Welcome to BRAG Radio leading the world to be rich and generous.

Ready To Take Your Real Estate Investing To The Next Level? Click Here to Apply To Work Personally With Larry and His Team!

For the next hour, best sell real estate investing author Larry Goins & Co-Host Kandas, will show you the many ways real estate creates the I.D.E.A.L. investment. Whether you want to Flip houses or become a passive investor making double-digit returns while others do all the work. You will learn how here on BRAG Radio.

How To Buy and Sell Real Estate: Assignment of Contract, Trust, Self Directed IRA and more

SHOW SUMMARY:

In this show Larry and Kandas talk about how to buy and sell real estate for a profit using assignment of contracts, using trust or land trust, using self directed IRA accounts and LLC's. Plus they compare the tax benefits between a traditional IRA and Roth IRA.

SHOW HIGHLIGHTS:

  • About the 3-day training event.
  • Questions sent by the listeners and from the 3-day training event.
  • Can you sell a property in the trust by changing the beneficiary?
  • Creating a Trust document.
  • 3 different components of a Trust.
  • Trust Agreement.
  • Trustee.
  • Beneficiary.
  • Assigning a non-assignable contract and doing it in your IRA.
  • Traditional IRA vs Roth IRA.
  • Having several custodians.
  • Prohibited transactions and disqualified parties.
  • What a Checkbook IRA is?
  • Wayne's deals and purpose.
  • Building a team of givers.

QUOTES:

  • "Different people decide different niches, different things to go in."
  • "You want to operate your business in a separate entity from your investments."
  • "The best fertilizers in a garden are the footsteps of the owner."
  • "You cannot manage what you cannot measure."

RESOURCES AND LINKS FROM THIS SHOW:

Get your digital investors kit:
TXT: BRAG
TO: (803) 897-6063

SHOW TRANSCRIPT:

It’s time to BRAG, be rich and generous. BRAG Radio is hosted by bestselling real estate investing author, Larry Goins, and co-host Kandas. For the next hour, they’ll show you proven and effective ways you can be successful in real estate. From the WBT studios, the flagship station of the BRAG Radio Network, here are your hosts, the rock stars of real estate, Larry and Kandas. 

Larry: What’s happening? How are you doing?

Kandas: Me, or the people?

Larry: Well, they can’t respond.

Kandas: How are the people?

Larry: They can’t respond. At least I can’t—

Kandas: Answer yourself.

Larry: I cannot hear them.

Kandas: Just jam out to this music.

Chad: Work it, Larry!

Larry: Thanks, Chad. Chad has all kinds of voices, doesn’t he? He has all kinds of voices. 

Kandas: What is that, the excited radio patron? 

Larry: That’s funny. That’s hilarious.

Kandas: Anyway, you’re listening to BRAG Radio.

Larry: Network. From the flagship station, uptown Charlotte, right? Uptown.

Chad: Yes, don’t say downtown. 

Kandas: Apparently we’re on the wrong side of the tracks to say that.

Larry: Uptown. I don’t understand that whole analogy but you know, it is what it is.

Kandas: We get corrected every time we say it wrong.

Larry: I get corrected, right? So I’m really excited to be here and it’s a Saturday afternoon and if you guys are out there driving, be careful. But we’re going to talk about real estate stuff for the next—

Kandas: Stuff and junk.

Larry: Yeah, for the next hour-ish. We’re here local. We’re in Charlotte, North Carolina. Lake Wiley, South Carolina, really. Lake Wiley. You know, like, how do you do, Mrs. Wiley?

Kandas: Oh jeez, starting early.

Larry: Anyway, so we’re in the Lake Wiley area and we bought and sold houses in 12 different states. We have students around the country, even around the world, in the U.S., Canada, Australia, New Zealand, Japan, China, Israel, the Philippines, Ireland, Chile, and even Denmark. And we coach people, we mentor people, we’ve written a few books. Kandas, tell them about the books they can get just by calling you.

Kandas: Well, you can get that at home—sorry. You can get the—

Larry: Spanky’s over here, got a gang leg. He’s got to sit down.

Kandas: He just went to sit down and that chair was so high and he sat down and it’s broken. The lever thing is broken so it’s just like, all the way down to the bottom. I know. He’s going down now. He’s going downtown. Bless him. Poor little thing.

Larry: Poor thing.

Kandas: Poor little thing.

