Closing More Deals by Working with Real Estate Investors with CEO of Agents Invest Jennifer Beadles

Jennifer Beadles: 0:00

I'm not saying that you should go buy properties and you know, put your 25% down, get leverage and cashflow negative every month that that's not a sound investment. But if we can find you opportunities where you're getting it at a discount, and it's cash flowing from day one, and eventually rents are going to go up. So every year of your ownership, you're going to make more money on this investment. And it's again, the rents go up, the prices will come back.

Announcer: 0:30

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Jason Muth: 0:54

Welcome to The Real Estate Law Podcast. Thanks again for listening to us. This is Jason Muth here. My voice Rory is finally starting to come back after an unknown reason as to why I lost it. Maybe I just talked too much last week. What do you think?

Rory Gill: 1:07

Usually if that's what does it then you lose your voice all the time. So I don't know what the issue was last week.

Jason Muth: 1:12

You know what? I must have a lot to say. But I'm not going to talk much in this episode because we have a fantastic guest on right here. We have the CEO of Agents Invest and multiple other companies which we'll have Jennifer explain all the different lanes of people that she's speaking with, with all of her business enterprises. As we're recording this, she is prepping for an amazing conference that's coming up. So this will have come out after the Cashflow Investing Summit, which I'm sure it will have been incredibly successful. This is Jennifer Beadles. Welcome, Jennifer to the podcast.

Jennifer Beadles: 1:43

Thanks, Jason. Thanks, Rory. I'm so excited to be here with you all today.

Jason Muth: 1:47

Jennifer comes to us from sunny Arizona, which is much warmer than where we're sitting today here in Boston and Newburyport, Massachusetts.

Jennifer Beadles: 1:56

Yes, every day is a sunny day here in Arizona. And I think it's going to be maybe 70 today. So we don't we don't get much of a winter. I think, you know, now we're well January 31. So we haven't been two weeks of winter, getting into spring, which I'm super excited about.

Jason Muth: 2:11

That's great.

Rory Gill: 2:12

You know, I'm hoping that all the agents on my team are listening today because we have a really good topic. And that's working with having agents work with investors and why they should be doing that how they can do it well, and why this is going to be an important part of the business. But before we get there, I wanted to ask Jennifer just about how she got to where she is because you know you're running multiple businesses in real estate. And I'm sure that's exactly how you started off as soon as you graduated high school, knowing that you're going to put together all these different endeavors.

Jennifer Beadles: 2:41

Yeah, I actually I had no idea or no, I couldn't have dreamed up this lifestyle that we live today, businesses that I own. And so it's just been a very exciting ride, really. So I got involved in real estate at 21 years old. And my first involvement was actually buying my first property. And this was 2007. And I didn't have a whole lot of options at that time in terms of properties to buy, because I wasn't making a whole lot of money. And you know, property prices were pretty high back then I guess relative to today, not so much. But I bought a property that was a complete fixer upper. And the reason why this property was attractive to me, for whatever reason, I recognized this at the time that the land was zoned multifamily. And I knew that if I could buy this house live there for a year, put a tenant in there, then eventually I could scrape that thing down and build some townhouses. It's kind of a dream at the time. And so I closed on that house. And then the day after I closed, I quit my job and decided to go all in, in real estate. And so what I did is I had applied to a couple of local developers. And again, I kind of wanted to realize this dream of eventually tearing this thing down and building some townhouses. For two years, I worked with the developer. And we were doing a lot of different things. You know, the market had shifted, we were building spec homes, we were also building small multifamily properties. And then it was like late summer 2008. Well, I think if we around back then we all remember what happened. Market crashed, blood in the streets, everyone was really concerned about what was going on. Banks were going under. And it was not a good time in the market is not a great time to be in real estate at all. And so I saw some very interesting opportunities. As a as a younger person, I thought, This is my time to acquire properties at a discount at an extreme discount, but I felt at the time, so I decided to get my real estate license so that I could get the commission check on any properties that I would buy, I guess, zero knowledge about what I was doing, zero intentions for actually working with clients. And then in the first six months, though, that I had my real estate license, I closed six homes. And I said, huh, there's something to this. This is pretty good money, not very difficult work. Maybe I should get involved in real estate sales. And so at the time, I saw this opportunity to work with clientele that had similar personality traits as me, very numbers driven and very systematic, very non emotional about the properties. It either makes money or it doesn't. And so I found that there were, you know, this niche in working with investors, that also felt the same way. You know, it's not about, oh, the kitchen looks really nice. And I can see myself living there for 10 years. That type of clientele isn't really, really the personality style for me. I probably, you know, not enjoy working with those clients, they wouldn't enjoy working with me either. And so, so from there, I kind of turned into this agent that was out there sourcing and trying to find deals for my clients. And I worked with a number of real estate investors, one of my clients at the time, he was worth about $100 million. And I would go to the foreclosure auction on his behalf every single Friday, bidding on properties. And we were just acquiring any and all properties that we could because again, certain number of us that saw the value in this down market. And so I was able to close as an agent, as a solo agent with an admin and a transaction coordinator between 75 and 100 properties a year, just working with investors. And I probably had 25 clients that I was working with, that were kind of, you know, buying here and there. So I built a really large what I say large, I guess a scalable, and you know, large transaction volume has an investor agent at the time. And then along the way, now I was recognizing that the more income that I made as an agent, the more I was paying in taxes. And of course, we all know one of the major benefits of owning investment properties is you get the depreciation, we can do cost segregation studies, we can write off between 25 to 30% of the purchase price in year one, and essentially get our income tax rate to close to zero as possible. And so I started building up my own portfolio. My husband and I that we bought 280 units in eight different states. We wanted some location diversification there. And so, so anyways, for about six years, I operated as an investor agent. And then I just got a little bit burned out. And I decided that I wanted to help my clients get into more markets, as opposed to just Seattle. So then Agents Invest was born, I developed a referral network of investor agents all across the country. And now we have these investor clients that we can help, again, build location diversified portfolios in multiple different markets. And it's really exciting to kind of be the person that connects and helps agents build their business, and then helps these investors get into other markets that they wouldn't otherwise consider.

