Rob Rowsell talks with our Addicted To Life Community group about how to do a property walkthrough. If you intend on investing in a real estate property, you need to do your due diligence. Walk the halls and examine every nook and cranny. Get to know all of the staff at the property. You must ask a LOT of questions, so that there are no surprises. That way, you will make sure you won’t invest in a lemon!

How To Perform an Effective Real Estate Property Walkthrough

Rob started the video recalling a property walkthrough he did with a seller. When the session took place, Rob’s partners walked the vacant units with the seller, while Rob joined via live video. He requested phone numbers from the seller and maintenance manager. Get these contacts, if at all possible, since you will think of something you missed asking about while walking the property.

While walking through the property, you should ask questions and get to know everyone you can who works there. They may not realize it, but you are effectively interviewing them for their own jobs! If and when you take over, you may or may not want to retain their services. If you use a property management service like Rob does, you will save some future headaches by passing that information on to them.

Current tenants can also be a great source of information. They may not know their property is for sale, so tread lightly. If renters see you walking the property with their landlord or property owner, you may give off the vibe of a maintenance worker inspecting issues with the property. Don’t be surprised if they start spilling their guts to you about their leaky faucet or broken air conditioning unit! All of this, of course, is useful information. Take notes of what problems people are experiencing. Knowing their issues have been going on for months without a fix can be a real eye opener.

Remember, a property walkthrough is a fact finding mission. Leave no stone unturned in searching for the information you need to make your investment choice.

Join Our Real Estate Investors Community

Do you own multi-family properties? If not, do you aspire to one day? Then you should consider joining our online discussion group, the Addicted To Life Community! Each month, Rob Rowsell will teach you what you must do in order to build wealth in the real estate business. It’s not as easy as it looks! Property taxes, liens, and legal fees can all be hard to navigate, so having a successful guide in your corner like Rob is a must! Enroll today!

Rob Rowsell talks about his strategy for Wealth Development with investments in real estate and beyond. Develop an asset allocation plan and invest your surplus earnings into buckets that will generate passive income streams. This is how you build wealth in the real estate industry to replace your business earnings for retirement.

Wealth Development With Real Estate – Growth Advantages

This ATL All-In Community Gathering clip opens as Rob discusses his strategy for continuous cashflow. He is always studying to improve his techniques to supplement his retirement bag of money. How does he use that knowledge? He intelligently invests the surplus income from his businesses into ventures that will generate regular cashflow. It can take several investments in order to eventually replace the income brought in by your business.

Rob’s mentor suggested he work on this wealth development strategy about 20 hours per quarter. During this time, Rob sets goals and determines what buckets he allocates his investments into. He makes sure to calculate what his investible net worth is before he invests into those buckets.

There are so many choices on what to invest our funds into, such as the stock market, bonds, and real estate. It make take time, as well as trial and error, for you to find your niche. When you don’t have a wealth development advantage, such as Rob’s knack for real estate, spread your investment out. For example, Rob is not a stock market expert, so he makes long term investments in Index Funds. This simplifies his strategy, as well as minimizing risk.

When you are stacking cash from your business, get educated. Then invest that cash into diverse buckets that will yield mailbox money over time.

Join Our Community

Do you own multi-family properties? If not, do you aspire to one day? Then you should consider joining our online discussion group, the Addicted To Life Community! Each month, Rob Rowsell will teach you what you must do in order to build wealth in the real estate business. It’s not as easy as it looks! Property taxes, liens, and legal fees can all be hard to navigate, so having a successful guide in your corner like Rob is a must! Enroll today!

In this clip from our Addicted To Life Community Gathering, Rob Rowsell lays out the Cash On Cash Return Real Estate Formula. If you are an aspiring cash flow investor who is looking to replace your business income with recurring passive earnings, then this video is a must watch!

Rob Explains His Cash On Cash Return Real Estate Formula

Rob starts the clip out with a review of two real estate deals he is raising money for. Both of them would qualify as momentum plays. Over time, each investment will yield an average of  7% cash on cash return. Through renovations and rent increases, these properties’ values will increase. When he sells these properties, Rob uses a formula to calculate total returns. The back end equity earned, plus the cashflow from the five to seven year ownership will equal the total.

Rob then explained the principle of the 2X multiple, which is his goal typically with real estate holdings. In order to reach his stated goal of doubling his money, Rob may need to hold the investments longer than he had originally planned. For example, let’s say you had invested $100,000 in a property, kept it for six years, and earned back $140,000. Then you would divide $140,000 by six in order to arrive at around $23,000 profit per year. You will have roughly gotten a 23% return on your initial $100,000 investment after six years. That cash on cash return may sound too good to be true. However, in reality, it’s not!

Join Our Community

Do you own multi-family properties? If not, do you aspire to one day? Then you should consider joining our online discussion group, the Addicted To Life Community! Each month, Rob Rowsell will teach you what you must do in order to build wealth in the real estate business. It’s not as easy as it looks! Property taxes, liens, and legal fees can all be hard to navigate, so having a successful guide in your corner like Rob is a must! Enroll today!

