Join host Anthony Weaver for the world premiere of Loose Change, where he revisits past episodes with fresh insights on long-distance real estate investing. This week, Anthony dives into episodes featuring Shawn Ackerman from February 2021 and the real estate diva, Zena Dixon, from June 2023. Discover the challenges and triumphs of building a real estate empire from afar, and learn how to leverage a strong team to achieve success without ever stepping foot on the property.

In this episode, we explore:

The importance of assembling a reliable team for long-distance real estate investments.

Strategies for cold calling and building relationships with key players in the real estate market.

Shawn's journey from zero deals to owning multiple properties without ever visiting them.

Zena's experience of purchasing her first property during the pandemic and the advantages of buying out-of-state.

Insights into the delayed finance method and leveraging FHA loans for real estate investment.

Challenges faced by women in the male-dominated real estate industry and how Zena navigates them.

Shawn's website - https://www.ikeptitrealestatellc.com/

Zena's website - https://www.instagram.com/zenadixoninc/

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DISCLAIMER: The content in this audio is for educational purposes only. Conduct your own research and make the best choice for you. If you need advice, contact a qualified professional.

Episode 277

Hey everybody, it's me, Anthony.

And I just want to say thank you all for being here

for the world premiere of Loose Change.

The way this works is that I choose one

topic and then select two episodes

from maybe about three years or so ago

and something that's more recent. And this

week I pick long distance real estate as a

topic. And the episodes that I've

decided to choose is the one from

February 2021 with my guy, Sean

Ackeumen and the real estate

diva, uh, Xena Dixon from

June 2023. So don't

forget to leave a five star review on Apple

like and subscribe. Now let's get to it.

18 months that it took me to build my team. I

knew management, Iew a realtor, iew

insurance. I know a loan officer and I know a title

company was going to be my five people that I

need, property management. Cause they have all those

other people that are affiliated with them, the

contractors, the handyman and all that. So I would just make a

list, right? I would just make a list of, uh,

whatever, discipline. When I was flying down

from LaGuardia to O'Hare

and driving into Milwaukee, I would have my list

of five, six or seven people from that

specific discipline that I was going to see, um, that

weekend, right? And I would call them ahead of time

and then call them maybe a week before. Hey, listen,

just to confirm, I'm flying in, um, you

know, on Friday, Saturday or whatever,

and I just wantn to make sure we're confirmed for this

time. So it was a cold call, uh, initially,

right? You know, talking to them over the phone, explaining to them

over the phone, but meeting them in person was

just kind of like the icing on a cake. And

a lot of times, to be honest with you, a lot of those

conversations wasn't really just straight business, right?

Cause I wanna know who people are, right? Like,

you know, behind the, uh, hey, this is the service that

I provide. Like where, you know, what's

your family dynamic look like, right? Where'd you go to

school, right? You know, what are your aspirations? What are you

trying to, you know, do long term, right?

And I have to figure out if I can fit in that,

right? And I'm also sharing with them what my

aspirations are. Here's a guy from New York, you know,

coming into your market, uh, and I'm telling you,

I can help grow your business. I haven't done a

single deal at this point. But I had that vision,

right? Had that vision, like, yo, this is what

I'm really going to be able to accomplish, um, for you.

And I want you to be on my team to do

that. Right? Um, being, uh, being in the

9 to 5 space, having like, case managers under

me or having, you know, understanding that dynamic,

I think that was very helpful too. That was a very

helpful skill. Cause I interview people,

you know, for that position, for those case

manager positions regularly. Right. That's a high

turnover type of position. I prefer to grow with

people. Right. I like building stuff from the

ground up, building a solid foundation, because with

that you can stack anything on top of it, right?

Once it's built and the foundation is solid,

you can stack anything on top of it. But if you build something on

sand just because you re ready to deploy capital and you're

ready to start investing, then it's going to crumble

at some point. You know what I mean? Which is why I'm able

to buy. I bought, um, um,

seven or eight properties last year for

myself, having t gone through a single one of them,

right. Um, they all close without me seeing them.

I just have photos. But I have a team that

I trust and rely on to get me good information

to help me underwrite the deals. Um, and all I gotta

do is just wide up the funds to. To the title company. And I

use a, uh, merit title out in u. Out in Milwaukee.

So if anybody's looking at Milwaukee, man, merit

title out of Brookfield. They are awesome,

man. You know what I mean?

So now this is really good that you're actually, um,

are taking the time out today to kind of give the

people something that they never thought was

possible. Um, or if, even if it is

possible, they probably didn't hear or meet somebody

that has actually done it. Um, I know I

haven't. I mean, I hear about all the time.

That's why we. I've never done a podcast before,

so each one teach one. You feel me?

Yep.

So, I mean, I don't want to keep the people here

forever. Cause I know we can actually dive into this. Cause I'm actually

excited about the different businesses that you

have, uh, within your company.

I mean, as'an umbrella company. Um, because

you talked about growing from one unit to

87 units, and actually now you're actually getting

investors.

Um, and then also, um, I guess my

next question would be about the funnel.

It's looking good. So I'm buying and I'm

using the delayed finance method, right?

So whereas I buy cash, then I put

debt on the property after. After the property'cleaned

up, renovated, put tenants in place, then

I go to the bank I've always done. So

it'funny story, my very first deal, very first

wholesale deal, I put two people together, right?

