship and get that person keep loyalty to the person so you could give loyalty back. I mean, and learn from the process, learn, and by the way, you might — that’s a good opportunity to give the property to a property manager and test the property manager because if they screwed it up, guess what? Move into another one. It’s a good opportunity to me. This is my opinion.
Rafi: Yup. I’m going to reply that really to you first time investor. How much is your time worth? I’m sure it’s worth more than that call at 1 a.m. in the morning to fix a toilet flap, right? So, how much is your time worth? If you retired and you say, “Hey, I have time because I’m retired.” “Then what why you retired for? Are you going to retire to work?” You know, is your time worth $80-$100 a month? Your peace of mind worth $80-$100 a month? I say, “Yes.” So, again if you’re retired and you want to retire and play goal, all that kind of stuff, do you want to be in the middle of the golf course in the middle of you swing getting that call saying, “Hey, these guys don’t pay.” Do you want to spend the time instead of going to the beach having to go evict someone or learning how to evict someone or making a mistake that now you cannot evict that person any the time allotted.
Rafi: So, again is one of those things that can I stitch myself like Rambo if I have a wound? I can’t really do it. Would I do it? No. I’m not the expert but I can do it. It will be a bad job but I can stitch myself probably. Do that, same thing. Your time is worth more than the $80-$100. Not only that. Look at it from this other perspective. You want to grow your portfolio.
Rafi: The only way to do that is creating a process that’s scale-able.
Rafi: So, maybe that first one, you go, “Uh.” I may think I can do it but then you’re going to make big mistakes, costly mistakes that don’t allow you to get that second property, don’t allow you to get that third property because now, “Hey, you finance with HIS is but because you didn’t manage the run correctly. You forgot to make that payment to HIS. So now, you’re delinquent there. Guys, I know that you think, “Oh, my God. Why I’m giving $80-$100. Your time and your peace of mind is worth much more than that.”
Jorge: I could see some investors thinking about it while you were talking. This is some investors thinking, “Well, I want to do it on my own because I want to learn on my own. I want to make the mistakes on the first one. I only have one and I need to know the process.” Put in a way how better than to have a mentor like the PM. Still be involved if you want to for a few months, learn the process and then let go. When you have a mentor and —
Rafi: If you don’t know if you can’t from the expert and not mistakes right for 80 bucks, 90 bucks a month.
Jorge: Right, right.
Rafi: Guys, do it. So hopefully Sam that answer — that’s a good question, and a valid question, we get that question a lot. So, from that perspective thank you Sam for that and please pass that along to your investor. Now, the third reason why investors prefer passive income is basically one that we really, really push here is again, it’s a hedge against the market variances, and you know, Mark is going up. Mark is going down. So, it’s really a long-term play. Elaborate on that Jorge.
Jorge: Well, Rafi, I have a my own personal experiments. I went through the big recession back in 2007 and 8 and the only thing that I was able to keep as a company was my property management company actually. That was what saved me and I was able to continue in business because of my PM. But the same way, you know, you have the access with rental properties to say, “Okay, maybe it’s not the perfect time to sell now. Maybe we want to give it another year or so.” You are in control versus the market being in control. You are in control because you always have the rent as a minimum to cover. That makes sense?
Rafi: Yeah, and again, because there’s a long term play, there’s — and I think that’s why there’s less sexiness about, you know.
Jorge: Yeah, yeah.
Rafi: You don’t see a lot of HD-TV shows about rentals, right?
Jorge: Right, you’re telling me. I can only found one.
Rafi: Yeah, I found one which is a very good one, income property. So, if we go to HDTV, income properties very good but it’s not sexy because you don’t get that immediate gratification that is so much part of our culture right now. You know, we want everything now. We want the iPhone. We want everything now, now, now.
Rafi: This is a long term play. You have to be disciplined, okay?