Rory Gill: 7:44

We've heard on the podcast, you know, the 2008 crisis as being a real turning point for just about everybody in the real estate space. What I like about this story is you ran into the disaster. You know, we've had very few people who got their real estate license in around 2008, and then built a successful business in that. So even in that environment, you found an opportunity. And you know, what I want to ask now is, you know, before we go into, you know, what you've built now for businesses in those stages, what did you do to connect with your potential client base? And what did you do to educate yourself on all the different aspects of investor ownership?

Jennifer Beadles: 8:24

It's a great question, I think the most important thing is I get confidence in the numbers. And so at that time, the media, the messages in the media was don't buy real estate, real estate prices are going down, and you're gonna lose money. And it's really risky. And so I would say the majority of the population did nothing, they did not purchase properties, because they were listening to the media, which is kind of what we're experiencing today. Right? The media puts these negative messages out there, consumers listen, and do nothing, sit on the sidelines. And then later, they say, I wish I would have done something, right. And so the message that I had for these investor clients was, this is your time, this is a great opportunity to get into the market, I only want you to buy deals that cash flow. So I'm not saying that you should go buy properties. And you know, put your 25% down, get leverage and cash flow negative every month, that that's not a sound investment. But if we can find you opportunities, where you're getting it at a discount, and it's cash flowing from day one, and eventually, rents are going to go up. So every year of your ownership, you're going to make more money on this investment. And again, the rents go up, the prices will come back, they will appreciate again, and then you get all of these tax benefits along the way. And so for even the new investors, they understood that and I demonstrated how this would look from a numbers standpoint. So a lot of investors at least in my experience do they tend to be more technical people who are also numbers driven? Right? And so when I could explain logically the opportunity, and then demonstrate that through the numbers, and have confidence in doing so, then they understood and they said, Okay, let's, let's do it, let's go for it.

Rory Gill: 10:22

Over, you know, over the past 14 years, we've had a lot of different changes in the marketplace and kind of the, the opportunity that was served up almost in a silver platter back in 2008 to 2012 has changed and it's shifted, what's the opportunity now for investors in the market?

Jennifer Beadles: 10:39

Oh, I feel like there's a really short window right now, where, you know, there's still some fear in the market. So when the interest rates had gone up, because they doubled really, in year that took a lot of would be first time homebuyers out of the market and put them back into the renter pool. And we have seen, cap rates go up and prices come down. And we're also seeing less competition for properties as compared to the last two years. A lot of the properties that I was writing offers on there would be multiple offers, even the apartment complexes, and people are putting down hard earnest money $50,000 non refundable, earnest money, it's really difficult to compete with that. And right now, and again, I feel like there's a very short window, right now there's less competition, the prices have come down. And yes, the interest rates are higher. So it's a little bit more difficult to get deals to cashflow when the interest rate is six or seven as opposed to three or four. However, the interest rates will come back down. What I've what I've learned over the last 15 years is the market is you know, there's cycles. Anytime the government wants to stimulate the economy, they bring the interest rates down. So if you can get into a deal, or you can help your clients get into deals right now at a lower price, and they cash flow from day one at today's interest rates, they're going to be an even better deal when you can refinance and get a lower interest rate. And again, the rents are going up, we're also seeing some trends of I think the first time homebuyer age is going up. It's increasing, because it's getting more expensive to get into your first property. So we have an increasing demographic of renters. And then the rents are going up, or we have a supply and demand issue. So there's all these trends that are in support of owning investment real estate, and making it really makes sense from a long term standpoint. But I think the key is that agents and their clients need to be thinking long term. Meaning thinking about decades, as opposed to months. And I think sometimes the residential agent mindset is, I need to make commission and I'm thinking in like three months chunks, and they're kind of operating their business in that way is how can I make money in the next 90 days? Versus how can I build a client base of repeat customers who are going to buy multiple properties every year, and how can I help them scale their portfolio and be the agent that does that for them. And then I'm also going to take what I've learned from these clients and apply it myself?