One, um, it was a three over three

duplex. The seller had cut up into like a roomor

house style, right? So it was getting like 400 a

unit, 16, 100 up, 1,600

down. Cash CALW, right? It's very

easy, uh, easy on the eyes in terms of

numbers, right? So I wanted to take this down, but I didn't have

the capital, so I had to, uh, market it

on bigger pockets, right? So I put it out on

bigger pockets that I have this deal. I was

putting it in Facebook posts or I probably use

craigslist and all that just to tell people,

like, hey, listen, I have this deal. Um,

I can't buy it now, but I'm willing to give it to

you for a fee, right?

And, um, one of the guys hit me up on bigger pockets. He was

actually local to Milwaukee. Dan,

uh, my guy to steal to this day,

my first buyer. So he hit me up. But Dan didn't have

all the capital. I think I was getting it for

26,000, um, and I was probably selling

it for like 33, 32, something like that.

Um, so Dan didn't have all the capital. Dan probably had like

18, 19 grand. Another guy

from, uh, New Hampshire hit me up on bp.

Hey, Sean, I see you got this deal. You know, I'm

interested in it. Are you interested in doing seller

financing? I didn't really know much about sell a

nancing at that time, but his issue

was he didn't have all the capital. So I said,

hold up, we got my man from Milwaukee. We

got you together. Y'all can make that

33 grand make sense. Let me

put y'all together. So I put them together.

We got on, uh, a group email orever we put it

together, they start talking. They formed a

partnership, um, through me, like, like

through me reaching out or speaking to both of them.

And they, ah, formed the LLC and bought the deal,

man. That was my very first wholesale

deal. It's crazy, uh, a room in house,

two investors that didn't know each other. They

don't know me. We've never seen each other. I

mean, after that I was hooked, man. And I

made a $6,000 check and it s been

off to the races.

Because when someone passes, you have no control. But

buying property, I have control. So I was able

to, um, just store myself into this

process of learning how to buy multifamily,

of, um, know, getting all my

Paperwork together, working with lenders and just

figuring out the whole process,

um, looking at properties, asking

questions, working with a realtor, all that kind of stuff.

And it really helped me with

my depression. Plus I

was able to accomplish a goal that I set for myself because

at the top of the year, um, was it

2021? 2021, I said

I'm not going to let this year go without buying a property.

In June, I was able to close on my first property.

Nice, nice.

So can you walk us through the numbers of your first

property?

Absolutely. So, um, again,

hight the pandemic, all the stuff still going

on, um, and

people uh, were scared to fly. Um,

oh, let me go back. So initially when I first

started looking, I lived in New Jersey and

looking at four units was like upwards of 800,000

do to a million dollars. And these properties were worn

down and I just mentally I could not

wrap my head around paying so much for a four unit

building. So um, again, Instagram to the

rescue, talking about um, real

estate, you know, buying out of state, you know, out ofate

investors. So I was okay, let me look at that. So,

um, I had come out to Chicago for work one year

and I like Chicago. I think Chicago is a vibe, especially during the

summer. Um, and I was just like, well let me look at

their inventory because I know that they have a lot of multifam

families. And um, I had

put in three offers on three different

buildings and the last one stuck. And

um, even though, which I cautioned

my clients and students now do not buy

at market by under market. But at the time I was

just in a frenzy. I was like, so,

um, I did buy the property, um,

and my interest rate was like

2.7%. I uh,

inherited tenants. Um, so I walked into

a situation that was newly rehabbed that had

tenants in place. Um, the property

passed the self sufficiency test, which is 75% of

the rents have to cover the mortgage. And

that was true with um, the rents being under

market. So I was just like, this is a no brainer for me because I'm going to

bring the property, um, the rents up to market.

The unit that I supposed to occupy as the owner occupant,

once I leave, that'll be an additional 1,200 dolars

to $1,300 in cash flow. So I was just like,

I'm still winning, it's okay. M

and at the end of

2021 the identical building

across the street was purchased and they paid

$50,000 more than I paid. So that bumps

up things because of the comps. So I was just

like h. This was a good idea.

So how much did you pay for the property?

Um, 457.

Okay, so 457. So that mean the one

across started, uh, for 507.

Just rough numbers.

Yes.

That is amazing. Ye especially like

was it 2.7%?

Yes. Yes.

And you did it through the conventional way or hard money

lender or how.

Did you fund FHA? FHA with

3.5% down? Um, I

did not go after any down payment, um,

down payment assistant programs because I'm impatient

when I want something. I just want it right then and there.

Um, but again, something I teach, teach them, you

know, my students and my um, one on one

consultations is go for the down payment assistance because you can

get 100% down payment assistance and you get to keep more

money. So you can probably get into another deal. But

because I'm impatient because I just had this need to

like really, really close on a property and get it done as

quickly as possible to cross that off my checklist

just, I just paid out of pocket. But

still the leverage that's

there was tremendous. So to me it was just a

no brainer.

Nice. Now because real estate is mostly

male dominated, how was that being a woman

inside thisn, uh, inside this

environment has uh, been beneficial or

detrimental to your experience?

Um, u. I would say a little of both. And the

reason why is because dealing with um, some

realtors and some lenders and you're the

woman on the phone.

Thank you for watching the first of many Loose Change episodes.

Be sure to smash that like button. What episode? Sh. I

get some change from next. Let me know in the

comments. Until next time everybody. Y'all be safe.

I'm out. Paace.