057: Surviving the Real Estate Crash with Corey Paszkiewicz

Corey Paszkiewicz has 6 rental properties, 4 duplexes and 2 single family homes. Corey bought rentals at a young age, because he saw the value in real estate investing. However, he bought a couple of his properties before the real estate crash and without being as educated as he is now about cash flow and getting good deals. On this week’s episode of The InvestFourMore Real Estate Podcast, Corey talks about how he bought his rentals before and after the crash.

How he was able to survive a divorce, a career change, and a changing real estate market. Corey has since started a very successful business, and is looking to get his real estate license to further his real estate investing and make extra money.

How did Corey get started investing in real estate?

Corey was an electrician for many years, when he started to see infomercials about real estate investing over and over. He decided real estate investing was something he should be a part of to make extra money and invest better. Corey started out by buying duplexes in the Milwaukee area. He bought his first property for $154,000 and rented it out for $1,425 a month. Those are not bad numbers, but this was before the real estate crash. Corey bought a mixed use property and even ran a restaurant for a short period of time before the crash as well. Corey was enjoying investing in real estate, but things took a turn for the worst.

How did Corey survive the real estate crash?

Corey had decent cash flow on his rentals before the crash. When the market started to turn, he quickly found his rentals were worth much less than he bought them for. However, he was still able to rent them and cover the expenses on those properties. Corey also went through a divorce and changed careers from an electrical to starting his own multi level marketing business that focuses on nutrition. To make ends meet, Corey moved back in with his parents.

Even though things were not going well for Corey, he did what it took to start a new business. He also held on to his rentals and was able to survive the real estate crash, because he had enough cash flow to cover his expenses with a little left over.

What did Corey learn about real estate investing from the market crash?

Corey did okay with the first rentals he bought, but after the real estate crash, he was able to get much better deals on rentals. He bought a property for $100,000 that rented for $1,200 a month and then got a great deal on a property that he bought for $65,000 that rents for $1,450 a month! Corey spends a lot more time looking for great deals now! In fact, he is thinking of getting his real estate license to make finding deals easier and he may even start a new career as an agent as well.

Corey also has a goal to have 25 rental units in the next year. He has 10 now, which is a big goal that I love!

How can you get in touch with Corey?

I have been friends with Corey on Facebook for quite some time and see his posts about nutrition and he is in awesome shape. Corey has many weight loss challenge groups and programs and owns a cross fit gym as well. If you want to get in touch with Corey, you can reach him on Facebook.

[0:00:57.0] MF: Hey everyone, it’s Mark Ferguson with InvestFourMore. Welcome to another episode of the InvestFourMore real estate podcast. Today, I’m excited to talk to Corey Paszkiewicz, which I have no idea how close I came to pronouncing his name right but I tried. He is an investor in Milwaukee, he’s got six rentals, four duplexes, a couple of single family homes. He bought some of those, actually before the housing crash.

So we’re going to talk about that, how that has been for him and what struggles he’s had on there. He’s also looking to buy more houses, possibly fix and flips in homes and I know he’s been thinking about it getting his real estate license as well. Corey was an electrician, went to network marketing, nutritional business and even has his own CrossFit gym. He’s really got his hands full and I know he has a newborn as well.

So Corey, thank you so much for being on the show, I appreciate you hopping on with us for a few minutes.

[0:01:53.3] CP: Yeah, thank you Mark, definitely. Thank you for having me as well.

[0:01:57.5] MF: Yeah, I’m glad to have you on, I like talking to obviously different investors across the country and I’ve seen you on Facebook a lot, your posts, the incredible transformations you’ve had with some people. So it caught my eye when you said you wanted to be on the podcast for sure. Starting out, you were an electrician and went into different career but when did you first start getting interested in real estate?

[0:02:21.2] CP: Yeah, definitely. I guess it kind of goes back when I was younger, a little bit before I even got into it. I just saw how hard my parents worked and they struggle a lot and then growing up. I just knew there’s something else out there and I knew I didn’t want to have that when I had my family and I think I just kind of stumbled across real estate like a lot of people where watching those TV shows, you see infomercials and all that.

