Mental Mistakes of Investors w Marco Santarelli

https://youtu.be/Agne9DbYCt8

0:00

This week I bring Marco back on the show from the router investments. They provide turnkey investments for their investors. He's going to talk a lot about mindset with it being still the beginning of the year and maybe some people's motivation been dwindling over the first few weeks or months I thought it'd be a good time to bring this show out of the archives and actually play it for you guys got a whole bunch of shows that are unreleased that in case I die someone needs to get a hold of my computer and release it into the world but this is a good one now talking to a lot of you guys investors and I still do free coaching calls and strategy calls for you guys you guys want to check that out? Go to simple passive cash flow comm slash contact all I asked is just listen to the first 10 or 20 podcasts and sign up for this passive cash flow we do pipeline club you can join there at simple passive cash flow calm slash club but if you're not making any movements really take a lot of information to heart free offer for this week is for a free signed copy of my best selling book. The one thing that changed Everything shoot me an email lean and simple passive cash flow and refer me to one of your friends by seeing seeing them all even send them a book make sure you include the mailing address in there and if you are more into the ebook version you can check it out at simple passive cash flow calm slash book and here's the show this is a story about a dude named Lane he moved to the mainland and bought one place to stay and then one day he went try to rent them

1:25

out and then he became one real investor

1:31

Hey simple passive cash flow listeners we got Marco center la we're gonna talk a little bit all mindset and what markets to invest in these days. How's

1:38

it going Marco? It's going great.

1:41

How are you land? It's another day in paradise here for those you guys don't know Marco was on the previous podcast but he runs Narada real estate he helps people find turnkeys definitely playing aggregator of turnkeys out there since you know like I've said before to you guys. It's hard to find these good turnkey operations because once a burger gets pretty good. They step up to bigger tasks and you as a turnkey buyer never see him again. So it's a constant cat and mouse game. Is that kind of right from your point of view, Marco, like finding these operators and working with them?

2:13

Yeah, what tends to happen is they either get big and they start to lose contact with their clients. And they don't become a personalized operation where you have that kind of that concierge service to Wall Street comes in and some of these big funds come in and they start buying all their inventory. So now they no longer care about the mom and pops the small investor and they start having to move 10 2030 4050 properties per month because that's the appetite that these funds are buying three and we've seen this happen from time to time, maybe at least once every two years is a company starts off on the right footing with the right inventory, and then they grow too fast for their own good and they start to fall apart. They start to lose contact and they start to lose and their grasp on managing their subcontract And their access to inventory. So they just become a problematic provider. And actually, I thought of a fourth what happens sometimes as well as the market dries up like we've seen this happen in Atlanta, Atlanta has been a great market still is a great market today. But what's happened is, is that there's so much investor competition there, and a drying up of supply that we just don't have access to the inventory we wants us to have. So it used to be a perennial market, and it's still a great market, but we just don't have access to inventory from the operators because the operators can get their hands on it. So that's what happens.

3:34

Yes. And here's some insight. We've got our simple passive cash flow Facebook secret group that you guys want access to that you gotta have a phone call with me. So I know you're not a weirdo. And hopefully now you don't mask yourself your weirdness so you can get in but, you know, people will say, Oh, hey, I've been working with so and so in Kansas City, and they're smart, they can search and the city turnkey, and they're like, Oh, I'm gonna work with these guys. And then they come crying to me because the turnkey provider makes some sense. This ridiculous waiver saying if the property doesn't appraise for 110%, they still got to go through the transaction. I'm like, Yeah, man, that's what happens when you go with cheap, easy free, you get old advice. And that advice may not be applicable anymore,

4:13

right? Exactly true. You have to know who you're working with. And you have to have a trust a certain level of trust in a relationship. And that doesn't happen overnight. That happens over time. And you build that relationship, you build that trust, you build your reputation, and it's important to work with reputable companies and reputable providers. Because at the end of the day, I'm not going to mention any names, but you probably know one or two right now that are in hot water, one being in a big class action lawsuit. And this was a high profile person, like a personality of sorts. So it's just important to work with the right team and have the right relationship and trust factor,

