Learn how to invest in Mobile Homes: Affordable Housing with amazing earning potential

Notes Section

In this interview we talk with Kevin Bupp, owner & co founder of the Mobile Home Park Academy.

We discuss the lack of Affordable Housing, amazing earning potential that this can provide, & support of the MHP team.

To learn more about the Mobile Home Park Academy click
http://bit.ly/mobilehomeboomer

Transcript

0:00
this is boomer income ideas calm and
0:03
your host Dan Farnsworth thanks for
0:07
joining me on this segment of Goomer
0:08
income ideas com you know business 101
0:10
tells us that if you control a commodity
0:13
in limited supply you have a sure path
0:16
to wealth one of the largest shortages
0:19
that our population or large segment of
0:22
our population is experiencing is
0:23
affordable housing and Kevin bump of
0:27
sunrise capital has found a unique niche
0:30
that satisfies that demand so stay tuned
0:33
changes Smosh see those Glenn big things
0:42
no phone no food no pen ain’t got no
0:48
sick read 72 hours of bushes e vaselines
1:00
king of the road hey Kevin thanks for
1:05
joining me today dan thanks for having
1:07
me I’m super excited to be here you know
1:09
I was excited to have you on the show
1:11
you know we’ve had a number of different
1:13
types of real estate investment
1:15
opportunities that we’ve spotlighted on
1:18
the show in the past but you have a
1:20
really unique niche that you’re going
1:22
after that I really want to kind of
1:24
focus in on which is the mobile home
1:27
park investment opportunity so i know
1:30
that you in the past have dealt with
1:32
everything from investing in
1:34
single-family homes to apartment
1:35
complexes you name it and you really
1:38
focused in on this niche so can you tell
1:40
me a little bit about why that is sure
1:43
sure absolutely well as you mentioned i
1:46
I’ve invested in pretty much everything
1:48
there is i mean i guess not everything
1:49
but a wide array of different asset
1:53
types and i was introduced to mobile
1:56
home parks about i guess a little over
1:58
five years ago was introduced at that
2:00
point time to someone that was in a
2:02
mobile home park space by a mutual
2:04
friend and had lunch with this
2:06
individuals and they’re just really
2:08
there’s a few things that really piqued
2:10
my interest during that meeting dan
2:13
a couple of the big items were the
2:15
expected returns that he had mentioned
2:18
when you kind of compare to apples to
2:19
apples and he was comparing it to
2:21
apartment buildings he was kind of
2:22
saying you know comparing apples to
2:24
apples my experiences that you should be
2:25
able to expect about a one two three
2:28
point yield premium as far as returns
2:30
are concerned you know if he compared
2:32
the same market same asset quality from
2:35
a mobile home park to an apartment
2:37
building so that was very attractive
2:38
than me a couple of things that he
2:39
mentioned that piqued my interest were
2:41
the fact that it was the only asset that
2:44
had a declining supply I mean so I had
2:47
the mission supply meaning they’re not
2:48
being built anymore they’re getting torn
2:50
down or shut down faster than their
2:52
being built so which to me immediately
2:54
means barrier to entry right and so
2:56
there’s there’s no more being built I
2:58
don’t have to worry about a competitor
2:59
moving in down the road and then one of
3:02
the other big points dan was a that
3:04
piqued my interest was that these things
3:06
are real expensive to move these mobile
3:07
homes and so what that means is you’ve
3:11
got a lot less turnover you know the
3:14
thing is if you listen to any of the
3:17
real estate pundants they’ll tell you
3:20
you know focus on trying to figure out
3:22
how to get into affordable housing and
3:24
you’ll have a golden niche market and
3:26
you really just kind of nailed that
3:29
market yeah you know we know that
3:31
there’s an ever-growing well at least if
3:33
you pay attention to the news and you
3:34
read newspaper and such and you should
3:37
know that there’s an ever-growing demand
3:39
for affordable housing and we’re not
3:41
meeting that we’re not meeting that
3:42
demand with the supply that’s coming
3:43
onto the market place and so the mobile
3:46
home park space really it really caters
3:48
to that niche and it caters to it in a
3:50
very unique way because there’s really
3:53
no cheaper place that you can live and
3:56
that you can also at the same time have
3:58
the opportunity to own your own home I
4:00
mean it offers that low and income
4:03
bracket the ability to be a homeowner
4:05
but also lived cheaper than anywhere
4:07
else and I mean our average rents tanner
4:10
you know if you look across the board of
4:12
our parks Harvard rents about three
4:14
hours a month and that’s assuming that
4:15
the tenant owns their own trailer
4:17
[Music]
4:26
you you’ve been at this for a while and
4:29
I understand you have about 15 million
4:31
dollars in total investment right now
4:34
and you’re returning about thirty
4:37
percent of year is that correct yeah
4:39
well you know the thirty percent a year
4:40
that’s we have a portfolio at this
4:42
moment in time that if you really looked
4:44
at it across the board I mean our
4:45
returns are very significant nay they
4:47
exceed thirty percent we’ve got some
4:50
parks I’d say about our most
4:51
conservative park that we have known to
4:52
date the park in Kentucky and that one’s
4:54
just a with a very easy park all tenant
4:56
owned homes it’s a it’s about as simple
4:59
as they come that one we’re just pushing
5:02
over about twenty percent annualized
5:03
cash and cash returns on but we have a
5:05
few parks that they’re they’re not the
5:09
norm but we have a few parks that are
5:10
pushing seventy to a hundred percent
5:11
yearly cash-on-cash burns I mean they’re
5:14
just they’re kicking butt so what you’re
5:17
that thirty percent I don’t want people
5:18
to think that’s the norm I mean so
5:20
there’s a disclaimer that goes along
5:21
with that I wouldn’t say that you should
5:23
get into this business expecting that
5:24
whatever parking by you’re going to be
5:26
able to achieve thirty percent
5:28
annualized returns on your money it’s
5:29
just it’s that they’re out there trust
5:32
me they’re out there and they’re it’s
5:33
not just a needle in the haystack
5:34
they’re definitely out there but a lot
5:35
of parks we purchased and that are
5:37
achieving those types of results are are
5:39
they were initially distressed plays
5:41
that had a ton of upside and we like
5:43
those types of deals because there’s
5:45
they can be a very hairy type of deal
5:46
but there’s a lot of opportunity reward
5:48
on the back end so some people don’t
5:50
like that type of investment we love it
5:52
and we’re really good at it so that’s
5:54
that’s why we’re able to achieve those
5:55
types of high returns you know I’m from
5:58
California and I’ve always liked the
6:02
idea personally of investing in mobile
6:05
home parks but out in California their
6:06
multi multi million dollar investment so
6:09
a smaller investor really doesn’t have
6:11
an opportunity to play in that game in
6:14
your environment it’s a very different
6:16
story you go after much smaller parks in
6:18
many cases that that even an individual
6:21
can realistically go out and purchase
6:23
that Park is that correct yeah that’s
6:25
correct I’m you know we’re not opposed
6:27
to buying larger parks a just I guess
6:29
we’ve kind of fallen into this unique
6:31
niche and just where we are our average
6:33
size on the small end that we purchased
6:36
a day at least we do have a few smaller
6:37
parks but the
6:39
we’re looking forward today’s about 50
6:41
spaces minimum and you know we’ll buy it
6:45
there’s no like cap on the size of a
6:47
park that will purchase but to date the
6:49
largest park we have is just over 200
6:50
spaces in size but the average I’d say
6:53
if you really look across the board of
6:54
what we’re looking at what we have in
6:55
contract today what we currently own
6:57
it’s going to hover like in between the
7:00
80 and 100 space marks so let’s talk a
7:03
little bit about ownership you have
7:05
pretty much covered that niche as well
7:08
because you have an investment
7:10
opportunity so individual investors who
7:12
really just want a a very passive
7:14
investment they invest their money and
7:16
they just wait for a dividend check to
7:18
come in you have that available through
7:21
your sunrise capital investors and then
7:24
you also train people or teach people
7:27
how to actually go out and invest in
7:31
these parks individually through the
7:33
mobile home park academy is that correct
7:35
that’s correct so let’s start a little
7:37
bit about sunrise capital first and then
7:39
we’ll talk about the the Academy if an
7:42
investor wants to get involved in you
7:45
know in one of these types of
7:46
investments what’s the minimum capital
7:48
requirement what can you expect as far
7:50
as the structure of the return on his
7:53
investment meaning does he start
7:54
receiving cash flow immediately are the
7:56
parks already in place that he’s
7:57
investing in ered because he’s put money
7:59
into an escrow account and wait for you
8:01
to go find a park and gather number of
8:04
investors together and then the dividend
8:06
check starts to answer the first
8:09
question I think I guess one of the
8:11
questions is number one you have to be
8:12
accredited and so it’s set up as a
8:13
regulation d 506 C offering so all the
8:16
investors have to be accredited the
8:19
minimum investment of my $100,000 and
8:22
right now we have it set up to where
8:25
escrow breaks meaning like escrow it
8:28
will become an act of fun and a hunt
8:30
$50,000 and we’re actually putting that
8:31
much money are so we’re putting more
8:33
than that ourselves so we’re actually
8:34
going to be breaking escrow with the
8:37
money that we’re putting into the fund
8:38
meaning that whatever investor money
8:40
goes into that fond it wont to sit there
8:42
idle waiting I mean if there’s no
8:44
there’s no parks in there right now we
8:46
have multiple in contract and there will
8:47
be a few in there in the next month or
8:49
two but the preferred returns of eight
8:52
percent start accruing
8:53
feeling and so they’re also they might
8:56
not be shouted neatly but they will
8:57
start accruing immediately let me stop
8:59
you there a minute because I think this
9:00
is really important you have a preferred
9:02
return of eight percent a year anything
9:04
that that the investors get eight
9:06
percent per year before anything was
9:09
distributed beyond that correct that’s
9:11
right yeah so basically how it goes is
9:13
you know operational expenses debt
9:17
service and then before any cash flow
9:19
gets distributed basically that
9:20
investors get their eight percent and
9:21
then we have a one-percent asset
9:23
management fee and then after the eight
9:25
percent and one percent asset management
9:26
feed to us the remaining gets split
9:28
fifty-fifty so yeah so basically the
9:32
investors get any of the cat eight
9:34
percent of the cash flow prior to
9:36
anything getting distribute to us for an
9:38
asset management fee and prior to any
9:40
cash flows excess cash flows getting
9:42
distributed and again your your
9:45
estimation in the overall yield is
9:47
somewhere around twenty percent so
9:49
they’ve got ya gunz race percent locked
9:51
in but and everything is kind of
9:52
floating beyond that but you’re you’re
9:54
estimating somewhere around at twenty
9:56
percent rate I mean as with any of these
9:59
investments I just want to put this
10:00
claim out there there’s no guarantee
10:01
whatsoever remain said that’s that’s the
10:04
worst case there there’s no guarantee is
10:05
that you know even the eight percent not
10:07
a it’s not a guarantee but again the
10:10
investments that we are comfortable
10:11
purchasing that’s that’s kind of in our
10:13
wheelhouse the thing is our portfolio
10:15
now we will have no issue meeting that
10:17
number but again there is no guarantee
10:18
so just to kind of clarify what our
10:21
projections are this fund our
10:23
projections are a 12-percent annualized
10:25
cash on cash return with a blended
10:27
return over the life of the investment
10:29
of twenty percent a year and so that
10:32
would factor in principle pay downs
10:34
appreciation and also profit on the back
10:36
end when the assets are sold you say the
10:39
life of this investment is there a
10:41
specific exit strategy a holding time
10:44
you know where we’re we’re long-term
10:46
investor Dan and there’s reasons behind
10:49
that you know with these types and
10:52
investments we don’t have to exit out of
10:54
it like an apartment complex a lot of
10:56
those investments you see there 325 your
10:57
horizons and I feel like they have to
10:59
exit out because they’re pushing rents
11:01
and they have to exit out in order to
11:03
get the returns that their investors are
11:04
looking forward it’s the annualized
11:05
returns are
11:06
