[00:00:00] Kristen: Welcome to this week’s edition of Insider Secrets. The show that turns multifamily investing into reality. Each show we interview guests who are seasoned professionals, actively closing and managing real estate deals. Your host Mike Morawski has more than 30 years of multifamily, real estate investing and property management expense.

Mike is the founder of My Core Intentions. And he’s been involved in over $285 million of transactions. Focuses on helping you create short term cashflow and long-term wealth. Here’s your host, Mike.

Mike: Good afternoon, everybody. And welcome. This is Mike with this week’s Insider Secrets Podcast brought to you by My Core Intentions. And you know what I [00:01:00] ask you this every week, right? And we talk about this all the time, but what’s your intentions. Did you get up this morning and take that extra five or 10 minutes and plan your day plan, your intentions, what you want to do accomplish today?

Was it to find another investment? Was it to find another broker to work with? What were your intentions and bigger question than that is what’s your. Why are you doing this? Why are you so involved in the real estate business or want to get in the real estate business? Here’s what I want to suggest if you’re not real clear on it, my core intentions invests in their client’s future in our client’s future.

And we have a couple of educational programs and training plans. Three different coaching programs. And what I want to do is I want to help you and empower you. And if you’re questioning it and wondering what direction to go in, what, go to my website, sign up for free coaching call and we’ll take an hour and we’ll get you on a right path.

How’s that? So before we belabor [00:02:00] that today, we’re going to get started with our show and I am really excited about today. I’m joined by my friend and long time real estate investor and coach Lisa Phillips. Lisa is the founder of affordable real estate investments, where she turns black professionals into rental property owners and help them to achieve financial freedom.

She does this by helping them create a passive income rental property portfolio. She helps them set up generational. And helps them connect to their higher calling, empowering those investors to make the world a better place. While Lisa, I am really impressed with your book. And not to mention what a tall order, just to help people respond to their higher calling and make the world a better place.

I always say here’s what I like to do. I like to be with people and interview people that do more than me, have a better calling than me and are smarter [00:03:00] than me. So I’m glad you’re here today. Lisa, what I’d like you to do is I’d like you to say hi to our listeners. Hello family. Great. Great. And so tell us in one word.

You about yourself and your investment strategy practical. That’s a good one. That’s one. I actually haven’t heard. So I’ve done a number of these broadcasts and that’s really one that I haven’t heard. That’s interesting. So talk about that a little bit. What’s practical.

Lisa: What’s practical about it is that it really does flip a lot of the common rhetoric about investing on its head.

And when you flip it on its head, you actually have investing strategies that work for the normal person, the 99% of us. And so you actually get to use ideas and getting started in a game without having such a high capital overhead, or have to over leverage yourself a lot for your good. Investment.

And so I say it’s practical because you can start at a very modest rate at a very modest price. Get in [00:04:00] no gimmicks. It’s just, you have to shift your thinking to different types of neighborhoods, different price ranges. So there’s nothing I’m saying that is amazingly out of this world, but you had to really go against the common advice out there in order to get to it.

And sometimes it’s not always easy for people to throw up. What all the, so quote unquote experts are telling them and to look at something, they tell them that isn’t a good investment and take a risk on that. And I did that and found out it’s not as risky as you think. And I think one of the biggest lessons is it’s okay to go against the grain because if you do what everyone else is doing, you’re not going to get exceptional.

Mike: Boy, that’s it. That’s such a good philosophy, if everybody’s going north, south for a little bit and figure it out.

Lisa: And that’s my whole life. So it’s no wonder I ended up here because that was just the nature of my spirit.

Mike: Sure. Good for you. So listen, tell us how you got involved in this.

Talk to tell us a little bit about your backstory, who you are, where you came from.

Lisa: I’m from Las Vegas, graduated with an [00:05:00] electrical engineering degree, always loved houses. Back in the nineties and 2000 HGTV was big and everyone in the whole world has a love affair with, the security of having their own home and a beautiful home at that.