I don’t know how old I was, maybe like 18 years old at the time. I ended up buying a book, read it, kind of talked about all different source of investing; flipping, buy and hold, you name it. Never really did anything with that until probably a few years later. Like you said, I was working as an electrician. I had a friend that I went through my fellowship with, his uncle at the time, he was talking about how he used to have rental properties and some condos and things like that and so I didn’t really know a whole lot going into it and I ended up basically buying my first duplex, like you said, right before the housing market crashed.

So the property values are actually on their way up. So I kind of bought it a little bit higher than what I would buy something now and then eventually it crashed and all that. That was kind of my first intro into real estate and I kind of house hacked that one. So I bought it and I moved in one half of it. The tenants paid more than half my mortgage and lived there for quite a while and yeah, it’s really I guess kind of how I got my foot in the door I guess I could say.

[0:03:52.3] MF: No, that’s very cool. There’s a lot of people who have kind of house hacked before that became a term, which is obviously having roommates pay for your house while you live in it, a multi-unit property. So even though you bought it at the top of the market or close to it, you’re still living there, so it’s not like you weren’t getting an advantage. You had a place to live and do you still own that property now?

[0:04:14.6] CP: I do, actually one of my brothers lives in there now too and yeah, I’ve had that one for over 10 years now.

[0:04:23.0] MF: I know you said it’s getting close to being above water now or is it above water now?

[0:04:29.2] CP: Actually that one, that was a funny one. So initially, I was just starting out. I was a first year apprentice going through my electrical apprenticeship, so I didn’t have a big down payment. I actually had a friend borrow me a little bit from the down payment and I also did a WHEDA loan and I don’t know if you’re familiar with the WHEDA type of loans, but this did to the government, they gave me a $5,000 grant to live in the house and put down for the down payment and I thought you had to live there only for five years and then you can move out and sell it and all that kind of stuff.

I actually moved out of it before and then I got the letter saying I had to move back into it and all that stuff, otherwise they would foreclose and I would have to refinance or pay this loan back or the grant back. But I guess, basically to make a long story short on that, a couple things. I had my brother move in there and I put everything in his name so I kind of got by with everything for a while with not living in the property and then eventually I got like another letter and the bank and all that.

So I had to refinance the house to get it above water, I had to put like another $18,000 down on it to refinance so it was actually appraised right. Doing that actually, I do cash flow probably three, $400 a month on that property but before that it definitely wasn’t there. I was just breaking even, if not losing a little.

[0:05:51.5] MF: Okay, I had never heard of that loan before the WHEDA, so that’s something new to me.

[0:05:56.1] CP: I believe it might be like Wisconsin housing or something like that. So it’s basically like a first time home buyer grant for people in Wisconsin and basically I guess how it works is, they give you $5,000 or at that time that’s how it works. I don’t know what the requirements are now but basically every year you live there for five years that grant goes away so your first year, they take a thousand away and after that five years’ time it’s forgivable, you don’t owe anything.

But, like I said, I thought you had to stay there five years and then it was done and you can move out but you have to own the property or live in there, the term of the loan. So that’s why I kind of got stuck in that buy and had to refinance and put more money down on it to get it above water. Now it works out, running out and cash flowing a little bit, so I can’t complain there now.

[0:06:47.2] MF: Nice, I kind of like hearing that you bought a property before the housing crash, it didn’t bankrupt you, you didn’t go under obviously. I’m sure it wasn’t easy seeing your value drop but at the same time, you held onto it and it’s not a bad investment at this point, it doesn’t sound like?

[0:07:05.9] CP: Yeah, it’s not my best investment but I’m not losing money and I’m getting a little bit of cash flow in and I could probably get a little bit more. One of my brothers lives in there, so the rent’s a little bit lower on that one. I could get $675, $700 for rent but it works out and pay my mortgage and then some and yeah, I guess I look at it, for a lot of my buy and holds more for like the long haul and cash flow for the longer period of time versus like quick buy and hold or flip like that.

[0:07:40.1] MF: Right. No, that makes sense. Then you bought that property, that was your first one. How long did it take you to buy your other ones. I know you’re up to six now, did you buy one soon or did you kind of live in that one for a while and wait a while before you bought another one?

[0:07:54.8] CP: Yeah, so my plan was to kind of wait a while and it ended up being just over a year after that but I found another one and right down the block. So four of my properties are all within three or four minutes from each other. I found this property in the foreclosures as well and I bought that with no money down. So banks then would give money to loan, give money away like crazy.

