Real Estate And What It Can Do For You with guest Keith Yackey

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Summary

Real Estate—you know what it is, but do you know what it can do for you?

Investing in real estate has long been a hobby of the wealthy. Though not always easy, it is one of the undisputed best ways for to diversify your portfolio, generate additional revenue, and grow as an entrepreneur.

In this episode of Making Bank, Josh discusses the systems and processes of real estate investment with bona-fide mogul Keith Yackey, the founder of Private Money Pro and creator of the “Private Money Process,” a step by step system to raising all the cash you could ever need for your real estate deals.

During their conversation, Keith explains how he went from knowing absolutely nothing about real estate to flipping more than 185 houses in just a few years.

Listen as Keith shares his thoughts on:  – The importance of a mentor—someone with a model you can follow

– When the wrong action is better than the perfect one
– The hidden value of real estate courses for learning the fundamental ins and outs
– Why cash has always been, and always will be, king
– Establishing and building credibility
– Why you need proof of funds

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Transcription

Josh: I am Josh Felber. You’re watching Making Bank on the Whatever It Takes Network. As entrepreneurs, we’re always trying to find the opportunity to help us create true wealth to give us the freedom, the time, and the ability to do whatever we want, whenever we want. There’s different avenues as entrepreneurs that helps us get to that point, and allows us to really make that happen.

One of the best ways that we can start to grow ourselves as entrepreneurs and diversify our portfolio, is through real estate investing. What I mean by through real estate investing is, there’s different areas that we can invest in. Whether it’s buying and flipping a home, whether it’s investing multi-family units, or even going out and acquiring commercial space to release and everything as well.

Some of the things that we want to really dive into today is understanding systems and processes on how we can become more successful to start investing in the real estate market. There’s a lot of you that are like, I would love to go do this, I really want to start doing this, but I don’t know how. I don’t know what the systems or the steps are or the process to really get out and make that happen.

One of the first things that we really want to do, is find somebody, find somebody that we know that is successful, that we can take and model ourselves after, in that specific niche that we want to get involved in. We want to look at hey, who’s in the real estate market right now, that is flipping houses and is doing really well and they are making bank. Maybe we want to look at the multifamily side of things and say hey, ͞Grant Cardone is just killing it. He’s crushing the multifamily segment of the industry.

Let me model his techniques, what he is exactly doing and how he’s become successful in that area. As well as, we want to learn how to make offers. How do you make an offer on a real estate investment? As well as, where do we get the money? They want to see proof of funds or if we don’t have that money in our account, who are we going to rely on, who can we partner with to be able to help us with that. Then the third thing is, is how do we have the credibility, have the ability to do this and close the deal and make it happen.

By teaming up or modeling or finding the right person, copying their success strategies we can go out and make ourselves more successful in the real estate market itself. One of the people that I’m honored to have on our show today is Keith Yackey. He’s a real estate investor and he’s been able to become extremely successful, flipping houses, multifamily and all areas of raising money and everything as well.

I want to be able to take his insight, his success and his credibility and be able to teach you guys some awesome secrets, peel back that curtain, totally understand what we have available, and how you can start to diversify your investment portfolio and become a successful real estate investor. One of the things that we really have to first take a look at is, we all talk about real estate investing. We hope that we can do it some day, but are we going to really take action.

For me, I fell into this whole real estate investor, temporary position. I’ve known I’ve wanted to get into the real estate investment field. For me, I bought another house, had my house, I’m like okay, it’s all fixed up, it’s a great house. Let me go ahead and rent it out for a little while. I started to rent it out, really screened all the tenants and just got a tenant in there. Four months in, just they were a bad tenant. They stopped paying, they stuck around and I finally ended up having to evict them. Now I’m already in the whole $20,000.

For me, I’m like man, and most people might be like wow, how am I going to be able to get in the real estate investing with all these bad things happening. We take those pieces and we learn from them. For me, as I said okay, how can I better protect myself the next time around? How can I take the house and let’s go ahead and flip it now and sell it off and then take those proceeds and reinvest them into a new property, or reinvest them into a multifamily type property.

It’s all on your minds and how you look at it. The next step I took was okay, let me start looking at multifamily properties and screening the deals. One of the things I’ve been doing with my multifamily property is that I have been taking a look at to start investing is, as I run all my deals through a team of people, that totally understand all the ins and outs. They know what to look for, they know what the numbers need to look like. They totally are able to help me understand and learn the process to really make this happen.

