Not Your Average Investor Show
Not Your Average Investor Show
422 | Most Asked Questions Answered: Getting Started In Rental Property Investing
As interests rates drop and prices go up, many experienced investors are realizing it's time to buy (especially now before end of year for tax purposes), but first timers are at risk of missing this golden moment!
That's why we're dedicating a special episode of the Not Your Average Investor Show to those of you in our community that just got here!
Join co-founder of JWB Real Estate Capital, Gregg Cohen, show host, Pablo Gonzalez, and our usual community of super experienced investors to hear about:
- What is the best strategy for buying your first rental property without being a real estate expert?
- How do you scale from 1 to a bunch of properties without extra money?
- Should you pick new or renovated homes to start?
- And much much more!
This is why we started this community- to help people get into real estate and feel supported- so you can expect an honest conversation with a bunch of active community members willing to answer questions in the chat (as usual).
Don't miss this one!
Join us and start setting yourself up for a happy tax season today!
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https://jwbrealestatecapital.com/nyai/
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https://jwbrealestatecapital.com/turnkey/
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Today we're going to kick it kind of old school out here, right? we've got some frequently asked questions. What we have realized is that our community has grown a bunch and there is almost like a stratification of a bunch of really, really experienced investors that have been doing this for a while that have been listening to us for a while. And a bunch of newer investors that either have a long time investing, but they've been investing in other places and other things. And they're just like starting to get, you know, into the not your average, mindset. And there's also a bunch of new folks that are seeing interest rates drop, seeing prices go up, seeing these things happening, want to build money outside of the system. Like the conversation that we talked with Matt Toyschill about last week. And we want to bring everybody back to homeostasis. Yes, we do. So we're just going to address some asked questions that I've been seeing in the chat that we have of our like folks,
Gregg Cohen:actually, I was just looking at the numbers, you know, talking about how we have a lot of folks that haven't invested yet and why the show is so appropriate. 57 percent of the folks that watch our shows. J. W. B. Investors yet. Did you know that? Yeah. So we're speaking to all of you.
Pablo Gonzalez:Okay. There you go. So we're speaking to you. 57%. Welcome everybody to your weekly edition of the not your average investor show. I am your host, Pablo Gonzalez. And with me today is a man that I affectionately like to call GC because of his genius concepts. Cause he knows how to generate cashflow. And he's a great co host because his name is Greg Cohen. Say hello, Greg. Hello everybody. Great All right. But before we get into the. Frequently asked questions. We have a little tradition that we start with. You see, what's that tradition called?
Gregg Cohen:The roll call, baby.
Pablo Gonzalez:We got Joanna in the chat welcoming us. She is our community manager. If you have any questions, anything that you need help with, reach out to Joanna in the chat. We got the mystery man wishing us a happy election day from Kuwait.
Gregg Cohen:Danny Davis. Thank you so much for your service and protecting our freedom so that we can vote. So everybody get out and vote. Amen to that. Freedom isn't free.
Pablo Gonzalez:We got the leadoff hitter batting second today. John Henning. We got the early bird checking in third today. Mr. Dean Curry. We got, Does John Evans have a nickname? I feel like John Evans has a nickname. I do too. John, do we give you a nickname, John Evans? I don't know. John, welcome to the show. Good afternoon. We got the fairy godmother checking in from Monterey, California. We got Chris Lee from Fernandina Beach. Chris, what's up? Checking in with us. we've got, uh, the better Greg.
Gregg Cohen:Greg Stone. Greg
Pablo Gonzalez:Stone. Wishing everybody a howdy from sunny New Jersey, a wonderful part of the country, New Jersey. Everybody knows we've got the shaman, Nadeem Shaw, Nadeem Shaw from the West Coast with his trademark. Good morning. Good afternoon for everybody. Who else we got here at wishing us a happy election day is the patriarch and matriarch of the first family of the Natural Avenue Vest show, Ken and Caroline Malin, who we salute you. We got Maritza Lopez from New York City. Maritza, that's a new name, new name. I have a, I have a, I have a tia Maritza that I love very much. That's why I know I haven't, I haven't said that. I haven't said that before. Maritza, welcome to the show. who else we got here? Oh, the MVP. I think everybody's heard of the MVP,
Gregg Cohen:Mr.
Pablo Gonzalez:Mr. Lee. Bishop checking in. Good to have you, Lee. We got Mark Norman from SoCal, wishing us a happy election day.
Gregg Cohen:I've got a special call out for Mark Norman. Just to say, Oh boy, Mark, special
Pablo Gonzalez:surprise for you. Uh, LaVon Mack checking back in. LaVon, good to have you. Teammate. Yeah. We got our favorite smile from the Pacific Northwest. None other than Pamela. Pamela Byers from the Seattle area. We're planning the Not Your Average Investor Summit on a call earlier. Yes. And The first person that came to my mind was Pamela. My, I don't know why I don't, I don't know why. Yeah. Who else we got? We got Frank, Frank, the tank chapel. Check it in, Frank. You guys haven't talked
Gregg Cohen:to Frank, the J, J, WB elite right there. you need to talk to Frank. You
Pablo Gonzalez:want to talk to him? Famous musical score composer, John Williams from Long Island, New York. Wishing us. Hello, John. I think that's a new name. I think it's the first time. Check it out, John. Well, good to have you. Hey, I know what it is to have a common name. Pablo Gonzales. I'm with you, John. Oh, let me see.
Gregg Cohen:Yeah. Let me see. Yeah. Is in the house. I can't man. I can't. What's it say? So good. Reggie Fonsec! Reggie Fonsec! Reggie Fonsec! From the Inland Empire! Good to have you Reggie! We got Ed Lauer in the house. Good afternoon from Jacksonville. Reggie is not French at all. Listen, do
Pablo Gonzalez:not insult Reggie Heritage. He comes from a long line of Frenchmen. We got T. Castor in the house checking in. We got past star of the show, the millennial wealth creator himself. Did you pronounce his last name correctly? How do you pronounce it? Ask him for a friend. Torchshul! Matt, good to see you, buddy. On the other side of the camera today. Wiped it up last week, man. Yeah, definitely, definitely. Just kept it warm for you here, bud. We got. Vernon Campbell, that's a new name from Stone Mountain, Georgia. Although I have, I feel like somebody else has been checking in from Stone Mountain.
Gregg Cohen:Nobody else from Stone Mountain. You have a friend in Stone Mountain. You have a
Pablo Gonzalez:friend in Stone Mountain. We got the, we got the Maven from the mountains of Denver. Miss Lesley Wilson. Miss Lesley Wilson. We got Miss Rack Uldu from Northern Virginia.
Gregg Cohen:Another
Pablo Gonzalez:new
Gregg Cohen:name. Thank you all for being here. Thank you for being courageous and saying hello in the chat. I'm sure you're going to have tons and tons of friends reaching out to you. So thank you guys.
Pablo Gonzalez:Matt saying he called the role called the role play. I was like, all right, you're going to play. All right. Anyways, we got Tom Meade checking in from Las Vegas. All right. All right, man. This is a, this is a good one. This is a good roll call. I love welcoming. So if you're new to the community, Oh, we got our regulars, Rosalind and Gary Riley from Marietta, California. We regard you. Good to have you in the house. And El Gran Amigo.