Rory Gill: 13:08

Work with a lot of agents and a lot of brilliant agents in the market, who are really good at selling residential real estate, as you kind of alluded to early earlier earlier, asking people to imagine what it's like to live, they're pointing out the great amenities and the pretty fixtures and everything like that. And there's a market for that. And there's a real skill in doing that. But there's just a lot of people who work in that space. You're starting to get into a conversation now, why should an agent who's an expert in that space, pivot away and start looking at rental properties and start looking at homes more as numbers and serving kind of a different whole client base?

Jennifer Beadles: 13:40

I think that repeat clients is one. So I would say on average, the residential client is going to sell every five to seven years, potentially an investor, great investor, that you're able to help, you know, scale their portfolio, they're gonna buy multiple properties every single year. And so if you can work with fewer clients, and clients who are loyal to you, and clients who don't need to sleep on it, think about it, drive by the neighborhood and have all of these like emotional decisions to make on a property and acquire the property. Again, I feel like that's a more sustainable business, you're going to work fewer hours for your clients, your lead generation expenses are going to be almost nothing, right? It's very easy to find these investor clients, because very few agents specialize in this niche. And so you also have less competition. And so really, the conversation turns into does this cash flow or not? Does this make sense for the client or not? And again, that's an easier decision to make for the clients versus again, the emotional decisions that they need to go through.

Jason Muth: 14:43

When you coach agents to work with investor clients, are they finding people new to the investor game or are they becoming the agent of an existing investor who is now switching from an agent that they work with in the past?

Jennifer Beadles: 15:01

I would say both, you'd be surprised agents listening, how many investors are currently in their database, they're just not having those conversations. And so the first conversation you need to be having is talking with your existing client database about adding at least one more rental every single year. One rental property for done over, let's say, 5-10 years, is going to completely change your client's life. We're talking, paying for college for kids, we're talking about building your own retirement plan, we all know that Social Security is gonna be out of money in 2035. Right? There's a big problem that is happening in the United States, as far as these trends again of the baby boomers and retiring and Social Security. I mean, there's, I don't want to say that there's a grim future ahead of us. But for for those of us that don't have other income streams coming in, that are passive that are not active income, is going to be difficult, I think, moving into the future. And so just by having that conversation with your clients, helping them again, get one rental property a year, one rental property will completely change their life. It'll completely change your business as well. You help 50 clients buy one rental property a year that are probably already in your database. That's a significant business.

Jason Muth: 17:00

Yeah, you know, one article I read yesterday was about a new term that I hadn't heard yet called quiet promoting. Quiet promoting, where basically people who are W-2 employees are getting more work thrown their way without more praise, more money ,or a title and promotion. And I actually commented on that, because I think that's a function of, you know, the companies that are working for making some poor decisions with their business, or if they have to cut back there trying to heap additional work onto the people that remain. And my comment to that was, you know, if people were diversified and had multiple income streams, they wouldn't have to worry about is a company going to lay them off, or what happens when a company throws more work their way that they don't want to have to do, that commute, they don't want to have to do to that job they don't like anymore, you know, if they did have additional income streams, they wouldn't have to worry about that as much. And you bring up the whole, you know, I think you said 10 properties, right. So 10 investment properties, you know, we actually set that goal back in 2016 for us. You know, we're not, we're not at the 300 level that you're at, we're at the seven level. But you know, we have six investment properties along with our primary home, and the goal was one per year for 10 years, just to see how that goes. And we've stuck to it, and you look back at it, and you say, Okay, that was a really good idea over these past six years, you know, what would happen if we scale that up a little bit? Those are probably the types of investor clients that the agents you're coaching are thinking through, because what I get is, once you do it once, you want to do it again. And then when you do it again, you want to do it again. So if you find some of those people that have that mindset, you know, that could be a really good partnership for the agents that you're coaching, and their clients.

Jennifer Beadles: 18:46

100%. That's why we named our investor community Addicted to ROI. Because most of the investors in our community, they do not buy just one investment property and stop there. Most of them are coming into our community and they're building at least six figures in revenue in the first 12 months. And it's very, very simple and easy to do that once you understand how to play the game. And if you're the agent that understands the rules of the game, and know how to play the game, and are having these conversations with your clients, again, you'll have no competition, you'll have a very consistent revenue business, it doesn't matter what the markets doing, either. That's the other thing. We have investors that buy when the market is high, right? We have investors it maybe call it a seller's market, we have investors that buy when it's a buyers market, it's always a great time to great to buy a great deal. And so the agents need to think about that versus you know, really being I think, just kind of having to shift with the market. If you can stay stable and steady and working with investor clients, then it doesn't matter what the markets doing.