Rafi: By doing that, like Jorge said, the people that came out strong from the 2006, 2008, you know, market crash where the ones that we’re playing long term because they had that property that said, you know what? Now, people are jumping on house and where are they going? Rentals. Therefore, close. So, their credit is shut. So they can now buy house. Where do they go? Rentals. By the way people that were paying 5000, 8000 because APR get shut up on their houses. So now, they’re going to pay maybe 1100, 1200 in a rental. They’re going to do it. They have jobs you know, all that kind of stuff. So, it’s really a great way of using that long term strategy against the market variation. We’re going to tell you the same, the other way when the market is accelerating rapidly, you make less on rentals. That’s part of the deal but what we’re talking about here, it’s long term. We’re talking about five, 10 years, you know, down the road. The other thing that this gives you, it gives you flexibility in terms of exit, okay? That is the one thing that we constantly see investors, getting into real estate investing. We down an exit strategy, right? That kills it. That is going into your car, turning on the GPS and not putting on address and you starting to drive.
Jorge: Right, right.
Rafi: You need to have an exit before you go, and where’s your destination? Do you want to, you know, basically 10, 15 years get out of celebrating and do something different? Do you want to buy properties and then that’s your — you know, what you’re going to give to your kids? So, you want to keep them on that point. You need to have that extra strategy but in long term play allows you to have that. With the flip, if it’s something they have to go two to three months, guess what? The market goes down just a little bit. You may be stopped. By the way, we’re not saying don’t do flips. It’s all about that version, okay? But in our case, we like an 80/20 where 80% is a long term and 20%, it’s short term.
Jorge: By the way, we’ve talked about this in the past where I think you being a huge alligator and anytime you find a flip, finding a flip that rent as well for a minimum to cover at least the liability of the asset, the expenses. But I challenge some of you guys that are flippers to look into flipping rentals as well. Maybe there’s no percentage of your rentals is 12 months in one day, two years because that way you know, that you collect all these friends. I believe you get a better taxation. You pay less taxes [crosstalk] one year, check with your CPA but at the same time you have the flexibility to say, “Opps, there’s somebody. There’s a serial killer in Seminole Heights.” Let me continue.
Rafi: Right, finally —
Jorge: Let me continue renting the property for another six months. I want to flip it in summer. That’s kind of like what happened to us in one of our rentals.
Rafi: Hashtag flipping rentals.
Jorge: Flipping rentals.
Rafi: Stephanie is going to put it there, #flippingrentals. We’re going to own that one. So, again, hedging against the market variations. That’s what we’re going to do and then, the number four reason why investors love passive income and these one, I am — Oh, my goodness, this one, scale-able process. You send the process at the beginning and then it’s just rinse and repeat.
Jorge: Absolutely, absolutely Rafi. I think this is something that I’ve learned a lot from you. You know, going to — you get talk about anything that we do in our company is scale-able. Rafi —
Rafi: Process based.
Jorge: Process based. Rafi has pushed me back many times in the past saying, “Why don’t we do this way? Why don’t we have to handwrite this? Why don’t we have three forms?” Let’s just create one form and let’s keep reusing the same form. It’s the same with rentals. If you set up you know, the process of the acquisition, how you going to analyze the property, how you going to prepare the property, who’s going to be the ones batting on the repair budget and who’s going to manage? If you have the process in place it’s just a matter of plugging in the property. One more time, two times, three times, and by the way, it allows you to cover more ground. That’s what’s happened to us. We went from analyzing. We went from me personally driving our own every single day and only being able to look at analyze like maybe —
Rafi: Three maybe.
Jorge: Maybe 20 among the most tool. We’re now analyzing twice as many and —
Rafi: [Crosstalk] 20 a day if you wanted too.
Jorge: How I left the office in a few months actually.
Rafi: To graduate.
Jorge: So, scale-able guys. Scale-able something you do once and you keep growing it.
Rafi: The key thing here is one, you need to have the right team, you know, and then you need to have the right process in place but what you want to do is think of that scale-ability from the get-go. What happens most of the time and where I see a lot of people making mistakes Jorge is that when they start they don’t think of the process. They don’t think of it being scale-able and then when they certainly go, “Oh, I have five, 10 properties.” “Oh, my God. Now I have to rethink the whole thing because now I cannot do it for 10 properties.”