Larry: People are like, who is Spanky? He’s a videographer. He’s getting some B-roll, right, Spanky? The B-side. Marcus, you’re going to have to teach him about some AV terminology. If you’re going to be in the business, you’ve got to learn the terms. Right? All right, so what were we talking about?

Kandas: We were talking about the investors’ kit and any investors’ kit, these have got Larry’s book, HUD Homes Half Off. You’ve got Larry’s book, Real Estate Day Trading. You’ve got some of Larry’s trainings on our models, how we’ve got a wholesaling model which is real estate day trading. You get a link to that training as well as a link to the Filthy Riches model, which is lease option seller financing. Buying them cheap and making more money. 

Larry: Real estate day trading? That’s stock them deep and sell them cheap.

Kandas: That’s fast cash.

Larry: Quick cash. Quickest, fastest, easiest, safest, no risk way to get started.

Kandas: Every single day it gets me so hot and bothered and I can’t stand that. Every model we have is the safest, easiest, quickest way to get started in real estate. 

Larry: That’s all I try to do. I don’t do rehabs, right? 

Kandas: You don’t do rehabs.

Larry: And I don’t do short sales because a short sale is a—

Kandas: Long buy.

Larry: A long buy. That’s right. Don’t do short sales. Don’t do rehabs. And I don’t do tenants. 

Kandas: And you don’t do tax liens.

Larry: I don’t like tenants. I don’t do tax liens because you can’t buy enough of them to get enough traction.

Kandas: We don’t do land.

Larry: Now, land can be okay if you’re going to sell or finance it, but that’s a whole another story.

Kandas: We don’t do it.

Larry: That’s a whole another story right there.

Kandas: A whole another story.

Larry: So we had an event a couple of—three weeks ago, and we’ve got another one coming up in St. Louis, right?

Kandas: Yeah, in like three weeks. 
Larry: That’s a three-day training. That’s a three-day training where guys, if you want to get to know us, if you want to see what we do, how we do it. If you want to see some teaching by the person who wrote the book, not just bringing in other people to do it, I teach the entire three days. We’re going to go over wholesaling. We’re going to go over seller financing, lease options. We’re going to go over every way to find properties. Every way to fund the property. Every way to flip a property and how to create double and even triple digit returns. We can even show you how to create infinite yields. 
We’re going to show you how to use a self-directed retirement account where there’s an ESA, an education savings account, and HAS, health savings account, or an IRA or a 401K. We’re going to show you all about that, how you can do deals in there. We’re going to show you how to raise private money from other people to help you do your deals. We’re going to show you how to negotiate deals, how to market for properties, every single way to market for properties. 
All the different ways to market for buyers, how to sell your properties, how to automate your business, CRMs, websites. We’re going to go over asset protection, entity structuring, tax planning, asset protection, all that stuff. Wow, is that it? There’s a lot more, I know. 

Kandas: Well, not only on all of that—

Larry: It’s three or four days.

Kandas: Not only all of that stuff that you just cover, but there is times when we play Stump Larry and then it’s any question that somebody needs answered, they can just throw out there to try to trip you up.

Larry: You know, it’s funny, we had a guy a while back at one of our last three-days. Because at the three-days, people ask, Larry, you’re just a wealth of information. You’ve overwhelmed us with information. How can I work with you personally, one on one, to just tell me what do I need to do? What can I do? Because listen, even though I show you 67 different ways to find properties, you’re not going to use all 67. You’re going to pick three to five, maybe seven, different ways to find deals. And then what model do you need to use to sell those properties? 
That’s very important. So a lot of people want to work with me personally. One of the guys came up to me and said, Larry, the thing that did it for me was I didn’t hear a single question, whether it was about real estate or about the law or about landlord tenant relationships or law or reals or regs or seller financing or Dodd-Frank or whatever it was. 

Kandas: Anything.

Larry: Anything. There ain’t nothing you couldn’t answer. Right? So he said, that’s what I want you to work with me. I want you to be my mentor. Will you be my mentor?

Kandas: He didn’t sound like that. This is a very poor representation of what this gentleman sounded like, by the way. He did not sound anything like this and if he’s listening, don’t call me, because I have no control here. 

Larry: That’s not what he said. That’s just what I say.

Kandas: He didn’t sound like that but he did say that.

Larry: I say it like that because that’s the way Dean says it in our office. Mentoring. 

