Why Smart Investors Buy Rental Properties Out of State (Not Where They Live)

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Show Summary

In this episode of the Real Estate Pros Podcast, host Micah Johnson speaks with Kathy, a seasoned expert in passive real estate investment. They discuss the importance of investing in profitable markets, the necessity of education in real estate, and the long-term strategies for building wealth through property. Kathy shares insights on navigating the current market landscape, the significance of teamwork in real estate, and the differences between active and passive income. The conversation also touches on the risks associated with syndication investments and the opportunities available in new construction. Listeners are encouraged to leverage resources and education to successfully invest in real estate.

Resources and Links from this show:

• • • Investor Fuel Real Estate Mastermind
    • Investor Machine Real Estate Lead Generation
    • Mike on Facebook
    • Mike on Instagram
    • Mike on LinkedIn
    • Real Wealth’s Website
    • Real Wealth Show on Podcast
    • Real Wealth Show on Spotify
    • Real Wealth Show on iHeart
    • Retire Rich with Rentals on Amazon Book

  Listen to the Audio Version of this Episode

  Investor Fuel Show Transcript:

  Kathy (00:00)
  we give a…

  ton of education to make sure people really understand how to invest properly. It’s free education. You will be completely paralyzed if you don’t have the knowledge that you need. And if you feel fear, that’s simply, to me, all it is is a lack of knowledge. Because those of us who have experience and knowledge, we’re not afraid. You know you we’re just looking for the next deal.

  Micah Johnson (01:54)
  Hey everyone, welcome to the Real Estate Pros Podcast. I’m your host, Micah Johnson. And today I’m speaking with Kathy, who’s been making some serious moves in the passive investment space for quite some time now. Kathy, welcome in, glad to have you. Absolutely. I’m excited for our talk today. I think our listeners are really going to take something away from how you and your team at Real Wealth are approaching

  Kathy (02:06)
  Thanks for having me.

  Micah Johnson (02:17)
  making sure that professionals have a chance to invest in real estate, even if they don’t have the time. So on that note, let’s dive in for people who may not know you yet. What’s your main focus right now and what markets you operate in?

  Kathy (02:30)
  Well, our main focus is what it’s been for over 22 years. I’m from the San Francisco Bay area. I live in Southern California now, but it’s really almost impossible to try to invest here for buy and hold for for rental properties. The landlord laws are not in your favor at all. And it’s just expensive. know, the median price around here is way too high. So for 22 years, I’ve been showing people that

  Micah Johnson (02:52)
  You

  Kathy (02:57)
  You don’t have to do it. You can invest in places where it makes sense, where the average home price is still in the two, $300,000 range and where rents still come in high, where there’s job growth, population growth. And if there’s property management in place and you have a good team, boots on the ground, you know you can do that. You can invest out of state. So we’ve been teaching people the same thing for 22 years, helping them.

  connecting them with property managers and property teams nationwide in the fastest growing markets. And it’s a recipe that works.

  Micah Johnson (03:31)
  It really is. And I want to talk about that for a second, because that’s something I’ve learned in my real estate career is if if you have a strategy that works, you’re going to have to leave your own backyard at some point if you’re going to stick to that one. And the ability to do that lets you take that strategy and then target specific markets around the nation, because somewhere there’s always a deal. There’s always a deal like people get stuck in national real estate statistics and they’re kind of.

  Kathy (03:44)
  Yeah.

  Micah Johnson (04:00)
  Are they useful? Maybe because the statistics that really matter are hyper local. Every market has its own nuances and you can always go find something. So what is it that y’all really look for in a market that you’re going to be investing in?

  Kathy (04:16)
  Like I said, population growth and usually that’s driven by job growth. So those are the two most important things. And then cities have to keep up with that. So infrastructure growth. And then when you’ve got infrastructure growth, well guess what? That creates more job growth, which creates more population growth. So an example would be Dallas, Texas, North Dallas. We’ve been investing there for, ⁓ my goodness, since you know in the 22 years that I’ve been the CEO of Real Wealth. So it just keeps

  moving out, it keeps moving out. Now there’s the CHIPS Act. So you have CHIP manufacturing just an hour north of Dallas where homes are still in the $200,000 range. So there’s, like you said, there’s always opportunity. There’s incredible opportunity now with the reshoring, with businesses coming back due to tariffs, due to our current administration, really encouraging businesses to come back. And also after COVID, learning that we really need to be manufacturing things here. We don’t need to

  wait for our medications to come from overseas, you know, if there’s something horrible like another pandemic. So you just have to find out where are these companies going? Biotech, huge growing industry. You’ve got Pittsburgh in Indianapolis where that’s, you know, kind of the headquarters. You’ve got Silicon Valley being a horrible place to do business anymore in California. And now the billionaire tax, if you’ve heard of that.