Gregg Cohen:Bill Shields. Buenas tardes. No bueno jogs.
Pablo Gonzalez:Good to have you. Good to have you. All right. All right. Okay. Let's, let's get, oh, the patron Santorius. Patron Santorius Michael Santorius. Michael Santorius. Good to have you. Okay. Since we have so many new folks, David, David Vivar just checked in. Oh, wonderful. I feel like, I feel like David's been here before.
Gregg Cohen:You know what? Vivar. Yeah. I just think this is awesome. This is great.
Pablo Gonzalez:So many new folks. Just so you know, this is a normal occurrence for us. We have a lot of folks here that show up every single week. We often have new folks checking in. So feel free to make a friend in the chat. These are all great people. different level experience investors. Like I said, 57 percent of folks that watch the show haven't invested with us, but they're very familiar with what we talk about. And then there's the 43 percent like the Leslie's, like the Lees, like the, you know, like Ken Malin and, and the patron Santorio's who are all, and Dean and all these folks who are all very, very well versed in this asset class. I've been doing this for a long time, have done it without JWB and with JWB. And they can tell you the difference in all these different things. So. Feel free to reach out here personally in the chat to anybody of your new and I am sure you'll get a whole bunch of great answers. The one thing that you got to know to do is that the chat normally defaults to only talking to panelists and hosts, which means only I see it because Greg isn't even looking at this thing. It's just me. I'm keeping track of everything. So you have to change the little box above to everyone. So that everybody sees you checking in with that being said, we
Gregg Cohen:got some breaking news, GC, what, what breaking news you got? We do. We have some awesome breaking news is one of those times. Just going to brag on the team a little bit because the team works so hard to deliver, not just a wonderful client experience, but really wonderful returns on investment for you. And it starts with. And so, I was totaling up our three month average for rent collection. Thank you. Keep it in front of your mouth. How hard is that? Wouldn't be a Tuesday unless I got some help with Mike. You know, totaling up our three month average for rent collection, it was just noteworthy. I wanted to share it with you. We continue to get better and better each and every year. Last three months, our rent collection has averaged 98. 4 percent at JWB. just light years ahead of what industry averages are. And even better than what we did last year for those same three months, we were at 98. 2%. So it's that mentality of understanding that all of this starts with a wonderful resident relationship so that these assets can perform for you over and over and over again on a monthly basis so that you get excited about holding on to these assets for a full market cycle so that you can help build a better retirement account. Starts with rent collection and just. So proud of the team. So wanted to share all that with the entire community here.
Pablo Gonzalez:98. 6 percent rent collection, 4 percent all three months average. It's a pretty high amount of rent collection. what is the industry norm on that? Do you know?
Gregg Cohen:I can tell you that when we first got into this game, I heard that 90 percent was good. And then we, before we actually built our own property management company, many, many years ago, we actually outsourced our property management for our own properties. This was before we started doing property management for others. So we outsourced our own. And I remember when I unloaded those first 40 properties to that property management company, they said, listen, you should expect 90 percent of rent collected. I haven't looked at the industry average since then. I would imagine it's probably gotten better. There's more sophisticated players have gotten in the space, but I don't know of another property management company that's collecting 98. 4 percent of rents. knowing the environment that we are in right now, which is that home price affordability is a challenge. And I think, It's a testament to the relationship and the efforts that our team puts into building a relationship with our residents so that, you know, they, of course, they pay the rent, but they want to be in our homes. And you see that by renewal percentages over 75 percent of our folks choose to renew with us. And then our average resident stays four and a half years of JWB. So, beyond just the dollars and cents of how this produces a return for you, I hope what you all get to kind of feel here is that this really can be a win, win, win. Right. This can be a win for you as an investor where you don't have to have somebody losing on the other side. You don't have to have a resident who's losing on the other side. you win and the resident wins over time, JWB wins, that's how we create this partnership for, you know, going on 19 years now.
Pablo Gonzalez:Well, you proactively answered my, my FAQ of like, what does it take to get to 98%? It sounds like a very deliberate strategy. On relationship building with the residents inside the home. And that seems like a policy from like the top down, right? This idea of being like relational over transactional. For for real estate investors is is kind of like when we did that show of Mackenzie Breaking down the new real estate strategies and this idea and the show about the death of the landlord and how the resident experience is kind of like the new frontier of real estate investing because real estate investors everywhere are realizing that The way that your asset performs is keeping it occupied The way you keep it occupied is by providing a great experience. And to provide a great experience, you need to know the people that live there and be able to like meet their needs in an efficient way.
Gregg Cohen:100%. You know, people don't choose to stay with you for years and years and years. Or you got to think about every time a resident, you know, pays rent that month and then decides to pay rent that next month and decides to renew a lease. Those are, those are like repeat business. Right? People don't decide to be repeat customers and renew leases and pay rent like that, unless they're getting value. So just like we aim to give a lot of value to you as an investor client, we aim to give a lot of value to our residents. So that they want to be here. And then, you know, rent collection of 98. 4 percent is a byproduct of the value that we are able to provide.
Pablo Gonzalez:Love it, bud. All right. I would be remiss without just calling in a couple more of our, of our folks here that I've showed up. Our favorite name to pronounce Aaron O'Neill's into the lights. Welcome to have your, and we've also got the ringmaster in the house, Andrew Barnhill, and there was somebody else here. Now I'm, now I'm missing it. Cause I got to clean up and down this, but Oh, Harry, Harry Talbot. All
Gregg Cohen:right. Harry
Pablo Gonzalez:says, Hello, Harry. Good to have you. Priscilla Corso says, Hello. Ed Laurie says, Hello. All right. So we've got some more people. Chris trailer says, Hello, everybody. All right. So I just want to make sure everybody's welcome here. Do you see you got some other breaking news with a Mark Norman? I do. I'm
Gregg Cohen:so glad that Mark's here. I thought this would be a good opportunity to to call out Mark here in a very positive way and to call out myself in a positive way. Failing forward moment way. One of our core values at JWB is to fail forward and empower people to make mistakes. And so I had one of those moments on the show that we did maybe two or three shows ago, we were talking about tax savings and tax advantages, and I was rattling off all this good stuff that can help you you know, take advantage from a tax perspective and invest in rental properties. And towards the end of the show, Mark said, Hey, Greg, I think one of your numbers is off. And he was talking about the percentage of bonus depreciation that you get. And when he said it, if you go back and I watched myself, I was like, huh, I think he might be right about something. And you know what? He was right. So Mark, you were right. I wanted to say thank you for being here on the show, for putting it in the notes. The bonus depreciation is not 80 percent in 2024, it's 60 percent in 2024. 40 percent in 2025 and so forth. Still a really big, tax advantage and something that you can use to, save, on dollars spent on Uncle Sam, so that you can use those dollars in other places. But the big thing is I wanted to say thank you to you and our audience for being so awesome and for calling me out.