Kandas: Mentoring.

Larry: We do offer mentoring. Right?

Kandas: That is what he says.

Larry: Coaches. You can get some learning from Larry. Some Larry’s Learning. And you can start out by calling Kandas and get your free investors’ kit or you can text. What’s the thing they can text?

Kandas: What is the number they can text? 803-89—you were going to say it for me, weren’t you, Chad? Say it in your radio voice.

Chad: 803-897-6063.

Kandas: Every time. I love it every time. It never gets old. I love it.

Larry: That’s awesome. And they have to text the word BRAG.

Kandas: Yes, text the word BRAG. That’s the number.

Larry: Text the word BRAG. That’s awesome. I love it.

Kandas: One ‘G’. BRAG. To the 803-897-6063 number.

Larry: That’s awesome. That’s awesome. And they’ll get an investors’ kit, a copy of my latest book, HUD Homes Half Off, Getting Started in Real Estate Day Trading, and some other stuff and junk, right? 

Kandas: Links, yeah links to Filthy Riches model, links to Day Trading model. Some asset protection stuff, too, we’ve got thrown in there as well. Oh, some IRA stuff, too. Getting started with IRAs and how to invest in real estate with IRAs.

Larry: Good, good. That’s really good stuff.

Kandas: Are you going to answer—do you want to go over some of the questions when we come back?

Larry: Yeah, here’s what we’re going to do. Let’s see if we can get one question out there because I know there’s a lot of questions that people e-mail you about as well as questions from the event. But people e-mail you questions, listeners. 

Kandas: This is a question about IRAs very quick, just before we go. It says, can you sell a property in a trust by changing the beneficiary? That was one that came up.

Larry: Not only can you, but you should. So that is one way to do a deal where you can assign a non-assignable contract.

Kandas: Right. When people say, yeah, when properties are bought and they say no, you can’t assign this. You can’t assign this.

Larry: Right. Or if you’re buying it through a realtor or if it’s a HUD house or a VA house or a Fannie Mae house or something like that and you cannot assign the contract like you can when you’re dealing directly to the seller, this is a way that you can actually assign a non-assignable contract. And when we come back, I’m going to walk you through step by step exactly how to do it.

Kandas: All right. Give 877-Larry-Go a call. 877-Larry-Go will get the digital investors’ kit out to your e-mail or schedule an office tour for you to come out and pick up the physical version. We can talk about the three-days, our mentoring, whatever. However he said it. I say mentoring. So we can talk about a bunch of stuff. Just give me a call. 877-Larry-Go. 
We’re having issues here. I wasn’t ready and Chad’s starting music. He’s like, I’m ready whether you’re ready or not. We’re getting out of here.

Larry: That’s the music. We gotta get started. So, welcome back to BRAG Radio, leading the world to be rich and generous, teaching you how to invest in real estate, whether actively or passively, and we teach people around the country, even around the world how to do this. We have live events, seminars, home study courses, coaching, mentoring, and that sort of thing.

Kandas: That’s some of these things—that’s where the last question that I asked came from, one of the three-day events. About can you sell a property in a trust by changing the beneficiary and you said yes and you’re going to go through it step by step how to do that.

Larry: Okay, so if you have a property that you’re wanting to buy, let’s say you’re buying it for $50,000 and you want to wholesale it for $60,000. But you don’t have $50,000 right? And maybe it’s a HUD house or maybe it’s listed on the MLS and it’s a bank-owned property and you know, you just have to make a cash offer, right? Because that’s what the banks want to see and HUD as well because you can’t submit a cash offer based on financing. Or subject to financing. 
So here’s what you do. You create a trust. Now, I know some of this might be over some of your heads if you’re getting started right now but it’s okay.

Kandas: And some of you are like, man, finally, some details. 