Rafi: You need to think about that when you buy the first one and that’s what you need to set that process that goes, “Okay, can I do this process if I want to buy 50 at a time?”
Rafi: If the answer is no then we think that process because you want to get to the point where again you want to take vacations for example. You say, “No, I’m going to go one week in a group. No, I just do and done it. No, I just do anything.” The process keeps running. There’s opportunities while you’re in a cruise and they fall into the lab and you have someone in your team that says, “Okay, let me process it, whatever.” When you come back, guess what? You bought three properties and you were sipping Margaritas you know, in a beach. So, you always have to think of the process being scale-able from day one and that’s the biggest mistake Jorge that I see as —
Jorge: I like what you say. I love it. I love it, thinking of number 10 as you buying one.
Rafi: Yes, absolutely, absolutely.
Jorge: Because maybe that one, maybe you got excited. That doesn’t main problem with investing real estate for release. They get excited as I go [inaudible]. Slow down, make sure you got the right team in the right process but thinking of number 10 while buying one.
Rafi: Yup, absolutely.
Jorge: I love it, yeah.
Rafi: Can I do this with 10 properties? No, then, that process is wrong. Can I write 10 checks every month? No. Then that process is wrong. Okay? So, and by the way, and this is a the tip of , you know, operational tip of today. Don’t automate a bad process. That’s the worst thing you can do. “Oh, I have these things that I’ve been doing. I cannot do it for 10. Let me automate it now and pay someone to take this process.” That is bad and automated it. So, basically you basically took a virus and multiplied it by 10. No.
Jorge: Makes sense.
Rafi: No, takes their process first then look for automated options to do it. Our company is an example. When we came here we had an issue with how we were handling tasks, whatever. So, we sat down and say, “Okay, how do we do it?” You know, okay, we need to have one place where we put everything and then one place where we assign responsibilities and due date. Then, we started with a very rudimentary spreadsheet but what we were doing at that time was fixing the process. Once we found out the process that worked, then we looked at automated options that fit that process because what happens [inaudible] if you don’t do that you’re going to find an automation that doesn’t fit the process and you’re going to try to fit into it. No. We had the process and then that’s when it’s okay. Is there something out there that can automate this process that’s working? Same thing. Oh, you’re looking for property? Create that process, understand it, then automate it and find ways to do. So, by the way by automation, I also mean virtual assistants you know, great research but again, you don’t want virtual assistants, design these stuff [inaudible]. You want to design that process first that works for the first one as well as for the 10th and then you say, “Hey, virtual assistant, help me with this.” So, there’s you know, different ways but scale-able something that can be done for one, for 10 properties about that from the get-go. Let’s see if we have any questions out there. I think we have some questions. Oh, Michael James joined. Jaime Yepez. Say a hello to Jaime. Jaime, look forward for phone call from Jorge. We had something, some great deals you know, I’d be willing to discuss with you. That’s how Michael James over there. Do you have another questions Stephanie? People gets holiday. They’re quiet. I get it. I get it. It’s holiday yes. There’s no problem. Now, again, we want to invite you guys this next December 9th, we have a seminar here in Tampa with HIS. So, and George Simpson from Out Fast Realty.
Jorge: Greg Simpson, yeah.
Rafi: Greg Simpson. December 9th in Tampa.
Rafi: Oh, the Hilton Garden Inn in Tampa Airport. Go to the link that Stephanie put there. You know, I’m going to miss out the ivory stuff like that. Hope to see there. It’s a whole day but there’s a lot of information to share, all that kind of stuff. Oh, we have a last question from Sam. “How much should I expect to pay for management, is the next questions asked today by someone that raised her for our event.” First and foremost, thank you for raising for event. Property management company, probably what? The average is 10%?