Pablo Gonzalez:You know, I want to call out the idea that core values is such a big part of the culture here at JWB as, as you know, I've been on the tour of like property management shows, and I've been getting into these like conversations about like the best tools and the best tech and, you know, kind of like what to do. And one of the. One of the foremost thinkers in this space is this guy, Peter Lohman. He's got one of the bigger podcasts in this space. Yeah, yeah. And he was telling me this thing about how like, you know, people think of tools in the wrong way, right? Like they think like a tool is going to be able to like, they're going to buy a tool so they can create a process so they can then like make things happen. And he like, kind of like us reset the order of operations to, it really should start with your policies. Your policies should dictate your procedures, which should dictate your tours, not your tools. And I was like. Where do values fall in that? It's like actually values go above everything, right? So like knowing your core values and knowing the things that you want your people to live Is what sets the guidance of the business which you then build everything around and you all also at this show melissa gillespie your head of property management was there. I got to interview her about tms This is a story. I want to tell to the world right and like You know, just long story short, if you're new here, J. W. B. Does a Tuesday morning meeting every single week. It's an all hands meeting, and it starts with this thing called core values call outs where out of 120 people, you'll get like 10 to 15 people standing up, acknowledging one of their teammates over the last week, having lived a core value, and they'll give them this acknowledgement. It's a really great tool of Getting people to like recognize core values, see value in these core values, and like kind of start training them to like public speak and acknowledge people. It's just a really good like flywheel of stuff. So I just want to give a shout out to Core Values.
Gregg Cohen:Well, thank you, man. All right. It's awesome.
Pablo Gonzalez:Leslie Wilson asks, Does JWB accept partial rent payments as far as the, as far as like the rent collection piece goes?
Gregg Cohen:We do. There's a strategy to it. And I don't remember exactly the strategy right now, but there are things that you have to watch out for when accepting partial rent payments. And probably a good time to ask your portfolio manager about how we handle that so that we can accept the rent payment without creating unnecessary, unnecessary, unintended consequences for doing that.
Pablo Gonzalez:Yeah, totally. I know that I have one of my, one of my residents pays me in two installments every single month, right? Like it's my highest. So anyways, so they do Jen Filson has an announcement. She says for it, she's, we call her the fairy godmother of the community. She says for anyone in Northern California, she is hosting a JWB, not your average investor meetup on Sunday, November 17th from 11am to 4pm at McGrail vineyards. Join us, contact her for details, 408 733 7000. 833 9868 or jenniferphilsen at gmail. com. I'll put this in the chat Jen Philson just published a new book.
Gregg Cohen:No way. Yeah,
Pablo Gonzalez:man. So I've bought Jen's books in the past. This one's like pow Yeah, like it's like a it's a big it's a it's almost like a historical reference guide of it's called we're not going back like the like the historical account of like woman's rights coming to fruition in the United States. Really, really cool. I love that.
Gregg Cohen:Put the link to your book in the chat. Yeah.
Pablo Gonzalez:Cool. All right. Jen wants to know, do we have a update on the JWB summit? The page of centaurs is asking, can we have a hint on month or date or anything like that? Do we want to kind of just tease around the time that we're doing it,
Gregg Cohen:say Q1, but Pablo and I were just on a call right before this of meeting with our event planner and talking about late,
Pablo Gonzalez:late Q1. We can say late Q1, late-ish Q1.
Gregg Cohen:Yeah. We, yes, I, they told me not to say anything about the dates. I wanted to come forward with the save the date and our event planner, who's the voice of reason here, said, don't do that until we have the venue locked up. Okay, fine. So, yeah, I think we're looking towards announcing this. It's early December ish is kind of where we're going to be. We're going to announce
Pablo Gonzalez:early December, but it's going to be like late Q1.
Gregg Cohen:Yeah. All right. Cool.
Pablo Gonzalez:Sweet. Mark Norman says, thanks. And you are welcome. Hopefully the laws will change and the bonus appreciation will get reinstated again at some point. Fingers crossed. All right. GC, let's get to what everybody showed up for, right? The FAQs. The frequently asked questions. Speaking of new folks coming into our community, charity and Venetia had showed up. Shoot. They were excited about purchasing their first properties and they basically just popped into our chat and said, what are, what are steps that first time investors can take to ensure success? GC, how would you, How would you answer that one?
Gregg Cohen:Yeah. Well, I think it starts, you know, how you were mentioning Peter, right? So re rethinking and re strategizing about how you're going to be successful in this space is really important. If we just look at it, you know, you've got this beautiful asset class that largely gets demonized out there because people haven't had a good experience of quote unquote, being a landlord, or they're worried about what that relationship is like and it ultimately keeps them away from an asset class that. If you just walk down the street and you randomly talk to people, people know that you can make significant wealth in real estate and by holding on to rental property. So to me, and what I would encourage you to internalize is that, that normal strategy, that normal construct that is leading people to invest the old way is broken. Because if people know that you can make money, but then they're not happy doing it, it's that construct that is broken. So the first thing that I would encourage you to do is to think differently about your construct, your strategy for investing. The old way and what average investors do is they think property first. They spend almost all of their time doing their due diligence on the property. They never once considered is that property in the right market or more importantly, do I have the right team to support that investment? And that's, that's a fatal flaw. So where, what I would encourage you to adopt is focusing on team first. That is the most important thing. Secondarily, then once you find the team that can support this investment for you over the long haul, you go find the markets that they operate in. And the market, of course, You know, dictates it can result in hundreds of thousands of dollars, millions of dollars. Certain clients have earned specifically because they chose the Jacksonville market over another market. That's how important the market decision is. And if you have the right team and you invest in the right market, Choosing the property should be simple, easy, quick, and fun. And so go in that order. Team, market, property is probably the first from a mindset perspective, the first thing to focus on to do it the right way.
Pablo Gonzalez:Yeah, and that's, that's as opposed to that idea of like, most people spend 95 percent of their time looking for a property, looking for a deal. You know, like wherever it's convenient to them, they kind of lump that whole, like market and property thing based on convenience or based on access to that. Again, you buy the property once, but you own it forever. So when you say team, Greg, you're essentially saying like, who is going to make sure that. It gets marketed to find a resident who's going to make sure that that resident moves in and to have all their things taken care of, who's going to make sure that when something breaks inside the home, that thing gets fixed, who's going to make sure that as you know, like three or four months before the lease is running out, that you're having these conversations about somebody's options and like why it makes more sense for them to renew versus go find something else. Who's going to give you the pricing, who's going to do all that stuff. Who's going to give you the, The advice on like what price to set or that rent or give you the advice on like, is this something that needs to be fixed now or later? Right? Like those kinds of things really, really matter. I know that in my journey, if, if I didn't, you know, if, if I was going to manage it myself, I would not have become a real estate investor. Right? Right. So like, that is just kind of like, The biggest obstacle to overcome and it's the largest, the biggest like indicator to long term success, which is part of the question.
Gregg Cohen:100%.