Larry: I know, right? So what you do is you create a trust, a trust is a simple document. You can create it on your own computer. All you need is a trust document and create it, fill in all the blanks. You create a trust document and let’s say that property is 125 Oak Street. You create a trust, 125 Oak Street Trust, then you get the property under contract to purchase for the $50,000 in the name of 125 Oak Street Trust.
Now, a trust has three different components. You have the trust agreement, you have the trustee, and you have the beneficiary. The trust document is a document that spells out everything about the trust and the name of the trust, what it owns or whatever. And also the trustee. The trustee is a third party person that you know, like, and trust, preferably with a different last name. Then, they’re going to sign everything as the trustee. And then you have what’s called the beneficiary. The beneficiary would be you, the person that’s buying the house for $50,000 and are going to sell it for $60,000. It might be you as a personal name. It might be your LLC or whatever.
So here’s what you do. You get the property under contract in the name of the trust, 125 Oak Street Trust. Then what you do is you get the property under contract for $50,000, you find a buyer willing to pay you $60,000. When you go to the closing, your buyer has already wired the $60,000, right? So the closing attorney’s going to use the $60,000, $50,000 of it to pay the seller and then now you own the property and then you’re going to sell your beneficial interest in the trust to the buyer for $10,000. 
Now, I left out closing costs. It’s going to add a little bit more. Don’t worry about it. I’m just trying to keep it simple here on the show. So you’re able to use your buyer, the $60,000 to pay your seller and then you sell the beneficial interest in the trust from you or your LLC to the buyer. It’s one real estate transaction and one personal property transaction. And that is a way to assign a non-assignable contract. You never had to come up with more money than the initial deposit or earnest money on the property. Pretty cool, huh? 

Kandas: Bam. Mic drop.

Larry: I’m outta here. That’s it for me. I’m outta here. That’s it for me. It’s like the Seinfeld. George Costanza. I’m outta here.

Kandas: So while we’re talking about kind of changing the trust and the beneficiaries, can you do all of that that we just talked about in your IRA?

Larry: You know what? Absolutely, you can. The only difference is, the beneficiary is going to be your IRA and then you sell that beneficial interest to the end buyer. So you get the property under contract in 125 Oak Street Trust and your IRA is the beneficiary. The IRA sends the—let’s say it’s a $500 deposit to get it under contract. 
Your IRA sends the $500 deposit to the closing attorney as the initial deposit or down payment or some people call it earnest money deposit. Some people call it EMD for earnest money deposit, so the $500 goes from the IRA to the closing attorney or to the realtor. And then whenever you go to the closing and you assign your beneficial interest, the money from the closing is wired right back into your IRA. So you took $500 out and then you deposited back $10,000. Minus closing costs, of course. 

Kandas: Right.

Larry: So that’s how you assign a non-assignable contract and you can do it in your retirement account.

Kandas: Does it matter if it’s traditional or Roth? 

Larry: Well, it does to me but you can do the transaction—

Kandas: You can do the same transaction in either one.

Larry: Yeah, the difference between the traditional and a Roth, I saw Chad giving me the eye—so you need to explain that. 

Kandas: Yeah, because I asked because I have a traditional and I have a Roth. I don’t know. I like to pay taxes on the seed of things when they go in instead of knowing I’m going to have to pay on the harvest whenever I become of retirement age and can draw them out. So that’s why I was asking if it matters, which if you do a deal like this where you are assigning by a trust or anything, if it matters which one you do it in.

Larry: Yeah, so the difference, by the way, between a traditional IRA and a Roth IRA, a traditional IRA, when you put the money in—let’s say you put in $5,000 in your traditional IRA this year, that money you can deduct from your income. So if you made $100,000 this year and you put $5000 in a traditional IRA, now for tax purposes, your income is $95,000. Which reduces the amount of taxes you pay this year, right?
However, if you put it in a Roth IRA, this year, your income is not going to change. You’re still going to pay taxes based on $100,000 income, and you’re not going to get the deduction for putting in the Roth IRA. However, okay—however, if it’s in a traditional IRA, you get the tax deduction when you put it in but when you start pulling the money out after you grow it, you’re going to start paying taxes on that money then because you didn’t pay it whenever you put it in. 
However, I would rather do the Roth. I’d rather pay the taxes now and then whenever you grow it, to tens, hundreds of thousands of dollars or over a million, that’s all tax-free money. It comes out tax-free and you’ll never pay tax on that money. Because you paid taxes on it initially.

Kandas: Right. And another point to that as far as going ahead and paying taxes on it now is you know, are taxes going to go up? The percentage we pay in taxes going to go up by bracket or are they going to go down?

Larry: Well, just think about it like this. 

Kandas: I don’t think they’re ever going to go down, so—

Larry: In that scenario we just talked about, you took $500 and you turned it into $10,000. Why not just pay the tax on the $500, put the $500 in, and turn that into $10,000 and you pay no taxes on it? 