  So more companies are leaving California and finding a Silicon Valley elsewhere. Silicon prairies, what they call it in Texas. You got the Silicon slopes in Salt Lake and then of course, Austin. So, you we’re just, you just have to pay attention to demographics, demographics of individuals, but also where are companies moving?

  Micah Johnson (05:54)
  Hello

  Hmm. It’s, think that hits on a really powerful point about real estate in general is you have to know, you have to educate yourself. It is, it is an industry that is in constant change. We ride the cycle. We are participating in a river that’s been flowing for a long time already. And education seems it’s kind of a buzzword. got your YouTube university out there, but

  Kathy (07:20)
  Ha ha!

  Micah Johnson (07:21)
  that real education, the things that get past the guru that did one deal and now they’re selling a course and that’s their real business, right? And it’s in our pre-recording call, you were telling them about that. So dig in a little bit with us on real wealth, what the company is and how y’all go about making sure that you’re successful with the investors you bring in.

  Kathy (07:42)
  Yeah, like I said, I’m from, I had a radio show in San Francisco 20 years ago. My background’s in broadcasting. I was in the news business for years. Then when I got married to my sweetheart and we had two children, I wanted to be a stay at home mom. But I kept this radio show on the weekends. It was kind of a, you know, news update type of show. But then in 2003, Rich noticed that he had an unusual freckle on his forehead. He’s a redhead with, ⁓

  millions of freckles. So how he noticed this particular one, I have no idea. He went to get it checked, turned out to be melanoma. The doctor thought it had spread to his liver and told Rich that he probably had six months to live. Now he is alive and well today, but at the time, obviously this was a shock. And I just thought, I’m not going to believe the doctor. There’s no way, but I need to figure things out in case he’s right. And I just pivoted my show to

  How do you make this thing called passive income and how do other people become wealthy? You know, we blew through our retirement and our savings and our emergency funds very quickly when you have something like this, when you have cancer or any kind of medical issue. There’s a lot of ways that you could blow through your savings. And I just thought there’s gotta be a better way. There’s gotta be a secret that the wealthy knew. And I just started interviewing them. I was lucky to have this radio show on a major San Francisco station.

  So I could have people like Robert Kiyosaki and big names like that on the show to just find out and they were willing to come in, share their secrets. So it often really almost always came down to two things, owning a business and investing in real estate. Obviously the stock market is good too, but it’s just a little bit less predictable. Whereas a business you can control and real estate, well, we know over time it grows, just look it up, know, if you wanna.

  If you want to argue that that’s not true, just go type in average home prices over the past few decades, and you’ll see it just keeps going up, up, up, up. So I thought, okay, I’m going to learn everything they know. And that’s how I started The Real Wealth Show. That’s my current podcast. ⁓ On that show, like I said, I interviewed Robert Kiyosaki. That’s when he explained to me the power of demographics. He explained to me the fundamentals.

  It was 2003, I had them on also in 2004, 2005. This is when there was a housing boom and property prices were going up 40 % per year in some areas because of those crazy liar loans. And nobody could see it. Very few people could see that if you lie on your mortgage, you’re probably not gonna be able to pay it when it’s due, right? There’s a reason why we’re supposed to qualify for things. And we just, they weren’t doing that.

  Micah Johnson (10:30)
  Thank you.