Everyone is intrigued with, and I am no doubt. Now I made a few mistakes being young and not having a network of experienced people to bounce off of. So I always tell people to follow their gut and intuition. And the funny thing is my gut intuition told me to buy a very expensive house right out of college that I shouldn’t have purchased.

It was way too expensive. Knowing what I know now it’s laughable like completely laughable. And I thought I was so smart. I’m the one good with that? I wasn’t good with the reality of what investing was, good with numbers. But if you don’t have experience, it doesn’t matter how good you are.

It’s a whole other ball thing game, and there’s a lot of different information you need to juggle that. I just clearly didn’t have. So I bought a house that was like $200,000 over price in 2006 in Las [00:06:00] Vegas. And it’s okay that this happened and I lost it to foreclosure when I lost when I had gotten laid off from my jobs.

And you would look at that. And I remember at the time that a lot of people were losing their houses to foreclosure, so I will set it and feel bad. Cause I was like, okay, big, good company. This was 2009. Everybody was losing their house to foreclosure and it feel shamed or embarrassed. Now I will tell you, in general, Lisa generally doesn’t feel shamed or embarrassed because I’m just one of those people who naturally I’m like, there’s nothing I’m going through someone else’s house.

It’s not just me, so I just don’t really feel it. And so even then when thousands of people were losing their jobs and their houses and sleeping in tents, I was like, I’m right there with you folks. And the old, the, one of the things that I will help motivate me through that time to not be so sad was that I was 28.

29 at the time. And I was like, okay, I’ll wait seven years. So for me, I figured my youth played into my favor. Like I can wait seven years. And then even if at 38 and 39, I bought my [00:07:00] first property. I’m still doing better than, a lot of other people. So I was okay with that delay to learn the game which I did and gaining experience.

But what happened was I was in Ohio at the time and that’s what I realized. There were houses that cost $10,000. Being from the west coast that does not exist to you or in your world. And so that’s what I learned about the south and the Midwest. And so through that learning process of going into lower income, lower price, range houses, and my own background being a wa I grew up lower income working class.

Both parents worked w got up at either worked the graveyard shift, swing shift. Or got up at four o’clock in the morning. So I come from a working family and that was my whole neighborhood and that was the culture in my life. So I knew what I was looking in these neighborhoods that costs a lot. Yeah. I knew that people who thought they were so horrible, probably just didn’t have any experience and didn’t know what they were talking about.

So I just use my background and experience to go there. Not [00:08:00] every low income does not mean gunshots. Okay. Low-income can mean that, that it can also mean your mom and dad’s a mechanic and one works at the local auto zone and you’re fine. Like you have more brothers and sisters and you go to. And so I instinctively saw when I saw the rhetoric saying, don’t go in these low income neighborhoods.

I instinctively knew they just didn’t have an experience. And they only saw one aspect of it, not the whole story. I grew up in the whole story. So I was like, no easy. Okay. So it was easy for me to go and navigate through that. And then just find property for $13,000 property for $25,000 and notice the similarities and how to navigate it.

And that sort of started this whole platform because when I started saying it, there were other people like. Or I can start modestly. I want to start in real estate investing, but I don’t want to start with $50,000 because for, people in my community and the reason I say I work with black professionals because I, we have to talk about the fact that there isn’t generational wealth.

So I only have 10,000 that I saved. I cannot ask my people. [00:09:00] For a 20, 30, $40,000 loan in my social group and circle of influence all college educated, but we’re first generation and we have bills and we have this that we’re paying, getting paid less, more likely. What it means is that I can’t raise a hundred thousand dollars like that.

Not, not like that, not with my closest. Sure of course now I built a big platform that’s across the country, even across, I get a few people from Canada, Mexico, too. I can do that. But as a regular person who’s around who wants to get involved, a lot of the advices geared towards people with a lot more wealth.

And so I was just like, look, that’s not me. And I have no shame and no embarrassment about my work. Class lower income background. I’ve no shame or embarrassment that I only have 10, $15,000. I’m not going to feel ashamed of that, but you know what, we can go in these neighborhoods. And so it just turned that most of the people who resonate it looked and were like, and they were like, I get what you’re saying. Cause that was my lived experience. And this is a more comfortable place to start [00:10:00] investing with a $10,000 investment. Not 50.