4:45

right, right. It's always nice to work with a group and there's another operator that we work with that sometimes it's hard to get administrative stuff done. So it's a nice where I can just send them an email. And also in the syndication side, we call this thing called operator creep, right? That's what I've kind of coined the term is like once the operator gets pretty good. Now their investor splits start getting more skewed toward the general partner side. And it's the time when I stop investing Personally, I mean, of course you'd like to work with experience operators but at some point is it not worth it anymore? So again, that term is operator creep. You can find it online or at simple passive cash flow. So the topic of today Marco is you're in 22 markets, what markets have kind of gone offline and and which are coming back or emerging?

5:27

Well, if what you mean by offline or markets that have faded into the background for various reasons, one of them we just talked about Atlanta, not that it's not a good market. It is a great market. But the biggest problem in Atlanta is lack of inventory. The second biggest problem is that because it's been growing and appreciating strongly for the last three, four years, we've seen cap rates drop and that means that your returns have dropped and that is not negative cash flow or anything like that. There's still good deals out there. It's just not as easy to find and we're seeing that happen around the country in different phases Jacksonville we've been in and out of in phases Phoenix, we've been in and out in phases, but you know, then you've got those perennial markets like Memphis to a large degree, Houston, Texas, Indianapolis for sure. The Greater Chicago market. These are big, big markets. So there's a lot of access to inventory. And we can provide good turnkey cash flowing rental properties in these markets because it works interesting in Southwest Florida, the Cape Coral Fort Myers area, way back in 2003 2004 2005. It was a hotbed of investor activity, a lot of it being speculative, but a lot of it also being buy and hold for cash flow, long term perspective, the right way to do things. There was no gambling going on with those investors. They survived. But the people that got caught with their shorts down, we're buying to flip point I'm trying to make is that being a very cyclical market, we were in that market, there was a lot of inventory. Then we had the great recession, a lot of foreclosures property values dropped, and it was just saturated with inventory. It didn't make sense anymore. So we left it then about two years ago, we went back into that Market why strong demand people are moving in population growth inventory dropped to the point where demand exceeded supply. And so here we are, again, history repeating itself. We have a market where the numbers are strong, the growth is their populations growing and everybody's happy. So when you talk about dry markets, it's not always a perpetually dry market. Cape Coral is an example that Fort Myers is an example that where it ebbs and flows goes through market cycles or real estate cycles. We're seeing that in Atlanta, we're seeing that in Kansas City right now, Kansas City has been a perennially great market for buy and hold and cash flow, but just in the last year or two, we've seen inventory levels drop and property values go up measurably above its long term average. This is a long answer to your short question. But the point is, is that you have to just be what I say the market agnostic you don't marry yourself to a market and this is why whether you live in Hawaii or Southern California or San Francisco or you know any other market where it doesn't make sense financially and or because of inventory reasons. You should not marry yourself to your local market, as many gurus tried to tell you.

8:01

Yeah, one thing that comes to mind as apartment syndication is like Dallas, Texas, right? A lot of people are like, oh, give me Dallas, Texas is the hottest market. I'm like, man that has been coming on the newsletter for last four or five years, you know, even Ken macker eyes had putting up videos right now, don't invest in Dallas, Texas, Becky, to your point, I want to point it out to people. It's not that it's a bad market. But if you're looking for deals that may or may not be there. So we're not downgrading a market because it's going downhill. But it's just as opportunity investors. That's just not the place to be looking.