It’s going to help better and it’s going to help my portfolio become more diversified and be able to help create additional revenue streams other than my different companies that I own out there in the market place right now. With moving forward in the real estate market, I want to challenge you to get out there. I’m going to challenge you to be able to take action. Whether it’s just looking online, whether it’s as you drive by other houses, wonder why they are selling, how they are selling and how you could become a part of that.

Part of that today, is learning how to take action and to get out there and to go after it. Next up, I’m excited as I said to have Keith Yackey, real estate entrepreneur and also a real estate coach as well. He’s up next, I’m excited to have him on Making Bank. You are watching Making Bank with Josh Felber on the Whatever It Takes Network and we’ll be right back. I am Josh Felber, you are watching Making Bank, on the Whatever It Takes Network and I am stoked today.

We actually have Keith Yackey on the show. Keith is a real estate entrepreneur, Founder of Private Money Pro, creator of the Private Money Process. His clients range from major league baseball players, NFL players, other entrepreneurs, highly decorated heroes. Welcome to the show.

Keith:Hey man. I’m stoked to be here Josh, glad to be here.

Josh:I think you came in all from Las Vegas.

Keith:Yeah man.

Josh:That is awesome.

Keith:All the way from sin city here to New York.

Josh:Just to hang out.

Keith:Just to chill.

Josh:Awesome Keith. Well no, I’m excited, really excited to have you on the show. We’ve been talking a lot about real estate and how you could become an entrepreneur in real estate or how you can make money in real estate. Even just diversify somebody’s investments. I know you have … You’ve flipped what, 181 houses?

Keith:Well, my first couple of years I did 185 flips in my first few …

Josh:185 flips.

Keith:I’ve done over 600 deals though in the last few years so yeah.

Josh:That’s why for a man you must be … You got to be the expert in this area, let’s go to you and let’s figure out how you do it. How you made money and we’ll be able to teach our audience some steps that they can do this as well as be able to get out there, find some … If they need to raise some capital. How to do all that, and just give them the success strategies they can model after you to become more successful in their area of real estate.

Keith:Absolutely.

Josh:I guess, Keith I guess what got you started as a real estate entrepreneur?

Keith:Well, a lot of times people think where they go you are really successful at real estate you must have just been born that way. In fact that really wasn’t the case at all. I didn’t know anything about real estate. I had an accidental rental like a lot of us did when the boom happened. We bought a house, stripped it, equity out, bought another one, stuck around on the first one and thought we were real estate investors. Until everything went down we were like, wait a second, we actually don’t know anything about what we are doing.

Truth be known is, my mom came down with cancer and I watched her fight her battle with cancer. I spent the last three years … Last three months of her life with her. I didn’t know much about real estate but she liked watching this TV show, house flipping show. I’m watching these guys make money on that I’m like, I could totally do that. My mom looked at me and she goes, “Keith, you would be great at that.” Little did she know that I actually would go on to be great at this thing called house flipping.

Not only just house flipping, but now owning a lot of rentals and apartment buildings and stuff like that. Having watched her pass from cancer really was that moment, that tragic moment in my life that I said, “You know what, I don’t want to live my life with any regrets.” I said, “I’m going to go all in.” I invested in a course to learn how to invest in real estate and I was that guy that said, “I’m all in, I’m going to do this.”

I did 185 flips in my first couple of years and then I went over to own over 300 rentals and just doing a lot of flips a lot of business. It absolutely changed my life. Only from literary knowing nothing to becoming the expert and having people say, “Hey, teach me how,” and that’s how I got into what I’m doing now.

Josh:Just, you sat there and you were watching the show with your mom and just … I guess from what it sounded like you were saying is, you wanted to be great for her. You wanted to go out and she sees like Keith, you could do great at this, you kind of.

Keith:It wasn’t just so much being great for her but it was really looking at her like she died at the tender year of only 56. I’m like, that’s too young to die. Just knowing her, I knew there was regrets that she had had in her life. It ultimately became my life mantra and then there is no regrets. I still hold to this day I go, are you going to do this are you not going to do this. Are you going to regret it if you don’t do it, are you going to regret if you do, do it?

It’s, I don’t want to live a life of regrets, I don’t want to be on my death bed looking back and go, I wish I would have tried this or done this or said that. I wanted to make sure I was all in. That really was what stirred me and still stirs me to this day.