Mike: Let me ask you a question. So let’s back up for a minute and say that you were going into the market today as a new investor. And instead of buying that house for that you bought last time, what would you buy this time

Lisa: for personal or for investors?

Okay. Even then what I’ve learned from investing. I actually on my platform, I tell them, buy your first property that you’re going to live in. Like it’s an investment. So I actually did it here. So I found a neighborhood. It’s all my notes. It’s actually mixed, mostly minority, but it’s actually mixed because of where I live.

It is a hundred thousand dollars less than what they said I could afford. I checked to make sure the rents were more than what my mortgage would be if I ever had to move in. And that there was possible appreciation, potential strategically located and less center of a tri like the Hampton roads region that can get to places.

So even then [00:11:00] I bought less, I made sure the rents could cover it if I had to move. And those two things alone and other factors you need to think about. Is like a great way to buy my personal, not something I did. Whereas before I purchased something where one whole mortgage payment was like a little bit more than one paycheck, you only get two.

So so that was the exact opposite I did as much as they said, I could have. I went for it and it’s, and so that, that’s a key difference. And I learned that through my investing. So I purchased my primaries like that.

Mike: That’s really interesting. I don’t think that most people would say, Hey, if I can spend two 50, I’m going to spend two 50.

I wouldn’t say I’m going to spend one 50. Okay. And, I think that’s, there’s a group. A thought process behind that, that if we can teach people how to do that, just that one thing, then people don’t get stretched. Look at the debt, right? Credit card debt house. That car debt is because people try to upgrade.

They try to stay with the Joneses,

Lisa: stay with the [00:12:00] Joneses. Oh, the Phillips’s all right. I will not steer you wrong. I will not. It’s gotta be a little bit more modest. It’s not going to be flashy, but trust your bank account will think everyone, your other assets will. Thank you. You are so correct.

Mike: Invest the rest. So spend a hundred thousand dollars less and take that a hundred thousand and buy another investment property. Now, look, now what you’ve done is you’ve really added to your personal wealth, your poor personal portfolio. I like the thing you talk about the generational wealth, right?

How do you create that generational wealth? That’s one stepping stone to be able to do that.

Lisa: Where the star, I like to tell my audience, listen. It’s going to be a new day and age, but we’re going to be the start of a new day and age in this country. Like we’re going to start. So yeah, the house might’ve been $50,000, but who knows how much it’s going to be worth 20 years from now or how I can tap into the equity, which might give me bigger opportunities.

So I would love for 20 years from now, and we’re actually getting there where I [00:13:00] am, the friend, you can borrow 50, 60, 70, $80,000 from, but for us, we’re laying the groundwork for that.

Mike: Sure. What do you like today? Investment wise, do you like residential? Do you like multifamily?

What’s you know, what asset class do you like personally? And what do what are you seeing your clients like more? I

Lisa: liked the ball. I liked the ball, so I don’t do multifamily, but w tons of respect heading in that direction. But my clients are just working are professional people. They make anywhere from 60,000 a year to a hundred thousand a year, they live in New York or California.

It’s like 150,000 a year because cost of living is crazy. So they’re working professionals and all of them for the most part, some are like, I just want seven. I’m about to retire. And I have a hundred thousand dollars in my 401k. That is not enough for me to live. But if I can take a little bit of that and buy a portfolio, I’m more secure at that.

Others are like, Hey, I live in New York city. Let me get two duplexes or triplexes, really get that source of income coming in. [00:14:00] So because they are just like normal working people who have to save up their money for each round of this, that we can’t borrow, or we’re not crowdsourcing, we’re generally in the single family or multi-families under four units.

For the people that I work with. So I will always say we’re just more modest. I was talking to another real estate investing coach and he had a blog article on bigger pockets, which is a major forum. And it was like, you only need 10 houses. And he got pushed back for it because it was modest.