8:33

Right? It's not the perfect storm, you need inventory. You need the numbers, you need the team, you need the timing. You need the right neighborhoods, you need everything to come together for you. Otherwise, if you're missing one or two of those pieces, guess what, we're in a big country. There's over 400 metropolitan areas, metropolitan statistical areas, so if you can't find it in your market or another market, keep looking, guess what you will find it because we are in a housing deficit right now and by a lot. Housing demand is very strong. So we need retail homes for sale and we need rentals. And if you're in the right market where it makes sense and you might have to go down to a tertiary type market, you might have to move away from those larger markets and you know, those well known premium secondary markets and look at a tertiary market. So what it doesn't have to be sexy, you're not investing to be flashy, or to show off your investing for what a rate of return you're investing for cash flow, if you have those things going on for you, guess what, you're creating wealth and you're creating passive income. And that's what you and I talked about all the time.

9:30

When I was getting my first few rentals, I found networking and local Rei club absolutely a waste of time. Most of the people you network with, especially in random networking events will not lead to anything. The running joke amongst sophisticated investors is that the local real estate club is the worst place for us passive investors to find peers because there's just a bunch of broke people. That's why people are seeking real estate advice to get unbroke hashtag BP for the same reason I'm turned off by the TEDx Grant Cardone followers because they are really a ninja disguise, no income, no job, no assets. And some cases they have a scarcity mindset motivated individual willing to step over whoever they need to they are not broke anymore. For more networking tips go to simple passive cash flow calm backslash people. Since 2016, I've given hundreds almost thousands of free calls my podcast listeners, and now you can chat with me but you gotta join the deal pipeline club. I do this to filter the right people into my circle. I'm always watching and taking notes. Tip I give freely and generously to those who reciprocate and exhibits generosity. Some people are givers and other takers. I've lost so much money on the table giving out free advice, contacts, and resources. This is the way I filter people who I want to work with in the future. Ultimately, I play the long game. The mastermind group To simple passive cash flow is a platform to find like minded, curated, not broke, people are jerks, and the best chance for busy adults to meet lifelong friends even when you have graduated from the program. For the price I'm offering for the networking alone, it's worth it. But way, by the way, you get 27 weeks of organized content and bi weekly semi private coaching calls to simple passive cash flow calm, backslash journey to learn more. So I think most newer investors I talked to, they just do this exercise where they put all the markets and they got all these spreadsheets and I tell them it's a complete waste of time just to go off of what other people have been and you trust the people. So with that said, What are one or two the markets they're easier? I'll use one of the stronger ones where a person should kind of start off at and then v one or two that are not going to hold you to it but kind of sleepers or maybe tertiary markets to be on the lookout for.

11:56

Well, whenever someone asks me that question, what are the markets or even the hot markets? The answer is it depends. It depends on how you're defining the best market because if you're an investor that is looking for a what I call it a boring market, you're only in it for keeping pace with inflation and getting cash flow. So just a solid cash flow market cash flow property, a market like Indianapolis, Indiana, Memphis, Tennessee, Oklahoma City, Birmingham or other Alabama markets like we're in Birmingham, Montgomery and Huntsville. I wouldn't call Huntsville necessarily a sleeper market anymore. It's starting to take off the Birmingham Montgomery for sure those are tried and true, very linear, very steady markets. You start looking at other markets that have a lot more growth potential. They're a little more cyclical in nature, but Jacksonville, Florida Dallas has been this way for the last two three years Kansas City has been this way for the last three years or so any tertiary markets that you kind of like notice kinda interesting. Well actually the outskirts of the Greater Chicago area which borders and crosses over. Northern Indiana is one area many parts of Wisconsin are becoming a strong growth markets. And a lot of people are not even aware of that. That's a market that we're I'm working on right now. And I'm looking to open up here, hopefully in the near future.