Pablo Gonzalez:So, so that being said, I also think there's another, there's another part of this of that would not have gotten me into the asset class. If like number one was like, I was never going to be able to take care of it, right? Like, I can't just put that on Marta because I know that I wasn't going to do it. The other part was like, I also didn't really want to go out and find the property. Like, I just kind of wanted it to fit to my schedule. And I was, I felt like I was lucky to understand this, like, turnkey real estate model. You want to kind of like describe that? Yeah. Well,
Gregg Cohen:you know, the old way of doing this is, you know, you go out, you say, Hey, I want to buy a rental property. Then you go out and find a realtor. You spend a whole bunch of time trying to go and look at properties together or whatnot. Then you put offers in. Then you get denied, you know, before you know it, it's 9 months, 12 months of going through this process. It's a waste of time before you can actually maybe get a property under contract. So then you do that and then, you know, the property needs a little bit of work to put it into great rental shape. And next thing you know, you, you, you need to find a contractor. But, you know, I don't know how many of you want to stop what you're doing on your day job to go and manage construction projects. But it's not typically high on the list of things that our clients want to do. And, and it becomes a stressor then. And so now, you know, Now you've got to make sure the project comes in on time and on budget. So a whole lot of work there. And what do you think the chances of it timing coming in on time and on budget are by me? Yeah, little, little, little emphasis on the nuns, right? So you've created a challenge there for yourself and all along the way. Now, what you thought this ideal investment of you buying a property in a month after you saw you, you started to make an offer. So now you're a year down the road and you're over construction budget. You're starting to erode this, this joy that you originally started out with. And then all of a sudden you, you get the home in great shape to be rented and you go and you stick any old property manager in there. And guess what? The first thing they say is. Well, that rent that you thought you were going to get that you discussed with your realtor a year and a half ago, guess what? I don't think he has this new property measure. I don't think that you're going to get that rent. And that is a real punch to the gut because now not only have you wasted a year, year and a half not only are you over budget, now your income is lowered. This cashflow positive thing that you thought you were creating is now cashflow negative. And then you do what you can, you get that you know, you get somebody in the home. You're generally not happy about it. Your spouse is probably a little bit upset because they were supporting you through this and they've seen you fumble it up. And now it's hitting their pocketbook. And then the fun really starts because you got any old property manager in there, but they're not vertically integrated. Their goals aren't aligned with you. They're not all under one roof. They're not there to advise you in good times and in bad. And so when maintenance items come and things like this, it only gets worse from there. And that's where that, that brokenness of rental property investing lives. It's in that old way of doing it. So the new way, the way that JWB has set out intentionally to build is the vertically integrated process, which in essence, it's, it's like, hey, listen, Property management is the hardest part of this equation. Let's be excellent at property management. Let's be excellent to our renters. Let's be excellent to our clients so that we can all win here. And let's package all of the services along with that excellent property management that otherwise you had to go out and find this person and that person and this person to pull together. So your property management team, which is JWB, also is your sales team. In essence, they're the realtor that you had, except you don't have to pay JWB real estate commissions because we own the asset and we're simply selling it to you. But the, the process of finding a property literally is done over a few phone calls and you save yourself months, years of that hassle process the old way. And every other service comes along with it. All the homes are professionally renovated. At the time that they are sold to you or newly built, they're also rented day one and producing positive cashflow for you. And so this model, we pioneered this model started 19 years ago. It just wasn't done back in the day, but it's with the. The outcome in mind, the experience in mind, we're taking away that fragmented team approach, which really wasn't team centric and starting with wonderful property management and coupling those services around there.
Pablo Gonzalez:Yeah, man, I love it. You know, my, my frame of reference for this is the construction industry where the first 15 years of my life First 15 years of my career.
Gregg Cohen:Tell me about the first 15 years of your life.
Pablo Gonzalez:Well, that was like Venezuela, Miami, Spain, and then back to Miami. But anyways and there's just a very big difference between having to talk to an architect who designed it, having to talk to the general contractor who is then in charge of building it, and then having to talk to the painter who is blaming the drywall guy for why the paint came out crappy. Right? Like that is just like a very like inefficient, inefficient. Way of like figuring out who's going to point a finger at who as opposed to like something that was called design build, which is groundbreaking. As I was leaving the construction industry, and it blows my mind where the same person that designed it, it's the same person that builds it. And like the hands that are working on it or the hands that like you call five years later, if something's wrong, they have the answers. There's no like passing of the blame. So, you know, this, this idea of like a vertically integrated way of doing this is Like you said, you know, like if you want to ensure long term success, A, understand who's going to take care of your property forever. And then B, you know, make sure that the person selling it to you is the person that's going to take care of the property because now everything is aligned, right? So that's, yeah, that's the answer.
Gregg Cohen:But here's the reason why the team is so important, putting it bluntly, is that you need to be in this game for a full market cycle to see the maximum benefit. If you are only buying this rental property and you're set up to fail, meaning like in a year, you're going to get tired of the experience or two years or three years, it's not worth it to buy these rental property because real estate is expensive to buy and sell on a short time period. So that's why number one, you should be focusing on the team. It's because they're going to make this simple, easy, enjoyable for you for 10 years plus. But you have to be in the game that long to be able to recognize the extreme benefits that this asset produces.
Pablo Gonzalez:Totally. All right. So that's, that's strategy to ensure long term success. Let's get a little bit more into the nuts and bolts. Alvaro Bravo has a question that he just put in the chat and he says, with interest rates that we have at the moment, what would be the percentage of down payment that we need to make in order to break even every month, assuming that we have a mortgage on the rental property?
Gregg Cohen:Yeah. So it's, you know, interest rates have gone up since the Fed dropped. Their interest rates, you know, we've talked about it a lot. Interest rates are not directly correlated with what the Fed does. I think we were all hoping that interest rates would come down a little bit, but, you know, they have come down significantly from where they were a year ago and really from six months ago. They're down over a point. They're lower than where they were a year ago. So one percentage point. So, all in all, they're coming down, but it's not a just smooth line down, right? Yeah. Yeah. There's bumps, right? This, there is, there is an investment market behind this. And so what investors decide to do with putting their money in bonds really, if that's the biggest effect on what happens to our long term mortgage rates. So I digress a little bit. Rates are, have ticked up a little bit and nobody's really happy about that, but we expect them to go down again soon. What do investors need to put down? Typically about 30 percent now is what they're going to need to put down. It's, it can be between 25 and 30, but I like to be conservative. So now it's back up to about 30 percent is what you're going to need to do to be cashflow positive when it comes to investment property. So what that means is, you know, before it was somewhere around maybe 50, 65, 000 to be able to buy your first investment property, as far as a down payment, including closing costs. And now it's closer to 60 to 75, 000 again. Yeah.
Pablo Gonzalez:Yeah. That's interesting. I thought it would just to give you some kind of perspective. We have this conversation often on the show and it had been like 30, 35 percent for like a while there as things were really, really high. Then it looked like it hit a moment where it was 25 percent and it really, really worked. And we're like, Hey, everybody, right now is the time to buy. And I think the people that bought then got to, you know, get in with like that 50, 60, and now it's back up to this like 30, right? So it'll, it'll come back down at some point, but there is, there is moments where we see these like movements in the market. It creates extra advantages. But to play it safe right now is what you're saying.