It wasn’t like, no, I have to go to 180 units. I have to get 200 units. And there are, there’s definitely a place for wanting to go there. Yeah. But there’s also a place for let’s talk to the 80% of people who just want enough cash flow, where if they lost their job, they’re okay. And that’s just a conversation that wasn’t has having I maybe I’m not so politically incorrect.

So I’m like, maybe it was like the testosterone, right? Like it’s no, we have to go bigger. We have to compete. We have to compete. And that’s all we were seeing. But it’s there’s a different balance to that. Like just enough to survive is the most rewarding. I I tell people [00:15:00] I was making about 2200 in cashflow a month.

I felt wealthy. I can control my own time. I didn’t have to work anymore. I want it to, it covered all my bills. I could still travel and do everything I wanted. Yeah. So I’m not rich making that much in cashflow, but what, with what I was making and the extra work I put into it. I had control and freedom.

So you can say whatever you want to be like, how much your number is, but for some of us, it’s two or 3000 and that’s enough for us to do what we really are here to do, take the time. And that’s literally how I was able to go so deep into my spiritual practice and find my purpose because I did have 2200 a month and I didn’t have to rush out and get a new job when I got laid off.

I was able to take my time. So freedom and wealth.

Mike: Bigger’s not always right. A lot of that philosophy around just having 10 it’s simple, you can simplify your life. I’ll never forget when I became a brand new investor and I went to an investor club meeting and this was a meeting that happened in the Chicago market.

One time. 500 [00:16:00] people. I sit down the first night I go to this meeting and I sit down next to a gentleman and we get talking. He tells me he owns 200 single family homes.

Lisa: Oh, that’s sounds like a lot of

Mike: work. Wow. Boy, I’d like to get to that point. But as my investment portfolio grew. I noticed how distracting it is and how time consuming it is.

And the one thing I like to teach people today is how to live a balanced lifestyle, because there’s more, there’s a lot to be said for owning 10 houses, having a cashflow that helps support a lifestyle where you’re spending more time with family and taking care of

Lisa: yourself, less stress, more control, more freedom for it to do what you want to do.

Mike: As fun as this business can be. And as much as you can accomplish as a result of real estate investing, there’s a lot to be said for taking it a little bit slower and more methodically. Now what I’d like to have is I don’t think there’s anything wrong with having [00:17:00] 10, four units. Yeah.

Lisa: So

Mike: you sit up, so listen, you have a rule that you like to adhere to.

It’s a 2% rule. Why don’t you talk about that a little bit for

Lisa: us. Yeah. And I was just talking to my client about it cause she was saying some properties for 30,000, 25,000 and the rents were a little low and I was like, look, we gotta at least hit the 2%. So 30,000 we had to at least be seeing 600.

Yeah. A month, to make it worthwhile. If you guys are aware, the 2% rule is that you take to the total cost of purchasing, renovating a property and getting it rental ready. And you want your monthly rents to be 2% of that. The easiest one is to say, if you buy a hundred thousand dollar house, you get $2,000 a month in rent.

Now let me tell you that it’s not that’s not always possible outside of the price range, but in our price range, it is possible. So let’s talk about

Mike: your price range a little bit. And because I’m in the Chicago market and to get a 2%, if we get one. [00:18:00] We’re real happy at 1%. Generally, but I think it’s all market driven.

So talk about your market and how do you choose a market to go into

Lisa: it is so let’s. So what we have to be cleared, the diff the markets are different. So when I start talking to people who I might have an investor who’s in the south, I may have an investor in the Midwest, the one in New York city, the Northeast is going to have more cashflow because for that $40,000 property. They’re going to be higher rents, right? You live in an urban city, you live in a Philadelphia, right? The rents are higher in urban, more populated areas. You go to the Midwest, the rents are going to be lower for that same house.

Now the quality of the house might be a more decent shape and the neighborhood might not be as distressed. And then if you go to the south, you have the reality that it will be that much rinse may or may not be low. But it generally is any better condition, the house itself. So it really changes.