  Kathy (10:33)
  So was super obvious when these loans were going to reset, when there was going to be an implosion, when there was going to be a complete popping of the bubble. He knew that was going to happen in 2007. So he explained to me then that that doesn’t mean that the entire real estate market is going to collapse. Like you said, it’s like the national weather. could be super hot right now at 70 degrees in California and I’m burning up, but my daughter’s in Utah and it’s cold. So you know you can

  There is no average. And he explained, you just got to get out of the storm. And where those prices had gone up were basically the sand states, Arizona, California, Florida, and Nevada. That’s where prices just went bonkers. So he said, you know, I’m investing. He said, I’m selling everything now, which is probably the peak and exchanging it, 1031 exchanging into Texas where they aren’t having prices go up.

  Texas couldn’t have been more boring at the time. If you looked at the home prices in Texas, it was just flat. But he knew that so many businesses were moving there because of the no state income tax and because so many jobs were moving there. So I like, hey, if it’s good for Kiyosaki, it’s good for me. I flew out, I ended up buying like a bunch of properties because back then you could get no money down loans for investments.

  Micah Johnson (11:54)
  Yeah!

  Kathy (11:56)
  But I think I bought five houses like in one day because it’s like you just filled out paperwork and

  it was crazy times. And I talked about it on my show. All of a sudden all these people were like, I wanna do that. So I was like, well, here’s my property manager. Here’s the team I worked with. Here’s the builder I worked with. Here’s the repair. There’s the insurance. just was like, here’s all this information. And that’s when my husband looked at me and he’s like, this sounds like a business. This sounds like people really wanna know.

  Micah Johnson (12:21)
  it.

  Kathy (12:23)
  Can you help me set up a team in an area that’s working for you and help me also build wealth? So that’s real wealth. You fast forward 20 years, we have over 88,000 members, whereas we still are sending them to these referrals to different teams across the country who know how to find the deals, who have property management in place, a team set up for basically a turnkey investment.

  Micah Johnson (13:24)
  And that’s a powerful way to do it. And you’re mentioning might as well be the godfather. If you ask how someone got into real estate, typically rich dad, poor dad is going to be an answer that you’re going to hear in there. And it just shows you again, this is not new. What we’re doing isn’t new. It’s been done for a long time. The only thing that’s new is the market that you’re doing it in. It’s just a different section of the cycle and how it’s playing out. And then another powerful part you’re talking about is

  Kathy (13:34)
  Yeah.

  Yeah.

  Micah Johnson (13:54)
  Two things, one, I love, one thing I love about high level real estate and Robert was a case in point on your show. The best at this business will typically tell you exactly how it works. They’ll show you, it’s not a mystery. It’s not like some secret sauce they’re doing in the background of how it works. They will tell you, this is how it works. And you’re passing that same kind of concept along. Cause one thing I learned in my journey, you can’t buy a house by yourself. You’re going to need a title company or a

  Kathy (14:11)
  Yeah.

  Micah Johnson (14:24)
  attorney and a lender and an inspector and like you’re saying a builder and a management all of sudden you realize whoa hold on this is different than I thought it was and how do I keep plugging in and that’s where a lot of people get stuck in real estate right there because they don’t want to run a business they’re not out there trying to build a real estate investment company they’re just trying to build that generational wealth have access to this thing that has changed more lives in America than any other asset class out there

  Kathy (14:39)
  Mm-hmm. Yeah.

  Micah Johnson (14:53)
  It is, it is so powerful. So one on behalf of that, thanks for passing that along. I love talking with people and meeting folks that my opinion, you’re doing it the right way. There there’s, there’s not really competition to me in this business. When you’re out there doing it, there’s always a market to get into. There’s always a way for you to do it. It’s one of my favorite things about real estate. If you stay in it long enough, you’ll find your lane. There’s a lot of ways to do this. It’s a big umbrella.

  Kathy (15:09)
  Yeah.

  Yeah.

  Micah Johnson (15:22)
  I don’t particularly like fixing and flipping, not my jam. So I don’t do it. I had to learn about it. Like, okay, don’t like that. That’s okay. But it didn’t mean I had to leave the industry before real estate. I actually worked in dermatology. I was a, I worked in taking off skin cancer in offices. So that, that appointment you’re talking about. Yeah. I specialized in the most procedure working with different dermatology surgeons and we’ve reconstructed entire faces. I’ve had that.

  Kathy (15:25)
  Yeah, me either. Yeah, yeah, don’t like that.

  Yeah.

  Wow, my gosh. Yeah.