Josh:That’s awesome, is be able to take that energy, channel it and then create that focus from the vision and everything that you have for your real estate. I guess, what were some of the challenges, flipping several hundred houses.

Keith:Lots.

Josh:Did they all just go smooth and you just made bank?

Keith:Well, you would think that, right? You would think that … One thing I got first and foremost was a mentor. I know that we hear that a lot in nowadays age. One of my mentors earlier on said, “Enthusiasm in the wrong direction, will spell a certain disaster.” It’s like, a lot of people are enthusiastic but you can run enthusiastically off of this building and you are still not going to be able to fly. I wanted to make sure I had all the steps in order so that way if somebody is already … Like Tony Robbins is [inaudible 12:06]. Just model what’s been successful.

I just said, “All right, there is the model.” I followed it and then as you started to get to mention it day in and day out, you start to learn … A lot of courses, they are basic primers. Then as you get in, you really start to learn the ins and the outs or hey I need to tweak this, or I need to tweak that. That’s what I do. No, not everything went smooth. In fact, the ones that I made mistakes on are the ones you learn the most from or like [anything 12:32].

Josh:The funny story is, so right now, I’m at one house and I have another one and I was renting it out and then the renter screwed me out of $20,000. It’s like, now we’ve been trying to sell it and it just doesn’t make sense. It’s totally fixed up, it’s awesome and all the other houses in the [Veldman 12:51] that are selling for more than this, than what we’ve even listed for. It’s showing a ton, but nobody is actually made an offer or pulled the trigger. My wife was on the one side she was like, “Go on and get in the real estate, man this is just bad.”

Then you hear the other story of where you were and man, you were making tons of money off of, flipping all these houses. Even though you had challenges and everything else.

Keith:Of course.

Josh:With that, what would be your one thing that you found that you could take away and say, “Hey, this is the one thing that separated my success from other people trying to flip houses and become successful?

Keith:Yes, I’ll lay it out very simply. Basically, flipping houses has been the hobby over the rich forever. Your doctor, your dentist, your attorney, your [big 13:42] whatever they’ve always, I’ve got a house I’m working on, a real estate deal they are doing. What happens is, I said, “I don’t want to just do this as a hobby, I want to do this as a business.” Approaching this thing as an actual business, is what will really, really change your success rate or not.

People are like, I’m going to double in it. Nobody starts a business and doubles in it. Just say, “I’m going to learn from A to Z the ins and outs and I want to crush this and I want to treat it as a business.

Josh:Totally understand what you are talking about. One of the things that I think that will really separate what our listeners really need to do, to where they … To match up and model exactly what you are doing, is treat it as a business. Becoming serious with it and not treating it is a hobby, let me go try it out. Let me go test it out and see if it’s going to work.

One of the things I really want to get into when we come back here in a few minutes is, understanding your methodology. How you take people through this process and allowing them to model you to become more successful. I am Josh Felber, you are watching Making Bank on the Whatever It Takes Network. Welcome back. You are watching Making Bank, I am Josh Felber on the Whatever It Takes Network.

We’ve been speaking with Keith Yackey today, real estate entrepreneurial mogul, flipping houses, helping people raise private money. Keith was filling us in on his insights to success, how he’s been able to catapult and create massive success within the real estate world. Keith, give me some secrets man. How are you doing this? I know our audience loves real estate and when Grant Cardone talks about it, just people love to understand and know more. Because they are always … It’s that hidden fruit.

It’s like okay, I see it out there but then and I see people making money with it but how can I do it and then how can I get better at it?

Keith:Sure. You want to peek behind the veil.

Josh:Let’s peek behind the veil man.

Keith:Dude, we are all about peeking behind the veil. Here is the thing. There’s steps you need to take. For me having taught lots of people across … Thousands across this country on how to flip property all the way from A to Z. There is a couple of things that have popped up, questions or challenges that every person has always had. The first is, how to get my offers accepted. You are not going to make any money on a property if you don’t get your offer accepted. In today’s market it’s pretty much been this way for the last six or eight years.

If you are going to make an offer on any property at all, you have to have a proof of funds. No realtor is going to take you serious unless you have a proof of funds. As students kept coming back and they are like, Keith, how do I make an offer? You want it to be an all cash offer because cash is king right now. It always has been in any business probably since they were renting caves for women and men to do who knows what.