So depending on what part of the country my clients are in, we talk about, okay, you’re in this part, do you want to [00:19:00] stay here? Do you want to go for the more aggressive cashflow and fly out to like the Northeast to choose your market? Or do you want to stay where you are, but be ex understanding that you’re going to hit more than 2% rule?

Not the 3% rule, like my Northeast clients Okay.

Mike: No, I was just going to say, how do you feel about investing outside of your market? So if going from your own backyard, like here, if I know that I can come to your market and invest, and I can make 2% return on my money or my investment, is that okay?

Or should I stay in my own market?

Lisa: Exactly. And it’s a conversation with you because this is what I’ve seen. Some people just are not comfortable with it. And because they’re not comfortable, you will pay more to stay where you are depending on where they live. So they’re always going to be trade off, but I will always say to everybody, look at this is about money, but it’s not about money.

So if you’re uncomfortable traveling, you’re uncomfortable doing a big renovation. Don’t do it. Cause you think you have to, but it’s stressed and it’s ugly and you don’t like the process, right? If you’re like, I like [00:20:00] pay a little bit more and stay where you are. Trust me. That extra $10,000 in price is worth the amount of stress you’re going to get because that stress can lead to other problems that fear or the not wanting it, but you’re doing it anyways.

Cause you think you have to, when you’re forced that energy can lead to more problems. Cause you might see you might escalate things that may not need to be because you’re already worked up and you’re coming at it. So it’s just a conversation on what you want. It depends on your age. Are you doing this for retirement?

Cause I work with people who are 60 and they just don’t have enough to live off their what’s in their 401k, but what’s in there. If we take a little bit at a time, maybe a 10,000 loan here and 10,000, we can put that into a cash flowing rental property, just one step at a time. So they feel comfortable.

Then they might be more aggressive. I do find that my younger and my older. On my, my young twenties and I have no kids, just me and my boyfriend or girlfriend, they’re like, yeah, let’s do it. They’ll fly around the world. Okay. They that energy and get up and go is there. And they’re, they do tend to be more aggressive and willing to take on more [00:21:00] because it’s a learning experience and they have time on their sides.

We’re as I’m in the mid range. When I generally, my clients are people who have families they’re working. Full-time they’re like, look, I don’t need all that. Get up and go, I’m tired. And they want it easier. And then we’ll start talking versus 1% or 2%. And is it worth the extra effort to go to a different market?

But a hundred percent, like the main thing that was the most practical about this was that I only invested long distance or out of state because I always lived in very expensive markets where I worked. I got a good salary cause I lived in an expensive market, but I couldn’t afford anything there.

Which motivated me to get rental properties. So I could have that source of income. So 85% of everyone I work with, we’re investing long distance. That can be an hour away, two hours away. It can be a plane ride. And what I do is just try to make this. It can be very easy and very simple. So I just try to let them know you don’t have to be scared.

We just have to be strategic. And that would, if you asked me for a second where it could be strategic, but you gotta be strategic. I don’t come from money. So in order to come up with these solutions, you [00:22:00] gotta, God has to give you inspiration. It has to come from somewhere, so you have to be more strategic when you don’t have that.

Pillow or that cushion, we have to go know why we’re going into this market versus that to the T.

Mike: You’ve been doing this awhile now and you’ve had some bumps and bruises along the way. What rules of the game have changed since you started to where you’re at now and a two-part question, right?

What rules of the game do you see changing as a result? The season we’re in with this COVID pandemic and the way the world is today,

Lisa: so the first question is how the game, how, what’s changing as far as the rules of the game change. It’s not, you know what, it’s per month. It’s not necessarily like everything is the same, but I have seen since 2013 to 2020, I’ve seen one market that was completely out of reach, become inReach.

I see markets, someone was talking about that are now like half properties. I [00:23:00] see markets that had a ton of property seven years ago, completely wiped out. And now it’s really elevated and a lot of appreciation there because investors correctly sought what’s going on. So I will say like the rules, like I’m trying to think.