Kandas: No taxes at all.

Larry: No taxes. Zero, zip. Not a zilch. 

Kandas: Right. 

Larry: Nada. Nothing. No taxes. Right? 

Kandas: Right.

Larry: Yeah, so I love doing deals in self-directed retirement accounts. And we have a lot of custodians. We have several custodians that we use—there’s a lot of them out there—if you’ve never heard about doing real estate in your retirement accounts or in an education savings account or health savings account, google it. You can do it. There’s a lot of custodians out there that do it. 
The reason that the Schwabs and the Fidelitys and Wells Fargos and people who manage money—well, not manage money but people who have IRAs—the reason that they don’t tell you about that and they don’t do it is because there’s more administration to it than say buying a stock or bond or a mutual fund. So you need a custodian that’s familiar with it and understands it and knows what kind of documentation you need to do. Because like if you’re buying a property in this trust, the custodian has to have a copy of that trust. 

Kandas: Right.

Larry: Right? And Fidelity and Schwab, they don’t understand it. They don’t know anything about that.

Kandas: It’s either they don’t understand it or know anything about it or that’s just not their niche. Different people decide different niches or different things that go in. Some of the custodians that we work with that do these alternate types of investing, this is their niche. This is what they’re good at. We’re fortunate enough to know some of the presidents of some of these custodians that allow for self-directed IRAs, whether traditional or Roth and big companies that do as well. 
We can give you that information. If you want to give me a call, 877-Larry-Go, I can let you know some of the custodians that we work with that allow for alternate investing. 877-Larry-Go. I can also get you the digital investors’ kit out to your e-mail, talk about the three-day event coming up, anything and everything. 877-Larry-Go, or text the word BRAG to 803-897-6063. 
Welcome back to BRAG Radio. Hey, are you—you don’t even have your headphones on. What’s happening right now?

Larry: I’m ready. I’m here.

Kandas: Geez, Louise. 

Larry: I’m just waiting on a question. That’s all.

Kandas: You’re waiting on a question? Let me find a good question. 

Larry: I’m waiting on a good question.

Kandas: Let me find one that somebody e-mailed in. You guys can send e-mails to info@BRAGRadio.com and I’ll go ahead and answer you right away but we might air them on the show. What is wrong with you right now? You’re trying to find sound effects? Marcus, look what you started. 

Larry: I know. Thanks, Marcus.

Kandas: Marcus. Seriously? Seriously? Geez. Listen to Spanky, that’s the sound after eating buzzards. We don’t even have time for that story right now.

Larry: Ain’t nobody got time for that.

Kandas: All you buzzards.

Larry: That’s funny.

Kandas: So here’s one. Well, this is not like an in-depth one or whatever but I mean, I can see where someone would want to know. Instead of us, like I know that each of us do this but instead of you only having one custodian to handle your money, why do you have three or four or however many you have?

Larry: Well, number one, I have several custodians that I know, like, and trust. And I recommend. So I have a couple of accounts of each one of them and it also allows you to spread the money out and keep your accounts separate. Another very, very, very important thing, if you ever happen to do a transaction that you feel like, can you do this? You know, if you’re scared about it or a little nervous about it, put that in a separate account all by itself, right?

Kandas: You could ask your custodian, too, if you get that feeling.

Larry: Well, they don’t give legal advice but some of them out there will tell you—I mean, they will tell you if a transaction is what’s called a prohibited transaction.

Kandas: That’s what I was getting to. They’re going to tell you if it’s not allowed.

Larry: Right, if it’s what’s called a prohibitive transaction. Like for example, you can’t sell your IRA a house you already own, either personally or in your LLC. You can’t buy a house from your IRA. You can’t sell a house to your daughter or son or to your parent or grandparent, right? You can’t rent a house. 

Kandas: Yeah, you can’t go down or up.

Larry: You can’t rent a house.

Kandas: In transactions.

Larry: That’s exactly right. In the lineal descent thing—

Kandas: Tree thing. Family tree type of situation.

Larry: You can’t go up or down.

Kandas: You can go to the sides.

Larry: Parent, grandparent, great-grand, gigi. You can’t do that.

Kandas: Brothers and sisters and aunts and uncles are all right. Those are out to the sides. Those are—yeah, those are out to the sides which doesn’t make sense to me because I would think the arm’s length transaction type thing would be this way. Anyway.