Jason Muth: 19:49

You know, what I'm really interested about here. I mean, I talked about one more trend that is changing, people are living longer, right. So they're asking their primary homes longer, there's less inventory going in the market, because you know, mom and dad's house isn't getting put up there as frequently as they can. I mean, you know, my parents are still alive. They've been their house for 50 years, five zero, like the it's been the only house not the only house they've owned, but the only house that I know. And that's happening across the country. So if we're not building enough and people aren't selling enough of their homes, because we're living longer, well, then, you know, we do have a little bit of a problem right there. But with that said, as people are thinking about how do I start investing in properties and who do I work with to invest in properties, you know, talk a little bit about the types of clients that your agents will be working with for that first time.

Jennifer Beadles: 20:43

I would say primarily, it would be the W-2 employee that wants a Plan B, and wants to take charge of their own retirement and then eventually replace that W-2 income with rental income. That's offset by taxes, of course. So in terms of finding these clients, my again, the first step that I would that I would take, is start having those conversations within your own database. Because these are people who you've already, you know, bought or sold a property with, right, you have a level of trust, you have a relationship. And so start having those conversations. And then number two is every single agent needs to be hosting a monthly meetup. And so that is how I built my business. I would host a monthly meetup at my lenders office, he would provide the snacks and the food. And he had a large office space, we would do a presentation, I would talk about something related to investing. And then I would share the best deals that I found that month. And I would say here's a duplex. Here's a townhome, this is what the purchase price would be, this is what the rent would be, this is what this would look like. And I would say from every meetup, I'd probably write five offers. After that people would come up to me and say, I want the townhouse. I'll take the duplex. And and it's because there are no other agents in my market were doing this. And then the next thing that I did is I started teaching agents at my brokerage, how to work with investors. And the interesting thing that happened, so I thought that I was adding value and helping them. And what happened is they started referring all of their clients to me. They said everything that you saw said sounds great. But I don't think that that's for me, I'm not a numbers person, can I just send you all my clients. That's how I got the client that was worth $100 million, that would buy properties with me every Friday. He had called into the office and other agent took the call and said, you need to talk to Jennifer. So I got a sticky note with his name, and millions of dollars later, because it was a client of mine.

Rory Gill: 22:46

I'd want to ask you, you know, what should an agent do if they were interested in making the pivot to working with agents, but I mean, that's what you do. And that's why you're here. So tell us a little bit about Agents Invest and what you do through that company.

Jennifer Beadles: 23:01

Yeah, so Agents Invest is our referral network. So we have our own brokerage, but we don't actually sell real estate, we don't have agents at our office, we only want to work with agents on a referral basis. And so what we do is, we have an application, it's completely free to join our referral program. And we only take a referral fee once the transaction closes. Now we do it a little bit different though, what we do is when an agent makes an application, and of course, we have a phone call, and you know, we kind of talk through the program and how it works. And then we have those agents submit deals to us in their marketplace. And then we share those deals with our investor community. And so it streamlines the conversation in the process, so that agents don't, you know, get flooded with maybe 20 investors that want to invest in their market, and they have to go and service all those clients. Instead, we said these investors, they're not, I would say, you know really particular about the market they're investing in, they just want access to good deals, and they want to build location diversification, they want to have some location diversification. And so it's really exciting. So I'll give you some examples. We onboarded a team in Minneapolis, and they made $56,000 in commissions by joining our program, just by selling deals that were in Indianapolis, and they pitched them to our investors, the investors, you know, again, bought a number of deals from them. And then they decided after after that, we don't want to work with regular clients. We don't want to go after, you know, regular buyers, we aren't going to do open houses anymore, and just went all in investors. And it's really exciting to see them build their business in that way. And so there's a lot of opportunity, again, I think if agents consider this, to really do more transactions, and again, work with the same clients and the lead generation is again, so much easier. And then on the other side. So what we found, though, I think, Rory, and Jason to your point is taking a residential agent, and having them in some ways it's learning a new language. It's the language that we're taught at the brokerage level of working with residential clients is very emotional language. You know, how do you feel about this house? You know, do you see yourself living here for five, seven years, you know, raising your kids here, it's about the backyard and the kitchen and all of those things. And it's quite the opposite in working with investors. And so what we did is we built a number of tools in support of agents, understanding how to identify a great deal. And so that's called Door Profit. That's our that's our software. Before you can go in and type in any property address, if you find a deal on the MLS, and you think maybe this could be an investment, but I'm but I'm not sure, you can type the address in Door Profit, it'll give you an estimated market rent, it'll also give you a crime score. And it has a live calculator for agents to it just shows you all of the numbers. And if it cash flows, and the deal makes sense, then you can send that deal to your investor clients. And so we want to help more agents understand how to find a great deal and what a great deal looks like in their market.

Jason Muth: 26:15

So we're recording this before your summit, and we're releasing it after the summit, its Cashflow Investing Summit that you're having in Tempe in February. Can you tell us how that came together? I'm gonna assume it was wildly successful. So talk about the speakers that you have lined up, and the types of people who are coming to a summit such as that.