Rules, but I don’t think they’ve been changed. I think they’ve always been there. So I just see per location. There’s a second. And so if you’re like me, because of what I do, when I work with different clients all over the country, I just see what’s going on in Indianapolis and how that changed over seven years.

I see what’s going on in this part. You know what I mean? I just noticed by location, things are flipping and what was high is now low. What was low as now? Have you ever your finger on the polls, you can take that. I would say with COVID what did change during the height of it? Cause I was still working with people and we’re still helping, I was helping them to submit bids and find houses.

At first, when everything was locking down, it was like some places that are locked down, some places weren’t. But what I did see was that sellers were like, it’s negotiable before you asked if it was negotiable, but we did have to stop in certain markets. Cause it’s certain markets they’re like, [00:24:00] yeah, come in and see the problem.

Even if there’s a T if it’s vacant or not, they were not really concerned. And another properties that are on lockdown, they’re like, you can’t go. So me and my clients who really liked the market, we just had to stop. And actually, I just got a call from what I, New York clients who was watching a market out in Missouri.

She’s okay, everything’s good now. We can start going in now. So you know that, from January to now, July we’re seeing that, so sellers are still negotiating. It’s still negotiable. So that’s definitely what I’m saying. And yeah, so no real rules, so much as everything from what I saw just sort stayed.

Yeah. The same. We just had to be adaptable to every local market situation and really understand now, oh, there is some consciousness that’s changed. So some of these schools, so one of the big things, when I look to help take my clients, investing long-term distance, look at certain geographical anchors hospitals, schools, in those small towns universities used to be it, but now we have to look at the health of that university that may have completely anchored that [00:25:00] town or city for years may not be viable going into the future.

So we have to be conscious of, that’s not a for sure thing. We’re here in places. Unless you’re Harvard said they’re going all online and tuition is still 50 K. I think Harvard is going to still get 50 K even though they’re all online. But other schools, they say a third of my, they already had said 30% of these small schools might not make it.

And now I can only imagine that 30% went to 40. So we have to be conscious that we can’t just rely on those old time metrics of what can stabilize or be a good investment because X is.

Mike: Yeah, I agree. Where do you see yourself in the next three to five years? In your own investing career and the development of your company.

Lisa: Okay. As far as my own investing career, because I’m self-employed, you guys already know, I take the deductions. So getting a loan is a lot more challenging and the biggest. Headache. Okay. So I had just purchased the [00:26:00] property last July. So coming on one year, I, did some renovation. So I was paying off a lot of credit card debt for that.

So now I’m pretty much back and paying stuff off. So now I am looking at getting commercial loans. And so this is what I love about what I. I attract very, I’m going to just say high vibrational, high functioning beings. I really do. So the good thing about that is when I teach them my methods and systems, they teach me there’s right.

They’re like, okay, that was good. I did what you did and found this right. Or they learned it from somewhere else and they bring it back to me. So a lot of them were doing commercial loans. Like I got two of them, even though it’s a single family unit, a single family. We’re getting commercial loans. Cause if you call it a bank, so you can get commercials that are 20% down, which is the same as residential, the benefit for the commercial is that you can put that in the name of your LLC.

They may or may not ask for income verification because they’ll look at the projected rents. So you’ll ask the previous landlord or seller. Hey, do you have like rent rolls for the last three to four? Or at least bank the [00:27:00] process to see what you’re making from this. And so all of a sudden there’s like an awareness of oh God, like now that more commercial, there’s always been out there, but it just seems to be a little bit more accommodating, I now as a business owner, I’m looking into that because as business owners, we deduct a lot. So our W2 says we make, 20,000 a year, but like we have 20, 30% down. We generally do have the cash it’s somewhere, right? Like a 401k, this or that, but to do that. So I’m looking into more of the commercial route.

I’ve been going that way with business credit, but that’s personally on the investment side of things. For a single family outside of that, as far as the investing platform, I don’t think you would be surprised to know that I’ve had the most growth in my platform this year that I’ve had in the seven years I’ve been doing this.