Jorge: That depends on the asset is what I tell investors because why are we managing? He said being A property, B property, C property. It’s a multiunit —
Rafi: What do you mean by A, B, C property? What do you mean by that?
Jorge: Okay. Pretty much an A property is a A area is where you have the best schools in an area, best possible highest price area in town where the wealthiest people live you know, A.
Rafi: No, right, okay.
Jorge: B is more of the middle class, still newer homes but still a little older home.
Rafi: So lower expense, yeah.
Jorge: B type of schools still kind of like a good area. C is more of the lower-income type subsidiaries like Section A Tampa Housing stuff like that and this is the war zone.
Rafi: In tough areas.
Jorge: Tough areas —
Rafi: By the way, we’re not saying don’t invest in C areas. There’s a lot of opportunities in C areas you know. We’re just saying they’re different and you manage them different.
Jorge: So, right. This is the perfect way to know if you have a good fit of opinion. If they don’t ask you this question, they don’t ask you where the properties first and they don’t take their time to analyze and come back to you with the fee that’s appropriate to your property, then I will second guess how much they really know of your property. Hey, how much they’re going to —
Rafi: Yeah, because —
Jorge: [Crosstalk] your property because —
Rafi: If an A property is easier to manage versus a C property, then the fee may be adjusted based on that, right?
Rafi: So, or maybe your portfolio. Maybe hey, I have so many properties. I have some big properties, and then you kind of average out to what you want but — go ahead.
Jorge: For average 8% to 10%.
Rafi: Yeah. I was going to say for calculation purposes you know, for those of you math nerds out there like me I use 10%. I use 10%. It’s easier you know, I know $1,000 plus 10. That’s 100 bucks. So, for calculation purposes, that’s the number I will use but —
Jorge: To me, it’s a red flag if somebody if you ask a PM. If you ask PM how much to charge and right away they say 10 or nine or eight without really looking at your asset, that’s a red —
Rafi: I liked that. I liked that.
Jorge: Right? That makes sense?
Rafi: I liked that.
Rafi: Let’s see if there’s any additional questions. I think that’s it. Man, we’re running out of time today. Now, Jorge, where can they find us?
Jorge: Well, you could always find us at homes4income.com. That is homes4income.com. Don’t forget to register on our YouTube channel.
Rafi: YouTube channel, the link is in the description and also don’t forget to raise there for our seminars September 9th in Tampa in the Tampa Hilton Airport. The link is also in the comments. We have a last question here? Oh, photo finish question. We have a photo finish question. Let’s see if we can have the question here. My connection is Louisville, so let’s see. Do you have any question there? Okay. The question is from Jaime Yepez. Jaime, “I have several financial options for your investor. I have started income programs that can assist those that report low income.” Jaime, is there a question there? Jaime, we’re asking for question. No.
Jorge: He’s just promoting himself. Good job Jaime.
Rafi: Not a [inaudible] but let me tell you, he had some good options there. So, definitely those of you that watching the video and Facebook you know, contact him. Sam has some great options too. I mean, we’re looking. We’re looking to have some — we have some great partners in private lending, conventional stuff like that that participated in our sessions and help or our client. We’re all in. There’s going to be work for everyone, right?
Jorge: I think this is the era of the new investor because opportunities that are given now in days were not available in the early 2000s. I mean, having private lending for rentals unheard of. The rates that were getting nowadays, the type of loan, their loan amounts they’re willing to do up to 80%.
Rafi: This is the time. This is the time.
Jorge: If you don’t do it now, it’s now or never.
Rafi: Absolutely. So, thank you Jaime for sharing that information with us. Again, don’t forget our seminar next Saturday, December 9th, 9 am at the Hilton Garden Inn Tampa Airport. The link is in the it’s in the comments. Jorge, I guess we’ll see them next week, right?
Jorge: See you guys.
Rafi: Yeah, next week the 8th.
Rafi: So, that’s the day before the seminar. Thank you very much for joining today. Our Graystone Brownback Session. See you next week.
Jorge: See you.