they’re not all that significant in our
11:08
case we can typically hold these lot
11:10
longer and we like to because they
11:12
produce a lot a lot more cash flow and
11:15
we can get the investors as returns a
11:16
need without having to exit out of it in
11:18
a shorter period of time and so we’re a
11:20
10 year this is a 10 year investment and
11:23
we say that on or about the 10-year mark
11:26
will be looking to this divested these
11:28
assets what about liquidity if if you
11:31
have an investor that’s jumping in with
11:33
100,000 and this is a 10-year plan but
11:38
this investor wants to liquidate in two
11:41
years and go on to something else what’s
11:43
the possibility or the opportunity for
11:45
that there’s not an opportunity to do
11:47
that after the five-year mark we do have
11:49
the ability to do that but not not
11:50
before then and we really if anyone has
11:53
an idea that they’re really looking for
11:55
something to where they have they can
11:56
have more momentum with their money more
11:57
flexibility we’re not the right fit for
11:59
them right when I right said okay got it
12:01
well now let’s talk about how someone
12:03
who doesn’t want to go through the
12:05
hassle of being an accredited investor
12:07
can go do what he needs to do on his own
12:09
and go buy a park on his own and you
12:15
know through financing or whatever by
12:16
learning how to do that with you and the
12:19
mobile home park academy tell me a
12:21
little bit about that I know that that’s
12:22
a project that you’ve had that you’ve
12:25
been working on for what a year now or
12:28
maybe about a year and at the idea
12:30
actually came to me probably a little
12:31
over two years ago but we really put our
12:33
notes the grindstone about a year and a
12:35
half ago and so it’s been a it’s been a
12:36
real labor of love for us we’ve spent a
12:38
lot of time welcome to the mobile home
12:39
park academy my name is Kevin buff and I
12:41
want to welcome you to the premier
12:43
educational source for everything in
12:45
anything related to the highly lucrative
12:47
niche a mobile home park investing not a
12:49
day goes by where I don’t receive an
12:51
email or a phone call from a listener
12:53
and they say Kevin can you please put
12:55
that information that you talk about
12:56
into an easy to implement systematize
12:59
formula well after more than a year and
13:02
a half of me and my partner Charles V
13:03
Hart grinding away in the lab working
13:06
countless hours are developed a very
13:07
best mobile home park training system
13:09
around I’m excited to say we have what
13:12
you’ve been waiting for you essentially
13:13
we’ve done dads we’ve taken our internal
13:16
systems and processes that we really
13:18
pride ourselves on
13:19
and we’ve converted them in a manner
13:21
that allows others to learn from them I
13:23
mean we put them into it easy to follow
13:25
training video series to wear those that
13:29
have an interest in learning this
13:30
business can literally learn
13:31
step-by-step exactly what we do I mean
13:33
it’s literally our internal operations
13:34
turned inside out is the best way to put
13:36
it it’s a 90-day step-by-step intensive
13:39
training program that literally teaches
13:41
you a dizzy everything from market
13:43
analysis to building an off-market
13:45
database how to market to that database
13:47
had negotiate with with with owners
13:50
directly all the way to raising private
13:53
capital you know if you don’t have my to
13:55
yourself putting together financing for
13:56
these deals all the way to the
13:58
operational sides and once you close on
14:00
it how do you run these things how do
14:01
you how do you find new management how
14:02
do you train the managers how do you put
14:04
a sale system in place if you’re trying
14:06
to sell new homes like like I mentioned
14:07
we bring a lot of new homes so you have
14:09
to have a good structured sales program
14:11
in place so it’s really an A to Z
14:13
program it’s 90 days hi everyone my name
14:23
is Mark Richert and I am with rickard
14:25
Property Group you know my family’s been
14:28
in the mobile home park industry for
14:29
over 50 years my father taught me
14:32
something really important to be a
14:34
lifelong learner and as a fellow Park
14:37
investor I’ve gotten to know Kevin and
14:39
Charles and learned so much from them
14:41
their podcasts and through their Academy
14:43
if you’re looking to break into this
14:45
industry just starting out you don’t
14:49
want to buy the wrong investment you
14:50
need to listen to what Charles and Kevin
14:52
have to say until next time talk to you
14:55
later and 310 so there’s prob about now
14:58
there’s about 60 hours worth of training
14:59
videos in there we keep adding to it and
15:01
so it’s stuff it’s a very hands-on
15:04
process and it really is everything that
15:07
someone needs to know to learn to get
15:09
into this business and so is this a
15:11
structured curriculum that takes 90 days
15:13
and you do this every 90 days or can
15:16
anybody just join in at any time and
15:20
they don’t need to wait that that you
15:22
know the semester period we had decided
15:24
that we would just allow people to get
15:26
in at any given point in time and so
15:28
there’s there’s multiple people that are
15:30
in different stages of the program you
15:32
weekly group coaching calls and so some
15:34
of those some of the questions that
15:35
might be asking the call might not be
15:37
necessarily relevant to the part that
15:38
you’re in but they will be at some point
15:39
in time so we record all those calls and
15:41
so I we haven’t we’ve actually found it
15:43
to be very productive to have people in
15:46
different parts of the the program the
15:48
same time because now those students
15:49
that are further had can actually assist
15:52
and answer questions for those that are
15:53
going to be just getting started well
15:55
and conversely if I understand correctly
15:57
because the the opposite is true in that
15:59
when you set this up it was originally
16:01
designed for deal flow to come to you in
16:04
other words you’ve got these people
16:05
coming out of the Academy they’re out
16:07
there finding opportunities and once
16:10
they find an opportunity maybe they wrap
16:12
it up in a contract and then they need
16:14
to go find financing and they want to
16:17
come to you to help with that financing
16:19
and so at that point it’s their deal but
16:23
you’re in if you come into that deal
16:25
you’re in as a as a partner investor and
16:28
expert at the same time as all right
16:31
that’s correct yeah I mean that was the
16:32
original idea the the Academy I think
16:34
it’s morphed into something bigger than
16:35
that but yeah that still is the one of
16:38
the underlying reasons that we put it
16:40
together and obviously we can ever we
16:42
can never force anybody to say hey
16:44
partner with us you need to bring your
16:45
deal to us I mean that is not the plan
16:47
whatsoever if they wanted to do it on
16:48
their own raise the capital by
16:50
themselves your financing and just run
16:52
the show they have the right to do that
16:54
but we make our we make it known that
16:56
we’re here we’re available and we have
16:59
capital and we have the expertise I know
17:01
personally if I was going to go out even
17:03
if I went through the Academy and I was
17:04
going to go out and and buy something
17:06
and I thought now let’s say I’ve never
17:08
operated a park before I’ve gone through
17:10
the Academy so I’ve got some training
17:12
I’m going to buy this and I’ve got two
17:14
choices I can do everything on my own
17:16
going forward and hopefully I do the
17:18
right thing or i can bring kevin bump
17:20
and his partner in who have a long track
17:23
record of doing this accessory let me
17:25
think about this for a minute passed a
17:27
no brainer yeah no I mean it really is
17:30
it Dan when I got into this business I
17:32
didn’t mention this part of the story
17:33
but you know I had experienced owning
17:36
other types of assets and so I had an
17:38
experience I had experience being a
17:39
landlord had experience building a
17:41
management company had experience with
17:42
acquisitions experience with financing
17:45
and raising capital
17:46
I didn’t have experience with mobile
17:47
home parks and there’s some uniqueness
17:49
that exists in mobile home parks that
17:53
might not exist in other asset types
17:54
Nielsen’s I see people buying parks at
17:56
the day either overpaying for or they’re
17:59
evaluating wrong or just have they have
18:02
infrastructure challenges that aren’t
18:05
easy wants to overcome and people aren’t
18:08
aware of it they get into them and they
18:09
you know either they struggle they don’t
18:11
you get the returns are looking for and
18:12
you don’t have much of an exit and it’s
18:14
just there’s no need to there’s no need
18:17
to do that there’s plenty now with our
18:18
education there’s other education out
18:20
there there’s no need to go out of the
18:22
loan there’s people like me they’re
18:23
interested in partnering with others
18:24
that don’t have the experience so yeah I
18:26
think it’s a smart thing to do I do to
18:28
it overall whether it’s whether it’s
18:31
investing through you or investing
18:33
directly after going through your
18:36
Academy and things along those lines can
18:38
you give me three pros and three cons of
18:40
actually investing in mobile home parks
18:44
yeah so pros I mean three pros would be
18:47
the I guess the first three things I
18:48
said piqued my interest about the asset
18:50
class and that’s superior returns
18:51
barrier to entry because they’re not
18:54
being built anymore I mean it’s a
18:56
diminishing supply and then the other
18:58
low turnover lower much lower turnover
19:00
and ease of which means he’s a
19:02
management compared two apartment
19:04
buildings or anything like that because
19:05
you don’t have people that can just pack
19:07
up their bags and leave it’s very costly
19:09
move those home so those are there’s
19:10
many more pros but those are like the
19:11
three big ones that just really stick
19:13
out my mind and now that the negatives i
19:15
would say are big one being
19:18
infrastructure not not understanding
19:20
exactly what the infrastructure is made
19:22
up of in a mobile home park like I
19:24
mentioned private utilities another
19:26
negative of this business is unlike
19:28
apartment buildings or other commercial
19:30
asset types to where there’s third-party
19:32
professional management companies
19:33
available and that’s a very common
19:35
strategy those that by larger apartment
19:36
buildings or those that are buying
19:38
shopping centers they typically the
19:40
investors aren’t normally managing them
19:42
themselves they bring a third-party
19:44
professional management company in that
19:45
will do the job way better than they
19:47
might do it and so they can offload that
19:49
to someone else and that’s got the
19:50
infrastructure that’s got the expertise
19:52
in the mobile home park space there are
19:55
a few third-party management countries
19:57
out there but it’s not the norm even the
19:59
biggest operator
20:00
they go vertical their management and
20:01
that means that you’ve gotta build a
20:02
management infrastructure which is just
20:05
another business I mean so you’ve got
20:06
essentially two businesses in one and
20:09
that could be a that could be hanging up
20:10
for a lot of people you know if they’re
20:12
not they’re not organized and they don’t
20:14
have the expertise to build that
20:15
vertical management infrastructure then
20:17
they are going to be challenged with
20:19
that asset type and I say the third big
20:21
negative of mobile home parks is the
20:24
ability to get bank financing
20:26
multi-family is kind of flavor of the
20:29
day as far as departments are concerned
20:31
you can probably pre-much go to any
20:32
local bank or regional or national bank
20:34
and show them a decent multifamily deal
20:37
and they’ll be clamoring to lend on it
20:39
mobile home parks half the time they’re
20:41
running the other direction you know
20:43
they just they don’t in most time it’s
20:45
because they don’t understand the asset
20:46
type and so there’s plenty of financing
20:48
out there for it but you got to dig a
20:50
little deeper okay I think this has been
20:52
a great conversation I’ve learned a lot
20:54
and we’re going to be putting your
20:56
information your website and your phone
20:59
number and so forth in our notes section
21:00
so that the viewers can contact you
21:02
directly which I really encourage them
21:04
to do especially to check into the
21:06
mobile home park academy and I want to
21:08
thank you very much for joining me today
21:10
and I’m going to look forward to coming
21:12
out to the west coast of Florida and
21:15
we’ll go out and have a beer and talk
21:16
about mobile home parks that sounds like
21:18
a plan dan I really appreciate you
21:19
having me on the show it’s been a lot of
21:20
fun