Gregg Cohen:Well, yeah, I mean, cashflow positive day one is how we position these investments. Right. So that's, you know, we really, when it comes to interest rates right now, it's teetering one quarter or eighth of a point really determines, is it going to be cashflow negative or is it going to be cashflow positive once we account for all of the costs that come along for it? And so when the interest rate has ticked up a little bit, Well, we're still going to remain cashflow positive. So that's where that 30 percent is required to put it down. Because when you put 30 percent down versus 25, your mortgage payment goes down every single month.
Pablo Gonzalez:Cool. There you go. All right. Another one from that we came into the, that we came into the call with This one came up between Charity, Nadim, and Leslie, right? And they were talking about trade offs between buying new construction versus remodeled properties in terms of cost, maintenance, and long term investment value. Greg, what advice do you have for people, first time investors? They're thinking, should I buy long, should I buy new construction? Should I buy remodeled?
Gregg Cohen:Well, I go to the data. And luckily we have Tons and tons of data of how new construction properties have performed over a full market cycle as well as renovated properties. And the data tells you that there is not a reason to buy new construction over renovations or renovations over new construction. At the end of the day, what happens is your pro formas, your, the evaluations of the properties will largely land in the same place as far as what your expected return of investment is. You just get there a little bit differently. So for new construction properties, they're generally going to have a higher purchase price. They are also going to have higher property taxes because generally property taxes are a function of market value. And and purchase price but they are going to have lower property insurance costs. They're also going to have slightly lower maintenance costs over time as well. So you win some, you lose some there. On the contrary, as you can imagine renovated homes are a little bit lower on the price scale. So it helps those where budget is an issue. Might, that might be a reason to, to focus on a new, excuse me, on a renovated home, you might be able to get in for a slightly lower amount, but ultimately they're going to have slightly lower purchase prices. Slightly lower property taxes, but property insurance costs for renovated homes is higher than a comparable new construction home and Maintenance costs are slightly higher as well. So all in all you're going to get to somewhere around call it 10 percent returns on investment So getting into it, you're not going to see much of a difference As far as return on investment or cash flow, it's going to be largely the same. And then guys, I, you know, I, I sit here and manage 1. 3 billion in real estate. So I, I look at every client's returns on a quarter, you know, on a quarterly basis when we update our numbers and I look and I see, What are the returns for new construction homes? What are the returns for renovated homes? Yeah, you know, I own 400 rental properties myself and I have seen how my homes Which a lot of them are renovated homes have done over the last 10 years that I've held them or 15 years that I've held them. and I don't see a reason to invest in one over the other. It is, what is that, what is the right thing for you to invest in at that moment? Yeah. The properties largely are widgets. There's a little bit of fluctuation when it comes to budget.
Pablo Gonzalez:Yeah.
Gregg Cohen:But when you have an asset that works for you, I, you know, I'm agnostic. I do also recognize that some people have had a lot of success with new construction homes. And they say, listen, I might only buy new construction homes. And you know, if that is how you feel about it, my team, we're not going to stand in your way. We have new construction and we have renovated homes and we're not going to stand on a soapbox and say, you have to believe this or that. But I can just tell you as, as, you know, somebody who has my own money invested in this for, you know, 19 years now, um, and I've seen renovated homes appreciate sometimes more than new construction homes were at that moment. I can tell you that. I'm agnostic and I don't see a reason to do one over the other.
Pablo Gonzalez:If I was to really dial in on the nitty gritty of all of it, and I was to think, all right, long term, no difference, right? You guys have done an unbelievable job at widgetizing a highly variable market by going a mile deep into like one market, by vertically integrating, by creating these economies of scale, by the amount of properties that you serve here, 6, 000 and even investing in downtown and city making, right? That being said, as the first time investor, I when I was going through my considerations, right? Like I know that over a long time, real estate is going to do what it's going to do. And it's great. If I have the right team in place, I also know that as a rental property investor, there is. You know, there's going to be times where this asset is going to be like, man, time to have a conversation about something with my spouse. And like, just like make sure that we're on the same page because some cash is going to come out. Somebody living in the property is going to do something. Is it fair to say that if you were like, think about it in the really, really short term, a new construction property is more expensive, right? Like, it'll be like more cash out the door on day one, same returns over time. Okay. But the, the price point that you're paying is maybe to like reduce the variability of like the first couple of years of maybe maintenance expenses. Right. Like, is there like a higher chance of buying a renovated property, something earlier might happen. So like you save a little bit of money on that, but like maybe there's a little bit of extra exposure to experience. I mean, I see where you're going, but I
Gregg Cohen:just, I just, it's just not my experience, you know? No. So. I mean, if it was just like any other renovation out there that isn't to the JWB standard, then I would, I would buy into that theory a little bit more. But our average renovation is 42, 000 and our homes are not that big, you know, typical, you know, renovated home, maybe they're 12, 13, 1400 square feet, right? So to spend 42, 000 in a renovated home or 1300 square feet, I mean, you are replacing A ton of stuff. I mean, it's not brand new construction, but you know, the, the mechanicals largely are brand new or they have a lot of working life left on them, a lot of years left on them. So, you know, the quality of the renovation really mitigates. that difference that you're talking about right there. And, you know, I just, I mean, sure. I, I see what you're saying. Listen, you put more out. So maybe your ongoing is a little bit less over time. And that would be reflected in the expected maintenance costs over time. So for a renovated home, we expect seven and a half percent of the rents that you collect every single month to be going towards your maintenance costs on a renovated home or a new construction home, we expect four percent. This is based on how our inventory has performed. So there's a little bit there.
Pablo Gonzalez:Yeah.
Gregg Cohen:Right. But then again, you're also paying more money for other things. Sure. Yeah. Yeah. So
Pablo Gonzalez:I
Gregg Cohen:just. Maybe there's a little bit, a little hedge
Pablo Gonzalez:for experience, to a certain extent. I just,
Gregg Cohen:I really wouldn't go there. It's not enough to kind of get to that threshold of like a hedge for experience, because there's a million variables that are going to affect your experience. You know, if it's 50 bucks more here in maintenance, but you had some other I, it's just, I don't know, I
Pablo Gonzalez:don't
Gregg Cohen:buy it.
Pablo Gonzalez:Okay, cool. Sounds good. Just, just testing you, buddy.
Gregg Cohen:Yeah.
Pablo Gonzalez:With that being said, early bird Dean Curry says, what are the most common problems slash issues you uncover when you like buy an existing property and you renovate it? Like what are you guys, what are you guys renovating for? Like what are the standards that you, that you, a renovated home should be built up to?
Gregg Cohen:No deferred maintenance is the first thing.
Pablo Gonzalez:Yeah.