13:12

So what about three cities in Ohio,

13:16

Cincinnati and Toledo? Well to lead this is the rust belt. So any kind of growth happening in the rust belt is spotty at best, they're really just pockets. And that doesn't mean that there is a growth going on there there is especially with manufacturing starting to ramp up now in a lot of parts of the rust belt. So you're going to see that growth in the years to come, it might be an area that start looking at, and I'm actually just starting to look at those again, I like to say again for the first time, but I'm looking at those markets. And I'm starting to see again, that growth trend happening in some of those areas. But in the past, Cincinnati and Cleveland have been very stable, predictable, boring type markets that are just cheap properties in terms of the per unit per door basis. You go in you get a really good rate of return and you don't really expect appreciate You're just going to keep up with inflation. And that's really what you got. But now we're starting to see that trend change a little bit, though, in terms of cash flow. I don't care about appreciation. I just want stability and cash flow because it's my first turnkey rental and I just want that big buffer in there. What would you say your top two are? Okay, I'm gonna give you a two part answer on this one. My favorite two markets right now would probably be the Greater Houston Metro for many reasons. I just love that market. There's a lot going on, and it's just a very resilient market. And second one for cash flow probably would still be a toss up between Birmingham and Memphis. Now, I want to also attach to that answer the fact that it's not just the market that you need to be looking at. It goes hand in hand with the neighborhood, I can show you one market and two properties in that market, one being in a, let's say, an eight or a minus type neighborhood and have probably decent growth potential but the numbers aren't going to be as sexy or attractive versus properties in the C Class C plus neighborhood you know in that market. And they're going to look very attractive, definitely on paper and probably in real life because you you don't know what to expect. And you know, when you go down into lower grade type neighborhoods, but we're talking about the same market, just different areas within that market. So the point is, is you do want to start with the market and then focus on the best neighborhoods within that market that are going to give you the rates of return that you're looking for as an investor to make the right decision for you and your investment goals. So when I say Birmingham, Memphis, Houston, gray markets, growth, stability, inventory, cash flow, we have the right teams built there. So you've kind of built up everything you need to make a logical, prudent, objective investment decision for those types of markets. It's really hard to narrow down the one because like, ask someone who's got a bunch of children, you know, who's your favorite kid, right? You love them all, but for different reasons. So my answers can change in a week,

15:50

but Right, right, and I think

15:52

for the podcast listener out there, whose heads spinning right now not focusing on the statistics and pick a couple markets, and just Who you gel with whether it's property managers, brokers, or I mean, this is where the pitch was, hey man just joined the mastermind, you get all these other 40 other people, they're buying properties right there with you and they're unbiased. They don't have a dog in the fight. So you just co invest, you know, invest, you don't partner up with people, but you build relationships. And this is how passive investors should do it, in my opinion.

16:21

Yeah. And forget that drivability factor. You know, the so called gurus out there saying that you should only quote unquote, invest within a one or two hour radius of where you live is misguided information, in fact, in many cases is really bad information. I'm not sure what city you live in. But I can't imagine that you have a lot of cheap or affordable neighborhoods or areas in parts of Hawaii that make a whole lot of sense in terms of investing. You know, I related to Northern California, it's just it's gotten so expensive and rents haven't scaled as fast as the appreciation in price. So when you have that delta growing over time between rents and property values, When you get into that market and you start acquiring rentals, you just don't have the returns that you need to make it a logical or permanent investment. Yeah, I think

17:08

that the house flipping gurus are just trying to trick us to invest in their students junk flip deals. And that's, that's my theory. Sometimes they're selling,

17:17

you know, a very expensive paid programs coaching online courses and mentoring, a lot of times they're looking to raise capital. It's not i'm not saying it's good or bad, but they're looking to enlist a certain percentage of their students as partners, Capital Partners, or, or bird dogs to find deals within the markets that they want to be. And again, none of that is good or bad. It is what it is, but you just need to be aware that you may be chasing after a unicorn, you know, something that's not there.

17:43

Right, right. And in my opinion, if your net worth is not a million dollars, you have no business being a debt investor, you need to go after equity and you need to be acquiring your own assets. That's just me. What do I know?