Have fun and make money: Own a Pedego Dealership!

Notes Section

Pedego Electric Bikes make riding more fun!

An electric bike is just like a regular bicycle – only better. You can pedal normally (or not), and get power when you want it.

You have the freedom to go farther and faster, and to conquer hills and headwinds with ease. It feels like being a kid again.

To inquire about owning your own store click
http://bit.ly/pedigoboomers

Transcript

0:00
this is boomer income ideas calm and
0:03
your host Dan Farnsworth thanks for
0:07
joining me on this episode of boomer
0:08
income ideas com you know we get a
0:10
chance to talk about a lot of really
0:12
cool ideas on this show but I get it
0:16
especially excited when I come across an
0:18
opportunity that’s also fun to operate
0:21
and we found exactly that we’re gonna be
0:24
talking to done d Constanzo pedigo
0:27
electric bikes which i actually believe
0:29
is going to be the next must-have item
0:31
so make sure you stay tuned alone and on
0:46
the highway looking for adventure then
0:52
whatever comes our way
0:54
[Music]
0:56
but to me Wow
1:02
tell me why
1:07
[Music]
1:11
thanks for joining me today my pleasure
1:18
you know it was it was fascinating to
1:22
actually get in touch with you after I
1:24
read the article in inked magazine
1:27
because as a baby boomer I know that we
1:31
kind of have this wave of preferences
1:34
that we followed throughout our lives
1:36
and by that what I mean is you know in
1:38
our 30s and 40s we all were khaki pants
1:42
blue blazers and drove BMWs and then
1:44
following that in our 40s and 50s we
1:47
traded that in for harley-davidson in a
1:49
black leather jacket and in our 50s and
1:52
60s we went to pedal power so you know
1:55
some of us got mountain bike some of the
1:56
scott street bikes but we all got you
1:58
know in spandex and helmets and got out
2:01
on the road someplace and that lasted
2:03
until about 60 and then most of us have
2:05
our bikes hanging in the garage
2:06
someplace but we always loved that pedal
2:09
power idea and you you kind of took it
2:13
to the next level by giving an electric
2:16
assist and i think personally i think
2:18
that that is really the next big thing
2:21
that we’re all going to have to have and
2:24
so that’s why i’m excited to have you on
2:26
the show today can you tell me a little
2:27
bit about how you got to this point i
2:29
know you’re you’re from the corporate
2:31
world and somehow you started making
2:34
electric bicycles tell me a little bit
2:35
about that well I’m typical a lot of
2:38
people in our in our age group where I
2:40
get displaced by corporate America and
2:42
in that transition period I i lived at
2:46
the beach and i had i lived at the top
2:48
of a hill and I love to ride my bike
2:50
down at the beach but I hated it right
2:52
up that hill at the end so consequently
2:54
the bikes did just as you say they hung
2:56
in the garage and every time I went out
2:58
to the garage I look at the bike side
3:00
look at my car and think about the hill
3:02
and I would choose the car so then I
3:05
heard about electric bikes and I ordered
3:06
one online and it took two or three
3:08
months to get it came and it was in
3:10
pieces and I spent two or three months
3:11
putting it together struggling with the
3:14
company that sent it to me to get it to
3:15
work finally got it to work determined
3:17
that I was and it got me up the hill and
3:20
I said oh my god this was a revelation
3:22
was
3:23
this is unbelievable this is a bike with
3:26
a small motor on it that would get me up
3:27
the hill now that particular model this
3:29
was back in two thousand six it was
3:31
clunky it was noisy was heavy it was
3:33
poor quality but the magic was a
3:36
government feeling right away I got I
3:37
got the impression I thought this is
3:39
like a magic carpet ride it can carry me
3:41
up so from then I bought seven more
3:43
electric bikes anywhere I could find
3:45
them well have struggled to find a place
3:47
to get him and all my friends came over
3:49
we all go riding bike so we get back
3:50
into by cycling together so at that time
3:52
I look at the market and I looked at how
3:55
fragmented it was and then i read online
3:57
it’s a guy that i bought one of the
3:59
bikes in was in new york city and he
4:01
stated it his largest customer base was
4:03
in California I said well that’s an
4:05
opportunity for ever seen one a guy
4:07
selling electric bikes in New York City
4:08
biggest market is California I think
4:11
there’s time for a store here as a hobby
4:13
I opened up a retail store just to test
4:16
the market okay and I carried everything
4:17
electric I carried golf carts like
4:19
Hummer and Escalade golf carts I
4:21
Electric skateboards electric bikes I
4:24
even had an electric car and I learned
4:27
really quickly that the real fun was the
4:29
electric bike because everybody got it
4:31
once they get on it they put a big smile
4:33
on their face and that that’s what began
4:36
it back in two thousand seven
4:38
interesting you know I I studied your
4:42
website and I got a real kick out of
4:44
seeing some of the testimonials from
4:46
your different customers especially
4:49
people like Norman Terry rock I think
4:52
it’s wrong yeah yeah Iraq maker that’s a
4:55
rock maker yeah you know they just are
4:57
just a testament to exactly what you’re
5:00
talking about but the thing that I
5:01
really found fascinating was that we’re
5:03
all babe they’re all baby boomers I mean
5:05
all of all of the the buyers of these
5:07
quote at least the market that I’m
5:10
seeing is that baby boomer generation
5:13
just like you and me who still want to
5:16
stay active but all of us have that same
5:18
kind of the same kind of problem
5:29
we’ve always been very active and we
5:34
find certain things that we like to do
5:36
together and we love our petticoat and
5:39
neither one of us have any argument
5:42
about writing our pedigo together it’s
5:44
not a gang it’s a club and there’s quite
5:47
a few O’s and part of this whole social
5:49
thing is we have a lot of friends but
5:51
they also have a lot of friends so all
5:54
of a sudden people are bringing friends
5:56
that we’ve never seen before so because
5:59
more of a family and with as far as
6:02
we’re concerned the more people the
6:04
better we are and the more last we have
6:06
and the more fun we had tell me a little
6:11
bit about how you got started in putting
6:15
together these dealerships I mean you
6:17
guys have really exploded and in the
6:20
last four years with what I think you
6:22
have 70 dealerships around the country
6:24
right now yeah in the US we have coming
6:27
zooming in on about 70 I think and we
6:31
have about a hundred total because we’ve
6:32
got them in other parts of the world as
6:34
well but here in the US it’s really
6:36
taken off and I think it’s most of its
6:39
come organically believe it or not it
6:40
wasn’t because we hit this big marketing
6:42
campaign to get dealers it starts with
6:45
them riding the bike when they when they
6:47
inquire to become a dealer the first
6:48
question we asked do you own a pedagogue
6:51
and if they own a pet ago they go right
6:52
to the top of the list because right
6:54
away we know they get it if they don’t
6:56
and they haven’t ridden the bike they
6:57
haven’t experienced it it’s very
6:59
difficult for us to to communicate with
7:02
them exactly how much fun the bikes are
7:03
and then typically that our dealer
7:06
prospects call or other dealers on the
7:08
phone and they become our best sales
7:10
people because they tell everybody how
7:11
much fun they’re having and at the end
7:13
of the day if it’s fun you’re going to
7:15
enjoyed you’re going to do much better
7:16
now you know I noticed that’s kind of
7:18
your slogan isn’t and hello fun yeah we
7:20
actually trademark pillows digit yeah
7:22
okay and that’s it’s such a dominant
7:24
part of the whole culture I can I can
7:26
really see throughout well throughout
7:28
your product information on the site and
7:31
your dealers and your customers and so
7:33
forth there’s just this fun component
7:35
all the way through
7:37
tena koe electric bikes is different
7:46
because we put people first the most
7:48
important part of every pedigo isn’t
7:51
some high-tech gadget or fancy bicycle
7:53
component it’s the person writing and I
7:55
notice that these are not franchisees
7:57
their dealers you don’t charge a
7:59
franchise fee tell me a little bit about
8:01
that well we spent a lot of time
8:02
everyone told us we need to be a friend
8:04
we should franchise this business so in
8:05
the beginning when we had about a few
8:08
dealers I approached the franchise
8:11
people and so what I go what do you
8:12
think and they said well you need to
8:13
have at least 10 or 15 operations until
8:15
your franchise you got to prove the
8:17
concept so fun so the next thing you
8:19
know we’ve got 35 40 frames i think i’ll
8:22
go back to the franchise people say so
8:23
what do you think they should where you
8:25
been you should have started franchising
8:29
when you had 10 or 15 yeah why are you
8:31
waiting till four th so it’ll be honest
8:33
with you kind of ran away from us and
8:34
it’s going so well we didn’t see any
8:36
different shape yeah we discovered that
8:38
the rules for franchise e are different
8:42
than our dealers are in that our dealers
8:43
are entrepreneurs and the franchise ores
8:46
and the training of the franchisor says
8:49
that you want to get people who will do
8:51
everything you tell them to do right
8:52
well we don’t want to tell them what to
8:54
do we think it’s better that they do
8:55
with that we want to give them
8:56
guidelines running but we want to tell
8:58
me what to do and the main reason we
8:59
didn’t do it is we didn’t want to
9:01
collect a franchise fee and the reason
9:03
we want to take a franchise fee because
9:04
it doesn’t matter what I take one
9:06
percent or ten percent or fifteen
9:08
percent it creates an antagonistic
9:10
relationship I called unholy alliance
9:13
between the franchisee and the
9:15
franchisor and I didn’t want it went to
9:18
do that I didn’t want to create that
9:19
relationship we’re collecting any money
9:20
so unlike franchise sores we give
9:23
everything away for free we print their
9:25
business cards when we print the row
9:27
shores for them we don’t charge them for
9:28
anything well they want to put a sign on
9:30
the building will even help pay for the
9:33
sign rather than let them pay for we’ll
9:35
go halves with them on the sign because
9:37
it’s promoting them and promoting our
9:38
branch so in essence we decided we
9:41
wanted to be partners with our dealers
9:42
rather than have any
9:44
take those other antagonistic
9:45
relationship yeah I noticed that your
9:48
your dealers actually come from all
9:50
walks of life I mean everything from an
9:52
ex-police officer to an engineer to I
9:56
know one lady actually own the
9:59
laundromat or something I mean yeah they
10:01
heard her husband on laundromat exactly
10:03
i mean i don’t think there’s any
10:05
duplicated we have some teachers i think
10:07
there’s a few teachers in the mix we
10:09
have some we have a few that have been
10:11
entrepreneurs in the past but ninety
10:13
percent of our dealers have never been
10:14
in business for themselves so we help
10:15
them with every facet of we help we set
10:18
up for social media forum we provide on
10:20
the website we provide in business cards
10:22
we want them to be able to spend every
10:23
day in their store talking to customers
10:26
on and fun I’ve never met a kid I’ve
10:29
never been an adult I’ve never met an 80
10:30
year old person if I said hey you want
10:32
to go have some fun no no what it
10:36
doesn’t happen tell me a little bit
10:38
about the actual store set up and the
10:41
the capital costs required to actually
10:44
set up one of these stores I know that
10:46
since you don’t charge a franchise fee
10:48
you do have a minimum order of product
10:53
that is purchased and and then also
10:55
obviously the store tell me a little bit
10:58
about that well first of all we don’t
11:00
have any rules I’m like the guy that
11:02
does one if there’s a rule i’m going to
11:03
figure out how to break it so we don’t
11:05
have any rules really have guidelines
11:06
and there’s no minimum purchase
11:07
requirement but we do require an opening
11:11
order of size to fit the market that
11:14
they’re in so if they’re in a small town
11:15
like bloomington indiana it wouldn’t be
11:18
the same thing and opening up in chicago
11:19
illinois to have that territory so we
11:22
grant a license agreement to our dealers
11:24
in exchange for a mutual loyalty so dan
11:28
if you said you wanted open one up in
11:29
you say you’re in fort lauderdale no
11:31
actually on palm beach i’m right down
11:33
i’m sorry here in Pompeii daughter
11:34
sprint from your adrenal bitch okay so
11:37
let’s take juno beach is a good example
11:39
she was a customer in Sacramento and she
11:42
wanted to move back to Florida and she
11:44
moved to Florida said I want to open
11:45
juno beach so we went down and helped
11:47
her pick their selection i went there
11:49
and visited her her location myself
11:52
sometimes i go sometime one of my team
11:54
members go but in this case I went we
11:56
looked at all the different sites you
11:57
wanted
11:58
and we at a particular location she was
12:01
in favor of it she did go sit a
12:02
favorable lease and we’re with her the
12:04
whole way because we want these
12:06
entrepreneurs to learn how to become an
12:08
entrepreneur and we will them every step
12:09
of the way including down to the lease
12:11
negotiation once they’ve selected a
12:13
location we grant them a license so the
12:16
first investment they after me is really
12:18
in signing a lease the second big
12:20
expense would be the inventory and the
12:23
stores can open up with anywhere between
12:24
twenty thousand dollars and fifty
12:26
thousand dollars worth of inventory
12:28
usually not much less than that and
12:30
seldom more than that depending on the
12:32
scale to market so that’s the next
12:33
biggest investment by the way they’re
12:35
buying at wholesale so if they decided
12:37
two months after they open the business
12:39
they wanted to get out they can
12:40
typically sell off the inventory and get
12:42
their investment back so it’s not a
12:43
risky part of the investment right then
12:45
and after that the third component is
12:47
the the general things you have starting
12:50
up any retail store you need a computer
12:52
in a countertop you need some store
12:54
fixtures fortunately for us our store
12:56
fixtures are minimal because the bikes
12:58
are in essence the the fixtures
13:00
generally speaking it costs between
13:02
somewhere between seventy-five thousand
13:04
dollars on a hundred thousand dollars to
13:05
open up a pedigo branded store and about
13:09
half of that is typically inventory once
13:11
once you’re up and running you put up a
13:14
sign how how do you drive traffic to
13:17
that especially that new location okay
13:20
so that’s kind of where we have the
13:22
secret sauce we’re very good at when our
13:26
store opened up in Boston open the door
13:28
and income first customers and so we’re
13:30
here to buy to pedigo interceptor model
13:33
bikes and the guys conflicted now
13:36
wedding okay see goods well let’s go for
13:38
a test ride the customer should know
13:39
where they need to go for tests right
13:41
we’re just here to buy two bikes now
13:42
he’s really conflicted okay because we
13:44
drilled in how important is to take the
13:45
customer a test drive right and the
13:47
customer said well I don’t need to take
13:50
a test right because I rented them when
13:51
I was at your location in Coronado and
13:53
over the weekend I mean over the summer
13:55
time and I’ve been waiting for you to
13:56
open because i want to buy here so a lot
13:59
of our secret sauce is having these
14:00
rental operations all over the world so
14:02
the first thing we’re trying to do is
14:04
get him to try the other thing is we’re
14:06
very aggressive online our goal is to
14:08
drive traffic to the store their job is
14:10
to get them on a bike and get them to
14:11
for ride once they go for a ride and the
14:13
longer they take the ride the more
14:14
likely they are to buy the product it’s
14:17
our policy to do whatever it takes to
14:19
make sure that every single pedigo
14:21
customers delighted with their bikes and
14:22
the overall experience I love this
14:25
business because always sell is fun
14:26
every hour of every day somewhere on
14:29
earth someone is falling in love with a
14:31
pet ago and rediscovering the simple joy
14:33
of riding a bicycle and feels pretty
14:36
good I think that this really sound like
14:40
a fun business but tell me a little bit
14:43
about it as a business and by that what
14:46
I mean what can an average store expect
14:48
to gross many net I mean it highs lows
14:53
what are the ranges and by what I’m
14:56
really trying to drive through to is
14:57
that you know a lot of businesses that
15:00
we baby boomers kind of seek out and
15:03
shoes are things that we’re really not
15:06
that concern about the money we really
15:08
want to just kind of do it as a hobby
15:09
and if it pays some money as well it’s
15:11
good too but is this or is this a real
15:13
business that someone that really needs
15:16
to make a decent income can count on
15:18
this store to do that first of all it’s
15:20
a relatively small investment I mean
15:22
fifty to a hundred thousand dollars is
15:23
not a lot of money to start a business
15:24
today if you start a franchise they’re
15:26
going to get a minimum of a
15:27
twenty-five-thousand-dollar franchise
15:28
fee which you really get a little or
15:30
nothing for that so it’s a relatively
15:32
small start-up but the most important
15:34
part about it is it’s an owner-operator
15:36
business almost every location we have
15:38
and successful locations operated our
15:40
biggest our largest and most successful
15:42
dealers in irvine california an on
15:45
coastal city and his wife isn’t does the
15:48
books Bob and his son work in the
15:50
business and they’ve done very very well
15:51
I don’t know exactly how much they’ve
15:53
made but they’ve made their making a lot
15:54
of money anyway but if you ask me
15:56
arranged in the first year I think every
15:59
single store that we’ve opened up is at
16:00
least broken even in the first year I
16:02
don’t know any of it lost any money and
16:04
then the second third and fourth years
16:05
when they start making money and
16:07
reasonably you can expect to make fifty
16:09
to a hundred thousand dollars a year as
16:10
an owner operator and if you own
16:12
multiple stores that we’ve got dealers
16:13
now doing that you have a really a
16:16
pretty wide variety of bikes
16:18
incidentally the latches my my favorite
16:23
of your models because I used to
16:24
to do a lot of sailing and you know
16:27
being able to fold up a bike and put it
16:29
on the boat and take it with you
16:30
everybody used to do that with full up
16:32
bikes anyway but they didn’t get used a
16:34
lot because it was you had a pendulum
16:36
but the idea that you could actually
16:37
pull this thing up and take it with you
16:39
go from you know take a trip from here
16:42
down to Key West more your boat get on
16:45
your your pedigo and go riding around
16:48
Key West is pretty attractive to me the
16:56
pedicle latch is an electric folding
16:58
bike like no other it rides like a dream
17:00
and easily fold in about 30 seconds once
17:03
it’s folded a special ball and socket
17:05
fold everything together so it’s easy to
17:07
carry it can be supported by the seat
17:09
post or tipped over to rest on pads
17:11
attached to the rear rack discover for
17:13
yourself all the joy of riding a pedigo
17:15
electric light hello fun so tell me why
17:22
so many mop you know it’s just like a
17:25
knock are not every carpets whether you
17:27
go to a Chevy dealer or a toyota dealer
17:30
they’ve got a different mother they’ve
17:31
got a subcompact all the way up to a you
17:33
know a full-size luxury car we need to
17:35
do the same thing in our category and
17:37
the more bikes we have the more people
17:40
we attracted a bike so the style of the
17:42
bike doesn’t become the objection right
17:44
my concern is how long the battery lasts
17:46
so that I can you know I don’t run out
17:50
of battery power before I make it back
17:52
to wherever I’m trying to get to so we
17:54
have all the questions and here they are
17:56
right here dunno if you could see that
17:58
or not basically how fast how far how
18:02
long did charge and what about exercise
18:05
those are the four key questions that we
18:07
recognize that people ask as they go
18:10
along and the reality of it is the
18:12
timing is everything these lithium
18:15
batteries that have come out in the last
18:16
two years of phenomenon they’ll go
18:18
further than you want to go I mean you
18:20
take our long-range batter it’ll take
18:22
you 50 miles without you pedal yeah 50
18:25
miles is a long way right and that’s
18:27
without pedaling if you had some any
18:28
element of human power to it can take
18:31
you a hundred miles you can still have
18:33
after charge left yeah give me three
18:37
images are three pros that you see about
18:39
actually owning and operating a pedigo
18:42
dealership and maybe three cons so the
18:47
three real key advantages to us over
18:50
some other business opportunities to
18:52
people might consider is number one it’s
18:53
a relatively small investment number two
18:56
it’s a quick start-up if you can find a
18:58
place the biggest challenge we have is
19:00
finding a place a suitable place to open
19:03
up and that’s a huge part workers the
19:04
right location is critical to success we
19:06
spend more time on that than anything
19:08
else and then the third thing is there’s
19:09
no franchise fees any money you put in
19:11
you’re putting into your own business so
19:12
we’re not going to tell you what to do
19:14
we’re not going to dictate to you and
19:15
you’re not going to pay us to have you
19:17
do that as far as negatives it’s like
19:19
any other small business you’ve got to
19:21
put it you put in what you get out there
19:22
so the key things are to have good
19:24
community involvement make sure you know
19:26
your mayor and your city council and get
19:29
involved in activity so you’ve got to
19:30
spend time in weekends doing events
19:32
chatting up people giving test rides on
19:36
the bikes you it’s a retail store so
19:38
you’ve got to put in retail store hours
19:40
and it’s six or seven days a week the
19:42
other negative is there is some
19:43
mechanical ability that you need to make
19:45
sure you can fix the bikes and assemble
19:47
them and and and take care of them but
19:50
that’s something you can hire so you
19:52
know and they’ve got to make some
19:53
investment of time more than money once
19:55
they’re up in operating they can become
19:57
cash flow positive very quickly once
19:59
they start selling bikes because we’ve
20:00
got a good healthy margin and we’ve got
20:02
very little competition in fact we have
20:04
no competition in in electric bike
20:07
stores I think this is truly the next
20:10
big item that we’re all going to want to
20:13
have to have and I think you’re at the
20:15
very forefront of that wave and with a
20:17
product that you have which is
20:18
outstanding it’s just you know all the
20:21
signs point up for you so I want to
20:23
thank you for being on the show we’re
20:25
going to be putting your information in
20:27
our notes section so our viewers can
20:29
reach you directly and at the same time
20:32
I want to basically reserve the ability
20:35
to come out to California and maybe
20:37
we’ll go on a ride together I would love
20:39
that in fact better still I might come
20:40
and go for ride with you we might mean
20:42
to the Juno Beach store and you can show
20:43
me around there perfect let’s do it

What is a Service everybody needs? Answer, automotive care! Why not capitalize on the demand?

Notes Section

In this interview we talk with Jim Alley an owner of a Meineke franchise, who shares with us how profitable this opportunity is.
http://bit.ly/meinekeboomer

