Scale Your Real Estate Investing Business, with Gary Boomershine
Want to scale your real estate investing business, and make more money? Today, we’re talking with Gary Boomershine, CEO of RealEstateInvestor.com, who has created software to grow your real estate business, services to scale your income, and coaching to help you achieve the freedom you deserve.
If you’re an investor or business owner who wants to create the life you envision … tune in now!
Table of contents
[4:10] “Every professional athlete, every musician, everyone has a coach…even Google.”
If you are going to start a business, why wouldn’t you have a coach as well? Gary Boomershine started in the industry doing a dozen different things. It wasn’t until he had a coach that he learned to exit the rat race.
[8:50] “In real estate, the key is being able to find the deal…And right now in real estate, it’s really hard to go find the deals.”
This is part of how RealEstateInvestor.com got its start—as a tool to find off-market deals.
[9:22] “As an entrepreneur, and building a business, every business needs a CEO. And if you’re a CEO doing ten dollar an hour work, you’re going to have a ten dollar bank account. So as a CEO, you’ve got to actually run the business as a CEO.”
The role of the CEO, as Gary defines it, is to create leverage. A CEO leverages other people’s money and other people’s time. That way the CEO can do more, without doing everything alone. Otherwise, you run the risk of a JOB, which Gary defines as “just over broke.”
The Three “Buckets” of Real Estate Investing
[11”10] “There’s three main buckets people should be thinking about in real estate. There’s cash now, cash flow, and cash later.”
The “cash now” category is what Gary Boomershine distinguishes as real estate operators, rather than real estate investors. These are the people who do wholesale deals or fix-and-flips. In other words, they buy low-value properties, make improvements, and sell them. They’re investing for a one-time transaction—so if they stop doing what they’re doing, they stop making money.
Then, there’s cash flow, which is a monthly stream of income. The most common cash flow real estate investment is rental property. The investor buys the property and rents it out, and that monthly rent pays the mortgage and creates income for the investor. Private lending is another cash-flowing real estate deal.
Then, there’s the cash later category. This type of income typically comes from inflation or appreciation, as well as equity. To truly scale your real estate investing business, all three components are needed–though passive income is the key to unlocking wealth.
Being Self-Employed vs. Being a Business Owner
Robert Kiyosaki’s cash flow quadrant is the process of moving from having a job to being an investor. And as Gery Boomershine puts it, real estate operators are in the “self-employed quadrant.” They’re in a space that has more freedom than being an employee, yet are still trading time for money. RealEstateInvestor.com is designed for these operators, to help move them into the business owner quadrant, and finally the investor quadrant.
[17:30] “Everybody gets in [to real estate] and they’re like—How do I do a rehab? How do I wholesale a property and make some money?…No, what you want to do is stand back and say, what do you want? What do you want for your life, right?… Because at the end of the day, we’re looking for financial freedom and a life of time. The most valuable commodity is not the money, it’s the time.”
Knowing Your Why
The solution to this problem of “how,” is by defining your “why.” Why are you in the game, and what do you want your life to look like, and what do you want real estate to do for you? Thinking about your money’s purpose can help you have a clearer vision of what you want to do, and the “how” will follow.
Gary’s personal “why” is to be free to do more things with his time. So his goal is to work three hours a day, four days a week. In order to do that, much of his income has to be passive. And so his investing decisions reflect that.
The Power of Passive Income
In Gary’s book, he states that most people are about 7 houses away from complete financial independence if done right. That’s because properties can provide consistent cash flow, and you have the leverage of using other people’s money. You use the bank’s money for the mortgage, and the renter’s money to pay down the mortgage. And eventually, you own that property free and clear and can support your lifestyle on that passive income alone.
Gary sees that the investors he teaches are so focused on a dollar figure that they don’t think about the power of passive income. Robert Kiyosaki says, “The definition of a wealthy person is when your passive income surpasses your expenses.”