So I put no money down and we did like an 80/20 loan, so two loans on it. Then I moved into that property and moved out of the other ones. So that’s kind of how I bought that and then I kind of hung out there for a little while for about another year actually and this is kind of a funny story. Probably about a year and a half and then I bought commercial buildings so I took a home equity loan out on the other property, bought a commercial building and while I was working full time as an electrician this commercial building had a little restaurant on it and I made basically like a two state type of restaurant on it. I ran that and lived in the back of the three bedroom apartment. That was kind of all within like a three year time period or so is what I did with those.

[0:09:00.3] MF: Wow, I haven’t heard of that one before.

[0:09:04.4] CP: Yeah so like I was telling you, a little interesting. I did that, that one I thought I got a really good deal on it at the time and then I ended up selling it for a loss a few years later on that restaurant property. I still do have that other duplex. That other duplex, that one actually attached pretty good. It’s a three bedroom upper and three bedroom lower. So the rents are pretty solid and I still bought a little higher but it’s a good market there and like I said, the rents are higher. So that one does well. I did sell that restaurant a few years after I had that, and I probably didn’t buy a property for a few years.

[0:09:38.8] MF: I’m curious, what were the numbers on that second duplex? Do you remember what you bought it for and what it rents for?

[0:09:44.5] CP: I bought it for $154,000, like I said, I guess now like I probably wouldn’t spend that much on a duplex in the area but I get over $700. So the tenants I have in there now, they’re long term tenants so again, I could probably get — one of my other three bedroom units, I’m getting over $800 for. But I get $707.25. They do all their yard maintenance and all that so I kind of gave them a discount and it’s also, like I said, longer tenants. I mean one of them has probably been there five years. So that’s a good solid property there.

[0:10:18.3] MF: Nice, yeah I know it’s not bad considering you bought it a few years ago and you weren’t exactly in tune with real estate investing at that time it sounds like, not too bad. You took a few years off, was that when you kind of changed careers and were transitioning out of being an electrician?

[0:10:36.7] CP: Yeah, basically, right before the economy crashed, maybe 2008, 2009, somewhere or maybe 2009, 2010 I believe, right around there. It’s kind of when I’m looking at more of a career change and kind of found a network marketing. Got involved with a health and wellness company there and got [inaudible]. But at the same time I knew I needed to do something else because our Union Hall over here in Wisconsin, they were telling electricians to look for different jobs and different careers because they had over 300 electricians laid off at the time and I basically saw a good buddy of mine throw his income up to a crazy number.

Over $30,000 a month in a short period of time and I’m like, “Okay, if I can just do a little bit of that to make my car payment, that’s really all I was looking for,” and I just started helping people I was working with and basically started, within six months had my income up to pay my mortgage and my car payments, a year later I actually replaced my electrical income with the company. I just kind of hung out there, decided to open up a CrossFit gym, did that. Because fitness has always been a real passion of mine, and I love helping other people get great results for products and fitness and their nutrition. So I look at everything as a whole that way.

Really it’s an awesome feeling when you can help change somebody’s life that way and that’s kind of how I got more back into fitness and during that period too, I actually went through a divorce. So that was part of the reason why I got put on hold I guess or my real estate kind of got put on hold. I was switching careers, got a divorce, had all the stuff happening to me. Iended up actually moving back home with my parents for a couple of months until I found another property to buy and live in.

At that time, the lending is a lot tighter and stricter requirements. Basically when you’re self-employed, so I had my CrossFit gym income and I had my network marketing income where financially the numbers looked good, I made enough to buy a property but cash wise, you need at least a few years of income being self-employed. My credit at that ratio with the banks were off a little bit because I didn’t have that full two years of income.

My next duplex coming in there. I ended up — so I bought the duplex but I had to finance it kind of in my other brother’s name and so I basically put the 20% down on the house and I moved in there and basically let it out the other half and lived there for a little over a year, that’s kind of how I got my next property and got back in to that one.

[0:13:09.1] MF: Nice, yeah quite a transition you went through there.

[0:13:14.0] CP: It was kind of a lot in a short period of time within like a year or two, it just feels like everything changed in an instant and all that.

[0:13:23.0] MF: Yeah, and I can say, I’m friends with you on Facebook, I’ve seen a lot of your post for a while and Corey is in awesome shape. He’s one of those guys you see and like, “Oh man. That would never be me.” But some of the transformations I’ve seen on people you’ve helped with weight loss and stuff is just amazing. So yeah, I definitely would recommend you if anybody’s looking for help on that side.