Cash was king back then and it’s king now. The thing is, is, for you to go and make an offer and to have your offer be at the top of the pile and to be considered legit, you have to have a proof of funds. The problem is, not many people have that much money especially when they are starting out. They have actual cash in the bank to say, “Hey, here is my bank statement I’m ready to make an offer.” What I created about probably six or eight months ago was at [getpeeoff.com 17:27] it’s a website that I own.

That, well basically we put our bank statements on the line for you. We have a letter so let’s say if you are going to make an offer and it says, “Josh Felber and myself are in a business relationship where you can make offers, and here is the cash in the bank that shows the ability to close.” Why nobody had come up with that until then, I have no idea.

Josh:That’s amazing.

Keith:I know. I knew it would be amazing, okay really did I’m like this is going to be good, but I had no idea that it was going to be this good. I’m telling you, the clients that come through that use our service are just getting offers. One guy made six offers got four deals accepted. That’s unheard of in today’s market, it just doesn’t happen.

Josh:Then you guys front the cash for them or how does it all work?

Keith:That’s a great question. Basically, we show the bank statements, we will answer the phone if they call in and say, “Hey yeah, the money is verified. They are working with us.” It is up to them to go actually fund the deal. We actually have funded some but it’s basically just to show the proof of funds. That leaves me with the next step, was all these people like, we are getting deals accepted but we want to fund them. I’m like, well, I’m really good at funding deals and I put together a list so that’s why I created privatemoneypro.com. Did we have to say dot com if I had everything. It’s just what it is.

Josh:These days you [crosstalk 18:46].

Keith:Yeah, privatemoneypro.com. Anyhow, that’s why I have this list of over 400 lenders where they literary can call. I’ve called myself 85% of them, all my staff has called the rest, making sure that these people are actually lending. Here is the thing, there is other lists out there, but anybody can jump on there is no verification whether to actually lend or not. I thought that was kind of, I thought that was rude, frankly because I’m like I’m going to go spend my hard earned money on a list and call people and then no I don’t really lend.

I just thought that’s so bait and switchy and that’s not just how we run our business. I call, verify every one of them. People, they get their offer accepted and they go what do we do now? I go well, go to Private Money Pro and you get over 400 lenders. Not only that, but I want to bet old school and headband and everything, no. I want to bet old school and I provide over 35,000 mailing addresses for people that have bought properties all cash in the last 30, 60 or 90 days.

What that means is, let’s say you buy a house all cash or somebody gave you cash to buy the house and they are a private lender on it, you can mail a letter … I could mail a letter to you and say, “Hey Josh, I see you bought a property in the same area I’m buying property in, this is fantastic. We should get together, talk about what we are doing because I found that the more that we know each other … ”

Josh:Team up.

Keith:… And the more money we make together. I literary sent this letter to somebody in Las Vegas. He called me up it happened to be a Tuesday. We went to taco Tuesday and we did business for about four years together. We did about $4.6 million in business together. Okay, we did 25 flips, we owned 74 apartment units bought and owned them together and all off that one letter.

Josh:That’s awesome.

Keith:What we’ve done is now we offer these addresses and we give the letter template out at privatemoneypro.com, so people can actually fund their deal. What’s the next step you say?

Josh:Yeah I mean because we got to make our offer, and then now okay we got our offer accepted but now we got to have the cash to fund it some way.

Keith:We did Private Money Pro.

Josh:Yeah. Now we find somebody through your opportunity through your list and everything to go ahead and help us fund the deal, and so there are partners with us on it.

Keith:Yeah.

Josh:Will I still make money or do they get all the money?

Keith:Of course. No, no it all depends on how you structure the deal. Let’s say you got a deal and I put up all the money, we could split the profit 50/50. I could … That would be an equity position or if we are going to debt position you say, “Listen, I’ll give up all the money, but I want you to pay me 12% per year. I might charge a couple of points just to originate the loan what have you. Here is the thing, is the list is this pre-list that I put together.

I update it every single month, mailing address is between 5 and 10,000 mailing addresses every month. We had about 5 to 10 lenders ever single month. A lot of people come in and say, “Hey listen, your list is great and we’ve had fantastic results with it. Then they are like, I want to actually learn how to be … They are like Keith, you’ve raised $45 million for your deals over the last seven years. They are like, how did you do it?