Gregg Cohen:Right? No deferred maintenance. So, we're looking at your major mechanicals. So, your heating and air, your roof, your electrical, your plumbing, those are the big ticket items that would lead to major expenses. And so, we're spending the necessary money to make sure that we fix those items as well as anything else that would be a maintenance cost that should be addressed at some point. I think this idea of what is deferred maintenance is It's interesting because me as an investor on my own homes that I buy and renovate, I actually might make a different decision for me myself than I would for a client's home that we buy, renovate, and then sell. And the reason is because For me as an individual investor, right, if there's five years of life left on an AC unit, do I replace that day one or do I get those five years of life out in my own, in my own rental property? Well, you know, I might make the decision for my own asset to keep that, you know, keep that AC in the, in the unit. I wouldn't make that decision when we buy a property to sell to a client, right? We take care of that issue because we are not going to give you what is called deferred maintenance. Maintenance that we know is going to need to be done in some relatively short order that otherwise we would just be passing a cost on to you. When it's done at the renovation stage, it's our cost. It's not yours. And that's why no deferred maintenance is so important for a client. To maintain our, our standard. So no deferred maintenance and then it needs to be a home that's going to rent quickly and easily. It's also got to be a home that is built to last. It's got to be a home that we know that a family is going to live in that home on average for four and a half years. And so we're going to put materials in there that can withstand a beating and not cost you an arm and a leg to go and replace. when it comes to a property turn. So those would be three high level things that we're kind of, renovating to as far as our standard.
Pablo Gonzalez:Love it. So no different maintenance, making sure it's to a certain standard that you are, you understand what's coming, right? So like you de risk that. Love that. Okay. So This is one that gets talked about often, right? Like, how do you go from one property to many, right? Like, is this, is this a, you know, I remember when you and I, when you and I spoke, you know, you were like, ah, you want to get to like a, like a, maybe three homes in order to build this kind of like resilience around it all. And I remember like really racking my brain. I came up with a very unorthodox way of getting there. Obviously I had some money left over. I like hit it big on like one stock, cash it out and did it. It was Peloton. Thank God I cashed it out. And then I cashed out another, like an old IRA to get to my third. And now like I'm on my way. Right. But like, you know, at that time I wasn't, I, my income wasn't very high. So I wasn't able to just like, you know, put. Two dozen dollars a month away so I could get there really quickly. And yet we hear a lot about people that are just kind of like stacking them and then it leads to more properties. Can you explain kind of like the mechanism of like how these rental properties lead to more rental properties?
Gregg Cohen:I'm so glad we're going to spend some time on this because it might surprise you. You know, we get to share some of these stories and our clients are kind enough to share their real returns when we do these client success stories. And you'll see hundreds of thousands of dollars that they have earned and sometimes millions of dollars that they've earned in their portfolio. And you get this sense that our clients are just absolutely loaded. Yeah, they are different than you and me and everybody else here that they have a silver spoon. And that's just not who our clientele is. We have loved serving mom and pop everyday people from the beginning of this company. It's who we are. You know, I was raised by a single mom, grew up in Pittsburgh, you know, like, like, these are the people that we get to serve. And it's so rewarding and gratifying being able to help build a better retirement account or help you know, folks be able to send their kids to college by way of doing this. And it just, this is who we're built to serve. And so when you see these large amounts of profits that they've earned from following this model, it's not like they came here with millions. What they were able to do is to come with many times, starting with one. Sometimes we're starting with three, and maybe sometimes we start with more. But typically folks are buying either one, two, or three properties right off the bat. And then as this is maturing and they're following the plan that we build for them, they're leaning on our expertise to say, Hey, how can I. Maximize my returns. How can I shrink the timeline to when I get to my financial goal, my passive income goal? How do I get to retirement sooner? They rely on us and we build that plan, that next iteration of the plan. But a lot of their opportunity to go from, call it one property to three properties or three to five or five to nine. is largely by using the profits that they have created within this model, refinancing or finding other ways to access capital that they already have in different places, and then using that to build little baby properties. Look at the baby properties. The properties have little babies, right? And, you know, that's just really key. You know, I think it can be daunting if we say to ourselves, hey, I want to generate 10, 000 a month in passive income or 20, 000 a month in passive income. You run the numbers and you're like, shoot, I got to have millions to do that. That's not the case. You can start with one property and then you can work with our team as we lay this plan out for you, execute the plan, and then when the time is right, either use the profits that you've already created within your rental property portfolio with us, or maybe look at other properties that 1031 exchange, bring those properties into your JWB portfolio, Or maybe learn how to access your retirement accounts in a way that you're creating more diversification and more consistency of income and then put that into your portfolio. And maybe we use all of these strategies and that's how you wind up as one of these success stories going from one to five or five to ten. Very, very frequently is it where somebody's like, Hey, listen, I just came into a big chunk of cash. Tell me where to put it. And so Yeah. I hope, I hope you all know that because you all are who we love to serve. Right. And that's why it's so fun.
Pablo Gonzalez:You know, that makes me totally reframe, like how cool I thought I was, to be honest. Cause like, I'm like, I'm like, you know, I did all this like creative stuff in order to like get in and like pull demand forward and whatever. But what it sounds like to me is like, you really simplified it to this idea of You know, people come into the asset class to have a good experience. And then because you have any good experience and you're seeing that this is working, you start getting creative on like, not just how much more can I save, which I'm sure there's, there's a piece of that, or, you know, like, and we'll have times in our careers where we have financial windfalls and be like, Oh, perfect. I can stick this into whether it's an inheritance or a bonus or, you know, Hey, I just had a great year in sales, right? Like put it in there. But it sounds like more often than not, it's folks that are. Like me, I just reallocated from stuff that was doing something somewhere else. And I was like, you know what, this is doing this somewhere else, but I find it more sustainable higher upside to like put it into the JWB rental property portfolio bucket. And that's really at the end of the day, my outcome that I received, right? Like I was just like, I think that this is going to do better for me longterm. So might as well just move it over.
Gregg Cohen:And there's a lot of value for if you had to prioritize which investments you're going to get started sooner. Like if you think of your overall wealth pie and you said, okay, well, I'm going to start either in stocks or I'm going to start in real estate or whatnot. There's so much benefit to starting in real estate. First, buying those assets, letting them do what they do, the value of buying and holding when you have five profit centers, where you have your principal pay down that gets better every single year, right? Your tax savings get better every single year, your home price appreciation, right? Your inflation hedging, right? All of your profit centers get better every single year without you doing anything. And that's not the same case in many other asset choices. So there's a real power to front loading, which is what you did, right? We talked a lot about the power of doing that. You said, I'm going to get to three and you know, and then I might go make other investments elsewhere, right? To kind of backfill it. And then you're going to let your, your portfolio build little baby properties, baby
Pablo Gonzalez:properties. So you're,
Gregg Cohen:you're, you're doing this and. You should feel really cool because you took on a lot of advanced strategies very early on and we have some clients that are ready to do that. But it's also totally okay just to say, Hey, listen, I'm going to start with one. Or I'm going to start with two and I'm going to get my feet wet. I'm going to build trust with JWB so that over time, one, two, three, five years down the road, when the time is ready to refinance, or to talk about a 1031 or whatnot, you're going to say, okay, now I'm ready to go from, you know, maybe going 30 miles an hour to going to 60 miles an hour within the portfolio.