Transcript

0:00
this is boomer income ideas calm and
0:03
your host Dan Farnsworth if you thought
0:07
that anything related to automotive
0:08
repair would not be anything that you
0:10
were actually interested in today you
0:12
might just change your mind we’re going
0:14
to be talking with Jim Ali he’s a recent
0:16
meineke automotive care franchisee in
0:19
Arkansas and he’s got a pretty
0:21
compelling story so staying
0:27
[Music]
0:38
[Music]
0:50
[Music]
0:53
but your action join me today hey dance
0:57
thanks appreciate you having me on today
0:58
you know I was I was really interested
1:01
when I when I came across this
1:03
opportunity to talk to you because quite
1:05
honestly I really hadn’t thought about
1:07
car care as being something that the
1:10
normal baby boomer would be looking at I
1:12
think in terms of you know man date a
1:14
guy 20 maximum 30 and was thinking I
1:17
still got a lot of time left but i can
1:18
turn wrenches and things so i’ll look in
1:21
the car kit I’ve done but that’s not
1:22
true story so can you tell us a little
1:24
bit about your story and how you how you
1:27
became a minor key a franchisee yeah
1:30
sure damn so yeah I didn’t even think
1:32
I’d be sitting here talking about you
1:34
know car care whatsoever especially if
1:36
you’d asked me that even as early as
1:37
five years ago okay my journey really
1:40
began in the telecommunications industry
1:42
about 25 30 years ago almost and and I
1:45
started out hitting the streets as a
1:48
beeper salesman so that tells you a
1:49
little bit about all night and we start
1:51
referencing beepers right remember those
1:52
do you remember those nothing’s exactly
1:55
did a number of different things from
1:57
regional account management to actual
1:59
vice president general manager of some
2:01
of the national accounts out there that
2:03
you would very much recognize the the
2:05
t-mobile’s the crickets the US cellular
2:08
the sprint the t-mobile the verizons of
2:11
the world so that that opportunity ended
2:15
by itself is a lot of why I’m here today
2:18
and I didn’t really realize this until
2:19
it became a franchisee and what I mean
2:22
by that is the breadth and knowledge and
2:24
that I had gained over a course of those
2:27
years were skills that I thought had
2:30
pigeon-holed me into telecommunications
2:32
I mean Here I am a telecommunications
2:34
corporate guru for for all these years
2:36
and it’s like oh now of a sudden there’s
2:39
a change and we’ll get into the change
2:40
here in just a little bit but it’s like
2:42
now what do I do well little did I
2:44
realize until I embarked on this journey
2:46
how many of those skills were really
2:49
transferable it didn’t matter whether it
2:51
was cell phones or if it was auto care
2:54
the skill sets that you learn over the
2:56
course of those times as all baby
2:58
boomers who are
2:58
are transferable and I didn’t realize it
3:02
again until just the execution and
3:05
getting my hands dirty and jumping into
3:07
this thing of how much that part late
3:09
and that so that’s nothing i really want
3:10
to kind of harp on is that is that
3:13
people need to recognize that and and
3:15
what that message come across loud and
3:17
clear because i didn’t see it until
3:19
after the fact i know beforehand it
3:22
would have taken some of the fear away
3:23
you know and and made that transition
3:26
even a little bit easier found an
3:37
insurance agency for 12 years my second
3:40
career as I was a Lutheran pastor I was
3:42
a business Roger for five years and I
3:44
sailed the world on a sailboat for three
3:46
years I was a welder fitter for
3:48
automation company I was a professional
3:51
hockey player I was in geological
3:54
engineer and I was a high school teacher
3:58
but I knew absolutely nothing about cars
4:03
I was like the kids of another way you
4:05
can all in hand with those houses are
4:07
angry name it’s also next different and
4:10
business basically runs the same way so
4:12
that’s exactly definitely understand it
4:15
so tell me a little bit about your
4:17
transition to my knee why did you choose
4:19
car care I’m going from
4:21
telecommunications into the Carter well
4:23
no question it took some research to get
4:26
into that to get to the final point but
4:28
I think one was was an evaluation period
4:30
okay I had a you know sometime after the
4:34
motorola layoffs I became the statistic
4:36
there okay they gave me a great package
4:38
everything worked out fine but I had a
4:39
little bit of time to evaluate what I
4:41
wanted to do first I think we need that
4:43
before we say why meineke why
4:45
franchising see franchising allowed me
4:48
the opportunity to take a proven system
4:50
I didn’t have to go in and create the
4:52
point of sale I didn’t have to go ahead
4:53
and create process I didn’t have to go
4:55
in and create brands so those things
4:57
were already there that are huge things
4:59
when starting up a new business well as
5:01
a baby boomer I thought do I want to go
5:03
through all of those growing pains or do
5:06
I want to take what’s already
5:07
invented and just continue to extend
5:10
that out into my own brand and so I
5:13
really when choosing a franchise that
5:15
became it became you know paralyzed that
5:18
I a I get into franchising but be now
5:20
why meineke why automotive to really
5:23
kind of answer your question you know I
5:26
boy in this particular industry part of
5:29
the reason I’m here is because I was a
5:31
consumer again the automobile industry
5:33
it often often asked myself the question
5:35
if I had to go get a root canal or get
5:38
my car serviced which would i do and i
5:40
would probably would have chosen root
5:42
canal more often because it’s not
5:44
necessarily an industry plague was known
5:46
for its customer service i mean we’ve
5:48
all been there right you walk in it’s
5:50
like how are they going to take me today
5:51
i just want to give you my wallet and
5:53
start this thing off from the beginning
5:55
and and and I thought man this is an
5:58
industry where I can I I can take a
6:02
national brand like meineke okay a
6:04
well-known brand and move it into a
6:07
marketplace and moving into this
6:09
industry and be able to my own stamp on
6:11
it maybe we’ve been open nine months now
6:13
fifty percent of our business is return
6:16
customers that tells you why we’re doing
6:18
you know that we’re doing the right
6:19
things so so that’s why franchising and
6:22
as a franchise owner I can bring that
6:25
TLC to the forefront of our customers
6:29
out there and and so far it’s proving
6:31
financially very rewarding got it that
6:36
is wealthy
6:39
way in a prayer down hey there my name
6:47
is Dave schaeffer’s and I’m the senior
6:48
vice president of franchise development
6:49
from meineke car care centers if
6:52
lifestyle and incredible income
6:53
potential is important to you then I
6:55
encourage you to explore the meineke
6:57
opportunity no automotive background no
7:00
problem over the last 40 years meineke
7:02
franchisees have dominated this 320
7:05
billion-dollar industry at meineke we
7:07
offer great hours incredible earning
7:09
potential and our franchising is benefit
7:11
from the support and recognition of a
7:13
national brand if you’re ready to make a
7:14
change in your life and your income and
7:16
we encourage you to learn more about the
7:18
minor key franchise opportunity all
7:23
right I can understand it it was
7:25
interesting to me because you know we’re
7:27
all victims of a preconceived ideas and
7:30
30 years ago meineke was meineke muffler
7:33
bring them so all I thought about when I
7:35
heard my Nicki was you know he’s not
7:37
with me yes but actually you’re the
7:40
total car care now correct total car
7:43
care that the industry had to go that
7:45
way if you think about a midas was
7:46
always breast firestone was always tired
7:48
but the entire industry had to make the
7:51
shift as cars changed okay you know we
7:54
had to have our brand had to change our
7:57
product offering had to change and so we
7:59
truly are total car care tell me a
8:01
little bit about how you get the message
8:04
out and the public that you guys are not
8:08
the typical grease monkey shop where you
8:11
you know you hope you pull on the guy
8:13
comes out from underneath the car and
8:14
james are all greasy he wipes them off
8:16
you shakes your hand so they’ll grant
8:18
you know what what do i need to do for
8:20
you to get as much money out of you as a
8:22
possible kins dick I think an x value
8:24
how do you get how do you get the word
8:26
across the public that you are I’m a
8:29
professional outfit that really takes
8:31
into consideration making sure that
8:34
they’re getting the right throws for the
8:35
right thing on their car that’s really a
8:38
great question and you know oftentimes
8:40
people say it begins at the time you
8:43
enter the door and it does but there is
8:45
the how do we create the awareness fact
8:48
too okay and I think that’s what you’re
8:50
you’re kind of asking there is how do
8:54
you change the conception to the public
8:55
out there well they’ve never been here
8:58
they don’t know so we’re in the process
9:00
of engaging in a huge social media
9:03
campaign and we just want this not that
9:06
long ago we’re utilizing the power of
9:08
Facebook in the power of Google when
9:10
Yelp and all the and YouTube and all the
9:13
all the social media aspects of it and
9:15
and this is again something I guess I’ve
9:17
encouraged to baby boomers to do is that
9:19
if you’re not familiar with it get real
9:21
folks get familiar with it because this
9:24
is how things are marketed today and
9:27
when you’re looking at the people who
9:28
are driving vehicles in this particular
9:30
industry is people who are using social
9:31
media so you get you get engaged with
9:34
them and so we we literally have again
9:37
embarked on this social media campaign
9:39
where we’re putting videos out we’re
9:41
putting do-it-yourself tips out we’re
9:43
putting through it both questions we’re
9:45
putting testimonials out there we’re
9:47
letting people know who our technicians
9:49
are we’re bringing the camera into the
9:51
garage so that they can see what’s going
9:53
on we bring the camera into the lobby
9:55
and and so when they do get here they
9:57
already have a familiarity with who we
10:00
are and that really bridges the gap and
10:02
then of course once they’re here we want
10:04
to make sure they have that great
10:05
experience and then it begins with the
10:08
door swing when they come in what do
10:10
they see they’re greeted with one of the
10:12
most pristine lobbies you’ve ever seen
10:14
it is not your grease monkey garage okay
10:16
and whatsoever there’s a hospitality
10:18
center there’s free Wi-Fi it’s a lounge
10:21
light it’s a coffee shop car shop rolled
10:24
into one it’s kind of like where
10:25
everybody knows your name you know so
10:28
now let me ask you the big question yeah
10:30
as a franchisee do you need to be able
10:33
to work on cars of salt or if you just
10:35
concentrate on running the business and
10:37
you have a team of people doing that for
10:39
you well there’s different models for
10:41
different folks and I’ll tell you what a
10:42
hold of my handing see there’s not a lot
10:44
of grease on them okay I do not
10:46
personally go out there and change the
10:48
oil filters if we do we’re in trouble
10:50
I’ll just say that right
10:51
but I tell you what I know how to run a
10:53
business and I know how to hire a team
10:55
and I’ve got the most phenomenal team
10:57
out there with ase certified technician
10:58
that are very capable of doing that
11:01
there’s no question about the product
11:03
that we offer is an extension of the
11:05
mechanics that we have in the garage and
11:07
I just mechanics with cars away are
11:09
today their technicians okay and so I’m
11:12
responsible brought it for really
11:14
running the business making sure that we
11:16
manage everything from the sales
11:18
marketing advertising the financials the
11:20
labor pool and and and the customer
11:23
service interaction you’ll see me while
11:25
you may not see me in the garage you
11:26
will see me in the lobby and I will be
11:28
interacting with all my customers out
11:30
there and if I’m not in the lobby around
11:32
the community and I’m going to chamber
11:34
events and I’m out there working with
11:35
the different leads groups out there and
11:37
working sleep services so there’s a you
11:40
know there’s a very active role for even
11:42
that it that owner out there and then
11:44
when I’m not doing that hey I’m looking
11:45
at location number two like I said we’re
11:47
about ready to finalize that up and get
11:49
that going by May first band here we are
11:51
the end of februari you know it we’re
11:55
going to be doing this by may one and
11:57
looking at stores three four and five so
11:59
plenty of plenty of plenty of things to
12:01
do even outside the garage Stan yeah I
12:04
think that’s great actually now that you
12:06
brought that up that’s the reason is
12:07
among my next question in looking
12:10
through the franchise information your
12:13
company has a number of offerings and so
12:15
you have a number of dimensions that you
12:17
can go you can you can stay with a
12:19
single store you can expand multiple
12:22
meineke shops or you can do a minor key
12:25
and on Mako or meineke and with an
12:29
economy moving to Yemen the violin sure
12:32
sure you have you have three or four on
12:34
a different offer and I’ll be in the car
12:37
care which are all different directions
12:39
that you can go into are you going to
12:43
stay just with meineke are you going to
12:45
branch out into these other these other
12:47
opportunities as well well I think the
12:50
burning still add on that I think that
12:51
if I continue to look for new
12:53
opportunities and we’ve looked at some
12:56
combined locations of meineke and Mako
12:58
together I mean after all we are under
13:01
the drill
13:01
brands umbrella car companies like you
13:04
discuss the bear okay and if there are
13:06
synergies to be gained across both the
13:08
consumer as well as flea business let’s
13:10
definitely take advantage of them I
13:12
think right now if you look at dynamics
13:14
of this particular market you’ll see
13:16
that it may be more of a co marketing or
13:18
a relationship type of in exchange to
13:23
take takes place somebody comes into my
13:25
meineke needs body work hey let’s shift
13:27
them over to Mako if they if they’re
13:29
over Mako and they need car maintenance
13:30
and repair let’s shift them over to
13:32
meineke unless I came across it was kind
13:34
of interesting to me I assumed that as
13:37
cars are getting more and more
13:38
complicated people are taking their cars
13:40
back to the dealership as opposed to a
13:42
third party like Monica the indication
13:45
is that only what thirty-five thirty-six
13:47
percent of the people driving cars
13:48
actually take them to a dealer most
13:51
people over seventy percent actually do
13:54
business with someone like lyrics all
13:56
right that’s correct that’s correct i
13:58
named a dealership they’re getting more
14:00
creative to you know you won’t it’s not
14:02
uncommon to see buy a car here and get a
14:04
lifetime of oil changes for note for no
14:07
charge well there’s obviously a charge
14:09
behind that right that the idea is to
14:11
get the car back into the dealership so
14:13
that they can get the service work well
14:15
the reality is we all know taking your
14:17
car to a dealership there are inflated
14:19
labor rates for reasons I mean they’ve
14:21
got beautiful shops beautiful facilities
14:23
you got to keep the lights on so you’re
14:24
going to pay more for that you find a
14:26
value play like like meineke you know we
14:29
focus that like I say on value integrity
14:32
and Trust but within that value play is
14:34
also the quality play we’re able to keep
14:37
our labor rates down because we’re not
14:39
in dealership yet at the same time we’re
14:42
able to offer those ase-certified
14:43
technicians in here so you’re getting
14:45
that quality work at a lesser price but
14:48
yet the exact same work is being done
14:50
you know yeah dealerships and then you
14:52
have the my keys of the world minuses
14:54
firestones good years etc okay then you
14:57
got your independence out there and as
14:59
cars become more complicated you’re
15:01
seeing less and less independence
15:03
because they can’t keep up with the
15:04
technology my key is on the forefront of
15:06
technology getting a car surgical
15:09
meineke smart save
15:11
time by booking an appointment online
15:13
even smarter thanks to them I makea
15:15
dealing with car maintenance repairs and
15:18
all the little things just got easier
15:20
you can save each vehicle in your
15:22
household with the my cars feature and
15:24
get reminders for when each vehicle is
15:26
due for service the app also saves you
15:28
time with easy appointment scheduling
15:30
automatically syncing all your vehicle
15:33
information with your local meineke so
15:35
we’re ready and waiting when you arrive
15:36
meineke on with life not only do we have
15:40
the latest computer diagnostic equipment
15:42
that’s in the garage out there who were
15:44
doing things to extend out to the
15:45
customer things like auto vitals where
15:47
we can send snapshots and communication
15:50
and videos to the consumer if they’re if
15:52
they bring their car in they drop it off
15:54
in two lengthy repair and the typical
15:57
transaction they pick up the phone and
15:59
they call you and say what’s the status
16:01
of my car they don’t see if they’ve
16:03
never seen it well with auto vital
16:04
you’re able to bring the garage
16:06
experience to them while they’re out
16:07
remote and that that really helps the
16:10
customer be educated and feel good about
16:13
what’s taking place when the car out
16:14
with their car out there
16:17
Debbie drops off her vehicle Joe shop
16:20
uses the EIS so the inspection process
16:22
is quick and easy after the inspection
16:26
is done bill creates an estimate based
16:28
on Sam’s recommendations is any emails
16:30
Debbie her inspection results complete
16:31
with pictures and videos so Debbie
16:38
educates herself on the work to be done
16:39
and watches the service recommendation
16:41
video is still included on the
16:42
inspection report all this information
16:45
makes perfect sense so she proves that
16:47
work to be done later that day debbie
16:50
receives a text from a shop that our
16:51
cars ready to be picked up and realizes
16:53
that the process couldn’t have gone to
16:54
another mine he is very upfront with
17:00
with their financials and that was a big
17:03
decision a big part of my decision as to
17:05
why I chose my key because they were up
17:07
front I’ve been at it for just a little
17:09
over nine months I’m actually a little
17:11
bit ahead of my business plan because
17:13
they’ve been there to support me through
17:15
the marketing efforts that we’ve done
17:16
and a host of different things and you
17:20
know we talked about social media but
17:21
but again behind the scenes they do some
17:23
phenomenal things with ecrm and direct
17:26
mail pieces and a great marketing
17:28
program behind it and all of those are
17:31
needed elements of the recipe for
17:35
success out there and I can say if i go
17:37
to look at my bottom line and hold it my
17:38
bottom line here what meineke told me
17:41
was was pretty spot on what one last
17:44
question that I always have people who
17:46
is not a good candidate for this
17:48
particular type of franchise I mean you
17:50
you seem to have found your niche who’s
17:55
the guy that’s just not the right guy
17:56
for somebody hire let me get into a
17:58
franchise that that has an attitude of
18:01
hey I just want to back the wheelbarrow
18:03
up to the shake and roll it on down to
18:05
the bank there hey a lot of guys get
18:08
into franchises a negative other hand
18:09
goes up there i’m learning to process
18:12
but i don’t you cloud one so that’s
18:15
right boy it you know and get hands-on
18:18
ok good don’t there’s no get rich video
18:21
quick schemes out there their professed
18:23
all over the place franchising is not
18:25
that world you need to be able to roll
18:27
your sleeves up get involved in it
18:29
the guy who’s just looking at you know
18:32
that in and out or to be an absentee
18:34
owner from the beginning you know
18:35
there’s plenty of absentee owner
18:37
franchises I meineke candy don’t get me
18:40
wrong meineke very much candy but I
18:42
think when you really get this thing up
18:44
and off the ground you need to roll your
18:46
sleeves up I don’t need you got to be
18:48
on-site folks good well Jim I think this
18:52
has been a great conversation as a
18:53
fellow baby boomer I’m always fascinated
18:56
to find some guy who is around my age
18:59
and still has that driving that passion
19:01
to to swing for the fences and just like
19:04
you you know I think a lot of us have
19:06
that that time frame where we say okay
19:08
we’ve got this this much left in us
19:10
we’re going to we’re going to get
19:11
playing this to the end and then go from
19:13
there so I really really appreciate that
19:15
entity I know as a individual owner the
19:20
audience that is launching this is
19:22
really appreciating the fact also that
19:24
you’ve been talking a real guy who’s out
19:26
there in the in the transfer student so
19:29
I appreciate that and we’re going to
19:31
we’re going to put the meineke
19:33
information in our notes improve our
19:35
notes section so that day our viewers
19:37
can get directly in touch with the
19:38
corporate office and that kind of thing
19:39
but add your thank you again for joining
19:41
me today again thanks for having me in
19:43
vegetable up to you
19:45
[Music]

How to apply your skill set to a new occupation

Notes Section

For many Boomers & Seniors, career transitions, some forced, and others voluntary, can be a frightening experience; especially when coming from a corporate environment.