Mike: Wow. Good for you. And do you think it’s because of the time, or do you think it’s because of the way the market has been or did you do something different? It is,

Lisa: no, I did nothing did it there. The only thing I did was just be here in place and ready [00:28:00] for the wake up. People are waking up to the fact that they are being told you have to go back to work, even though there’s a pandemic that is having long-term effects on people’s health and life.

Sure. Right now. I’ve always been lightweight. I just did not want to be vulnerable or have employers. I D I’m just going to tell you, I just generally never liked who am I? I hope they’re going to see this. They’ll get mad at me, but like I’ve never really was like corporate, that was where the money was, but I’m not like that.

I never liked the culture. My coworkers are great, but it wasn’t that great. I just was never. And so I just didn’t want people like that. Having control all over my life or bread or income or me being able to eat. So I did this long ago. I was like, I refuse to let you guys control my lifestyle or my money.

That’s why I started in 2009 and just kept going now, as far as. Other people today, they’re waking up to that, but they don’t like that choice. They don’t like the system that is not carrying that up. Opening up, even though it does happen. [00:29:00] On their parents because of money. And the people I tend to attract are not just money people.

You’re going to have people in your audience that are, but the people that attract you it’s not just about money. I want a quality of life in that is what I’m doing this for, but I want it to make money. I could just keep doing this job, which gives it to me, but I’m not happy. And I tend to attract people who are trying to create a life of happiness.

Not for money and it’s completely different. And they’re waking up to what happened. COVID woke them up as it was supposed to do, and they’re like, let’s do it. And I’m glad that they are because, second wave third wave, you’ve got four or 5, 6, 7 months right now to really start thinking about your life and what you really want.

And how much control you want to have over it. And finances are important. So getting some sort of financial control. Now this is an easier sell because I’m looking at houses that are 30 to $50,000 for 50 K house. 20% down is $10,000. It is more practical, reachable, and attainable to the normal person who’d like [00:30:00] to get started.

That is so there’s a wakening process going on right now. I’ve always been very from that the neighborhoods I tend to go in our black neighborhoods. So for everyone out there listening, I love the fact that you can get a cheap property, but also be conscious of the fact that we’re not for gentrification.

We’re not for pushing people on the lower end of the spectrum out of these neighborhoods. We’re not for doing that. So please don’t come. If you don’t have a bigger ability to say, maybe I’m not trying to get every single dollar, but I’m profiting. They have a long-term place. So I don’t raise my rents every year.

I could, every one of my properties, I can raise them to $300. I do not. And what do I get for you? I get long-term tenants who are not going anywhere. They know I’m going to fix the place up. Cause I’m that type of person. If it’s broken, gets fixed, I don’t try to push it on them or try to explain it away.

I’m the person with the house. I’m the one with the reserves to pay for any repairs. And also I don’t have turnover costs because when you’re in a lower income area and you try to go for the highest, you have more turnover because people are getting in and they’re like, [00:31:00] oh no, I can get it someplace cheaper.

Then they get into oh no, I can get, and you’re always turning it over. And guess what? That’s 1800. $2,003,000 and, getting into the security deposit or not like it adds up and it actually is net negative to what you’re making, especially if you’re not making like high cashflow, like why have turnover every year when you have, if you get a great tenant, wants to stay for 20 years.

So I like to say it’s mutually beneficial because I’m going to neighborhoods where they don’t necessarily make it. They get a dollar an hour raise. They’re not getting necessarily 20,000, when they switch their jobs. So we gotta be cognizant of that. But if you are, you get a great longterm tenant, who’s not going anywhere.

I haven’t getting paid on time, but the energy I put into it is the energy I get back. And a lot of people want to act like that’s not a part of it. It is. Hey, Bob, to your con your higher consciousness, that’s why the people we respect the most have such a level of giving or. Because that vibration of loving and.

Works itself back and I’m completely sustained [00:32:00] and I’m going to continue to give that, and I get it back. So it’s something I want to say for people, because I do talk to people and they’re not concerned about the neighborhood and they’re not comfortable with a minority neighborhood, be it Hispanic or black or Asian or whatever.