[0:13:45.5] CP: I appreciate that.

[0:13:47.3] MF: So this next duplex you bought, I imagine — that was kind of after the crash. Did you get that a lot cheaper than the previous ones?

[0:13:54.3] CP: Yeah, I got that one, it was just under a hundred thousand is what I paid for it I believe. So I know a lot of people in the area buy them a lot cheaper but it was actually really in pretty decent shape, I didn’t need to get much maintenance on it. It had all new windows and siding. Really the only thing I did is put some new carpet and hardwood floor in in the kitchen and it was good to go.

Part of it I needed a place to live again too. So I wanted to get out of my parent’s house, so that’s kind of what I did. So I did that and moved into a bottom house and rented out the top half to a good buddy of mine, one of my best friends and him and his fiancée are still there today and my other brother that helped me with the financing, him and his girlfriend live in the bottom half now. It’s been pretty solid. I’ve had that, maybe three, four years now, three years?

[0:14:44.0] MF: Nice, and what does that one rent for? I know you’ve got family and friends in there but…

[0:14:49.4] CP: So $600 on both. Upper and lower for that. So typically that’s a two bedroom upper, two bedroom lower, typically in our area and that area that I have them in, a two bedroom would ideally rent for $650 to $700. Might be even more, $750 depending on the area there. So yeah, a little bit lower on the rents but they’re great tenants and I’d rather have a good tenant with a little bit lower rent than have a trouble tenants and have to wrote it.

[0:15:15.8] MF: I agree. Nice. So then you’ve got your duplexes, and then you have some single family homes too. Are those houses that you moved into or were those just rentals you bought as single families?

[0:15:27.5] CP: Yeah, so those two, the last year, really started aggressively getting back more into real estate I guess. So one of our friends kind of — these two properties came in the market, they’re actually right next to each other. I guess those two are what we consider north side or like a lower class type of tenants and I’m really hesitant to buy from properties in that area but I also know a buddy that’s got quite a few properties, probably close to 50 properties all around that area.

He never had issues and so I was just talking to him and I jumped on this two and bought them both cash. One of them had a tenant in it already, the other one was vacant but it was all rehabbed and ready to go. I bought those last October. So October 15th is when I closed on them last year.

[0:16:15.0] MF: Nice, what do you think of the single family versus the duplex, which ones do you prefer?

[0:16:22.4] CP: I guess it could go either way. I actually cash flow a lot of those, partially because I got a feeling — they’re smaller, small two bedroom about 700 square foot like property but they both have a garage, fenced in yard. So it’s a nice property. Actually the block on it, it’s actually really nice, quiet block and across the freeway, it’s actually a really nice area so it’s just the tenants that are in there are not in high quality I guess. I guess I kind of lucked out too.

Actually I got a funny story on one of them. So the two properties they bought, one of them was vacant, one of them had a tenant and the tenant that was there, he was there for probably about three or four years prior. He had a solid rental history. He gets arrested and thrown in jail for a little while, I can’t get a hold of the guy. So I’m like, “What do I do?” I’ve never had this happen and it’s probably about half an hour form my house these two properties and ended up actually, his niece ended up calling me and kind of explaining the whole situation and they ended up moving him out and cleaned up the property.

That actually worked out good but for a while there, there’s a couple of weeks I like couldn’t get a hold of the guy, I called him, I’d show up there, nobody would be there. I’m like, “What do I do?” Then I finally got a hold of his niece and in the long run, it all rented out, it rented out now and things are good. It’s kind of a funny story and I didn’t know how to handle it if I didn’t get a hold of her. So it’s kind of weird.

[0:17:52.3] MF: I imagine, it could have ended a lot worse than it did with him. What did he get arrested for, do you know?

[0:17:59.6] CP: They didn’t say but I mean, I looked up his record. I guess the charges got dropped and all that, I think it was like some domestic violence or something.

[0:18:07.7] MF: Okay.

[0:18:09.3] CP: He didn’t say, they didn’t say, I guess the charges got dropped and all that. So I mean I don’t know what happened with there and I actually haven’t even talked to him, I just kind of communicated with his niece and they cleaned everything out and I still had to go in there and repaint and clean it up a little bit better and haul out some other junk but for the most part, I lucked out on that, it worked out perfect for — they moved out fine, I didn’t have to evict anybody and it was as smooth as you could wish for.