17:53

No, I think you know, a lot, but that's good. Everyone's got an opinion. So one random question I have here, so I'm getting a lot of like Canadian I know you work with a lot of them didn't get to set up any kind of weird entity or structure to go acquire some of this stuff. That's a tax related question. I don't have a final definitive answer to it. I do know that I've heard from Canadian clients that what they do is they set up a limited company, Ltd, just like in Great Britain and in Australia. So from a tax perspective, I don't really know how to answer the question, but I do know this much that they don't, or at least they're advised not to buy cross border CPAs not to set up an LLC in the US and be a direct member owner of that LLC. They have to set up a state and entity that gives them the ability to flow the capital and not be overtaxed in that process text Right, right. So I believe what they're setting up in us is a just a title holding LLC, that is a pass through entity and the member of that LLC happens to be their entity in Canada. And that's the part I don't remember I used to know with the type of structure they had in Canada, but we actually have one or two cross border CPA is that we refer to Canadian clients, Canadian investors that are working with us so they can get the right information and set up whatever they need to set up for that purpose. Yeah,

19:10

if you could shoot it over to me when you get a chance, the second part of the interview here, so I talked to a lot of investors and I think Marco talks even more than me that are newer investors and kind of want to get a conversation going on, what are some of the BS things you hear from newer investors that are shooting themselves out of the deal? So maybe if you're listening, if these things kind of reflect on you, you can kind of do a gut check. And I know what happens to me. I mean, sometimes I'll start I'll have a bad feeling about the audience. And I'll just start looking for things that are wrong, but then try to get more towards the numbers. Right. And how is this compared to the other deals I've seen?

19:45

Well, the first thing that happens with a lot of people is just sheer ignorance. I don't mean that in a disrespectful way is that they don't you don't know what you don't know. And there are a lot of investors out there. They don't realize that they can invest in other markets. In fact, you could literally no almost anywhere in the world, but within the context of the United States, there are hundreds of markets you can invest in. So just knowing that should tell you that there are a lot of opportunities out there available to you, you just need to have either the right guidance or right mentor or right team to work with. So the whole thing about ignorance, it's not that it's bliss, it's expensive. Second is pure fear. You know, when you unfamiliar with something, and it's new and you don't know what the next step is, or what to do, or how to tackle a problem, even if it's for your own benefit, meaning growing a portfolio and having passive income and creating wealth, and it's everything that is feeding your benefits and your and achieving your goals. If you don't know how to do that, and it looks like a monumental task and a big mystery, then you have this element of fear and you can easily talk yourself out of fear. The acronym for fear is false evidence appearing real and that's probably the biggest hurdle for a lot of people just fear when I see that appearing, as people always ask, Oh, do I need to put this in an LLC, right? So I don't want to get sued. And when a caveat you both us are not lawyers, we're not giving out legal advice, but it's like, come on, man. your net worth is like $30,000. Nobody wants to sue you. What are you freaking out about? Yeah, I mean, you may or may not need an LLC. But I just see that when people ask that question, I see it coming from a place of scarcity, and they're just afraid. And they're just giving an excuse not to do anything or wait six months till somebody gives them an answer for it. A lot of times, they're just trying to poke holes in something that they can't poke holes into. And so they're trying to talk themselves out of it by finding a reason or an excuse not to invest. The thing is, is if you're focused on asset protection, or setting up an LLC, and where and how and all that kind of stuff, guess what, there are professionals to do that for you. So you don't even need to think about it just hired a professional for a few hundred dollars. They'll not only give you counsel and advice, but they'll set it up for you. And second, you're focused on the wrong thing. You're focused on the minutia, and the thing that is not moving the needle, you should be focused on the deal. Don't worry about setting up LLC until you found an investment if you don't have an investment, why are you worried about an entity to put something in that you don't have yet? So people do this all the time, and especially analytical people, they overanalyze things to the point where they start to see a world with so much detail in my new show that it just clouds their entire judgment and secures them for making sound decisions on making an investment on making on taking the next step and getting to where they want to be. So don't do that to yourself. That's terrible,

22:28

right when I was on your podcast we talked about and what's some advice and I'm like passive investing shouldn't take more than a few hours a week, and I shouldn't. But if you're worrying about all this minutia, and you're not doing anything, it's going to take a lot more than a few hours a week, and likely you're not spending your time on the important things, which again, we said earlier is building relationships with other passive investors and building relationships with the people on the ground,

22:50

right? I mean, the bottom line of what you're saying is spend your time on moving the needle and achieving your goals. And if you need help recognize that tell yourself Hey, I don't I don't know the Answer this question, I'm going to get help for it. I don't know if we're talking about the same thing here, but I just like to simplify things. I want to break it down into essential elements and then ask myself the question, What do I need to do to achieve x? And that's it. It's all about execution and if you don't know how to do it call lane called Marco call somebody call, you know, get some help.