Larry: So yeah, you could do that. But you can’t with your children or grandchildren, like I couldn’t rent a house to my daughter or I couldn’t buy a house for my daughter or whatever, my IRA couldn’t. That’s what I’m trying to say. My IRA could not. So you just gotta be careful with that. They’re what’s called prohibitive transaction and then there’s what’s called disqualified parties and that’s what we were just talking about. Those people we just talked about, parents, grandparents, great-grandparents, children, grandchildren, great-grandchildren. Those are all what’s called disqualified parties. Your IRA cannot do business with any of those people, buy a house from, sell a house to, fund a deal for, or whatever, right?

Kandas: So in relation to the original question, if you have something like that, obviously not a prohibitive transaction but something that you’re a little concerned about or maybe is not as solid of a deal but you could put it in its own account, IRA account. That way, if something does go sideways or backwards or upside down with it, it’ll only affect that one account instead of your main account or all of your accounts.

Larry: Exactly. It’s just kind of like risky investments. If you have like a mobile home park or in my case, a trailer park. If you had a trailer park, then you’d want to put that trailer park in a separate entity or a separate IRA account by itself. Makes sense?

Kandas: Yeah.

Larry: Yeah, good. What else you got?

Kandas: Well, one of the things—while we’re talking about keeping things separated, is you don’t want to buy and hold in the same account, IRA account, as you do your buy and wholeseller buy and flip properties. 

Larry: Right. You want to keep those entities separate. In other words, you want to operate your business in a separate entity from your investments.

Kandas: Right. And not—I mean, you can do that just having separate LLCs but if you’re investing with your IRAs, those LLCs can be inside the IRAs and you still want to keep them separate. 

Larry: That’s true. 

Kandas: Yes. 

Larry: That’s absolutely true.

Kandas: What about—somebody sent another e-mail in. What is a check-writing IRA? I had somebody ask me that the other week.

Larry: Well, a checkbook IRA—

Kandas: They said check-writing, but—

Larry: A checkbook IRA. That’s a term you’re going to find out there on the internet. And basically, all it is, is when you set up an IRA and a custodian, they will allow you to invest in what’s called a single-member LLC. It’s an LLC that—

Kandas: Are you okay?

Larry: I just had the hiccups or a burp or something.

Kandas: It’s like you’re trying not to have the hiccups. I saw you just chug that bottle of water.

Larry: So you can set up what’s called a checkbook IRA. In other words, your IRA will invest in a single member LLC that’s owned 100% by your IRA. Then you basically have checkbook control. Now, if you do this, don’t try this at home, kids, okay? Because it’s very, very dangerous if you do something wrong because if you do what’s called a prohibited transaction, your IRA will blow up and you’ll pay taxes on all the money in there and your IRA will cease to exist. And you’ll pay, I believe, it’s 100% penalty. 

Kandas: Lots of trouble.

Larry: 100% penalty, right? So make sure you don’t do any prohibited transactions. That’s very, very important. But there are organizations out there that will help you set up an IRA LLC. They charge a lot of money for it but if that’s something you want or need to do, then we can help put you in touch with the right people. But having said that, some of these people will help you set up your checkbook IRA, as they call it. Some of those people recommend or will allow you to have check-writing capability. In mine, I don’t. Right?

Kandas: I don’t have it in mine either.

Larry: I don’t, and the reason is, is because I don’t want the IRS to come by and say, this is not really an IRA. This is just you just have control over you’re writing all the checks. I don’t have control. I have somebody that I know, like, and trust, that is not related to me bloodwise, that has control over my checkbook IRA. And they can write checks. Now, does it mean I can direct them or I can tell them what to do?

Kandas: That’s right.

Larry: I can tell them, hey, I’m buying this property over here. I need you to sign this document. I need you to send a check over for this deposit or whatever but I don’t have check-writing ability in my own IRA and that’s the way you should do it as well. But the good news is, get an IRA, you can buy and sell real estate in. You can invest in real estate with it. You can grow your account. You can even borrow money. You can even borrow money. 

Kandas: You can borrow money. You gotta pay it back. If you’re not retiring.

Larry: That’s why it’s called borrowed money.

Kandas: There’s a penalty and you get to borrow it for that year but you better put it back before that year’s back or you’re going to have a pretty hefty penalty if you’re not retirement age, drawing it out.