[0:18:38.2] MF: Nice. That’s one thing as landlords, when you mentioned him getting arrested, we have to watch out for is drugs and meth and different things that can contaminate houses. It’s the one thing, it’s really hard to protect yourself against. I’m glad it was — I’m glad that’s what he got arrested for. For your sake, it wasn’t drugs or something like that he’s arrested for.

[0:18:58.5] CP: No, I didn’t say, I guess in a nutshell to answer it all, I like having them, they’re a lot more work but they cash flow more for me. I guess it’s a horse with teeth to kind of, depending on what you want, what to do with them. I got them for a steal. So I’m hoping when I do sell them, I can make at least $10 to 20 grand to each of them. Eventually I’ll just roll that over into some other investment type of property. It’s kind of the longer term goal but now that they’re cash flowing and things are going well, I plan on holding onto those two.

[0:19:28.5] MF: Yeah, that’s a great transition too, you’ve got your six properties now, what are you trying to do right now? Are you trying to buy more duplexes, more single families? I know you mentioned flipping, what’s kind of your mindset right now as far as investing?

[0:19:41.2] CP: Yeah. I guess as we’re doing well, our network marketing and I’m looking at basically creating more residual income. I feel like the best way to do that is buying more real estate. So I do have one other duplex that I have, that one cash flows a lot too. I got a steal on that one, I got that one for $65,000 and that rents for $825 and $725.

[0:20:05.6] MF: Oh nice.

[0:20:07.0] CP: So that one is doing really well on that. Probably only put about less than $5,000 rehab into it. Didn’t need much work, just a little bit of paint and had to do the backyard. They actually had a pool in the backyard but I bought it in the winter, beginning of this year. There’s snow on the ground, so I didn’t see any of that. But they just finished landscaping the backyard but so I have that one. Like I had mentioned you, I did have another offer on another duplex. That kind of fell through but it’s still in the market. Depending on how long it’s there, I might come back and try to revisit that.

But I’ve also looked at that, possibly buying more of a bigger unit, bigger apartment complexes. Obviously, the bigger you go with that, you need more capital and more down payment. That’s kind of what I’m looking at possibly even flipping a property or two to build up some more equity and have that for a down payment but also I come across a good deal on a duplex. I’ll probably try to jump on that right away as well.

[0:21:04.7] MF: Nice. Do you have a number in mind for how many properties you want or is it more of just kind of an income figure or are you just taking them as they come?

[0:21:13.7] CP: A little bit of both. I kind of, beginning of the year, I kind of set a goal, I wanted to have about like 25 units for this next year or so. I’m at like 10. So I’m almost halfway there. I’d like to buy maybe one or two other properties this year, depending on how things work out. It’s kind of a goal to get there to that 25 units, which I would like to get through that this year, depending on what happens, I don’t think it will happen quite this year but it’s kind of my first initial goal there. If I can buy a couple of properties a year or buy a bigger apartment complex, it’s kind of where and what I’m looking to do down the road here.

[0:21:51.3] MF: Nice. Then you mentioned the flipping too, have you looked at any flips or gone through that process at all or is it just kind of a future goal at some point you want to do that?

[0:22:03.1] CP: It’s a little bit of both. So I mean I’ve done a little bit of research and there’s actually a property right across the street from my other one. Actually two of them are across the streets, one, somebody got it before I couldn’t even jump on it and then the other one, it was probably too big of a rehab for me to look at, to do it initially. I looked at a little bit of it and then for me I guess the bigger part is finding the deal on the rehab. I do have some guys and some contractors that can do a lot of work for me fairly reasonable.

So I have some of that in place now just through acquiring a lot of the properties and meeting people in network and groups and things like that. So I’m kind of building that team of people to have so when I do find that property, something that comes across, I can jump on that but I’m super actively looking at the rehab or fix and flipping. But it is something kind of more in the back burner I should say.

[0:22:54.8] MF: Okay, it makes sense and I was going to ask you too if you’ve done a lot of the work yourself on these properties or if you have used contractors. I know you got obviously an electrician background. So you have some experience with that.