23:17

So I recently wrote this article, simple passive cash flow calm slash wall. And it's this theory I have that people the reason why they start listening to your podcast, my podcast is in the first three to six, you know, there's some kind of pain, whether they had a bad day at work, somebody died around them some life altering event, and in three to six months, there's this window where the world has been shaken and they're searching for an answer. They're literally going on Google's find out how there can be financially independent, how do they can pick apart turnkey rental, whatever. And unfortunately, as humans, we're very resilient. And after that three to six month window, we heal over and go back to the status quo. Anything you can add to that or anything you've seen for so many investors that haven't been And found success and others who have not done anything and suppose the failed, right, that's a failure?

24:05

That's a good question. The two things that come to mind is I find people accomplish a lot more when they start to educate themselves. There's something that happens with your level of competence when you educate yourself, but what does that give you? That increases your level of confidence because when you know what you don't know, it creates fear holds you back, you start to think that I need to know those things that I'm aware, I don't know, in order for me to move forward and take action. And hopefully that made sense to everybody.

24:32

Know, like, what I'm hearing there, here, the four stages of learning that the first stage is exactly what you described, you find out you don't know anything when the first stage is you don't know what you don't know.

24:43

Right? The second biggest piece of the pie

24:45

Yeah, the second stage is what you were referring to, which is you know, that you don't know jack.

24:50

Well, I'm looking at a three stages you don't know what you don't know. And then you know what you don't know you know, what's there but you don't know how to do it. And then there's the smallest slice of that pie is you know what you You know, and where people get tripped up is they feel that they don't know enough, they don't have enough confidence and so they have no confidence to move forward. And the solution, the cure is to build your level of knowledge and competence, because then you will naturally have the confidence to move forward. So that's why I made that my first rule of my 10 rules of successful real estate investing is because it all starts with investing in yourself not in property. When you invest in yourself, you build your knowledge, you set the stage for everything else that comes right after that, which happens to lead to number two, my 10 rules and that is set yourself investment goals. You need to identify what is your objective, make that your goal and then break that down into steps, actionable steps, that becomes your roadmap, when you have that. I mean, you can fool yourself and just create a checklist and if you create a checklist and you've got called CPA, do this do that call and call mark. I mean, you break it down into like, you could reduce it to the ridiculous but you literally create a checklist that's actionable. Every little thing is actionable. It's what when you start taking that you're not Not only building up momentum, you're building up your confidence, you've taken the courage to do it. And next thing you know, as you look back days and weeks and months into the past, you realize holy jumping, I created all this activity and identified my first property or bought my first property or my next property. And so this is nothing new. This is stuff that works. It's proven time time time again for decades, if not hundreds of years that it works. You could call it fooling yourself, but you're not. It's really just applying psychology and motivation techniques that happen to your psyche,

26:28

right? successful people have a good job of tricking themselves into doing the right thing.