This video is intended to showcase how to apply your skill set to a new occupation in an entrepreneurial environment.

We talk with Vicki R. McCullough owner of Sequitur Marketing. She is a great example of someone who enjoyed her time in the corporate environment, but was forced to make a transition.

You can visit her site here: http://bit.ly/sequiturboomer

 

How to produce lines of happy customers by providing a treat everybody loves!

Starting a business where people stand in line to pay you

Profits are popping and smiles created at Doc Popcorn.

In this interview we talk with the founders of DocPopcorn Rob and Renee.  As the largest franchised retailer of fresh-popped popcorn in the country,  they created an affordable, fun and simple business model we think every Boomer & Senior should see this video if they are interested in exploring potential franchise opportunities.

Visit their website for more information: http://bit.ly/popcornboomerincomeideas

Transcript

0:00
this is boomer income ideas dot-com and
0:04
your host Dan Farnsworth trying to show
0:07
you the income opportunity that very
0:09
simple to operate and people staying on
0:12
the line to pay you money when you be
0:14
interested well if you are
0:15
stay tuned today we’re going to be
0:16
talking to Robin a Israel of dot popcorn Starting a business where people stand in line to pay you
0:20
and they have a really unique concept so
0:23
let’s take a look at this hour
0:27
y’all let me like to eat a lot on the
0:29
show and this hour celebrating national
0:32
snack months we’ve got popcorn ice cream
0:35
with the camera software and ice cream
0:37
come by
0:38
yes I see enough and fast food we’re
0:40
Starting a business where people stand in line to pay you
going to be eating all the goddamn
0:40
parking ships for me tonight thanks for
0:45
joining me to their good morning morning
0:47
to be here and I was really excited to
0:50
Starting a business where people stand in line to pay you
have you guys on the show especially
0:52
after i saw some of the interviews with
0:54
your franchisee because you can tell a
0:56
lot about the company just by watching
0:59
the franchisees and seeing how they
1:01
react so we’re going to talk a lot more
1:03
about that later on but can you kind of Starting a business where people stand in line to pay you
1:05
give me a little bit of a background
1:06
about what dot popcorn is and how you
1:11
guys got into this so I’ll start again
1:14
in reno fill in but thank you for having
1:16
us again and i’m in it you know at the
1:19
highest level were smile creation
1:21
company and that’s really what we do and
1:23
who we are we we started a business with
1:25
the idea that there’s a need for a
1:28
better for you
1:29
fantastic snack on it should be
1:31
everywhere and and that’s kind of that’s
1:34
been our goal and that’s really what we
1:36
created over the last 13 years we call
1:39
this 13 years to an overnight success
1:42
damn so it’s where it’s been it’s been
1:44
it’s been a fun ride and I know that
1:46
Starting a business where people stand in line to pay you
love you have a retail background and
1:48
now you have strategic planning
1:50
background the right answer and somehow
1:53
you guys just all the throws that you
1:55
know what popcorn is that ok
1:57
yeah I mean you know as you said I mean
1:59
I was a
1:59
and I’m apparel guy from Manhattan I’m i
2:03
sold that business in 1996 on and then
2:06
retail and ryan you were able to
2:08
transfer your skills to this white this
2:11
was we we
2:12
I worked with all the major retailers
2:13
and then Renee’s a fortune 500 marketer
2:16
and we were dating at the time and we
2:17
saw this great opportunity and popcorn
2:19
and brought together now you’ve done
2:22
this through franchising I’m just kind
2:24
of curious why go that route of the
2:26
poster just trying to put in the retail
2:28
everywhere
2:29
um you know that’s been really
2:31
interesting question and that was
2:32
actually a turning point for us you know
2:34
we were building our own location all Starting a business where people stand in line to pay you
2:36
different models we had on carbon
2:38
stadiums we had tea ops and inline
2:41
locations and shopping malls and we
2:43
looked around and said you know we’d
2:44
like to you know how other people
2:46
benefit from our business and Robin
2:49
idols being entrepreneurial and really
2:51
enjoying coaching other folks that want
2:53
to be entrepreneurial we really love the
2:55
idea of helping others who may be wanted
2:58
Starting a business where people stand in line to pay you
to do something different you know who
3:00
might be working in corporate America or
3:02
might be working on for somebody else
3:04
you know how do I get in business for
3:06
myself and be able to use our concept to
3:09
do that I’m really excited up to be able
3:12
to coach people to be in business for
3:14
themselves and you know also we really
3:17
like the idea that the popcorn doc
3:20
hopper is a fresh pops product as a way
3:22
to engage with a customer experience we
3:26
really felt that the fresh part of the
3:28
product with was really important for
3:31
the business side to do it now one of
3:34
the things I really was impressed with
3:36
with those particular profile is that
3:39
you can scale from just a single cart up
3:42
to an actual retail location if you wish
3:45
and you can do anything in between
3:47
can you talk a little bit about that
3:48
yeah so really there’s three mean
3:50
business models and it is you mentioned
3:52
and there’s the cart which is a mobile Starting a business where people stand in line to pay you
3:54
unit rashly now God restores
3:57
experimenting with trucks as well I mean
3:59
one so we can talk a little bit about
4:00
that too hot chocolate Bob top truck so
4:03
we have so we we have we have top kiosk
4:06
top cards
4:07
Topshop’s and a top truck the top card
4:11
the mobile unit that can be brought into
4:12
there’s a festival high-traffic venues Starting a business where people stand in line to pay you
4:15
we can do it at farmer’s markets on and
4:18
so that’s a literally put that down on a
4:21
trailer and off you go on and so that’s
4:23
one of the models the kiosks model
4:25
generally in the end the topshop model
4:27
in line models those are traditionally
4:29
done hydraulic venues like balls
4:32
yeah and if I may add you know what’s
4:33
really interesting is these are his top
4:35
Starting a business where people stand in line to pay you
court is now wholly owned subsidiary of
4:38
a company called different dots like a
4:41
lot of people might know and so I’m with
4:44
that we have an amazing opportunity for
4:46
folks as well I’m to co-brand with
4:49
different documents so now you know
4:51
you’re not only offering doc popcorn but
4:54
you also can offer different dots which
4:56
I’m gonna hold the product offering
4:58
helps with I’m you know we have a great
5:00
gift business in in this in the fourth
5:03
quarter of the year without you know
5:07
beautifully branded doc popcorn tins
5:09
that are great gift item we’re dippin
5:12
dots and ice cream you know they’re much
5:14
more on carry through in the summertime
5:16
you don’t even allottees are different
5:19
to you you kind of even out the sale
5:21
process because you’ve got ice cream and
5:23
talk when cells fantastically all year
5:25
round but there’s a spike in the winter
5:27
and obviously yeah that’s when ice cream
5:30
sales fall off a bit so it’s a great
5:32
complimentary brand in those stores that
5:34
we’ve been opening now those cobra and
5:35
stores with dipping dots and awkward and Starting a business where people stand in line to pay you
5:37
then have been doing fantastically well
5:39
the thoughts that occurred to me
5:41
especially being a Boomer myself and
5:43
knowing my limitations on my level of
5:46
excitement interest and threshold of
5:50
pain knowing that I was I would not be a
5:53
candidate for instance to go open up a
5:54
hamburger store that’s gonna you know
5:56
take 20 hours a day to operate and all
5:59
of that
6:00
this seemed like something that is kind
6:02
of the event type of situation where you
6:05
could go down to the farmers market sell
6:08
popcorn their generate that client and
6:11
then continue to sell them on an ongoing
6:13
basis online and I notice that you have
6:15
Starting a business where people stand in line to pay you
an online presence all right yeah yeah
6:17
you that there’s an opportunity for that
6:19
there’s an opportunity for everything
6:21
also when we call for
6:22
chais these proprietors by the way top
6:24
riders right and so yes you can build
6:27
those relationships you can service
6:29
those customers directly and so I’m i
6:32
wanna have fun I want to be in a playful Starting a business where people stand in line to pay you
6:34
environment i want to go where I want to
6:35
go and you can keep this business where
6:37
you want to go all right if you want to
6:39
be in the sport world you can take this
6:42
into the sporting venues and be a
6:43
football games and be out baseball games
6:46
and and be doing business there and then
6:48
and then the other part of that I think
6:50
it’s important i’m particularly for our
6:52
folks on our level focuses its on you
6:55
can bring children into this business
6:56
and they get it it’s very it’s it’s it’s
6:59
a great businessman our kids on we have
7:01
younger kids but they love this business
7:03
they love you being a part of the deal
7:06
of sampling they understand it obviously
7:08
immediately this is not nuclear fusion
7:10
this popcorn and so so grandkids
7:13
particularly can get involved in our Starting a business where people stand in line to pay you
7:15
constituents can teach kids business in
7:18
this business which is a really
7:20
fantastic piece as well
7:21
yeah a lot of our franchise owners are
7:23
couples and families and really operates
7:27
the CI the business together and it’s
7:29
really fun
7:30
yeah and speaking of that you just
7:32
brought up but two and two situations
7:34
that I wanted to kind of focus in on one
7:37
was a franchisee of yours whose name is
7:39
Jeff push push matters is that you’re
7:41
pushing happen as it and the when you’re
7:43
still located we are employees because
7:46
he works with his tea sign right and
7:49
that’s been watching his his youtube
7:52
video a couple of things really kind of
7:55
struck me the forces that he was working
7:57
with his son
7:58
yeah so is a family environment the
8:00
second was I got the impression that he Starting a business where people stand in line to pay you
8:02
was probably somebody who came from
8:04
corporate America where he said the
8:06
office and look at four walls for the
8:08
last 30 years and now when he was doing
8:10
this interview he was in front of the
8:12
beach so we he in fact he mentioned that
8:15
he got to look at the beach all day long
8:33
well it was a process of elimination I
8:36
had worked with
8:38
a local coach of you will and he had
8:44
given me choices of about four
8:46
difference
8:48
franchise
8:50
to which we eliminated all four of them
8:52
and then he brought this upon me and I
8:55
guess like everybody three actually
8:56
don’t laugh but you know pop 20 giving
8:58
me and then you know you think about you
9:01
say wow have fun yeah as a proprietor of
9:08
the best part of the day is both depends
9:11
on where I am but you know for obvious
9:13
reasons and asbury park with we’re
9:15
looking at the ocean
9:16
and
9:18
a perfect day like today it’s pretty
9:21
cool if you enjoy mingling with the
9:26
people and hi i am usually doing that
9:30
when we are busy as my i’m working with
9:35
two boys and send my son and they
9:38
usually throw me out
9:39
if we’re busy on out i’m just talking to
9:42
people and that a good part of driving
9:45
on the jersey shore now he left he was
9:47
actually he was working in a corporate
9:50
furniture sales and when we met you he
9:54
was that business has been marginalized
9:56
and he was he was really ready for a
9:58
change and any keep done a fantastic job
10:01
and you want to team up with his sons on
10:04
and he was having some less transitions
10:05
and and and this became a really Starting a business where people stand in line to pay you
10:07
wonderful opportunity for him to make
10:09
smiles have fun and and be with his sons
10:12
and business and then ending by the
10:14
beach was as you said yeah I know well
10:16
and let you know by the way they’ve
10:18
grown that businessman he became a
10:20
proprietor in 2010 and he now has three
10:24
locations and he has his pop-up card
10:27
that he could do events with but he has
10:29
a pop kiosk in the mall in New Jersey
10:32
and he has an inline skates on a pop-up
10:35
shop in entomology jerseys with a couple
10:37
other comments that he made that really
10:39
impressed me one was that when it gets
10:41
busy with kids kind of kick him out of
10:43
the business itself he goes on the run
10:46
from talk to people and it just looks
10:47
like he’s having a blast doing it
10:49
yeah and again it is getting back to
10:52
that that kind of comfort level where he
10:55
looks like he’s very comfortable and we
10:57
talked a little bit before the show
10:58
about how over the years I’ve I dealt
11:01
with franchisees you try to look like
11:02
the relax but they’re really not because
11:04
i’m a tremendous amount of pressure your
11:07
franchisees just look like they’re
11:08
they’re very comfortable they’re not
11:10
they’re not worried about anything and I
11:12
think a lot of that has to do with when
11:14
you look at you when you kind of pan out
11:15
from the camera you see the line of
11:17
people lined up to pay money right and
11:20
you know that’s that’s a goal or dream
11:22
of a lot of ours that we have always
11:24
wanted to have that that opportunity
11:26
where people stand in line to pay us
11:27
money for our marketing is has been done
11:31
a lot for us then is it is again it’s a
11:34
aromatic on we built a business around
11:36
aroma to so we attract folks with their
11:41
with their noses in their in their state
11:43
especially now we can be nuts to there’s
11:45
a whole show involved so when you’re in
11:48
a business that has a culture of giving
11:49
and sharing and making smiles it’s
11:51
easier to steal
11:52
relax and have fun you know that’s
11:54
really what we do on and so and the
11:56
product really speaks for itself we we
11:58
train our party we talk about think
12:00
about when you eat popcorn right it’s
12:02
with family it’s sharing its at the
12:04
movies that great events with your with
12:07
your grandparents with your dad with
12:08
your mom
12:09
that’s doesn’t experience that visceral Starting a business where people stand in line to pay you
12:11
that you should let you share that are
12:13
in your heart so will your customers are
12:15
coming to think about
12:16
wow I was with my dad in coney island or
12:18
I was I had this great experience with
12:20
my son and my daughter and those are the
12:22
folks that are coming so all you need to
12:24
do is not mess that energy up and make
12:26
continue with the smile you know I agree
12:29
without actually a little better fucking
12:32
when I was a kid we used to go to my
12:35
dad’s house and she would make caramel
12:37
corn and that was always a special treat
12:40
right we would have normal popcorn at my
12:42
house and we would have caramel corn by
12:45
a thousand so do you even even today at
12:48
60 that that memory is still a minute in
12:51
my mind so every time I even taste
12:53
caramel corn I think about that boy and
12:56
you sometimes I got passports caramel
12:58
bliss yeah Usher arrival your attitude
13:01
you play your cards right it out
13:02
yeah you’re never going well but i’m
13:05
going to the park or directly ya again
13:08
getting back to the franchise’s the
13:10
other the other two that caught my
13:11
attention action is the interview with
13:13
the wife has been that Melanie and
13:14
issues married Fred tried and they
13:18
started this together because she was
13:21
from corporate America he was from some
13:23
retail environment I think nurseries or
13:24
something like that they decided they
13:27
wanted to end those careers but they
13:29
wanted to do something together and you
13:32
know just a picture of them together in
13:33
front of the store the kiosk you so is
13:36
priceless because they just look very
13:38
very happy and they look like they’re
13:39
they’re doing exactly what they want to
13:41
do
13:43
I like it when we have a really busy day
13:48
like a crazy saturday we’re popping
13:50
non-stop and and we’re up to our ankle
13:52
popcorn inside the kiosk and yet we’re Starting a business where people stand in line to pay you
13:55
keeping up with the business and were
13:57
able to get rid of the product out there
13:59
and people are happy with the product
14:00
and and i love it when I’m watching
14:04
around the ball i might be in another
14:05
part of Malden from where I’m located i
14:08
love it when i see like family sitting
14:10
down on a bench eating dry popcorn for
14:12
people coming out of the mall is I’m
14:13
coming into the ball with there’s a
14:15
popcorn bags you know in their hands or
14:17
you just think people all over the ball
14:20
like enjoying that mac and i think i
14:22
think you know we did this you know we
14:24
brought this alternative you know option
14:27
to the ball
14:31
you know fred is uh Fred kind of doer
14:36
and you make anything happen in bunnell
14:38
Melanie’s you know and he’s but more
14:40
little ray of sunshine and a fine person
14:43
with the customers and friends back top
14:45
in and make you know handling all the
14:46
logistics and so it and there’s not a
14:48
lot me within every business you know
14:50
we-we-we-we don’t wanna for Candace’s in
14:54
a business it’s business right so
14:55
there’s still logistics there’s still
14:57
things that need to be done it’s a real
14:58
business but but it’s a much more simple
15:01
businessman a lot of businesses
15:02
I’m glad you brought that up because
15:03
that sideways those right into the next
15:05
topic which is what are the risks and
15:08
one in particular that always comes to
15:10
mind is what about retail competition
15:13
like you said that is popcorn so there
15:15
is a risk of competitors coming into the
15:17
market like dunkin donuts or something
15:20
who already has a retail present and
15:22
just add this to their product offerings
15:25
yeah i think basically again we are more
15:28
in high-traffic venues and generally
15:31
speaking once you get into those venues
15:33
there are times where that menu will
15:35
bring another other snacks and other Starting a business where people stand in line to pay you
15:38
other players in the space they
15:39
generally don’t want to popular guy
15:41
sitting next to each other generally on
15:43
it doesn’t mean that you’re not going to
15:45
have someone that wants a pretzel or
15:47
something that wants to cut the coffee
15:48
or other products right but it but we
15:50
are generally the popular player we are
15:52
the we are the largest popcorn retailer
15:54
now in the world
15:56
don’t start a little bit about the
15:57
franchise model itself
15:59
what can I branch of new franchise they
16:02
expect to receive in terms of training
16:05
in terms of of site location in terms of
16:09
trying to decide whether he wants to go
16:11
several cards or you want to go retail
16:13
location shoot what do you do as the
16:17
franchise or two to provide this
16:21
infrastructure for your new franchises
16:23
and your ongoing franchises for that
16:25
like it’s a great question i’ll start we
16:27
we on there’s there’s a lot of services
16:30
but it starts with an intensive training
16:31
session on where we are there
16:34
and-and-and spend five days plus with
16:38
the new with our new proprietors they
16:39
learn all about the culture of the
16:41
history on that’s a very very
16:43
world peace because this is really smile
16:45
creation business and how you make
16:47
smiles is really important and and a lot
16:49
of folks get it very simply and clearly
16:51
but it’s important that we emphasized we
16:54
also have very sophisticated real estate
16:56
team because it’s a lot about location
16:57
on that team is based in paducah
17:00
kentucky where we were central offices
17:02
now if you are now partners with without
17:06
dippin dots on and that’s where they’re
17:07
based on and they they’ve been in the
17:10
business forever and they know is where
17:12
they said all the mall properties they
17:14
know the researchers they know the other
17:16
assignment they know all those folks so
17:18
depending on your location geographer
17:20
you want to go there will be helping you
17:22
find locations yeah i mean even before
17:24
you get to the training part you know
17:27
when we speak to up potential proprietor
17:31
a lot of it is about educating each
17:33
other about you know we we really try to
17:35
get to know them who are you what do you
17:38
want to do what do you see your
17:39
day-to-day being like and then they get
17:42
to ask us all the questions too and we
17:44
make sure that we’re right match because
17:45
if you know this business is not for
17:47
everybody and we want to make sure that
17:49
everybody is going to be smiling at the Starting a business where people stand in line to pay you
17:53
end of the process right well that
17:55
actually brings me to my next question
17:56
who is this not a good fit for what’s
18:00
the profile of someone that this would
18:02
not be a good for your question and i
18:07
mean i think is there is you know you
18:09
have to be comfortable on interfacing
18:11
with people and wanting to have that you
18:14
know wanting to make smiles if you’re
18:16
truly extremely introverted on it may
18:19
not be the best business for you because
18:20
there’s a lot of front-end interaction
18:23
you’re not telling but you’re servicing
18:25
with a smile and if that doesn’t feel
18:27
natural to you then in that at least
18:29
from the Sun that you may have kids or
18:31
grandkids for your allergist out that
18:34
happened last night need to want to be
18:36
interacting with customers that you can
18:40
trust and and it’s really part of the
18:43
you know the main part of your business
18:44
you can’t hire that if you have a
18:46
permanent location that that’s a pop
18:49
kiosk or pop store you know you may want
18:52
additional business outside of your
18:54
store
18:55
and that’s where corporate sales to come
18:57
in with a lot of times folks come to you
18:59
and they fall over your product and you
19:01
say hey if you want to think about for
19:03
the holidays if you want you know kids
19:05
for all of your staff let us know
19:07
one last question yeah I know it’s very
19:10
difficult because of a franchise laws
19:13
that you can’t specifically talked about
19:15
numbers but can you give us an idea
19:17
about capital requirements involved from
19:20
low to high on someone getting involved
19:23
with this I’m yeah you know we you can
19:26
get into this business for as low as 30
19:30
9500 I’m and that would be more of a
19:35
cart model and that includes you know
19:38
your training and I and and the pop-up
19:41
card the branded pop art and and
19:43
starting product may I would say on
19:45
average if you’re going more for us for
19:47
a kiosk type situation average to be
19:50
around 160,000 but you all this but I
19:54
just to do full disclosure because again
19:56
we’re franchisor is we need to be dying
19:59
i’s and crossing keys
20:01
it’s all as in a franchise disclosure
20:02
document called an STD as you know right
20:05
and that that all those details are
20:08
there we make sure that before we ever
20:11
awarded franchise and and create a
20:13
relationship that document studied for
20:15
for quite some time everyone gets very
20:17
comfortable here on and that’s really
20:19
the process in franchising and very very Starting a business where people stand in line to pay you
20:22
important because all the information is
20:24
in that document for the memories I like
20:26
that question is I like people to have
20:29
an expectation you know you might you
20:31
might talk about something that really
20:33
sounds good and you get down to the end
20:35
of it and they say well you know if you
20:37
have a million dollars you can probably
20:38
get into this business and that just
20:39
shut everything down it like yeah so I
20:41
like people to have some kind of
20:43
expectation when they do contact you
20:45
that it’s within their comfort level to
20:48
possibly move forward with it
20:51
well Robin Renee I really appreciate
20:53
this i think this was a great
20:54
conversation we’re going to put your
20:56
links and your phone numbers and so
20:58
forth in our notes section so hopefully
21:00
we’ll be driving people directly to you
21:02
and then but but I’d also like a
21:05
reserve the ability that touch bases
21:07
with you later on just kind of check in
21:09
and see how you’re doing
21:10
grand and find out if I haven’t received
21:12
that kind of popcorn in the next couple
21:14
weeks why not
21:16
it’s the check is in the mail and we Starting a business where people stand in line to pay you
21:18
saved alright guys thanks

