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    Behind the Shine 3/15/24

    This week we experienced the perfect fusion between my mastermind group, Spartan League and my agent team, The David Greene Team. Kyle Renke, a lead DGT agent and COO of SL, found a killer off-market deal and presented it to the members of Spartan League. Raven Starr, a SL member and one of my Mentees, jumped at the opportunity to add this Boutique Hotel to her thriving Short-Term Rental portfolio. Kyle negotiated creative financing terms that favored both the buyer and seller, getting the deal done and ensuring everyone walked away from closing a winner.

    Raven is known for her ability to craft unforgettable vacation rental experiences, and her business is nothing short of remarkable. Since joining the Spartan League, Raven’s growth has been amazing to watch, marked by her fearless approach to risk-taking, proactive expansion of her network, and bold self-promotion. While she was already achieving success upon joining, over the past year, we’ve witnessed her continuous refinement of her skillset, all the while empowering those around her in the process.

    To learn more about creative deals and off-market properties, follow Kyle on Instagram!

    Register here for my next FREE webinar.

    I just got back from speaking at Keller Williams Family Reunion event where I trained lots of agents, learned more about the struggles agents are facing in today’s market, and came back more committed than ever to providing agent training. The timing was perfect with my first accelerator course for agents beginning right after I came back.

    We started Week 0 with everyone taking their DISC profile and learning about their personality styles, and discussing how to use those strengths and weaknesses to their advantage in their agent businesses. Our students also received training in confidently negotiating with other agents and using the “Likeability/Firmness” walls to negotiate for their clients. After our first week (orientation) one of our students, Lisa, was able to secure a listing against more experienced agents using a single piece of advice we provided on the first call. While Lisa is definitely a smart agent who presented herself well, she credited the strategy we use on the David Greene Team to save our sellers money during escrow as to why the seller chose her over the agents. Lisa has already 15x’d her return on the course, and it hasn’t even started yet. Here’s to many more escrows to come!🏆

    Based on ever-present inflation, shortage in the housing supply, and fears we are near the top of the market, I’m currently focusing on:

    -Buying in well established, more affluent neighborhoods

    -Borrowing as much healthy debt as possible

    -Improving the condition and design of my current STR’s

    Here’s why:

    When a market softens, the best properties are affected the least. This leads me to buying in the best areas when a market is strong, and buying less desirable properties after a crash/dip. This flies in the face of the feeling that lower price points represent less risk. This rarely turns out to be the case.

    As inflation ramps up (I predicted this over a year ago on the BP podcast) owing money at interest rates less than inflation makes debt an asset.  I’m currently looking for those who want to improve the performance of their STR and off load the management. Email us at STR@DavidGreene24.com if you’d like more information

    It’s so common to chase cash flow. There’s nothing wrong with wanting it-it’s just not as reliable or easy to achieve as growing equity. My two cents: Chase equity. Build it up over time, take what the market gives you, then convert that equity into cash flow later. You can use tools like a 1031 Like-Kind exchange, cash out refinance, or HELOC to do this efficiently. 

    My next book, “Better Than Cash Flow,” will highlight the ten ways we make money in RE. These ten categories can be divided into four main topics-appreciation, cash flow, tax savings, and loan pay down.

    The appreciation category is divided into four main ways.

    1. Buying equity
    2. Natural equity
    3. Forced equity
    4. Market appreciation equity
    • Buying equity is accomplished through paying under market value for RE (Do we mean buying under market value?). This allows you to walk into equity the minute you take title to a property.
    • Natural equity occurs when economic policy leads to monetary inflation. This inflation makes RE assets increase in value. Buying property at the right time in the economic cycle will put you in a position to benefit from natural equity.
    • Forced equity is the act of adding value to a property to make it more valuable. This is accomplished in two primary ways-making it bigger or making it better. Cosmetic improvements, adding square footage, including amenities, and increasing the After Repair Value of a property all force equity.
    • Market appreciation equity occurs when a specific area appreciations more than the national average. This occurs when a city/state/region experiences increasing demand with constricted supply. RE investors can take advantage of this by buying in locations where the population is expected to increase, wages are expected to rise, and supply is likely to stay constant.

    Understanding these four components will allow you to make better decisions in your RE portfolio, scale faster and bigger, and grow equity to be moved into superior asset classes sooner. Keep an eye out for Better Than Cash Flow’s release this August!

    Conventional: 7.375%

    VA: 6.625%

    FHA: 6.490%

    DSCR: 7.625%

    If you’re in the market for a loan and need assistance, our team at The One Brokerage is here to help. ​Visit our website here​ to explore our loan options and find the right financing solution for your real estate goals and email us at intake@theonebrokerage.com to speak to one of our loan officers.

    Growing a Portfolio in 2024-Todays’ Challenges and How to Overcome Them With David Greene

    If you found value in Behind The Shine this week, maybe under “Strategy of the Week,” “What I’m Writing,” “YouTube Comment of the Week” or that incredible story from Kyle about the Camino Hotel, you’ll find WAY MORE VALUE in my next FREE WEBINAR. This one’s about the number of challenges investors face in this market, and how to overcome them to continue seeing growth in your portfolio. Grab your friends and meet me on April 10th.

    Thanks for reading this week’s Behind the Shine. I’ll see you next week! In the meantime, remember you can find me on Instagram and YouTube @DavidGreene24. And, you can always email me at David@DavidGreene24.com. <<< THIS IS MY NEW EMAIL ADDRESS, MAKE SURE YOU DISCARD MY OLD ONE.

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