It wasn’t just by calling off a list, they are like what was the steps. You see it’s kind of … This has all been a progression for me it’s like, you know what I mean? I created this and I created that then I create this and say, “Well you know what, I’m going to come up with what we call the privatemoneyprocess.com. The Private Money Process where it’s basically the step by step guide where I teach people how to raise all the dough for their real estate deals. It’s a seven disk DVD course, all the documents. Everything that you could ever want.

We have a private group that I answer questions in. It’s not just me handing you 400 fish but to say, “Here is how you can go and get your own 400 fish and that you can build your empire.” Not just fixing and flipping but also building an empire like rentals and stuff.

Josh:Right. That is so cool. You have a complete solution for somebody that wants to come in and do it. Then say they want more okay, hey I watched some videos, I listened to the CDs and read through the manuals but I need that next step. Are you there to teach me how to negotiate so I don’t only get 1% of the deal and everything?

Keith:Right, yeah absolutely.

Josh:How else can you help me get rid of my house?

Keith:Well, here is the thing. If you go to keithyackey.com which is my website, I have so much free content, so many free videos there about all of that, how to build credibility. Because a lot of people are saying, I won’t be able to raise cash because I’ve never done a deal.

Josh:Who are you?

Keith:I go, wrong idea. Switch your mindset, I can show you how to build credibility. Anybody, who’s never done a deal, show total credibility where somebody will say, “I’ll put cash into your deal.” If you go to keithyackey.com, they got all my YouTube videos that you can see all the products. I just gave away tons of free stuff because I think this world needs more true value to change their lives and that’s what I’ve done.

Josh:Then, does this work? I know some of our audience is like, hey that’s really cool he’s talking about flipping houses but I want to buy multifamily apartment buildings, commercial.

Keith:Absolutely.

Josh:Will this work for that as well?

Keith:All of it will absolutely work for yeah. Because our proof of funds, we have one account that goes up to about a million and then we have a couple of accounts that are about that as well. If somebody says, “I need a proof of funds to make a letter of intent, which is how you make offers on apartment buildings, we got you covered for a couple of million dollars. We’ve got lenders for that and learning to raise private money is the one skill that you are going to need.

Whether you are going to buy a building like this or you are going to buy a 60 unit apartment complex or just a single family residence. It works all the way across the board.

Josh:All the way across the board. Well and it’s actually pretty cool as well, say if I need to raise money for a totally separate business, it will teach me the skills and the understanding.

Keith:Absolutely.

Josh:I want to raise cash for my business and be able to expand and grow it, it will give me that opportunity as well.

Keith:It’s the same skill just a different vehicle. I’ve always said that you don’t train the vehicle, you train the driver.

Josh:For sure.

Keith:You can put a train driver in any vehicle and he’ll be really good to go. That’s what I do, is I train drivers on how to raise cash. If you want to take it into your franchise business or your whatever business, it doesn’t matter these principles are all the same. It’s all about having credibility, conveying it with confidence, having good content and then knowing how to close. Then if you know where these people how to connect with them, that’s the system.

Josh:That’s the [crosstalk 24:47].

Keith:The step by step to Private Money Process.

Josh:Wow. That’s awesome. As we are wrapping up here, one tidbit of success that you want to be able to share with our audience and they are like man that Keith Yackey, and I’m going to remember him forever because of that.

Keith:I would say this, we all have dreams, we all have passions and we all have fears. If you can say, “You know what fear, I never invited you here but you showed up on my doorstep. I am going to not make decisions through fear, I’m going to make the decisions through my passion. I’m going to go after what I want. My mom, she lived with regrets and that was what ultimately catapulted me saying, no regrets, fear will always start nagging at you. Forget the fear, go in faith and just pursue.

Know this, it’s action over perfection. You are not going to have the whole thing perfected before you go. I made mistakes, you’ve made mistakes, we’ve all made mistakes but that’s what got us to where we are. You and I aren’t done. We are just a little further on our journey than most people, but you and I have vision of where we want to go in the future. We are using the same things, the same lessons we’ve learned, to walk by faith and keep pushing, pushing, pushing.

Josh:Right. Awesome man.

Keith:So much to say.

Josh:I know. It’s so cool and I think we’ve been able to grab a good chunk of information and share with our audience. I really appreciate you flying all the way out from Las Vegas, taking the time …

Keith:Yeah man [inaudible 26:09].

Josh:… Come out here and be on the show Making Bank and share with our audience.

Keith:Yeah, I appreciate you having me.

Josh:Thanks again. I am Josh Felber, you are watching Making Bank, on the Whatever It Takes Network.

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