  Micah Johnson (15:52)
  man, I’ve had that conversation with people that you’re talking about. And when I couldn’t take it anymore, it wasn’t like I could just pivot in my job. I couldn’t just switch to a new one. And when I got into real estate and realized, okay, there’s actually room here. I started as a realtor then found investing in 2017. It was just like, okay, I can keep growing. There’s more and more than I can do than I ever thought that allowed me to be me.

  Kathy (16:01)
  Yeah.

  Mm-hmm. Yeah. Yeah. And so a lot of times people just assume if you’re a real estate investor, that means you do fix and flips because if you just go on HGTV or A &E, that’s what you see. And if you’re if you spend eight years trying to be a doctor, if you are an actor or you’re a professional athlete, you’re not going to go flip some houses. You know, that’s just not that’s that’s going to be too hard. You already have a career. You already have a career that pays well.

  Right? But also might end. So why not, excuse me, why not start buying assets that don’t really need your time and attention right now? We have a lot of professional athletes in our network who, again, they are so busy training all the time. They make a lot of money. Everybody’s trying to get at that money. And if they don’t get educated, they will lose that money. ⁓ So

  Micah Johnson (17:31)
  Great.

  Kathy (17:58)
  we give a…

  ton of education to make sure people really understand how to invest properly. It’s free education. You will be completely paralyzed if you don’t have the knowledge that you need. And if you feel fear, that’s simply, to me, all it is is a lack of knowledge. Because those of us who have experience and knowledge, we’re not afraid. You know you we’re just looking for the next deal.

  So it’s like a simple solution. All you need is to learn more if you’re feeling fear. So with professional athletes as an example,

  their career could end tomorrow. You know, with one injury, they’re done. And what a lot of people don’t know is that if you have a $20 million contract as a pro football player or something, and you get injured, guess what? You don’t get that full contract. It’s done. They are very strict about that. So, you know, to be able to help these high-income earners have something, have a cushion for them if and when that day happens.

  Same thing with doctors, people in the ER, they burn out. It’s a hard, hard profession, like you said. And just knowing, okay, if I just buy one asset a year, if I just save enough money to buy one house, the kind of houses that we help people buy, it’s like $40,000, $50,000 down payment. In California, just to get a starter home is a $200,000 down payment. Yeah, so like you can work by saving.

  Micah Johnson (19:20)
  Hey! Yeah.

  Kathy (19:26)
  and buying an asset. have a book called Retire Rich with Rentals and in it there’s a chapter I talk about my mom’s ⁓ pastor. He was a pastor of their church and when he retired he was extremely well off. Now how was that possible? He barely made any money. Very, very low salary as a pastor.

  Micah Johnson (19:48)
  Okay.

  Kathy (19:51)
  But what he learned when he first got his pastor job, he and his wife bought their first house, 3 % down with FHA loan, and then he got transferred to another church. And they were in a position where they couldn’t sell the house yet. I think that there was a prepayment penalty or something. So they’re like, gosh, what do we do? Well, I guess we have to rent it. And so then they rented it and went and bought another house and realized, well, that really wasn’t that hard to do.

  And so they just got on the bandwagon and for the next 10 years, he bought one house a year. By the time he was retired, 30 years later, he had these 10 houses paid off that had tripled or quadrupled in value. And he’s making 20, $30,000 a month in retirement. And that keeps going up because rents don’t typically go down, they go up. And by the time either you’re in a fixed rate loan or you’ve paid it off by then, that’s just income to you.

  So to me, that’s a beautiful story to have somebody do what they’re here to do. He was meant to be a pastor. He wasn’t meant to get wealthy as a pastor. know, that’s not how it works, but he set himself up properly. So that’s what we’re teaching people. We’re showing you how to do, and I just, I’m jazzed about it.

  Micah Johnson (20:55)
  Bye.

  And it’s, love that. And it is a great story. And one thing I think listeners should take away is real estate is a long game plan. This is you, this is a get rich, slow scheme. It’s not about being in a hurry. It’s not about being a rush. It’s about the fact that no matter what the days are going to go by, the time is going to go by. You’re going to wake up one day and be older. And if you don’t, well, then this really don’t matter, honestly, because something different has happened, but it’s going to go by.