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Notes Section

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this is boomer income ideas dot-com
0:03
here’s your host Dan Farnsworth I’m
0:07
walking with this week’s segment of
0:08
boomer income ideas dot-com today we’re
0:11
not going to follow the usual format
0:14
instead of having an interview with
0:16
someone I want to talk about a subject i
0:18
think is a really pretty important
0:21
it’s especially important to me many of
0:23
you who read my blog in the past know
0:25
that I’m a real big proponent of using a
0:27
reverse mortgage to unlock dead equity
0:32
in your home so that you can redeploy
0:34
and do something else with that ability
0:38
is now under attack and the issue is
0:42
whether or not in the near future you’ll
0:45
actually have access to that program or
0:48
not
0:49
ironically in 1988 it was Republican
0:52
president that signed the law
0:53
authorizing FHA to bring the reverse
0:57
mortgage under its umbrella and sponsor
1:00
a government backing of that program
1:03
since then however Republicans in the
1:07
House have been very very adamant about
1:09
trying to do something to eliminate many
1:12
of the FHA programs reverse mortgage
1:15
among them now whether you actually
1:17
think that maybe you want to take
1:20
advantage of reverse mortgage or it’s
1:22
really not that important to you
1:24
that’s really kind of beside the point
1:25
right now the real issue is whether or
1:27
not it will be available to you and now
1:31
that but both the house and the
1:33
legislative the legislative and the
1:35
executive branch are both controlled by
1:38
a single party and i was curious to find
1:42
whether or not there was something that
1:44
kind of pointed to are indicated that
1:46
this program may be under attack and
1:49
actually i found exactly what i was
1:52
looking for on page 4 of the Republican
1:55
platform there is warning that
1:59
specifically talks about this in oneself
2:03
that says we must scale back to federal
2:05
role in the housing market promote
2:08
responsibility on the part of the
2:09
borrowers and lenders and avoid future
2:11
taxpayers
2:12
your bails now that sounds a pretty
2:15
sublime doesn’t it basically says
2:18
everybody needs to be responsible party
2:20
and that in doing so it will limit
2:22
taxpayers responsibility and bailing out
2:25
those that are less responsible but then
2:28
the law that goes on to say the Federal
2:30
Housing Administration which provides
2:32
taxpayer-backed guarantees in the
2:35
mortgage market quote should no longer
2:37
support high-income individuals well
2:40
high-income individuals are the people
2:42
that can afford to pay off their loans
2:44
it’s the low-income individuals that
2:46
have a more difficult time
2:48
so really what this is code its it goes
2:51
on and says and the published not be
2:54
financially exposed by risk taken by FHA
2:57
officials in other words this is code
2:59
for we don’t want to get the high income
3:02
individuals which means that low-income
3:04
individuals are already blocked so we
3:06
want to pretty much eliminate the
3:08
program now that in itself may or may
3:13
not be a problem for you but it is a
3:15
problem for me because I like to have
3:19
the option the opportunity to utilize
3:22
this vital program to unlock equity debt
3:26
equity in my principal residence if I
3:29
wish to and redeploy that in other areas
3:31
were i can draw income from now how do
3:36
you protect yourself against that well
3:37
here’s the deal
3:38
the reverse mortgage is currently a
3:40
program offered under FHA what you
3:43
qualify for that program it can’t be
3:46
taken away from you
3:47
so even if you don’t need the money
3:49
right now it might be a very good idea
3:50
to actually take out a line of credit
3:53
not use the money but simply have a line
3:56
of credit in place very much like a
3:58
HELOC that is they’re available to you
4:01
in the future should you decide to draw
4:03
the dealer’s once you actually take out
4:05
that line of credit
4:07
it’s there it’s locked in they can’t
4:09
take it away from you so even if they
4:11
eliminate the program in the future you
4:13
have your line of credit available to
4:16
you and incidentally one of the features
4:19
of the line of credit is that it grows
4:21
as you age and as the value of your
4:24
property increase
4:26
so you may take out a line of credit
4:28
right now that it gives you the ability
4:31
to access up to a hundred and thirty
4:33
thousand dollars for instance and in
4:36
five years that may grow to a hundred
4:37
and ninety thousand dollars without you
4:41
doing anything you don’t have to read
4:42
apply you don’t have to re-qualify
4:45
nothing takes place other than you
4:48
simply say okay I’m ready to start
4:49
drawing against this line now so the
4:51
main idea is whether or not you decide
4:53
that this is something that you want or
4:56
not for the future
4:58
why not protect yourself at least to
5:00
have the option of taking out this
5:03
reverse mortgage line of credit so that
5:06
it’s they’re available to shoot you
5:08
decide and should you choose to utilize
5:11
that benefit
5:13
thanks for watching and thanks again for
5:16
watching this segment I hope that it was
5:17
informative and helpful sure is
5:19
concerned about this as I am by the way
5:22
if you’d like to talk with the counselor
5:23
about your opportunity to take out a
5:26
reverse mortgage line of credit
5:28
I just go to our website fill out one of
5:30
the forms that allows us to contact you
5:33
will get you in touch with one of the
5:36
reps around the country that we network
5:38
with and we can get you information that
5:41
we think that you’ll find very
5:42
informative so thanks again we’ll see
5:44
you next week

 

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Notes Section

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Six figures per year working from home- Be a Reverse Mortgage Originator

Notes Section

In today’s interview we talk with Brenda Bejarano, owner of Texas Reverse Mortgage Today. Brenda gives us her experience and tips on how to make money in an industry that affects so many Baby Boomers, Seniors, & more. Learn how you can make six figures per year working from home while being a Reverse Mortgage Originator