Larry: No, no, no. I’m not talking about that. You can buy real estate and leverage it.

Kandas: Oh, yeah, yeah, yeah. Definitely.

Larry: You can buy real estate and leverage it.

Kandas: Yeah, that will be retirement age.

Larry: If you only have $5,000 in your IRA, you can buy a house for $50,000 and borrow $49,000, right? And then you have a $50,000 asset that you’re controlling with $1000. Right?

Kandas: You really do have to be careful with those.

Larry: We’re going through a lot of details at our event.

Kandas: We do go into a lot of details at the three-day events when it comes to all types of investing and with investing in your IRAs, we usually bring in somebody to talk more specifically about that stuff to make sure that you guys know the ins and outs and everything. Larry’s there. He’s in the room. Well, for the most part. And then the specialist that we bring in, though, is either a high-ranking official with one of these companies or the president of one of these companies. So they’ve been in it. They’ve seen everything. It’s kind of like that farmer’s thing. They know a lot because they’ve seen a lot. They’ve been through a lot. They know it. 
Give me a call and come to one of our three-day events. We’ve got St. Louis coming up. We’ve got other ones on the calendar for 2018 already. So I can get you set up with that. You can go to LarryGoinsLive and pull that information and register for yourselves or you can give me a call at 877-Larry-Go and I can get you registered for that, one of those upcoming three-days. I can also get you the investors’ kit out, talk to you about the people that we used for different areas of our real estate investing when it comes to specialists. Anything and everything. 877-Larry-Go or info@BRAGRadio.com.

Kandas: Welcome back to BRAG Radio. This is our fourth segment. It’s our time to kind of highlight somebody that we know is doing deals in real estate and being generous with either their time or their money. We have Wayne with us today.

Larry: Wayne, what’s happening?

Wayne: Hey, how are you doing, Larry and Kandas?

Larry: I am doing awesome.

Kandas: I’m good.

Larry: Excellent. Now guys, you may have heard of Wayne or you may not know Wayne. He’s up in Indianapolis. He’s doing deals in about five different states. And he’s just doing a ton of deals. He’s crushing it. I’ve known him for a long time. And this guy is, he’s a student just like me. He soaks it all in. I mean, I’ve been to his office. He’s been to my office. Just like me. I’m a student. I’m not a follower, I’m a student. I want to learn from as many people as I can and educate myself and Wayne is the same way. And he just—he blows me away at everything he’s able to accomplish. So Wayne, say hi.

Wayne: Hey. How are you doing? Good talking to you, Larry.

Kandas: He’s so energetic.

Larry: That’s awesome. Tell our listeners a little bit about yourself.

Wayne: Well, we’re actually located in Highland, Indiana, which is about 35 minutes south of Chicago. I own a real estate business called House Mart, Inc. and just like K-Mart or Wal-Mart, we’re House Mart. And we do business in the state—we buy and sell houses in Indiana, Illinois, Michigan, and Ohio. And the last year, we even did a few deals with Kentucky. 
And we actually start out with just me and two other guys, just a little less than six years ago in the basement of my house and now we’re in a beautiful 5500 square foot commercial building in downtown Highland. And we have 28 full-time employees and Larry, we just bought and sold 300 houses in 2016, which is a record for us and we even had a stretch there where we did 100 houses in 100 days, which is a really exciting thing we were able to accomplish in 2016.

Larry: That is huge.

Kandas: How big is your team?

Wayne: 28. We have 28 people. And four additional virtual assistants.

Kandas: Oh, okay.

Larry: That’s awesome. That is awesome. So, what type of business are you doing? I mean, I know the type of business but tell our listeners a little bit about kind of the makeup of the different types of models that you’re doing right now.

Wayne: Sure. Well mainly, about 77% of what we do is wholesale. We just, we buy the houses, we do nothing to them and we just sell them off to someone who’s going to fix them up and either put them into their rent portfolio or sell them off. So we wholesale 77% of them. We have our own rent-to-own portfolio where we flip 45 houses in our rent-to-own portfolio this year, or this past year. And then we did about 20 fix and flips. So the majority of our business is wholesale and then we really like putting some of the houses in for our rent-to-own program. And what we like the least is fix and flip but we do do some of that but it’s a little combination of everything. But the emphasis is on the wholesaling. 