  Kathy (21:17)
  Mm-hmm.

  Yeah.

  Yeah.

  Micah Johnson (21:35)
  How are you leveraging that time? One thing one of my mentors says a lot is how you paying it forward to your future self. What action are you taking today? That’s benefiting you right now. And it’s benefiting a future version of you. And if you can keep on doing those year, I call it farm in the future. You are literally setting yourself up for a world that will eventually be beyond your wildest dreams. I grew up around a lot of pastors. None of them had any money and

  Kathy (21:42)
  Mm-hmm.

  Micah Johnson (22:04)
  The idea that you can do that thing you love and then still retire and not be worried, not have that, what am I gonna do now? Feeling that there you go. That’s what people get into real estate for, freedom. That freedom to have the life that they want when they want to have it over that period of time.

  Kathy (22:10)
  Yeah.

  And listen, you can make money fast. You know it’s There are ways through wholesaling, you could do a bunch of flips and make a ton of money. It’s harder right now to do that, but it can be done. But it is not something you do on the side. You’re not gonna make a bunch of money on the side. So people kind of get confused about that. I have met people who have made lots of money in just one or two years, but they made it their primary focus and they dove in and they made the mistakes. It became their full-time job.

  Micah Johnson (22:40)
  No.

  Kathy (22:54)
  And when I say job, that’s exactly what I mean. It became a job versus an investment. And almost all the people who spend all their time wholesaling and flipping, what they end up with is not investments. They haven’t held those properties, so they haven’t built the passive income. So they have to just keep on the treadmill. As Kiyosaki would say, they have to keep working, working, working as they haven’t built the investments. So I always try to point out that there are…

  lots of ways to be involved in real estate. One is as a full-time career. And the easiest way to understand that is you’re a real estate agent, you’re a mortgage broker, a title, you know, insurance person or whatever, you’re working, that’s your job. And if you’re a flipper or a wholesaler, same thing, you’re in that category. Earned income, it’s tax the highest, it’s taking your time and effort versus owning a bunch of properties where you’ve borrowed the money to buy it, you’ve got tenants.

  who live there and they pay off that for you. And it’s pretty passive. So two very different things, active versus passive taxed, very different on the passive side too.

  Micah Johnson (24:03)
  I think it’s really great that you pointed that out because you’re right. You can make money quickly in this business, but your mentality towards this has changed. It is now your job. I have a lot of friends. They own professional real estate investment companies. They have multiple strategies on what they do, whether they’re fixing, flipping, buying, holding, or wholesaling it off. Each one’s balance. is a business at that point.

  Kathy (24:12)
  Yeah.

  Micah Johnson (24:26)
  And typically what I find about those people is they always wanted to own a business anyways. They wanted to be the CEO of something. The commodity they enjoy is real estate. And that’s the difference versus if you just want to invest in real estate, you don’t have to have a business that does it where it does suck up all your time. And again, it’s something else I love about real estate and that team. I just had a great call with someone recently where

  Kathy (24:31)
  Mm-hmm. Yeah. Yeah.

  Yeah.

  Micah Johnson (24:53)
  They are a builder that’s been building for 30 years. They build custom homes and they, they just partner with investors. They’re the builder, bring the money, stay in our lanes. Let me do the thing I’m good at. You do that part you’re good at. And then we’re both going to make money on the other side because you, you, like you’re saying with professional athletes, high wage income earners, they already have something they’re doing. Their time is already occupied and

  Kathy (25:08)
  Mm-hmm.

  Yeah, already busy.

  Micah Johnson (25:20)
  You don’t need to add another 12 hours of stress to your day to worry about that you don’t have because you don’t need to. You don’t have to do that part. And that’s what one of the powerful things about syndications in general, when they’re done well and they’re done right, you have a safe place to put your money because you’re working with people who one know what they’re doing and they’re also showing you what’s happening. I love what you said earlier about that fear part. If there’s fear, you just don’t know enough yet.

  Cause there’s a big difference between that feeling when you sign that when you’re signing those documents and their neck hair standing up and that there’s that risk there. That’s not the same thing we’re talking about. Like that’s just like that ansiness, like something’s on the line. Here we go. Versus that you’re scared. You don’t know what to do. And that is where learn partner with people. You don’t have to know it all. And there’s no way to, again, we’re talking about it earlier, real estate is a team sport.