[0:23:06.3] CP: Yeah, I guess I feel like being an electrician, you learn how to do every other trade too along the way. Initially I used to do a lot of the work myself. I’d refinished hardwood floors, I’d do a little bit of electrical and painting and little minor fix up stuff. So I did a lot of that myself but now as you get more properties and having a little new born and starting a family and all sorts of things that go along with everything else going on, it’s just kind of hard to be everywhere all at once.

I’m starting to outsource more so I can free up more of my time and have longer goals to get — my wife’s home for now, she’s a stay at home mom. Our goals to get both of us home that we don’t need to have to ever really worry about any income coming in. So that’s kind of where we’re going to build our real estate portfolio that way, it’s kind of that safety net that plan B where no matter what happens we don’t have to worry about anything, it’s kind of our bigger picture of things.

[0:24:04.8] MF: Nice. Yeah, I think it’s a smart move not doing all the work yourself, just, your time is so much more valuable doing other stuff. So that’s a good move I think. Awesome, so I’m curious too, when you’re finding these deals. Are you doing a lot of the legwork yourself or are you searching or are you depending on agents? How are you finding these properties?

[0:24:23.3] CP: A little bit of both. I have a couple of friends that are realtors, sometimes they’ll send me some and they’ll set it up on auto, like whenever it hits them I’ll ask, I’ll get a few, I always look on them, the two that I’m looking at possibly rehabbing, they actually, they’re literally within a block of my house. So one was the whole led driving for dollar type of thing, that people always mention where you look for the house that looks kind of run down or the grass is overgrown and look at that.

There’s houses like kitty-corner from us and we live in a pretty decent area and I call my buddy and I’m like, “We should look at this house,” and had already like three or four offers on it as soon as like hit the market and that one was kind of like that, how I had found that one. The other one was an MLS. For the most part they’re all MLS. I guess I look for them that — I mean, they might be on the market for a little bit of while and might need a little bit of work.

But the two single family they bought, literally, as soon as they hit the market, one of our real estate friends, realtor friends sent me a message and said, “Hey, we should go look at this.” Literally we looked at that within an hour or two of it hitting MLS and I put an offer in right away and we had like, there’s a couple of other offers that came in right after us but we just lucked out and beat everybody else to it. So it’s a little bit of everything and I kind of, my wife yells at me sometimes I get a little obsessed over if I’m eating I’m always looking on — I don’t have that MLS access but on different realtor sites and housing sites and I’m looking properties and all sorts of stuff. Sometimes I get carried away with that in my free time but yeah, it’s a little bit of everything.

[0:26:07.8] MF: Yeah, my wife says I have a problem with buying houses, so I understand.

[0:26:07.8] CP: That’s exactly what she said to me, she’s like, “I don’t want this to become a problem where you get one and you have to have another and another.” I’m like, “Well, I’ll get us where we need to be.”

[0:26:17.0] MF: Just tell her how much fun it is, it’s okay. No, that’s great. Then, for the properties you’re buying now, are you financing, able to finance those now that you have gotten your business established and everything going or are you still — how are you financing those properties?

[0:26:33.3] CP: I got a good relationship with one of the banks here. The last few flips I bought, a lot of times as you start acquiring them, it’s harder to get financing. So I do a couple of commercial loans. Pretty much as long as the property will appraise at the purchase price value and I have 20% down, they’ll finance it, we’ll do the commercial loan that way. So I’m kind of looking out that way, and what I’ve been doing lately, I guess, the same thing with if we find a different apartment or something like that.

They’ll do a loan for us on apartment complex. I might have a few other people. If we find a decent one, that one I might even partner up with one or two guys to buy a bigger apartment complex. We have looked at a 20 unit before and some other multifamily. Again it would be myself and somebody else coming up with that down payment to purchase that. The two single families, we bought cash.

Those ones, I mean we don’t loan or anything in that but yeah, we kind of built the relationship with the banks and it’s setting up some commercial loans here and I know for a lot of the smaller duplexes or if we decide to find a multifamily. That’s kind of what we’re looking to do that way too.

[0:27:41.7] MF: Nice, what kind of terms? Do they do 30 year amortization or 25? I know those smaller banks are all over the place and what they offer.

[0:27:49.3] CP: Yeah, so I did, the last one I did is five year arm on the duplex in, I believe it’s 25 years. 25 or 30. I think it was 25.

[0:27:58.1] MF: Okay, pretty common.