Working class white neighborhoods. And I’m like, just be conscious if you want to come over here to my area of real estate investing that we do want to do better than what we’ve been given. We’re going to break the cycle and programming. It’s not just about every single dollar at the expense of community.

And because we have that energy, like my group is amazing because we really do see that we have to be human about this in addition, Savvy real estate investors. And I just find that it’s a beautiful thing that we’re building and

Mike: bringing this to an end. I think that that’s where you can really build that generational wealth, because it’s so much more than just money.

It’s about the philosophy behind it. And it’s about what you build into the community and the stakeholders in the community and in your investors, and if you come from a good spirit and a good heart, [00:33:00] that’s what you get. So what you put in is what you’re going to get out. Listen, I have to tell you this was high energy and this was a lot of fun today.

I can’t believe we’ve gone well over 40 minutes already. So that’s great. Lisa, if people want to get a hold of you and they want to talk to you a little bit more or find out about your coaching, how would they go about.

Lisa: All right. There’s three places to go. One can be YouTube. You can just Google affordable REI or affordable Lisa Phillips and affordable real estate.

I’ll pop right up. You can look at some of my past viewing as well as the lives I do periodically when there’s things in the news that just need to be addressed. Cause I want to give you, Hey, this is what’s going on in the world of real estate. The second place is you can go to my website, www.affordablerealestateinvestments.com.

It’s good there because you can join our Facebook group. From there. You can get a free copy of it. Current bestselling book, it’s been on the best sellers list on three bestsellers list since 20 August, 2018 women in business, real estate investments and buying and selling homes. I’m always I’m in the top six.

I’ve been [00:34:00] trying to keep up with Rachel Hollis cause she stays in the number one position, but we’re not there yet. That’s investing in rental properties for beginners and you can get a copy of that. From the website on Amazon, it’s an audible It’s an audible as well. Or you can get a free copy, just pay shipping and handling directly from my site.

It will come with a 30 day free access to my monthly membership, which you might like. I it’s really like my membership. So give it a shot on a 30 day trial. You’ll want to stay trust me. Cause we’re talking about things. No one else is talking about that’s also my website’s a great place and also you can get in touch with me.

If you want a consultation. They’re $45 for the first one and that’s just to go, Hey, I got questions. You’re saying this is possible. This is my situation. What can I do? And I’m like, look, girl, this is what we’re going to, this is what we’re going to do. Okay. And that’s just my gift and my abilities. And and the last place is I have a free training bundle, which if you go to the website, you can also click on it.

So there’s a free training bundle that goes over and what’s, what are you looking for in a market? What are you looking for in a neighborhood? What are you looking for in [00:35:00] price range and just breaks down. What you need to be aware of when you’re doing this, because there are nuances.

You’re not just going into a low-income neighborhood. I’m all heart, don’t get me wrong, but I’m also I am a combination of heart and savvy business. So you need to have the savvy business as well as the heart, but both are what makes you master level and not newbie level. So just get the skills and walk in that.

And I, I’m going to say, that’s the change we need. We need in this world, heart and business. Like they can be combined if you want them to be. So you can also get a free training bundle and all of that’s from the website. Really great.

Mike: Great. I appreciate it. And we’ll have that information on our website too.

And I want to thank you again for being here today, and this was a lot of fun and I really enjoyed myself and I hope you did too. If you want to say goodbye to everybody and Everybody, we will see you next week. Thanks for being here and enjoying the show.

Lisa: Bye everyone. And remember, stay true to who you are, remove the programming, and if it feels right to you, go for it, regardless of what everyone else says about it.

Mike: Thanks Lisa[00:36:00]

Kristen: Thank you, Mike, and thank you for joining us for another great episode of Insider Secrets. As always, Insider Secrets is brought to you by My Core Intentions. Join us on social media and visit mycoreintentions.com where you can get expert coaching on all things, multifamily investing in property management.

We’re looking forward to having you back again next week for more Insider Secrets.