  Kathy (25:57)
  Yeah. Yeah.

  Yeah.

  Micah Johnson (26:17)
  It is a relationship business. There are certain people you need all over the place. And if you’re the kind of person that just says, you know what, here’s my money. My team spot is to be the money. Your team spot is to be the expert in real estate who’s built a relationship. So let’s team up and then we can do cool stuff together.

  Kathy (26:19)
  Yeah.

  Mm-hmm.

  Yeah, and then like you said, busy people who have spent eight, 10 years or whatever being great at what they do can’t just suddenly flip over into real estate and be successful in the first year. That’s like saying, I’m gonna be a doctor and I’m gonna be super great at it in one year. And I speak all over the place and some of the places I’ve spoken have been to doctor groups. And a couple of years ago,

  Micah Johnson (26:49)
  No.

  Kathy (27:02)
  these doctors were getting heavily into syndications like you just said, which is basically group investments. ⁓ And these doctors were, you know, co-sponsoring big multifamily deals when also being a full-time doctor and not really having the experience or knowledge to do it properly. So when I got on stage, I gave this talk that was very depressing about all the things, all the ways they could lose their money. And at the after party,

  I had a few doctors just looking down their nose at me like, well, you obviously don’t know the opportunities out there today. I’m like, no, I do. We’ve been underwriting them and none of them work. None of the deals work. Everybody is overpaying for multifamily in 2021, 2020, 2021 especially, and then 2022. You couldn’t get a deal that wasn’t overpriced. It’s just there were so many offers to be the offer that got the deal. You were paying sometimes millions over

  what it was really worth. And then they were getting into these short-term loans that would, you know, for the rehabs that they could then refi out of. So buy the property, fix it up. And then the idea is to do a BRRRR basically, refi out, get all your money back. Well, then by the time they’re done, interest rates have gone up to what they were, they were like seven, 8%. So I could tell you, I just was like talking to these doctors, like you spent…

  eight to 10 years being an expert in being a doctor in medicine. Why do you suddenly think you’re an expert in real estate and you have no experience? There was so much ego, so much cockiness, and unfortunately, many of those doctors who work hard for their money lost millions, lost millions. I know many who put like literally a million dollars in each project and it’s gone because of syndications failed, because clearly they didn’t know how to underwrite.

  And if you’re that high net worth, you know hire someone. It’s like a few hundred bucks to have somebody underwrite your deal. Just get someone to look at it.

  Micah Johnson (29:02)
  Right.

  I think that’s a powerful view because ⁓ there’s a lot of high performing people in this space. We all work hard. That’s not our issue. We know what we know. And it’s very easy to kind of spread that expertise into something you’re not so much an expert at and have that, what is it? The Dunning-Kruger effect, where you know just enough to get yourself in a whole lot of trouble and not enough to get out of it.

  Kathy (29:25)
  Yeah. Yeah. Yeah. Yeah. You took one course.

  You took one course from a guru who told you you could do it. Now you think you’re a pro. Yep. That’s what was happening.

  Micah Johnson (29:37)
  Yeah, exactly. And now, that’s, could be a big opportunity that’s starting to come up is all those deals that got bought terrible. Those loans are getting to get called. Those things are going to be coming due and there’s going to be quite a bit coming back into the market in my opinion.

  Kathy (29:51)
  Yep, that’s why we started our multifamily fund. We have kind of a cool fund concept where it has to be accredited investors, which means you either earn 200,000 if you’re single or 300,000 if you’re married or you have a million dollar net worth. This is for higher net worth people to syndicate. we’re telling them you only have to put 10 % in right now. You’re committing, say 50,000, 100,000, whatever you’re committing.

  But right now you only have to put 10 % in because we want to be ready to pounce on the deals when we see them. So we need the money ready because before we had the fund, we were finding insane deals, but they go fast. Like they’re not gonna wait for you to raise your money and get your PPM in place. It takes 30 days at least to get the paperwork in place. And then you got to raise the money. So that’s like 60 days minimum. And a lot of the sellers just, they’re not.