Pablo Gonzalez:What I heard there, GC, is two things. One is like, it's all about who you know. I was only able to take those advanced strategies and understand all that because I surrounded myself with this, right? Like, yes, maybe it was my idea and we built it up and we created this community, but like, had I not been surrounded by the Jens and the Lees and the, and, and the Kens of the world and like, You know, been a part of this like story of seeing everybody do it slash getting to run with you on the mornings. I probably wouldn't have been able to bake all that in and have the confidence to do that. So, you know, like this is a testament to like what we're trying to build out here with this show and community. It's not just a podcast that you listen to. It's a. thing that you can come to and talk to people in the chat and have this experience and eventually meet them as well. And the second thing I heard is that I am in fact cool. So thank you. All right. how does JWB help? Okay. So let me see. Yeah. Yeah. So Whitney and Jen. Yeah. So Jen Phillips lives in Monterey, California. Right. Right. Um, rents her home. How does JWB help out of state investors? Like do this thing, right? Like how is, how is it possible for people to live completely across the country and be able to do this?
Gregg Cohen:Well, you know, I think it I mean, it starts with an incredible team. So a lot of it's related to why we choose the team first market second, right. I don't know why people feel like real estate needs to be so hands on, right. You make investment decisions and other places that you put large sums of money and you don't expect it to be hands on. Right. But there's something about real estate that we have been conditioned to think that it needed to be hands on. When it really doesn't need to be. And if you're being honest with yourself, you don't really want it to be. You just want to make sure that it's done right and you live in a home. So you feel like you know how to do it, right. But in reality, if you kind of break it down it certainly can be done from an out of state investor, just like you would invest in a stock market, even though you don't go and see that company that you invest in. Yeah. And, you know, in deep down, you probably want somebody to be handling these types of activities for you. So, it starts with an incredible team. You know, our team is built to be completely transparent. I think the show is a factor of this, right? Transparency is, is something we lean into with JWB. And if you're not going to be down the road, transparency is even that much more important. So you guys can see what's going on. So simple things like, you know, your portal, which, your portal access, which shows you your activity. So your rent collection each month, or if there are maintenance costs, you're going to see those maintenance costs. You're going to see the invoices. There's also reporting on your actual investment, which is your client or ROI report. which is what we use on the show as our clients get on the show and we, and we show what everybody's returns are with their blessing, of course. Well, that's prepared for every client. It's updated on a quarterly basis and it's available anytime a client wants to log in and it breaks down your, each, each of your profit centers, your home price appreciation, your tax savings, your principal pay down, all five of them. And then there's other things that are just, you know, really helpful and valuable as an out of state investor, like when it comes to tax time. You know, our JWB clients get their schedule E, which is the tax form that you need. You hand it right to your CPA, which has all of your income and your expenses on your rental property portfolio. And boom, you're done with your taxes. Or if you are doing your taxes yourself, you know what to do with a schedule E. You put it right in and it's super simple. So it's just been designed from the very beginning to bring access to everyday people, no matter where they are in the country or in the world. Because we're so passionate really about everyday people using this beautiful asset class to improve their families, to improve their communities, to improve our country. And you know, when, when you think about it, there's no reason it shouldn't be that way. If you break down and get over some of the things that you've all learned. Always thought about property management, you know, I
Pablo Gonzalez:mean, I definitely had to get over the big one of just like not investing in your backyard. And like, I, I talk about it often, right. Growing up in Miami, I think like delayed my entry into the real estate market because I thought that I could only play in the playground where I was in. And that felt like a playground only for the rich. So may not be out of state, but Miami to Jacksonville feels like a different country. Yeah, it does. and it's 300 miles away, right? So, like, I'm, I'm, I'm glad that I could, you know, be here and do it from here and what not. But like, I wish that I would have understood all this stuff in 2014, 2013, when I was really just like, man, I'm just started making 100 grand in my career and like, I have this money and You know, do I, can I buy a rental property before I buy my primary residence? I don't believe in my local market, you know, like how do I do this stuff? Like,
Gregg Cohen:yeah,
Pablo Gonzalez:just, just, uh, just a massive, massive, like value out to people.
Gregg Cohen:Value of this community. Those who are in that same exact spot that you earned in 2014 are right here right now. And just know that, you know, those constructs that you have had about what rental property can be or should be, you don't have to follow those. This is new. This is different for many of you and it's better.
Pablo Gonzalez:Yeah. I got a couple, I got a couple of questions kind of sent to us here privately, Harry and Alvaro both are saying, you know, who on our team is good with solo, with solo 401ks and like, you know, like the, the team is good with solo 401ks. Like I know, I know Frank is in the chat here and you can. I'm going to put a link in the description of this video where you can schedule with him directly. He put his link in there, Frank, if you want to pop it in again for these folks. But like, I guess just talk about, you know, do you help people with solo form? Man, we love
Gregg Cohen:Harry. We love when folks reach out to Frank or to members of our sales team and say, Hey, listen, Can you help me put the pieces of this puzzle together? That is what we love to do. This, this planning aspect is something that we do with every client we bring on board. So yes, we are absolutely ready to help. We have helped thousands of clients use solo 401ks to be able to invest in real estate. So Frank would be a great resource for you. If anybody would like to schedule time with Frank, you can certainly do that here. You can also just send an email to info at JWB companies. Or you can go to chat with JWB. com and schedule a time to speak with our sales team. There's also a text number that I forgot that off the top of my head. I know it starts
Pablo Gonzalez:with a
Gregg Cohen:904. Maybe I'll find it. But there's also a text number where you guys can text in anytime you want. Schedule a time to speak with our team. Ask any questions that you have. And we'll be able to help you out there.
Pablo Gonzalez:And if you're here and you're in the chat, Lee Bishop, the reason why we call him the MVP is he's a client. He doesn't work for JWB, but he is also invested through his solo 401k. So, he shared his number in the chat. If you want to give Lee a call, be prepared for like a cacophonous laughter to happen on the call, but also a very, very knowledgeable real estate investor that can talk you through his experience and whatnot. Right. So that's why we call him the MVP. Okay. We got, um, A very specific question here, GC, but since we're doing, uh, maybe it's not the most frequently asked question, but it's a question that's being asked right now. Anonymous Attendee is asking, Johnson Commons, would you mind talking a little bit, both from a primary home owner and a rental property owner perspective?
Gregg Cohen:Yes.
Pablo Gonzalez:Please just tell us what Johnson Commons
Gregg Cohen:is. Yeah, Johnson Commons is a project that JWB has done in conjunction with one of our partners, Corner Lot Development. And a few years ago, the city approached us and said, hey, we've got this vacant lot. In downtown in a neighborhood called La Villa, and we would like a developer to come in here and to develop this lot. And we want to do it with the community in mind. So they wanted to make sure that we had a park that was going to celebrate James Weldon Johnson, who's the author of the Black National Anthem, who lived in Jacksonville. and they, they approached us and we with corner lot, put the, put this together. And this is the first delivery of for sale. Townhomes for sale housing in downtown Jacksonville in over 20 years. And it is here. It's, it's, it's delivered. It is being built out right now, but there are people that are already living and buying these townhomes. And some are renting these townhomes as well. And it is a wonderful victory for downtown Jacksonville. The, Johnson Commons neighborhood is right next to Jacksonville Regional Transit Center, which is this beautiful building. Yeah, yeah, yeah. We talk about, like, transit oriented development, where you develop next to transit centers. It's a great example of this. Also,
Pablo Gonzalez:trail oriented development, right, by the Emerald Trail, too.