26:33

Yeah, it's just being clear and focused. If you're clear and focused, you can't help but to want to pursue the path that you see as being beneficial to you and avoiding pain down the road like Oh, crap, I'm near retirement, I don't have enough income to support myself. And when you think about it in terms of pain, sometimes that becomes a more a greater motivator than then thinking about it in terms of what pleasure Am I going to drive now or in the near future,

26:57

going back to your suggestion of writing it all down? I mean, Maybe even put in instead of putting all the tasks just put January, March, April, May, June or week one, week two, week, four, week five, just do one thing in each of those slots, but get it done. I mean, there's actually nothing like figuring out what your goal is to try and buy a turnkey rental man, it shouldn't take you much more than a four or five month period. I mean, it's a turnkey rental. Right? I could write a book. It's one page, right? Go. Take your rental. Of course, that's not as easy as that. But I mean, you certainly shouldn't take you a year to do

27:28

No, absolutely not the only reason it would take years because you've held yourself back or you just don't have the capital or the credit today. But if you don't work on it, and if you want to move it forward faster, find yourself a partner to get going or get started. You can split the capital and go partners on a on a deal that really don't make excuses. look for solutions. And when it comes to goal setting, you can break that down into a five year five year plan like goal, three year one year, break the linear two quarters, break the quarters in two months and then break those into weeks. And as you go down your Actually just getting more granular, there's smaller tasks, smaller steps, but each one of those stack on top of each other and lead to the larger and larger objectives and goals that you've laid out. So you want to have the big picture objective and break it down into small steps. And that's how you walk a journey of 1000 miles, you take one step at a time, right?

28:18

As I'm here, you're saying that I'm kind of working on some newer projects and that I'm very unsure of different from apartments and different from mobile home parks, but you know, I'm just partnering with other people, and then hopefully, we can kind of trick each other and to keep moving forward. Right? The Secret right, it's all about tricking yourself doing the right thing. Anything other that you've kind of seen that you want to warn people about that maybe that they're doing that's coming off the top of your head there, Michael, you know,

28:43

some people think that Yeah, we've had a good run in real estate, maybe it's too late. I should wait for the next crash. I don't buy into that I am of the believer because I'm market agnostic. And you know, our company is market agnostic. There are always opportunities out there and if you find a good market, where A good deal. And it's an area neighborhood that has a constant tenant demand. In other words, it's a desirable area and always has been and will continue to be. So then there's always opportunity to invest in real estate because you got to remember you're investing for cash flow, cash flow is king. And when you have cash flow on your deal, think of it as the glue that holds your deal together. So what happens is you have income coming in every month and every year you whether through real estate cycles and economic cycles, because you've got a property that holds itself together carries itself and what happens over time is your equity grows from the amortization to the loan plus appreciation over time. And that's the smart way to invest. So it's not about the time of year or what year or where we are in an economic cycle. It has to do with the fact that real estate is a local phenomenon. It's a local investment and to we always have a need for housing, we all need a roof over a head so people need a place to live as long as you're in a market where there's stability and jobs and ideally job growth. You have all the cards stacked in your favor. So there should be never an excuse that the timing is wrong. No, it's not about the timing as much as it is about the location because the location and timing or function of each other. So I think it's always

30:12

a good time to invest. Right? I totally agree with you. I'll add on to that. If your network is under a million million a half, you have no business not really investing. I mean, yeah, if you're, if your net worth is 2 million above, yeah, you can just go into some of these some note funds and just cash flow and be fine. But if you're under that threshold, you need to be in the game man. Like you can't be sitting on your high horse. Because it's funny that people would that say that on that. I'm just going to wait for the next one. And you ask them, What do you own and you find out they don't want jack. You're the very one who should be trying to learn how to do this now, because time is the most important thing. But as you said, it's cash flow, right? That's how we had yourselves cash flow.

30:50

Yeah, it's what keeps everything together and keeps things moving forward. And that grows over time, set your base and that cash will grow over time.

30:58

Yeah, so what I'll do is I'll put your I know you got your past investing guide I'll put that up on my website for people to download you guys can check that out at the simple passive cash flow just type in Marco and it'll probably pop up but you want to get your contact information out there Marco for you to get ahold of you want to chat

31:13

yeah well everything that anyone would need is on two websites no rata real estate and o ra da no rata real estate com the user wants remembers passive real estate investing calm and that's also the home of our podcasts so passive real estate investing calm

31:28

all right Michael appreciate you coming on.

31:30

Thank you lanes been fun. I like to letter

31:36

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