[0:28:00.6] CP: Yeah, so that’s kind of what we did that way and we’ll see my goals, but maybe even try to have that one paid off. I’ve kind of been debating, do I — should I pay that off before that or do I just keep saving money and dump it into more real estate? So I’ve kind of been up and down with that. We’ll see.

[0:28:16.3] MF: yeah, I went through the same conundrum because I paid off my first rental and then after that I’m just kind of, “Well, I probably be better off if I just bought as many properties as I could instead of paying off some. Just because rates are so low right now. My strategy right now is just to keep buying. Well, if I could buy in Colorado, and not pay anything off at the moment but that could always change.

[0:28:41.5] CP: Yup. No, I got you.

[0:28:43.9] MF: Cool, then we talked briefly about your — you were thinking about getting a real estate license. What’s your thinking on that side of the business?

[0:28:52.0] CP: I guess I have always been involved or real estate always interested me. I feel like it would be kind of cool just to have that and especially if you’re buying properties and acquiring more deals. I think it would be cool or I could do that and earn a little bit of strength on the side that way. It was something I always thought about doing even as an electrician and all that, when the economy kind of crashed and I thought about something doing something with that and never really jumped on it but now that things have changed and just kind of — something I keep thinking about, I got your last few books and the one on how to have a successful real estate career and really kicked that off. So that even interests me even more now I should say after reading them. About three quarters of the way with that book. So yeah, there’s just something there that I’m thinking about doing whether I get my license and fully use it for me or looking at doing it on the side. Who knows?

[0:29:50.7] MF: Yeah, I would say because there’s a lot of investors who are interested in getting their license and I think for you it sounds like it would be a really good fit just because you’ve got a really flexible schedule, you’re buying quite a few properties and you’re getting most of them from MLS now so if you did get it, you have the advantage of saving a commission or at least part of the commission and then also just the biggest advantage for me is finding deals.

It’s so much easier for me to find deals as an agent than if I wasn’t. It sounds like you got some good agents working for you but that might even be a bigger advantage if you were an agent.

[0:30:25.8] CP: Yup. Yeah, I think that’s the hardest thing for me is finding some of the deals. Yeah, so that’s kind of where I’m at with that and keep leaning more and more into it and I’ll just work on things day by day here.

[0:30:41.9] MF: Right. One of the really nice things about being an agent too is you can see kind of the agents or the realtor’s websites, there’s Zillow, those sites are almost never updated as quickly as MLS and then you can look at hot sheets on MLS where I can search any new listings that pop up from the last time I searched, which is really awesome and huge advantage. That’s really where I — I see price changes, just so much stuff I can see that the general public can’t see.

[0:31:12.3] CP: Yup, that’s definitely, that’s why I’m considering it. I just got to pull the trigger and do that and we take a look at that.

[0:31:21.0] MF: Yup, exactly. Cool. We’re talking about the flips, well thinking about the flips, the rentals, getting license, your business, you talk about your long term goal that have both of you to be able to be at home without really working. Do you have any goals for a couple of years out on say, “I want to flip this many houses or have this many units five years out.” Do you have anything like that setup?

[0:31:45.5] CP: I definitely want to have a goal, I let the property this year, kind of a shorter term goal. I don’t know necessarily how many I want to flip wise, I guess I’ll kind of play that by ear after we do our first one. But as far as our properties, the way things are going, I’d like to buy one or two more duplexes a year or if I find a bigger apartment complex too for just one of those.

Our initial goal, like I said, we want to try to get 25 units and I don’t know where it goes, whether we stick with the duplexes or we buy a bigger apartment and part of my reason behind that. I keep going back and forth, you have investor that are like multifamily only and then the investors that are duplex or single family duplexes and then people that actually go buy it, buy and hold is flipping. In our area, for me I could buy two duplexes cheaper than I could buy a fourplex and cash flow more into two duplexes.

So I keep going back and forth, I’m like, “It’s kind of hard for me to buy a four family when I could buy duplex for $50,000 less than I could buy a one four family and cash flow more.” Right now, the whole duplex has been working and great deals. That’s kind of why I say it, I could buy one to two duplexes a year, that would be, I think we’d be in really good shape here. If we continue on with that and we get more cash flow in probably roll it over into a bigger apartment complex, is kind of the longer goal.