  Micah Johnson (30:44)
  Right.

  Kathy (30:49)
  going to wait for that. So we’re like, okay, we need the money ready. We’re going to have the fund and then we can pounce. So we’re excited about that. And ⁓ yeah, that’s one of the things we’re doing. We also have a single family rental fund because the single family market’s also frozen. It’s frozen in a different way. I don’t see the multifamily market bubbled for sure, but the single family market isn’t really so much in a bubble. It’s

  Micah Johnson (30:51)
  the timing

  Kathy (31:18)
  It’s literally just a lack of supply issue. ⁓ Inventory levels crept up a little bit last year, but they’re coming back down again. As soon as rates came down, that inventory got bought up and it’s very low, very low. Some are saying we’re four million homes short of what’s needed. Some are saying eight. I mean, whatever it is, there’s not enough inventory and yet massive demand. You have the largest generation in our history, millennials.

  between the ages of 32 and 34, which is first time home buying age, they’re getting married, they’re having kids, and they’re coming into a market that’s expensive, where prices are high and mortgage rates are high, and ⁓ there’s not much for sale. So ⁓ bottom line, because it’s frozen and so few people can actually qualify to buy now, being a landlord is a great solution. Being able to buy those properties,

  We negotiate with builders who haven’t been able to sell their stock. They can’t just hold properties vacant, they need to sell. So we negotiate with them to buy down the rates so that investors could get 4 % rates on these new homes and provide housing stock, provide rental properties to so many people who need them.

  Micah Johnson (32:19)
  Right?

  That’s powerful because that’s again, it goes back to what’s the market presenting? What’s the best option? How do you capitalize? And you nailed it. The multifamily better have your money ready because people have their there’s a lot of folks been sitting on the sidelines waiting. And that’s that’s been the move lately hasn’t been there. And then I love I love hearing it when folks are taking advantage of that new construction that’s getting that sitting there. Those are some of the sweetest deals out there.

  Kathy (32:41)
  Yeah.

  they’re the best.

  Yeah.

  Micah Johnson (33:01)
  When you can get, when you can buy new construction at a discount, come on, let’s go.

  Kathy (33:05)
  Yeah, why would you do anything else? But you know, a lot of

  people go into this business thinking, oh my gosh, if you didn’t buy it 30 % on your market and sweat your way through fixing it up and get it, you know, like, why are you even doing it? Some people just want to work really hard and I am not that person. Give me a new home all day long. I’m buying for the long term. A new home is just going to be less headache and 10 years later, it’s still going to be a great property.

  So I love me a new home.

  Micah Johnson (33:36)
  Keeps all that CapEx down. Having to fix stuff’s no fun. Use the new. It’s good. Well, Kathy, I really appreciate your time today. For those that are listening out there that have heard about these opportunities, ways to plug into real estate investing that they may not have heard and want to learn more from you, what’s the best way to find you?

  Kathy (33:40)
  Yeah.

  Our website is realwealth.com, real like real estate and wealth like your money, realwealth.com. We, like I said, once you join, it’s free to join. It sounds like what’s the catch here, but we have over 500 free webinars. You can speak with one of our investment counselors and we are a licensed brokerage. That’s how we make our money. That’s the secret. So we refer you to our teams in 15 different cities nationwide. And if you buy something, the broker on that side pays us so you don’t

  You don’t ever have to pay us. It’s just good old real estate. So realwealth.com. Also my book, Retire Rich with Rentals is on Amazon or anywhere that sells books. And then my podcast, The Real Wealth Show is where you can find me as well.

  Micah Johnson (34:31)
  Yeah.

  Excellent. Thanks for sharing that. If you’re listening, we’ll make sure that that information is in the show notes so that you can find Kathy. Again, Kathy, thanks for being on the show. I appreciate your time, your story, your perspective. Thanks for, I love seeing people out there building real businesses, actually changing lives, making a difference using the real estate world. So thanks again for those listening. If you got value out of today’s episode, please like this episode, share it with someone you think would get value out of it that might need to reach out and talk to Kathy’s team.

  and see about how they can start building their own wealth in real estate. Until next time, thanks again for being with us. We’ll see you on the next episode.

  Kathy (35:23)
  Thank you.