Dan: Hi and welcome to the segment of boomerincomeideas.apps-1and1.com. Today we’re gonna be talking with someone that I think you’re gonna find pretty interesting. You know if you’re in the market for a career that can make you six figures a year, let’s you work from home and make your own hours, you’re gonna be fascinated by what this person has to say because she’s doing exactly that. Her name is Brenda Bejarano, and she is a loan originator. What we’re gonna be talking about today is the type of loan that she originates which is a reverse mortgage, and this is not to try to convince you that you need a reverse mortgage this is to give you an idea that you might want to think about becoming a reverse mortgage originator. With that in mind let’s welcome Brenda to the show. Hi Brenda thanks for joining us today and welcome to the show.
Brenda: Thanks Dan, thanks for having me.
Dan: I’m excited to talk to you today because I think that your story is very similar to a lot of people in the baby boomer and the senior era, our age, is looking for. Let’s start out, let’s get right into it. We’ll start out with, you originate reverse mortgage loans correct?
Brenda: Correct, only reverse mortgage loans.
Dan: Yeah, and we’re gonna talk about why you do that exclusively in just a minute, but in the meantime can you tell me a little bit about your background as far as your business, how you got started? What’s the history of the business?
Brenda: Well, my beginning history business was in the insurance industry and I did that for 25 years and my parents came to me one day and asked me,”What do you know about a reverse mortgage because we’re interested. We think this might be something that will fit our bill.” I did some research and happened to know an acquaintance who was in that business, so contacted him, John Mitchell, with Riggers Mortgage USA and he helped my parents and he helped me to understand what this program was about. He helped me so well that he ended up asking me to come to work for him. I did and that was 11 years ago.
Dan: You made the change from insurance sales to originating reverse mortgage because you believed in it so much that it sounded like a good idea to you, is that right?
Brenda: Absolutely. I saw what it did for my parents, I like the clientele, the older people that it’s just great to work with someone who is seasoned and understands their situation and it’s great to be able to help somebody.
Dan: I know a little bit about your background. When you were with John at reverse mortgage of Texas, you were actually the number one sales person while you were there.
Brenda: I was.
Dan: Since you’ve split off and have gone on your own, how have you done?
Brenda: I’ve done well. It took a little while to get off the ground but I’ve done well, this past year especially and doing well on my own, you don’t have to do quite as many loans as if you were doing it with and for someone else. That’s why it’s well.
Dan: Yeah, I get that. You get to keep all the commission instead of splitting it.
Brenda: I do.
Dan: I think you mentioned you started in 2015, right?
Brenda: On my own, yes.
Dan: On your own yeah, your own business. How many loans in that year did you do?
Brenda: The first year? Only eight.
Dan: Okay. This year so far, how are you doing?
Brenda: 22.
Dan: Wow. That’s a pretty strong growth.
Brenda: It’s a big growth, yeah.
Dan: Can you give me your day in the life. What do you do when you start your day?
Brenda: Lucky enough I can start my day when and how I want, so that’s one blessing of being on my own. My client base comes to me, I don’t seek them out so I do have to be prepared for the phone to ring at any given time to capture that client’s first call. I utilize every technology I can, which is having my cellphone with me, my email with me, everything with me at all times whenever I leave. Everything follows me. A day in the life is either taking care of the clients I’ve already got on board, or … And I don’t say waiting around for someone to call because I do a lot of work on my website and with other title companies and real estate agents, trying to stay in touch with them, but that’s what I do on a daily basis.
Dan: Okay. Basically your clients really come to you. The phone rings and it really doesn’t matter where you are you’re geographically independent, as long as you have your cellphone and access to your computer you can really do this anywhere, right?
Brenda: Oh absolutely, that’s where New York next phase in life is, where are we going to go because it doesn’t matter where we’re at.
Dan: Yeah, that’s a great advantage. Your hours are your own, do you find yourself working many hours now as you used to when you were working for another company?
Brenda: I find I work it differently. Yes, it may be as many hours but not in a given string of hours. My time is again my own. I may be talking to someone at 8 o’clock in the evening but I may not have talked to anyone all day long. It’s not a 40 hour work week by any means, no. If I was probably a better time management person I could tone that down, but I like being available for someone anytime. Again, I may leave today and be gone for five hours but when I get back I will need to make some phone calls and it may take 20 minutes.
Dan: Let’s talk a little bit about, you mentioned that you got referrals, your phone rings but all of your business doesn’t come from referrals. Your phone rings from other sources, including your website which I understand is very good and you actually are at the top of the rankings in Dallas Texas for reverse mortgage loans, is that right?
Brenda: I am. I can’t say that I did that on my own, I of course have good people around me and I think that that’s the best part, is surrounding yourself with the right people to help you, which I’ve done. My website yes, it’s ranked high in Dallas and really even though I’m licensed in Texas and I can do loans anywhere in the state of Texas, most of my business comes from Dallas because of my website. I’m working close to home.
Dan: That’s amazing that you are at that level in Google as opposed to the big companies are scrambling to do that and that’s organic traffic right? That’s not costing you anything, you’re not paying per click and that kind of thing?
Brenda: No. Not a penny.
Dan: Your customer acquisition cost are essentially nothing, correct?
Brenda: That’s right. I’m not sure how much of that I really want people to know but absolutely no.
Dan: I understand. It’s just you and I talking so nobody’s gonna hear this. I think the thing that really impresses me about that though is that an individual still can get to that ranking, that level where you an generate traffic from organic traffic on Google without spending hundreds of thousands of dollars to do it like the big corporations are trying to do right now.
Brenda: I did that in the first year. I did spend money on pay per click and all of that and I didn’t find that it worked well. Building a website with good content and continuing to build more content is why my rankings are where they’re at.
Dan: Would you say that that’s a process that takes a month, six months, a year? When do you get to that level where you really starting to generate this organic traffic?
Brenda: I didn’t get phone calls from my website like I do today for over a year. It took me a year. I’d say good one year and then I started seeing the phone ring from that.
Dan: In that case would you say that it’s safe to say you really need about a year worth of being able to build this business before you can really start to count on it as and income source?
Brenda: Absolutely. I spent a lot of money the first year in buying leads so I could get some revenue to keep building the things I wanted to do.
Dan: Got it. How much selling is involved in what you do?
Brenda: I think other people say there’s a lot of selling involved in a reverse mortgage, I don’t feel that it’s a sales job or even a product that you should sell. I think that the reverse mortgage is something that fits a need and helps someone have a better life and taking that into consideration is why I think my business has grown so well. I am not a sales person and I’m really having an altruistic card, I really want to make sure that this is really something that’s for them. Just like it was for my parents. I treat everybody exactly the same way I want my parents treated and really make sure it’s a good thing.
Dan: Yeah. Essentially someone comes to you, you identify that they actually do have the need, you just basically put it out and say, here this is my opportunity for you would you like it and if they agree with you they’re going to originate the loan, if they don’t agree with you then you say, well it’s very nice talking with you and you walk.
Brenda: Then also though helping them to understand whether it really is good for them because sometimes it just isn’t. They may have a need that it may be a short term need and I want to point that out and make sure that they’re not getting into an expensive loan that they didn’t need but for a little bit of time. There’s other ways to do that. I’ve turned people away per se saying, you know, I just don’t think this is the right thing for you, just as much as I’ve said, yeah this is perfect.
Dan: You’re saying you’re one of the few loan originators with integrity. Is that right?
Brenda: Probably yeah. Within so many words yes.
Dan: Let’s talk a little bit about why then you do this exclusively. You don’t do any traditional loans, you don’t do loans against houses when someones buying them and that kind of thing. You just simply do reverse mortgage loans, why?
Brenda: That’s it. One, coming from an insurance industry and straight into reverse mortgages, I was green and didn’t know anything about mortgage origination, any kind of loans, I didn’t know anything. In my baby years of learning the reverse mortgage, it was easier to keep it clean cut and stick with people who knew just that business. Between the title companies and the wholesale lenders out there, I like sticking with people that just do reverse. I can do a forward mortgage, I would just be lost on what to do and I’m too long in the tooth now to start adding anything else in.
Dan: Yeah, that’s the whole idea of the show, it’s the third chapter of our lives on our terms and trying to figure out how to do that and do that successfully is the challenge.
Brenda: Going back to that clientele again though. The reason why I like the reverse mortgage so well is I don’t have those youngsters who are wanting to get in that first time house and all of that and there’s so much excitement going on and this is a slow sale so it kind of does fit my age and being able to just relax with someone and the younger they are they don’t relax well. That’s why I like the reverse mortgage as well.
Dan: What kind of qualifications as far as licencing and things did you have to do in order to be able to get to where you’re at?
Brenda: When I started this it was a much simpler process back 11 years ago and you just had to get your Texas loan officers licence and there was a very easy test to do. Since then it’s gone national, so you have to have a national test and then I’ve also gone in and taken a universal test so I could be licensed in any state just by filing, without having to go through another test. Now it would be a national test and then a Texas test and those are the only two things to get a mortgage loan originator licence, but it is by state.
Dan: Okay. It’s by state but they have to do a nation wide test, is that right?
Brenda: Yes, and 20 hours of core education and there’s a program set up for that.
Dan: Okay. You’re a broker.
Brenda: I am.
Dan: What’s the difference between just a regular license and a brokers license?
Brenda: There’s really no difference in the licensing aspect, the license is the same but to be a broker you have to license a company. I’ve already taken the test for the loan originator and those tests also go for broker, but I have to broker and get a license for the actual company and then one for and individual. Being a broker all I have to do, I now run all my loans as a loan originator through my broker and I could actually have other loan originators underneath me and get revenue from them as well. I choose not to.
Dan: I got it, okay. This is boomer income ideas so I want to talk a little bit about income, you don’t have to tell us your income, but give me a kind of a low and high scale of an originator. Whether they’re just working for a company part time to someone who is really working out full time and can be at the top of the scale. What kind of range can someone expect in doing this job?
Brenda: I’m going to preface this with saying if anyone starting in this business becoming a loan officer for someone else is your best bet to get your feet wet and to know the ins and outs. There’s a lot to it and I couldn’t have really gone out on my own if I had not had the education and the training behind me. Money wise anywhere from $1,000 a loan to $5,000 a loan.
Dan: Okay.
Brenda: Depending on the size of the loan.
Dan: Okay. If it’s $1,000 a loan and someone does five loans for the month they’re making $5,000 correct?
Brenda: Right.
Dan: That’s my point that in this business it truly is a real career, it’s not just a part time thing. It’s not one of those things that nobody really makes any money out of except for a handful up top. You can really make a decent income and you can make a substantial income.
Brenda: You can.
Dan: You can go anywhere from say a couple thousand dollars a month, to tens of thousands of dollars a month. Is that correct?
Brenda: Absolutely. The great thing about it is the freedom. Even if you’re in the retail end and you’re working for a lender, you still have the freedom of you’re working from home and you don’t have to get up and fight that traffic and you don’t even have to get up and dress if you don’t want to because nobody’s going to see you. You can get up and work in your pajamas all day.
Dan: Except your spouse. They already know what you look like in that condition so it really doesn’t matter. Give me three pros to being in this business and three cons to being in this business.
Brenda: Three pros I would say is the freedom, that’s number one for me I like the freedom. Two is being able to feel like you really help someone, that to me is a good feeling every day. I’m sad when I can’t help someone so that may be a con but … And the money. The money for what I do I think is wonderful. Freedom, helping someone and income.
Dan: Okay.
Brenda: The cons, one is the disappointment of not being able to help someone, for me that’s big and that may not be a con for everyone. There’s the compliance, I think is difficult for me, there’s a lot of compliance to deal with but if you’re a loan officer you have someone else dealing with … They’ll deal with that for you, and the con is because I’m on business owning for myself I have no one to back me up. If I want to take a vacation, I’m gonna have to shut down for a week. I need to find someone to help me with that, but again, if you’re a loan officer you won’t have that trouble.
Dan: Which leads me to the next question. The amount of capital required to get into this business. If you go to work for a company you really don’t have the capital outlay as far as anything other than supporting yourself while your getting up to speed. Is that right?
Brenda: That’s true and most companies if you’re going in on the retail end will usually either give you a stipend every month for usually three to four months so that way you can get on your feet and then you start originating, you’re gonna have a pipeline. It takes a little while to build that pipeline.
Dan: Right.
Brenda: You really don’t have to have that much capital to begin with. If you’re gonna be a broker, you really do have to have anywhere between $25,000 to $60,000 in your assets in order to be able to have a lender want to take you on, but if you’re gonna go in as a retail, you really don’t have to have anything.
Dan: Right, I got it. Okay. What advise would you give to someone who is looking at this and thinking, Gee this is something that might be just really right for me. What would you tell them? What should they expect? You’ve already mention you’re suggesting that they go to work for a lender first before they try to do it out on their own. What other kind of advise would you give them?
Brenda: Shop around what lender you would want to become in the retail. Everyone is different and I have a lot of friends who are loan officers who are only doing reverse and they’re in so many different companies and I can hear the difference in their contracts and how much money that they’re making and what they expect out of them. If you want the freedom you need to shop one that is not gonna make you sit at a desk eight hours a day and be tethered to your phone. At first you may need to do that in order to get the leads built up and your pipeline built up. I just say shop around in what company you really want to work for. Not all of them are the same.
Dan: I understand. Brenda I think that this has been very informative, I really appreciate your time and your input on this.
Brenda: Thanks for letting me share.
Dan: If it’s okay I’d like to just check back in with you very once in while to see how you’re doing and get your input on how the industry’s progressing because I know it’s constantly in change and you’re at the pulse of that. Again thank you, I appreciate it and hopefully we’ll see you soon.
Brenda: You’re welcome. Thanks for having me again. Thanks Dan.
Dan: All right.
Hey, thanks for joining us on this episode, I hope that you found it informative. Please check out the notes section for more links and relevant information and if you like what you’ve seen, please make sure that you like us on Facebook and also subscribe so that you’re up to date on a weekly basis of what we’re doing. Thanks again, hope to see you next week.

Six figures per year working from home- Be a Reverse Mortgage Originator

 

How to use your corporate skills as a consultant and own your own franchise

Notes Section

ABOUT SANDLER TRAINING

It’s the world’s most successful sales system, combined with the #1 ranked training franchise, in a multi-billion dollar training market, with a recurring revenue model, and it’s a business that teaches you how to grow your business!

We interview David H. Mattson, CEO and owner of Sandler training to discuss how you can take your corporate skills as a consultant and own your own franchise.

This is perfect for Boomers & Seniors looking to use their skills as a consultant and own a franchise since the minimum requirement is at least 5-10 years experience in a sales or leadership role.

Visit their website at http://bit.ly/BoomersSandler

Facebook Page
https://www.facebook.com/boomerincomeideas

 

How to make money in Oil… The other Oil!

Notes Section

In today’s interview, we talk with Adam Blake from Filta. They have an amazing franchise program that is very easy to get into with almost no competition. It is a franchise that is proven and best of all you get to work from home.

For Boomers and Seniors looking to get into a safe and profitable franchise that falls in line with the more traditional way of owning and operating a business, then look no further.