Jennifer Beadles: 26:37

Yes. So for the Cash Flow Investing Summit, you know, the name says it all. We're really wanting investors and agents to be focused on properties that cash flow, right, that makes sense from a numbers standpoint. And so we're talking about everything from multifamily properties, to short term rentals. We have investors that are doing adult family homes, some different niche strategies, and they're essentially sharing what's working in today's market. And so it's really exciting to see people come in from all across the country. You know, Arizona, of course, is beautiful in February. So it's a great, it's a great place to be it's a great place to to host this this event. And it's really exciting. I think anytime that you can go full immersion for an entire weekend, and talk about wealth building strategies, we have an attorney that's going to be talking about asset protection strategies, we have a CPA that's talking about tax strategy, and then hearing all of these, again, different niche tactics that are working today. So it's really fun to kind of bring everyone together. And just network. A lot of the people inside of our community, in Addicted ROI, are also doing JV partnerships with each others, it's a great place to find partners, just connect with other people, learn about new markets, we've also, of course, offered an open invite to the agents that we work with to come out and meet the investors, talk about their market. Investors, of course, have a lot of questions around which which area should I be investing in? What's happening with rents what's happening with prices? And so it's, it's really fun to bring all those people together, first learning opportunities and wealth building.

Jason Muth: 28:25

And your goal is to make this annual event or is this a has this happened? It's been annual or no, this is the first one.

Jennifer Beadles: 28:31

This is the first one we actually, so we used to do these events, where we would fly out to one of the cities that either I was invested in, or we were doing a lot of transaction volume. And we bring all of our investors in. And the agents would do a city tour. So the agents would kind of explain, okay, this is, you know, the area to be in as far as owning investment properties, we'd go tour some properties tour some apartment complexes, and make it a little bit more city focused. And that was great. Logistics for us to plan events and cities that that we're not in - a little bit challenging. And so instead, we said, Okay, let's do an annual event here in Phoenix, and bring everyone together, bring the agents from those cities that so that they can share about their market, and so that investors can learn about different markets as well while they're there.

Jason Muth: 29:20

And you know, I have a question specifically about our area, you know, we're here in the northeast and Massachusetts, and a lot of times the Northeast feels like it's kind of excluded from a lot of these investment opportunities around the country, just because, you know, it's not the heartland. It's the coasts and everything is too expensive here and nothing cash flows and cap rates are not favorable for investors. Can you comment a bit on our territory on New England on Mass and New Hampshire, Rhode Island, this area? You know, do you have people that are in your network who are investing in this part of the country? Or is it just difficult?

Jennifer Beadles: 29:56

Yes. Oh, absolutely. I think also local investors tend to want to stay local. California investors first want to look in California, right. And same thing, I think, for your area. Now, in order to find deals that cashflow agents and investors may need to implement different strategies, such as renting by the room, maybe doing a short term rental. I'm not sure what the rules and regulations are related to that. But if I were an agent there, I would look into them. And I would get very familiar with how it works and how I could potentially implement that strategy. You know, to help my clients bring in more revenue. I think the thing that you know, the Northeast has going forward as the rents are very high, as well. So and they seem to be increasing, and there's rent appreciation in that area, which means again, as an investor getting in, you know, day one numbers are going to look probably okay. And then year 2-3-4-5, Jason, I'm sure that you've had that experience with your short term rentals, it gets better every year. Yeah. And so I think that agents need to seek out opportunities, maybe also, in the suburbs, where it's a little bit more affordable, the price points make sense. You know, me coming from Seattle, we didn't necessarily, we don't necessarily have a good transportation system. We don't, you know, and Boston does. And so I could see some opportunities there. Again, maybe in the suburbs, where people would would be willing to commute into the city, or also work from home. And so I think that there could be some opportunities there, if agents really do a deeper dive and look into it.

Jason Muth: 31:32

You know, you made a comment there about, you know, right now, the deal might not look look as good as a little bit down the line a couple years down the line. You know, our strategy of doing one every year for 10 years and kind of stacking properties is not a novel strategy. A lot of people do things like this. Yes. And I look back and you're 100%, right. I mean, our numbers for the those properties we did earlier on look much better now than they did at the time, when we were kind of learning our ropes, figuring out the properties, figuring out the right markets, you know, prices to charge, getting ADRs up - average daily rates. And now we're at the point that those look like fantastic deals that, you know, you can't get today. What were and the one that we bought last year, you know, we bought an expensive property with a DSCR loan, at a very high rate at the time, the rates were highest. But hey, what did they say, marry the property, date the rate is that they say? So you know, so I'm looking to when I'm gonna be able to refinance that property, which won't be for a couple of years. But you know, once we refinance that property, we could refinance it today if I wanted to, but you know, not penalty free. So refinancing that property, it's going to be like, whoa, look at this, it's going to be a cash out, it's going to help cash flow. And if we could just kind of work up to that point in these couple years, as we learn about that property. That's how we're stacking these things together, you know, property one is, well advanced. Property two is on its way, you know, this new one, we're figuring it all out. And you do need cash flow for these things. I mean, the one thing that we're collectively working through, is now that rates are higher, you know, a lot of investors are probably, you know, feeling the same pain of like not being able to do these cash out refinances that they're used to right this second. So you know, we're working through that ourselves. But, you know, as rates kind of fluctuate up and down, these are all, you know, it's part of the game, you mentioned the word game earlier. If you understand these rules of the game, which nobody teaches you, no, you kind of have to seek them out yourself and people like yourself, and piece it all together, then you can be really far along. And you can have a super lucrative career and a great real estate portfolio if you learn the tax strategy, if you learn the refinancing, if you learn how to network, if you learn where to find the deals, you know, but there is no one specific place you could find it all and even the courses that you're doing and the you know, the conference that you're running, and, you know, Addicted to ROI. I'm sure that your investors in those communities are learning a ton. And it's from each other. Right? It's from asking questions, it's from networking, it's from your resources. But you know, it's certainly not from the university down the street.