Rob explains how to calculate the financial freedom amount you need to live comfortably each month. This could mean in retirement or in an emergency financial event. Also, we discuss the process of reviewing how much you need for your security fund, and auditing your investments.

Financial Freedom Amount – Finding it through your Profit and Loss Review

Rob starts out reviewing three levels of living standards: the basic level, vitality level, and your financial freedom amount. To determine how much you need to live on day to day, you must perform a personal P&L review with your own bookkeeping software. Whether it’s Quickbooks or another platform, it should have tools built in to generate profit and loss statements easily.

He then presents the concept of “grateful business expenses”. If he didn’t own a business, he couldn’t write off certain expenses, such as his cell phone bill and medical expenses. Make sure those write offs are part of your report!

Next, the discussion turns to your security fund. Your financial freedom amount must take into account money you’ll need in case of disaster. Rob recalls the day that the COVID-19 pandemic shut down all non-essential businesses. Many people were not prepared for this scenario, and we are still feeling the effects of it today. You must determine your own emergency fund number by months of income. Rob’s wife Claudia’s comfort lies with 18 months of income in the bank.

After that, you need to examine your investment funds. Are you stacking cash you don’t want to touch, but can afford to if need be? In an absolute emergency, you can borrow from your kids’ education fund, albeit with penalties.

Take all of these factors in when calculating your financial freedom amount.

Join Our Community

Do you own multi-family properties? If not, do you aspire to one day? Then you should consider joining our online discussion group, the Addicted To Life Community! Each month, Rob Rowsell will teach you what you must do in order to build wealth in the real estate business. It’s not as easy as it looks! Property taxes, liens, and legal fees can all be hard to navigate, so having a successful guide in your corner like Rob is a must! Enroll today!

Setting up mailbox money strategies and stacking cash can keep you busy. Ultimately, though, you want to free up time for family and fun. Schedule an investment performance review with your CPA and see how close you are to meeting your goals. You may want to change your investment strategies. Perhaps you should move some money into different buckets, such as a Roth IRA, UBIT eligible businesses, or Index Funds.

Investment Performance Review – Time and Funds

Rob starts the clip by discussing the theme of One Thing. Specifically, there is one thing that isn’t getting enough of your attention, but if you focused on it, it would make a huge difference. Between all of his investments and pursuits, many day to day tasks compete for his attention. Some things are important, but not urgent. One thing Rob came away from a recent conference needing to focus on was meeting with his CPA for an Investment Performance Review.

Taking some of that Quadrant 2 Time (concept courtesy Stephen Covey’s 7 Habits of Highly Effective People) to regularly review your financial strategies. How much cash do you actually have on hand? What buckets are performing the best? Where should you invest your money when a tax free plan like a Roth IRA is at the center of your strategy? Reinvesting profits in passive income streams? Some may not pan out the way you envision.

Meeting with your CPA for a monthly Investment Performance Review is key to maximizing the bag of money you will have when you retire.

Join Our Community

Do you own multi-family properties? If not, do you aspire to one day? Then you should consider joining our online discussion group, the Addicted To Life Community! Each month, Rob Rowsell teaches you what you must do in order to build wealth with real estate. It’s not as easy as it looks! Property taxes, liens, and legal fees can all be hard to navigate, so having a successful guide in your corner like Rob is a must! Enroll today!

Rob Rowsell stresses the importance of working closely with your CPA before you make an offering memorandum. Review the details and summary of your P & L every month, so if the day comes that someone wants to buy your business or real estate property, you’re ready to sell.

Advantages of an In-House Bookkeeper

Rob recalls an astounding previous experience of working with an outside CPA. When they returned his records, they had drawn up a P & L, despite not having anything organized. They didn’t ask any questions in order to gain a deeper understanding of his business. He then understood the advantages of hiring an in house bookkeeper.

Let’s say you have a potential buyer interested in your business. They will need to examine your books before making an informed purchase decision. When you don’t pay close attention to your numbers, they will come back with many questions that you as the owner can’t answer. If there are too many question marks surrounding your records, they may walk away. Who needs that headache?

If you have the capacity to employ your own bookkeeper, you should. Whether you’re gearing up for a sale, or providing numbers for your business coach, you always have the answers on hand. Your bookkeeper should know all of the categories and formulas needed to run the financial side of the business, so you, the owner, can focus on other duties.

Offering Memorandum Checklist – Review Your Finances Monthly

Next, Rob suggests a monthly numbers review with your financial officer. A single one hour meeting each month should do it. Don’t let any other tasks interrupt this important meeting. You need to concentrate on both the detailed and summary versions of your P & L statement.  Require that they generate those numbers by the 12th of each month. This way, you can make any course corrections necessary. Make sure you have a paper copy, so you can highlight important lines and make notes in the margin. Hold onto your copy for future reference.

This process is so crucial if you have a potential buyer. If you don’t have up to date numbers to include in the offering memorandum, you might miss out on a huge payday. Quarterback those numbers, because nobody will care as much as you do!