[0:33:14.6] MF: Nice, I agree with that strategy too. I see a lot of people who want to buy bigger buildings just to buy bigger buildings without looking at the numbers. A lot of people ask me why I buy single family homes instead of duplexes and it’s so specific to markets to what you can get. Like in Colorado, you can make more money on single family homes. So in many cases, even a duplex, a fourplex, just because cap rates here is like 5% on duplexes. I mean, the duplex as you were talking about, like the one that rents for $1,450. That would probably sell here for $170,000 no problem.

[0:33:55.2] CP: Yeah, wow.

[0:33:56.1] MF: Maybe more. There’s no shortage of investors lining up to buy those and to me I’m just like, “That doesn’t make any sense to me.” Yeah, very specific. Part of you wants to get bigger and for the same time you got to think, does it really make sense, is it cash flow better? Is it going to be more of a pain to get all that down payment and partner with people? No, I like the way you’re thinking.

[0:34:19.1] CP: I’m just kind of doing what’s working right now, if it comes to a point where I decide to go with a bigger apartment then we will. Right now it makes sense with the market here, single family and duplexes seem to be pretty hot. We’re just going to kind of stick with that for now.

[0:34:35.2] MF: Cool. That sounds good to me. Do you have any questions or anything else you want to talk on here as we come to the end?

[0:34:42.9] CP: No, I mean, not really. I just want to thank you and thank you for putting out all the content you do. I’ve learned a lot just form listening to your podcasts and your blog. You have a lot of great content there. That’s kind of where I learned a lot of everything. Just through you and another podcast I to listen to and I think just becoming a book of knowledge and always learning.

That would be my best advice for anybody who are looking to get started in real estate or anything for that matter and just take everything as you can and learn from people that are doing it. Yeah, I just want to thank you and hats off to you for putting this together and all that content you have out. Thank you.

[0:35:22.9] MF: Thank you, I appreciate that and I think one lesson too people can learn from your situation is, when you first got started, you kind of jumped in and bought something without really knowing everything and it wasn’t the end of the world. Even you bought it at the top of the market, it wasn’t the best investment, it still worked out just fine. I’m sure you learned a ton and you just kept progressing.

So sometimes you just have to jump in and do it and even if it isn’t the perfect investment, it still gets you started and gets you moving in the right direction.

[0:35:50.7] CP: Yeah, I mean that’s key and I think staying just committed in general. A lot of people, they’re all hyped up and they wanted to do something but nobody ever sticks in it for the long haul. If you can make it past there and just stay committed in doing something whether it’s daily little things, each and every day. Just to even learn. You don’t even have to buy anything but learning every day, you’ll be further ahead of the game than everybody if you just stay committed with it.

[0:36:19.0] MF: That’s great advice. Speaking of that, I’m sure that helps as far as fitness and different things and please tell everybody if they want to get a hold of you, if they want to follow you on Facebook, what’s the best way to contact you?

[0:36:31.5] CP: Yeah, I’m on Facebook, I do have two little blog websites that I’m working on right now so one is corebodyfitness.com and the other one’s improvinglivesdaily.com. I do have two YouTube channels there. I do put some fitness and nutritional tips out there as well as more like an improving lives daily website and my YouTube channel for that is just more inspirational, they just filled in sales planning. Something that can better your life, really, the whole premises behind that. I’m working on getting all that going as well. Facebook, Twitter, Instagram, it’s @coreypas is my handle there for that. Yeah.

[0:37:10.9] MF: Awesome. Thank you for sharing that and like I said, I’ve seen a lot of your post and different stuff and it’s impressive stuff.

[0:37:18.1] CP: Yeah, I thank you.

[0:37:21.3] MF: Cool, well Corey, thank you so much for being on the show, I really enjoy talking about your investing, how you’ve progressed and kind of seeing what your plans are and goals are for the future, congratulations on getting through a career switch, a divorce, living at home with your parents, that was quite a transition. Hopefully we can keep in touch and maybe we’ll check back and see how you’re doing in the future.

[0:37:44.6] CP: Yeah, awesome, thank you Mark, I appreciate that and yeah, looking forward to following you some more and keeping you updated. Thank you.

[0:37:53.2] MF: All right, thank you and yeah, have a great rest of the week.

[0:37:56.8] CP: All right, you as well. Take care.

[0:37:58.5] MF: All right, bye.


[ Inside Real Estate Investing ]
[ Inside Real Estate Investing ]