Jennifer Beadles: 34:16

And to your point, you're 100% Correct. Trying to find this information is very difficult. It's not taught at the brokerage level, as a real estate agent, I was never taught any of this, I kind of had to seek it out all on my own. And I consider it getting an MBA in real estate investing. And so if you if you think about it in that way. And to your point, Jason, if you can build a sustainable business with consistent monthly recurring revenue, and also learn these tactics for yourself, and, and I would challenge every agent to also buy one property every year. Right. And then the other thing that I want to point out that you had had mentioned is, you know, you buy a property and it looks okay. But, we're talking about the cash flow. But if you have clients that are high income earners, that have very few tax write offs and deduction, and they have a lot of money sitting in their bank account, I have clients like this, who have over seven figures sitting in the bank account, and they really want some tax write offs, and they want a safe place safe, sure bet to put their money, then those are clients that you can really help right? So they're not going to be as concerned about the cash on cash return on the cash flow because they don't need it. They don't they don't need that money right now. But if you can help them get into these properties, and again, you know, get some level of cash flow, get some tax write offs. And these property tenants are paying down the mortgage, right? We don't even pay our own mortgages with investment properties the tenants do. And then the rents are going up. And then eventually, these are gonna be very, very good long term investments. We have a lot of clients that I helped years ago that had, you know, their comfort level with single family homes in Seattle. And then now they say, Okay, it's paid down, I have a lot of equity, I'm gonna do a 1031 Exchange, even, you know, we could do so many different tactics and strategy 1031 Exchange into something that produces more cash flow. And so they can take a single family home and go buy an apartment complex, you know, on the other side of the state, right, it has more cash flow. So there's so much opportunity and flexibility once you actually own the asset. But it starts with buying and doing as you, as you said, right, build building up that kind of snowball effect.

Rory Gill: 36:31

So I have like, maybe one technical legal question kind of stemming off of that for the whole podcast. You know, when you're working with investors, and you're getting into a lot of advanced strategies, like Cost Segregation studies and 1031 Exchanges. And you know, all the tax benefits and everything. Is it the real estate agent's job to provide the education or give that advice? Or is their job to kind of to connect the investors with the appropriate CPAs, attorneys, third parties to give the advice? So I guess what I'm saying is the is it the agents job to be this the source of the information or the concierge to the information?

Jennifer Beadles: 37:08

That concierge to the information. 100%. So the other thing that I did is I built a vendor list for my investor clients. And I said, here's who I use for cost segregation, I always had three different options. Here's three different options for attorneys, here's three different CPAs, home inspectors, property managers, contractors, and so I would tell my clients that that I will give them an idea, or suggestion, and then they needed to seek out the appropriate professional advice from somebody who can actually help with that. So I'm glad that you brought that up, Rory, because that's very, very important. And I also had every single investor client, sign a disclaimer disclosure on that, as I said, I'm not giving legal advice. I'm not giving tax strategy advice, I will provide you with a list of references. And you can seek that out on your own. But otherwise, that's that's on the client to go get that professional advice, because everyone's tax situation is different. Asyou know, of course, and same with legal, what might work for me might not work for the client. And so I don't want to go there, I just want to maybe give them an idea and say, Hey, you should look into this. Here's a list of professionals to talk to you. Yeah.

Jason Muth: 38:22

It's why the tile store down the street doesn't say, go call this guy to install. Here's a list of 10 different people that way, you know, if the tile job doesn't go, well, it's not on them.

Jennifer Beadles: 38:31

Exactly. Well, on the other thing, too, is you can bring these people in as guest speakers to your monthly meetup. So that would be an even better way to go about it is say, Hey, I'm getting a lot of questions about 1031 exchanges. So I brought my 1031 Exchange intermediary on, you know, to a webinar or to the meetup to talk about this so that you can ask them questions directly.