Gregg Cohen:Exactly. So, we're super excited about it. I think Geez, they started to sell and close probably, I don't know, I want to guess about maybe six months ago now. There was a big, a big deal and a, and a nice news article and feature story that was done. But just really excited for downtown Jacksonville. They have been selling at a much higher sales price and a much faster pace that we anticipated in our, in our financials which is great. And the city wins as well, because when they sell for a higher purchase price, we agreed with the city that the city would also. receive some of the benefit for the additional sales price. Cool. Yeah. And so and the park is beautiful. The park is beautiful. And so as we do get to summit here, maybe we'll be able to weave this into the tour. And you know, people living downtown and growing this population downtown of people that want to be there is critical for overall downtown. As we get closer and closer to that 10, 000 people living downtown threshold that we, that we we'll be at very soon. Johnson commons is one of those ways. One of those projects that's going to put us over the edge.
Pablo Gonzalez:Can you talk a little bit about considerations of buying it as a resident versus a rental property investor in Johnson commons?
Gregg Cohen:Well, so I mean, I think it's purchased prices are somewhere around like three 50 and your rents are not going to be anywhere close to cashflow positive. So that's why we don't talk about selling those properties here to our show. And of course the city, As intended these for these to be for sale. So owner occupants as well, but even if that wasn't the case, these investments are not the type of investments that our clients want. Our clients want cash flow positive. And once we get to that threshold, then we want high upside. These would be. From a buy and hold perspective, these would be more speculative because they're not going to produce positive cashflow on a monthly basis. You'd be betting on downtown Jacksonville, which I think is a good bet. But what I would tell you is that there's ways that you can get cashflow positive by investing with JWB. And still get the high upside of downtown, which is when you buy in our JWB neighborhoods, which are right around downtown because those neighborhoods have lower purchase prices, higher rents, and that's where you can get that beautiful cashflow. while also experiencing the upside of down payment. Got it.
Pablo Gonzalez:All right, you see, lead Bishop says, can you mention to all LLC that one rental income properties have to sign up and register for the beneficial ownership information report? I don't, I heard that there's something, there's like some new thing that if you have it, cause I got this for my business. Yeah. There's some new thing that if you, And, and maybe, maybe you can elaborate a little bit in the chat their lead, but like, there's some new kind of like thing where if you have an LLC, there is some like new report that you need to file by the end of this year. You know, so if you have properties in LLC, you got to do it. If you have a business like me in an LLC, I got to do it.
Gregg Cohen:My team probably is more aware of it than me. So, and if you don't do
Pablo Gonzalez:it, there's a fine is what the patron Santorio says. Okay.
Gregg Cohen:All right. All right. Well, I would imagine if anybody has any questions about that. Give us a call. I'm sure we're knowledgeable about it. Just not this guy.
Pablo Gonzalez:And D Curry says it's any business, not just an LLC. All right. So I need to get on that. I got an email about it. I was like, this looks like spam. I'm glad. I'm glad I'm surrounded by this community. GC first ever frequently asked question show. How'd you do that one?
Gregg Cohen:Let's not forget to mention Thursday. Yeah. Which is kind of a natural extension. Yeah. Why don't you, why don't you mention it? Yep. So, on Thursday we get to have a, a webinar with our friends from Fortune Builders. Oh, yeah. Familiar. And a lot of you are familiar. We have a lot of friends that came from Fortune Builders and we all are one big happy family with Fortune Builders. So we're gonna be joined by Paul Shively, and I just think it's gonna be a natural extension to the call that we had today. Yeah. We're going to be talking about your three most important points for producing positive cashflow. It's going to be a little bit more beginner mindset focused. So if you enjoyed today's chat, I think you'll enjoy Thursday's chat. And if we can go ahead and put the the registration link in the, in the chat, that would be great. It's a super crazy zoom registration. Do you want to put that link
Pablo Gonzalez:in the chat as we're like wrapping up here?
Gregg Cohen:Yeah, but it's going to be Thursday at two 30 Eastern. And you know what? You all. Always just show up just to support. So we, I don't want to make it seem like only newer investors are invited. We would love for all of you to be there and it's amazing how you guys just show up and continue this community throughout the week. So if you'd love to join and you may have heard this once or twice, if you're an investor, like some of our, our veterans in the group but there's nothing like having all of our friends together. And so it's super appreciate the support on Thursday. Love it.
Pablo Gonzalez:Next week, it's the granddaddy of them all. It is the quarterly market update. GC has been, he actually showed me first draft of it last night. I completely tore it apart and rewrote it for him. So he's been up all night doing it over again because I don't care. I don't care about effort. Cheers Howard.
Gregg Cohen:True story. Grindstone.
Pablo Gonzalez:Yeah, because listen, this is, this is the moment where our ear is on the grindstone and we are listening to what the market is talking about. And we want to give you the best advice possible. And this guy takes it very, very seriously. So like, I know that you, Work late last night to like put together like the first, the, the second draft. You have presented it to the team today. I did. You got great reviews. Yeah. We've got even more, you know, additions to it that we're gonna do in the days upcoming. I haven't told Greg yet, but that's gonna happen and hope that you all join us next Tuesday for that one. In the meantime. We had about 80 people show up to our frequently asked questions. Yeah. Yeah. Listen this show in particular, right? We never take it for granted that you take an hour out of the middle of your day to hang out with us here on a Tuesday. and we say we can't do it without you. We definitely could have done this show without you because the questions came from you. So, you know, thank you for making time for this. Thank you for. These questions, it really helps us serve you better, have better conversations. For me, it's just a lot of fun. So happy to do it.
Gregg Cohen:best time of the quarter is when we get to start to like take all this wonderful insight that we have in the community and, and really try to put something together for the quarterly market update that can help that can meet you where you are in your mind and help you Make more confident decisions, help you take a step forward financially. So that's what our headspace is going to be in the rest of this week and, and looking forward to next Tuesday with all of you. And we're going to do an encore next Tuesday night as well. So we'll get that, you know, you guys will all hear about it. Cause you're going to show up on the show, but you'll get emails from the team this week, man, on Thursday, Friday, encouraging you to sign up either for this show, which you guys are already here. Or there's an encore presentation, which would be nine o'clock on next Tuesday night. At my house, we're going to be the after
Pablo Gonzalez:dark studios, the after dark studios. So anyways, thank you all very much. I seen a bunch of people saying that they're going to see us on Thursday for the JWB for the, for the fortune builders webinar. Can't wait to have you there. Can't wait to see you on the market update from now till then. One little piece of advice. Don't be average. See you next time.