Join Our Community

Do you own multi-family properties? If not, do you aspire to one day? Then you should consider joining our online discussion group, the Addicted To Life Community! Each month, Rob Rowsell will teach you what you must do in order to build wealth in the real estate business. It’s not as easy as it looks! Property taxes, liens, and legal fees can all be hard to navigate, so having a successful guide in your corner like Rob is a must! Enroll today!

Rob explains the difference between cashflow investing and equity property investment plays. If you are willing to invest in new construction, for example, be prepared to wait for three years to see some of your investment returns. Cashflow investors may not be patient enough for that kind of ROI, but the regular mailbox money down the line could be worth it.

Backend Equity Property Investment

Rob starts the discussion by bringing up the example of new construction in the real estate realm. Investing in new construction is not a cashflow play, but rather an equity property investment play. The moment you start put your money in, interest starts to accrue, but you will not see those returns until the property is completed and people start signing leases.

Whether you want to hang onto the property, or sell it once its complete, it will not generate an immediate cashflow return. Rather, you could be waiting a few years for ROI.

Backend equity property investment almost always means greater returns. However, it requires more patience and faith on the investor’s part. If developers project your high rise apartment complex build will take three years, you are putting faith in them that it will actually take three years, instead of five.

Do your research and get to know the founders you could be partnering with. How many deals have they completed? Can they prove they can take a rental property investment full circle? How much money are they putting in themselves? Make sure you have all the answers to these questions, so you can avoid bad actors.

Join Our Community

Do you own multi-family properties? If not, do you aspire to one day? Then you should consider joining our online discussion group, the Addicted To Life Community! Each month, Rob Rowsell will teach you what you must do in order to build wealth in real estate. It’s not as easy as it looks! Property taxes, liens, and legal fees can all be hard to navigate, so having a successful guide in your corner like Rob is a must! Enroll today!

Rob Rowsell discusses the concept of strategic depth in business. When you approach your business holdings with the mindset of strategic depth, you will grow your assets in a sustainable way. Rob touches on many topics, from the value of employee tenure, the book The Four Hour Work Week, delegation of tasks, and more.

Using Strategic Depth to Grow Your Assets

Rob lays everything out at the start for anyone listening who wants to scale their businesses. The concept of strategic depth in Rob’s view means delegating many of your time sucking, yet important, tasks to your employees. There are three reasons to do so:

1. Protect your joy. When you have to approve, oversee, or do every menial task, business ownership is no fun at all.  See the book “The Four Hour Work Week”.
2. Concentrate on the most important jobs that only you can do. Don’t waste time deleting emails and ordering toilet paper. Cleaning your inbox can really be a time suck. Hand those tasks off to someone else.
3. Make your business more valuable for a sale. When potential buyers ask about your business, they will want to know how long your manager has been working for you. If it’s only been a few months, rather than five years, for example, your business will be worth much less. On the flip side, if your manager is close to retiring, that is also undesirable to potential buyers. They don’t want the headache of training someone new to fill the position. The concept of “seasonality in the workplace” centers around these scenarios. Nobody wants to deal directly with a business bogged down by high employee turnover. You should have a “How-To Manual” folder readily available in the cloud containing every SOP that runs your business.

When you consider strategic growth, keep all of these factors in mind.

Join Our Community

Do you own multi-family properties, or do you aspire to one day? Then you should consider joining our online discussion group, the Addicted To Life Community! Each month, Rob Rowsell will teach you what you must do in order to build wealth in the real estate business. It’s not quite as easy as it looks! Property taxes, liens, and legal fees can all be hard to navigate, so having a successful guide in your corner like Rob is a must! Enroll today!

Rob Rowsell discusses the concept of forced property appreciation. Rob learned a lesson from applying for an SBA Loan for a property from the Small Business Administration. In the end, he made huge gains from his auto repair shops’ appreciation in value over the years.

Mistakenly Applying For A Small Business Loan

Rob begins the clip discussing the steep income tax in California, and his shift to investing in other states. When Rob once applied for a small business loan with the United States SBA, he learned that investors must guarantee their loans with all of their personal assets.

He owned several auto repair shops at the time, and needed the liens removed from them in order to sell those businesses. When he tried to cross collateralize those with other businesses, he was informed that he had to pay off the shops completely. Rob, short on time, decided to go ahead and do that. That decision had some unexpected rewards.

Forced Property Appreciation on a Business

After paying off the loans for his auto repair shops, Rob learned the property had increased in value greatly. This property appreciation yielded a few hundred thousand dollars in just five years of ownership. This is not to mention the revenues you accrue over years of running the business. You won’t owe any taxes on that property appreciation until you eventually sell it.

Join Our Community

Do you own multi-family properties? If not, do you aspire to one day? Then you should consider joining our online discussion group, the Addicted To Life Community! Each month, Rob Rowsell will teach you what you must do in order to build wealth in the real estate business. It’s not as easy as it looks! Property taxes, liens, and legal fees can all be hard to navigate, so having a successful guide in your corner like Rob is a must! Enroll today!