Jason Muth: 38:54

Yeah, that's awesome that you figured all this out so early, like you started in your early 20s. In this and you know, we, we moved out of a neighborhood in Boston, South Boston, I lived there for 20 years, called Southie. And it's, you know, it's filled with 20 and 30 somethings and like, I don't know, I just don't think any of these people know this stuff. Like, even the people in the real estate world, like it, just I don't know. And I'm typecasting them, but like, it doesn't feel like a conversation that was being had by people in their 20s. They were just going to the bars and trying to meet friends and hang out and, you know, build the social lives that we all want to have, you know, when you're living in a really cool urban environment, like Seattle, or like Boston, but, you know, for you to figure this stuff out, then it you know, it pays, it's like you're planting seeds and pays dividends for the remainder of your life, you know, in your 30s and 40s. And that's why you have something like Addicted to ROI, because you got addicted very early to this, didn't you?

Jennifer Beadles: 39:48

I did. I did. And I agree, I think that there are so many different ways that young people, I mean, even people that are, you know, middle aged, there's so many opportunities to get in. And so I love that South Boston Neighborhood as well, I think that that'd be a perfect place to host a meetup, do it at a local bar, right? And bring people there and just start having these conversations. Um, you know, for those, I might say, a house hacking strategy would be a really good strategy. I've made over a million dollars tax free by living in properties for two years, and then selling and huge opportunity there. Now that doesn't create passive income, it creates one time income but you can use that one time income to then go get you some passive income. So again, that's another opportunity that I see very few agents talking about the little bit taxes, but there's an opportunity to get into properties, you know, even rent the rooms out. So you don't have a mortgage payment, fix it up, sell it in two years, take all that money tax free, and then go, go get some investment properties.

Jason Muth: 40:57

All the stuff you're saying it's stuff that like, you know, when you meet somebody, even me, I'm not a real estate agent, because Rory's a broker, I don't really need to be, but you know, I talk about this a lot now as an investor, and it's like you meet somebody for the first time, and you want to tell them everything, you know, how do you like hold yourself back from telling them everything, like, I think that like, sometimes I get animated in chat a lot about whatever the subject is, if it's short term rentals, or these tax strategies, and like the looks I get people are like, you need to slow down, I have no idea what you're talking about.

Jennifer Beadles: 41:24

I usually ask them what their goals are for investing. And then I direct the conversation related to their goals. So for the younger person, and they're like, look, I really want to own a house. But I don't want to have a $5,000 mortgage payment, how do I get into real estate, and in a way, that's not setting me back financially. And then I'll say, Okay, you need to consider house hacking, here are three different ways that you can do that, that feel comfortable to you? You want to buy a house that has five bedrooms, and you can rent out four of them to all of your buddies, that's gonna pay your $5,000 mortgage payment, and you know, things like that. And then if I encounter other clients that are really interested, they say, where do I get started? And I'll tell people need what's, what's the, what's the main objective that you have, is they are paying so much in taxes, make a lot of money, which is great, I love my job, no desire to quit, but I'm paying a lot in taxes, then I'll say, All right, here's what you need to do if you if you buy an apartment complex, because those kitchens when it comes to cost segregation, like $20-$30,000 kitchen, right? We can write the write off sometimes. So you know, I'll say, okay, strategy that I would suggest, based on, you know, what you're hoping that investing will do for you, is to focus on apartment complexes. If it's somebody says, I'm on a limited budget, a small amount of money, you know, how can I get in, then I'll say, okay, buy an investment property, live there for a year, put minimum down, move out, then put a renter in there, and then go do that again. So again, I guess I kind of feel like I'm always carrying around this, this tool belt with me some imaginary tool belt. And so anytime we get into conversation about investing, it's okay, what what are you looking to do? Okay, I have a strategy for that, here are a couple of options.

Jason Muth: 43:03

But if you're still listening to this podcast, and you have not signed up for all of Jennifer's groups, and you're not, or applied to be an agent with an Agents Invest, like please go do that right now. Like, you know, we're gonna do our final questions. And then have you, Jennifer, have a chance for you to say where people could find you. But we are going to link all this up in the show notes. So I know you have, you know, 74 different companies, you don't have to get every single URL. But, you know, we ask these three questions of our guests in the podcast, just as a way of wrapping things up and getting to know you a little bit more. The first of these questions is if you can get on stage for a half an hour with zero preparation and talk about any subject in the world. What would that be?

Jennifer Beadles: 43:43

How to build seven figures in rental income in 12 months.

Jason Muth: 43:47

12 months. A year from today, just after New Year's?

Jennifer Beadles: 43:50

Yes.

Jason Muth: 43:51

Yeah, it's doable. You've done it. You've seen people that can do it.

Jennifer Beadles: 43:54

100%

Jason Muth: 43:55

Question number two, tell us something that happened early in your life or career that impacts the way that you're working today.