Larry: Wayne, that is great. That is great. And you know another thing that I love about the way you run your business? And I know you, we talked earlier in the show about EOS, Entrepreneurial Operating System, and I know you’re very familiar with that. You’re running that system, too. 

Wayne: Yes, yes. We just adopted that about 16 months ago and it put us on a journey that has been extremely, extremely helpful for our company overall. 

Larry: That is great. And another thing that always, always impresses me about you, Wayne, is you know your numbers. You’re like, we’ve got 28 employees. We’ve got four virtual assistants. We wholesale 77% of our properties. You know. It blows me away the detail of information that you know about your business. You know, my mother-in-law told me years ago that the best fertilizer in a garden are the footsteps of the owner and you know what’s going on in your garden, don’t you?

Wayne: I heard somebody say one time you can’t manage what you don’t measure and that kind of resonated with me. They gave me the concept. They called it a CEO Dashboard, just like the dashboard of your car, and I kind of went back to my office and said, I’m going to build me one of these CEO Dashboards and I did. You know, it’s taken years to kind of tweak it and get exactly the way I wanted it but we started out about four years ago building a CEO Dashboard and tracking all kinds of numbers and tracking trends. But yeah, you can’t really manage what you don’t measure. 

Kandas: That’s awesome.

Larry: That is great, and I’ve seen that CEO Dashboard. I’ve been to your office. I’ve been in your meetings. You know, where you’re going over deals, hammering out stuff and looking at it and analyzing deals and analyzing your data and it’s just amazing. You’ve got a really, really good operation. But you know, Wayne, the thing that really impresses me most about you is your purpose, your mission, and how you are literally BRAGing more than anybody I know in the real estate space. That’s why I wanted you to come on. Tell us a little bit about how you’re BRAGing. Being Rich and Generous with your blessings.

Wayne: Well, Larry, actually I went to Bible College in the ‘80s, late ‘80s and graduated from Bible College in 1994. I go to a great church in Hammond, Indiana and anyhow, I started attracting people who wanted to—I personally wanted to give heavily to my local church and to world missions unto the needs of others and I started attracting people who wanted to do that exact same thing. 
And so over the years, I basically built up a team of givers. And that’s one of the things that we actually—one of the common threads that we all have and we actually track our givings as a root and nobody knows who gave what but at the end of the year, from everybody, we’re going to announce that to everybody. So nobody will know who gave what but we’re just going to gather the data from our folks and our goal this year is $450,000 as a group to give to the local churches, to world missions, and to the needs of others. 

Larry: That is awesome. Now, in the minute and a half or so we’ve got left, tell us since you’ve been tracking this, I know you told me the other day what your total is that your organization or as a group have given and tell us about that.

Wayne: Well, we’ve given over $1.1 million dollars in a little less than six years and our goal was to build our company where one year, we can give $2.6 million in one year as a group. That’s our overall goal.

Larry: Wayne, that is huge.

Kandas: That’s phenomenal, yeah.

Larry: That is huge, man. I love that. I love it. I love it. It’s great. What are some of the things, real quick, that you guys do participate in and donate to?

Wayne: Orphanages, I have a list here of about 23 things. I’m sure we’ll only get through a couple. But orphanages, we give to Christian schooling for Chicago bus kids. We give to Christian Radio International. We give to Christian Media International. We give to over 200 missionaries who are in foreign countries. We paid a Bible College student’s way through college. Christmas care packages and Gospel tracks to homeless people in Chicago. Christmas gifts and Gospel tracks to children laying in hospitals. Christmas gifts and meals to multiple families in need. Homecooked meals and phone calls home and a Gospel presentation to over 150 naval personnel that are in boot camp. Bibles distributed in Papua, New Guinea. Womens’ shelter. Homeless shelter. Truck drivers. Addiction home for men. Addiction home for women. We’ve paid for an entire salary, full-time salary for a church employee. It goes on and on and on here.

Chad: Thank you Larry and thank you Kandas. That’s going to wrap up today’s BRAG Radio, leading the world to be rich and generous. For more information about what Larry and Kandas talked about on today’s show or to get a free investors’ kit, call 877-Larry-Go. That’s 877-527-7946. You can also go to BRAGRadio.com. Make sure to tune in every Saturday for BRAG Radio, leading the world to be rich and generous. Larry and Kandas will show you how to invest in real estate in the many ways real estate creates the ideal investment here on WBT.