Leverage Money AND Time
The attraction of real estate is the ability to leverage other people’s money. What we also forget is the power of leveraging other people’s time. CEOs and business owners should be clocking thousand-dollar hours, according to Gary. And if they aren’t they should be offloading that, and leveraging other people’s time on those skills as soon as possible.
Gary shares a simple thought experiment to illustrate the idea. When he asks new investors how often they want to work, they often say 20-40 hour weeks. It’s what employees have come to expect. Then, he asks how much they’d like to see in their bank account in a year’s time. $500,000 is an average answer to that question. In the context of those hours, that’s only $250 an hour.
The next level of this process, then, is to get that investor to think about all the things they do that don’t qualify as $250/hr work. Sending emails, managing spreadsheets, or bookkeeping, for example, is under $50/hr work. And so it’s the investor’s job to leverage someone else’s time to do those tasks. What could be 12 hours of work each week can be reduced to 2 hours of management—putting 12 weeks back into the real estate investor’s business year.
Real Estate Cycles
The “new normal” doesn’t exactly apply to asset classes like real estate, as Gary points out. The market may go through down periods, like the 2008 housing crisis, yet it always corrects. This is because assets like real estate have cycles.
The benefit of real estate is that the asset is tangible—and people will always need housing. And because money is being printed at unprecedented amounts, large inflation rates are a possibility. Gary says he could envision that a $300,000 property now could be worth three million in ten years. So it’s not a bad idea to be in physical assets right now, for the long haul. In turn, it’s important to be able to sustain an 18-month downturn, in the event that one happens.
Cash now, cash flow, and cash later all have a place in your real estate portfolio on some level. Cash now can help you build your reserves in case the market is down, cash flow provides income, and cash later is your long-term strategy.
Scaling Your Real Estate Investing Business with Infinite Banking
The benefit of whole life insurance for your real estate strategy is that you have liquid money that can be put to work in multiple ways. Not only can you take a policy loan from your cash value, but you can also use the cash value as leverage with a bank. This strengthens the power of your capital and protects it from banks as well. Gary admits that he prefers not to have a lot of cash in the bank, due to possible bail-ins, and instead in an IBC policy where it’s secure and earning a greater rate of return.
The Real Estate Investor
Gary’s website is a solution for real estate professionals and operators. He offers software that helps professionals scale with smarter marketing, customer relationship management, and ways to find deals. On his website, you can also find education and coaching services to build your business and strengthen your knowledge.
Gary is also generously offering some of his best content, and access to the waiting list for his upcoming book, The Freedom Code. To take him up on this offer, text the word MONEY to (925)-320-0575.
About Gary Boomershine
Gary Boomershine founded RealEstateInvestor.com in 2005 out of the need to scale and grow his own real estate investing and home buying business. With a family legacy in the real estate niche and a long successful career in enterprise and emerging technology markets, Gary saw the vision for RealEstateInvestor.com. He noticed the glaring opportunity to leverage people, processes, and technology to gain a leg up in a changing and competitive marketplace. As he worked to develop and use the initial product and service, he saw his real estate business flourish by allowing him to work smarter—not harder and focusing on the one thing that makes money—talking to sellers and making offers. That’s when RealEstateInvestor.com began offering its flagship product, Service Done-For-You, to the savvy investor market.
According to Gary, “Most small real estate enterprises limit their growth and many times fail because they lack real marketing and sales expertise along with the infrastructure to scale their business. Instead of being able to focus on closing deals and maximizing profits, they hit a wall trying to build and do everything themselves; and they simply can’t do it!” RealEstateInvestor.com caters to top producing agents, investors, and smaller hedge funds who are looking for a competitive advantage in their local markets. Under the leadership of Gary Boomershine, this service has launched a “technology revolution” within the real estate niche; offering an alternative to the MLS by bringing pre-screened motivated sellers and buyers face to face at the right time.
Gary currently lives in Northern California with his wife and two daughters, where he continues to manage a global team for RealEstateInvestor.com. He is actively involved in real estate investing and private lending. In his free time, he enjoys fly-fishing, skiing, hiking, mountain biking, and traveling with family.
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