Jennifer Beadles: 44:02

Hmm. First duplex that I bought cashflow negative. And that was a terrible decision. I bought the property for $425,000. It was cashflow negative about $500 a month, and then the market shifted and it went down to $310k. So I had my first investment property was underwater, and cashflow negative. And the reason why I bought it was everyone told me that you don't really cashflow real estate that you buy it and it doubles in 10 years, and then you sell it. And that was not my experience. So after that, I said I'm only going to buy properties that cash flow from day one.

Jason Muth: 44:41

What so what did you do with that one property?

Jennifer Beadles: 44:44

I'd hold on to it for 10 years. It did not double in value, but I made I made I made an okay return.

Jason Muth: 44:49

Okay. But enough not to dissuade you from doing it again, because you must have been what 21 or 22 when you did that.

Jennifer Beadles: 44:56

I was 21 years old.

Jason Muth: 44:57

Yeah.

Jennifer Beadles: 44:58

Yes. It was. It was painful. Yeah, yeah, we pay money to own a property and and have it be worth significantly less than what I bought it for.

Jason Muth: 45:10

And you're just getting started in your career and you're saying you're second guessing yourself or saying Have I have I made the right decision like what's going on here? But you know, kudos to you for sticking with it.

Jennifer Beadles: 45:18

But I knew that I knew that it was just it was a it was a lesson that I needed to learn about actually having criteria and investment criteria. And so I took that lesson and took the pain and said alright, learn the lesson. I'm not going to do this ever again.

Jason Muth: 45:37

that you're watching or reading or listening to these days.

Jennifer Beadles: 45:40

Ooooh, all right. I read a lot of books. I probably read a book a week. So I am in love with Tim Ferriss. He's probably my favorite author, The Four Hour Workweek, I read reread that every year. It's all about optimization systems and processes and efficiency. I first read his book in 2012, and really subscribe to this idea of mini retirement trips. And so now my family and I, we travel for about 12 weeks a year. And it's been actually very, very good for business. Because anytime, as a business, we're all business owners, right? And anytime you can leave your business for at least eight weeks at a time. If it's still standing by the time you come back, then you know that you've done something, right. But there's always going to be fires, there's always going to be things that you come back to that you realize didn't go as well. So then you build new systems and processes. And then you go test it again. And so that's what I'm what I'm into, for sure.

Jason Muth: 46:47

Great. It's all a test and learn process. Everything is.

Rory Gill: 46:51

Do you think we can take a week off maybe next year sometime? Can we do that?

Jason Muth: 46:58

I don't know. Jennifer's taking she travels 12 weeks a year? I think we can find one. Right? All right. Jennifer, this has been a fantastic conversation. We've really enjoyed having you as part of the episode we'll have to have you back on again, because there's just so much wisdom, I think that you've shared and you know, more to come. If people want to reach out to you, we'll put everything in the show notes. But what's the easiest way to learn more about what you're doing and follow along with Jennifer Beadles?

Jennifer Beadles: 47:24

Yeah, for agents. Again, I would go and apply to join our referral program. Again, it's completely free. So if you want access to hundreds of investors that are looking to buy right now, go on agentsinvest.com. If you are curious if you've maybe found a deal on the MLS or maybe an off market deal, but you're just not sure about the numbers, go to doorprofit.com click the Analyze Any Deal feature. And it will in a timed it about 90 seconds, you should know if it's a deal. And so go check that out. If you're an agent that really wants to get into the investor side, check us out on Addicted to ROI. We'd love to have a conversation and see if we can help you build and scale your own portfolio. So three different websites they do differently. They do very different things. But we just love serving the investor in the agent community. I want to see more agents building wealth through real estate.

Jason Muth: 48:17

All right, that's a great mission. Rory, where can people find you?

Rory Gill: 48:21

I'll just give to your so you can find me through my real estate brokerage. That's NextHome Titletown nexthometitletown.com. Or my law practice UrbanVillage Legal. That's urbanvillagelegal.com. All right.

Jason Muth: 48:35

If you've enjoyed this episode, give us a rating. We love five star ratings. And we love comments. We read them all. If you want to be a guest on this podcast, you can reach out to me, Jason@nexthometitletown.com. And we will get you set up. Jennifer, it's been a lovely discussion. Thank you so much. And I'm gonna say congratulations on a successful conference.

Jennifer Beadles: 48:56

Thank you. Thank you. It's been such an honor and a privilege to be here with you today.

Jason Muth: 49:02

All right, the privilege is all ours as well. So thank you so much. Thank you for listening. It's been The Real Estate Law Podcast. We'll see you next time.

Announcer: 49:09

This has been The Real Estate Law Podcast. Because real estate is more than just pretty pictures. And law goes well beyond the paperwork and courtroom arguments. were powered by NextHome Titletown Real Estate, greater Boston's progressive real estate brokerage. More at nexthometitletown.com and UrbanVillage Legal, Massachusetts real estate Council serving savvy property owners lenders and investors. More at urbanvillagelegal.com. Today's conversation was not legal advice, but we hope you found it entertaining and informative. Discover more at the realestatelawpodcast.com Thank you for listening