To get started visit:
http://bit.ly/filtabyboomer

Facebook Page
https://www.facebook.com/boomerincomeideas

Transcript

:00
this is boomer income ideas dot-com and
0:04
your host Dan Farnsworth and thanks for
0:07
tuning in to this week’s segment of
0:08
boomer income ideas dot-com workmen
0:11
switch gears a little bit today and if
0:14
you’re the type of person who actually
0:15
likes the more meat and potatoes type of
0:17
business opportunities i think you’re
0:20
going to find this pretty interesting
0:21
today we’re going to talk with Adam
0:23
Blake who is vice president of franchise
0:25
development have felt environmental
0:27
Kitchen Solutions that’s a mouthful but
0:29
essentially they have a servicing niche
0:32
in the restaurant environment so let’s
0:35
welcome out into the show I was looking
0:37
for a business that was unique
0:39
I was looking for business that was
0:41
profitable i was looking for a business
0:43
with limited competition i was looking
0:46
for a business that I could start from
0:48
home i was looking for a business but I
0:51
found much more i found filter
0:55
hey Adam thanks for joining me today
0:57
alright and and it’s good to be here
0:59
you know I like this company on a lot of
1:01
different levels which I’ll talk about
1:03
down the road a little bit but in the
1:05
before i do that can you kind of give us
1:07
a little bit of a background what
1:09
exactly filter environmental Kitchen
1:11
Solutions is and what you guys do
1:13
sure well felt was founded at just 20
1:17
years ago actually this year in the
1:19
united kingdom and our founders uh
1:22
actually identified a a gap in a need in
1:27
the market through an accident of a
1:29
friend of one of the owners and this
1:32
friend of his was actually tasked with
1:34
the job that so many people know and
1:37
really despise which was changing the
1:40
fryer oil out it’s a common job in the
1:44
kitchen actually one of the most
1:46
dangerous and while he was performing
1:48
this task he actually burned himself
1:50
severely all over is upper body so here
1:54
are your thing changing the fryer oil
1:57
out in a restaurant in a commercial
1:59
kitchen correct he was in fact over
2:02
there it was in a small little fish and
2:04
chip shops
2:05
ok are all over the place over there so
2:09
Jason our founder uh during a cricket
2:12
match
2:13
I learned of the accident and he’s
2:15
always been of the inventor mentality
2:18
and so he just kind of immediately went
2:21
to well there’s gotta be a safer and a
2:23
better way of doing this so I at that
2:26
time what he did was came up with the
2:28
idea for a machine that would be a safer
2:30
way of getting the oil in and out of the
2:32
fryer using a series of pumps and motors
2:34
to pull the oil out of the top rather
2:36
than draining it out of the bottom and
2:38
when he partnered up with our CEO
2:40
picture clues
2:43
uh they really don’t into the kitchens
2:45
to learn that hate you know there’s
2:46
actually a greater need here than just
2:49
swapping out while there’s a way that we
2:51
can get the oil to last longer and
2:53
there’s a way that we can actually take
2:55
this job away from the kitchen staff
2:57
completely and at that time the fryer
3:00
management service which we call filter
3:02
fri was born
3:04
ok so you have people that go around to
3:08
these commercial kitchens in any kind of
3:11
restaurant or any kind of environment
3:12
where there are fried that’s essentially
3:15
and you extract the the cooking oil you
3:19
clean the cooking oil and you put back
3:21
there correct that’s part of the service
3:23
yeah that’s that’s kind of the unique
3:25
aspect of the service with the
3:27
filtration that we do we’re pulling out
3:29
particles on a molecular level extend
3:32
the useful life of the oil so that’s
3:34
part of it
3:35
the other part of the service is
3:37
actually when the oil is no longer use
3:39
can no longer be filtered or cooked with
3:42
will remove the oil from the fryer out
3:45
and will return basically fresh oil to
3:48
the higher each time we go in we we do
3:51
the job of cleaning and detailing the
3:53
fryer for the customers well so we
3:55
completely eliminate their staff from
3:57
having to do that undesirable and that
3:59
dangerous job bringing our people to do
4:02
it with our specialized tools and
4:04
equipment i mentioned that there’s a lot
4:08
of reasons why i like this company and
4:10
one that is kind of personal thing for
4:13
me is that when i was a kid my father
4:15
actually own efficient ship store
4:17
okay and I know how how really crummy it
4:22
was to try to you know work in that
4:24
environment
4:25
and work with that oil and more
4:28
importantly I also know how important it
4:30
was to keep that oil fresh because it
4:32
really had an impact on the taste of of
4:34
the the finished product and so it was a
4:36
it was a constant battle and essentially
4:39
what you’re saying is that you take this
4:41
away take all that away from the
4:43
restaurant operator of the commercial
4:45
kitchen operator and you guys do that
4:48
correct that’s essentially it and I
4:51
can’t tell you how many conversations I
4:52
have with people where their first job
4:54
was in like McDonald’s or Burger King
4:56
and you know that job typically goes to
4:58
the low man on the totem pole so it’s
5:01
the 16 year old kid that comes in one or
5:03
two days a week they throw the most
5:05
dangerous job at the kitchen at this kid
5:07
and you know they get that kind of
5:09
quality work out of it so often times
5:11
will come in and we’ll see
5:13
read dirty pretty unsanitary situations
5:17
that we kind of rebound and bring back
5:20
and you do this through a basically an
5:23
army of franchisees that correct correct
5:26
correct so we’ve got currently a hundred
5:29
thirty-five franchisees spread over 40
5:32
states and filter is now in 26 countries
5:36
worldwide
5:38
oh wow ok so again number two reason why
5:42
I really like this this business
5:44
opportunity it’s it’s something that
5:46
pretty much anybody can do there’s no no
5:51
PhD that’s necessary to actually do this
5:53
job but more importantly it’s also
5:55
something that an individual can do by
5:58
himself or he can create a team and grow
6:01
team and equally important one of the
6:04
things that I really liked about going
6:06
through your your franchise videos was
6:08
that the family element to it seemed
6:11
like there was a real ability for the
6:14
franchisee to get his family involved in
6:16
one case
6:17
Joanne is the daughter of one of your
6:20
franchisees and she heard job was to go
6:22
out and line up new accounts and she
6:24
actually got into Fenway stadium so they
6:27
have that that account and then they got
6:30
there her little brother involved and it
6:33
just really seems to be a family
6:34
situation do you find that quite a bit
6:37
it’s not not on
6:38
and all have family units uh kind of
6:42
joining forces and everybody kind of
6:44
using their strengths to build the
6:46
business I one important part i think to
6:49
mention on that is if you’re right this
6:51
is this is a business that anybody can
6:54
do you know we have people that have
6:56
come out of IT we have a commercial
6:58
airline pilots we have guys that have
7:01
been out of finance and banking world
7:02
and then we also of course have
7:04
entrepreneurs people who have other
7:06
businesses well but the the benefit of
7:09
the franchise system in this is we teach
7:13
our owners everything you know
7:15
so when somebody comes on board with
7:17
filters a new owner they immediately go
7:19
through two-week comprehensive training
7:21
program so they’ll spend a week in the
7:23
classroom kind of learning about the
7:25
theories and processes what fryer
7:27
management is how to operate the
7:29
equipment and then they go out and apply
7:31
what they’ve learned in a setting within
7:33
existing franchise owner for a week in
7:35
their business before then going home to
7:39
open and launch their business
7:40
so when it comes to learning about this
7:43
paper I mean we were the ones that
7:44
invented it 20 years ago so nobody comes
7:47
with this wealth of friar management
7:50
knowledge so everybody kind of starts on
7:51
an equal playing field
7:54
I guess the only people that would have
7:55
any benefit would be people like
7:58
yourself who say yeah I remember doing
8:00
this job and how much I hated it so I
8:03
you may have a little bit of a leg up
8:05
going into a kitchen and saying hey I’m
8:07
one a person actually used to do this
8:10
right here why I know that you want to
8:12
use the service position to number three
8:16
on my list of things I really like about
8:18
the as there’s really no competition
8:20
correct there is we have no organized
8:23
competition so there’s no other major
8:26
brand or player in the game so what are
8:29
owners really run up against is just
8:31
simply a lack of knowledge you know when
8:34
we come in and introduce our service our
8:37
customers have never heard about
8:38
anything you know fryer management them
8:41
is again the sixteen-year-old kid with
8:43
the part-timer who comes in and does
8:45
this once or twice a week depending on
8:46
their needs
8:47
I’m so we come in and say hey we’ve got
8:50
an opportunity to take this job away
8:51
from
8:52
you we’re going to provide you with
8:54
consistently cleaner friars say for more
8:57
enjoyable work environment more
8:59
consistency to your food product and we
9:01
can do it in a cost-effective way by
9:03
extending life of your oil it’s kind of
9:06
one of those things were sometimes when
9:08
it sounds too good to be true
9:10
so our job is simply to get them to
9:13
understand that hey we what we can do
9:16
for you is really better than what you
9:18
can do for yourself and we’d really like
9:21
to show you rather than just telling you
9:23
right and that brings me to my next
9:27
question can you kind of give me a day
9:29
in the life sequence of water franchisee
9:32
does on a daily basis
9:35
well most of our franchise owners employ
9:37
people so they’re more of the manager /
9:41
develop role for their business and
9:42
that’s actually what we want
9:44
we’re not interested in selling somebody
9:47
a job in this business you know we tell
9:51
somebody the opportunity to build grow
9:54
something and so there’s a lot of
9:55
programs there to help owners do that
9:57
whether it’s hiring whether its sales
10:01
we’re scheduling routing accounting with
10:03
that systems programs for all but we
10:06
really want our owners focused on
10:08
working on their business instead of
10:11
their business
10:12
no a normal day for another with an
10:16
employee would be kind of customer
10:18
relationship management so they’re going
10:20
to go around and see their customers
10:22
visit and make sure everything’s going
10:23
the way it should be going they’re going
10:25
to be doing customer development adding
10:27
new accounts to their businesses and
10:30
then I’m sure one of your upcoming
10:32
questions will have to do with the
10:33
multiple facets of our service so we’ll
10:36
also see our owners while they’re
10:37
visiting existing clients talking to
10:40
them about the other service offerings
10:42
that we can bring to them to make their
10:43
lives these yeah well that that’s a good
10:47
leader that’s a good segue for let’s
10:48
talk about the additional services
10:50
besides actually maintaining the fry
10:53
about itself
10:54
you have three more three additional
10:57
services that right three and we’ll have
11:00
our fourth this year
11:01
ok so can you expand on that a little
11:03
bit well with the filter fries
11:05
service which is again our namesake and
11:07
what we were founded with 20 years ago
11:09
on average for visiting our customers
11:12
about 12 times a week to provide this
11:15
fryer management service so what that
11:17
enables us to do is really leverage
11:19
pretty solid relationship that we build
11:22
with them there are two services that
11:24
kind of bolt onto the filter prior
11:26
service one being our filter bio service
11:30
which is the pinless removal of waste
11:33
oil and the other is our filter gold
11:35
service which is the delivery fresh oil
11:38
and with the the way that the customers
11:42
currently deal with their oil is they’ll
11:44
buy their oil from a big provider like
11:46
their system or the US foods tech
11:48
distributors and he’ll buy it in bulk
11:51
store in their kitchens and it will take
11:53
up shelf space junk sway 35 pounds each
11:56
and their staff will have to carry him
11:58
around and left them and pour them so
12:00
with the filter gold service what we do
12:02
is because we’re managing the Friars we
12:05
have the ability to bring the oil with
12:07
us fill up their friars on the day that
12:09
they need to be filled and take the
12:11
waste drugs with us and basically
12:13
eliminate the cooking oil footprint in
12:16
their kitchen so they can get all that
12:18
shelf space back they can use it for
12:20
food or whatever they need it for and
12:22
the customer no longer has to worry
12:24
about ordering their oil and bulk
12:26
worrying about if they have too much or
12:28
too little or when they run out because
12:30
we’re the ones taking and taking care of
12:32
that for them back our filter bio
12:36
service is really kind of revolutionary
12:38
we’re the only ones in this field as
12:40
well we’re the only company that can
12:43
remove waste oil without the bin and you
12:47
may or may not remember from your
12:48
experience back when but when they were
12:50
was drained out of the fryer how’d it go
12:52
somewhere and typically that somewhere
12:54
is some type of drum receptacle that
12:57
alibi but dumpster location and anybody
13:00
that’s ever been behind a restaurant is
13:02
probably smell that area because it’s
13:05
one of the most horrific smells that you
13:07
can probably experienced and what it is
13:10
it’s the deteriorating waste oil in that
13:13
area and those bins are left outside
13:16
they’re exposed to the Sun
13:17
and the heat and water rain and snow and
13:21
everything else and they just it’s
13:22
deteriorated product so what we tell the
13:25
customers a look
13:27
instead of having that kind of followed
13:29
a sanitation nightmare behind your
13:31
kitchen
13:32
why don’t you get rid of the bin and we
13:34
can take the oil right from the fryer
13:37
we’ve got a tank the right into the back
13:38
of our man and at the end of every
13:40
surface we can haul it away and we’ll
13:42
deal with discarding it for you specify
13:46
that when you sell that basically you’re
13:48
selling that to become biodiesel is that
13:50
correct
13:51
how large is the typical territory
13:54
territories range in size depending on
13:57
their concentration of population number
14:00
of potential accounts within them
14:03
I’m calling an average territory about
14:05
the size of a county up when you get
14:08
into more metropolitan markets that the
14:10
territories will shrink so for example
14:13
on Orlando which is where our
14:16
headquarters is uh the Orlando market or
14:20
orange county is actually four different
14:22
tiers worries
14:24
whereas the state of Montana is two
14:26
territories right I got ok
14:29
why isn’t this more popular well from
14:34
the franchising standpoint we’re not
14:38
your major player out there are not
14:40
adding hundreds of franchise owners
14:42
every year we have a very moderate
14:45
schedule of growth in fact that it
14:48
contrary to what people would think our
14:50
when are our owners are asked what do
14:52
you see in the future for your business
14:54
their answer is less franchisees owning
14:57
larger businesses and there’s a number
15:00
of reasons behind that but this is a
15:03
very kind of moderate paste franchise so
15:07
we are kind of the slow and steady
15:10
approach and it’s because seeing a
15:13
customer’s frequently as we do
15:15
it’s more important to make sure that a
15:17
relationship is sound for the long-term
15:20
success of the franchisee we want to
15:23
make sure our franchisees are growing
15:25
too fast
15:26
losing half of the customers that they
15:28
put on because they’re just moving at a
15:30
pace that is sustainable we’d much
15:32
rather than go that slow and steady
15:34
approach so we’re five years from now
15:36
the customers that they started with are
15:39
still on and they’re growing and scaling
15:41
to multiple advances multiple-use got it
15:44
i mentioned at the beginning that this
15:47
is a business that pretty much anybody
15:48
can do but who should not be doing it i
15:53
mean what who who is not a good
15:56
candidate for this business you need to
16:02
be able to communicate in this business
16:05
on there are people we find that tend to
16:09
be made for kind of a retail type
16:11
business where they do a bunch of
16:12
advertising people come to them this is
16:15
not that business now anybody can do
16:20
that the business that has the ability
16:22
and the desire but i would say for some
16:24
people
16:25
a business like ours would really be
16:26
jumping out of their comfort zones and
16:28
we have kind of phrase that we talked
16:29
about in our discovery process which is
16:32
we can teach the owner exactly what to
16:35
say when they get out of the van
16:37
what we can teach them to do is get out
16:40
of so if somebody thinks they’ll have
16:44
trouble getting out of the am I this
16:46
might not be a good fit for them on in
16:49
the only other option would be they have
16:52
to have the wherewithal to be able to
16:53
employ somebody to do that part for the
16:55
that sales is the big part of our
16:58
business
16:58
I can I can definitely see this I I
17:02
always subscribe 22 the saying that if
17:05
you can’t cook don’t open a restaurant
17:06
and if you can’t sell don’t think that
17:10
you’re going to hire someone to do that
17:12
for you i mean at some point you need to
17:14
be able to jump in there and do it
17:16
yourself because that sells guy that
17:18
you’re hiring might take off and your
17:21
your your businesses is stopped that
17:24
point so it’s it seems to me that that
17:27
is really a critical component to this
17:29
that that person needs to be able to go
17:33
out make the calls interface with with
17:35
customers and and sell this product
17:37
alright it is
17:39
you know people come to the come to me
17:41
often and say you know I can just see
17:43
this is something that sells itself to
17:47
say yes it does but at the same time it
17:49
requires that at outward uh ability you
17:53
know it requires people that can you
17:56
know when they get a know they know that
17:58
no just move today and they’ll revisit
18:00
that customers in the future and it’s
18:02
not the end of the world doesn’t come
18:03
crashing down on them because someone
18:05
told him no and they took it personally
18:07
and on the same token we’re talking
18:09
about you know I a good amount of money
18:12
to invest in franchise you know I I’m
18:15
sure that was going to be one of your
18:16
questions as well as much the investment
18:18
level and and we consider ourselves on
18:21
the more affordable side but just
18:23
looking upwards of a hundred thousand
18:25
dollars to get a business going and I
18:26
know an RN we have trouble we have
18:31
trouble granting franchises to people we
18:33
don’t feel super amoled that would kind
18:38
of create that success story right and
18:41
we just assume tell them look you know
18:42
we feel that your investment would be
18:45
better suited in another opportunity
18:46
where we think you’ll be more successful
18:47
and we’ll wait for that right person to
18:50
come along rather than you know to risk
18:53
it for both them and us having somebody
18:55
come on and not be successful I think
18:58
that’s a good point that that range of a
19:02
hundred thousand how much of that could
19:04
be financed well yeah we’ve got some
19:09
partners on the financing side that with
19:12
qualifying credit i can easily finance
19:15
the entire purchase have an SBA express
19:18
loan
19:19
we’ve had a lot of success with those
19:21
the years up again it’s a program unique
19:24
to a business of our kind of size in
19:28
investment level for those that want to
19:32
contribute some of their own equity to
19:34
the business we have leasing programs as
19:37
well through some of our partners where
19:38
they can lease the land they can lisa
19:40
portion of our equipment on you know
19:43
kind of lowering the cost of entry and
19:46
then allowing them to spread that out
19:49
rather than maybe just financing the
19:50
entire thing
19:51
ok excellent so you are sba approved and
19:56
and you have that in place as well as
19:59
alternative leasing you know our
20:02
alternative forms of financing including
20:04
leasing so that someone coming into this
20:07
business basically could come in with
20:09
some capital for operating purposes and
20:12
essentially finance the balance that
20:15
correct
20:16
absolutely I’m we want to our owners
20:20
coming in we generally look at a
20:21
threshold around somewhere between
20:23
thirty and forty thousand we’d like to
20:25
see somewhere between thirty and forty
20:26
thousand uh and liquidity for somebody
20:31
to be able to have the ability to obtain
20:35
a loan and then all money set aside to
20:38
kind of get over that hump of getting
20:41
that new business started
20:42
yeah that sounds very reasonable 11 this
20:45
has been a great conversation i’m i’m
20:46
impressed with this and we’re going to
20:48
make sure that we have links to your
20:51
page your phone number and so forth in
20:53
our notes section so what I want to do
20:56
basically say thank you very much for
20:58
joining us today and I appreciate your
21:01
time and hopefully we’ll be sending some
21:04
some future franchisees your way
21:06
well I hope so too and add the
21:08
pleasure’s all mine appreciate you
21:10
having me on
21:11
thanks for joining us on this episode i
21:12
hope that you found it informative
21:14
please check out the notes section for
21:17
more links and relevant information and
21:19
if you like what you’ve seen please make
21:21
sure that you like us on Facebook and
21:24
also subscribe so that you up-to-date on
21:26
a weekly basis of what we’re doing
21:28
thanks again hope to see you next week

 

How to become an online celebrity or expert in your field as a Baby Boomer or Senior

Notes Section

Today we are going to be talking about Podcasts. Now before, you think to yourself “I want nothing to do with that”, think about our most recent election to see the impact Social Media has on how we receive information.

In this interview, we talk with Jessica Rhodes from interviewconnections.com to show us how easy it is for Baby Boomers, Seniors, & Retirees to create and maintain a podcast or youtube channel.

 

Visit interview connections by clicking http://linktrack.info/interviewconnections

Transcript

How to become an online celebrity or expert in your field as a Baby Boomer or Senior

0:00
this is boomer income ideas dot-com and
0:04
your host Dan Farnsworth and thanks for
0:07
joining us today on where income ideas
0:09
dot-com today we’re gonna be talking
0:11
about podcasts and before you say i have
0:14
no interest in that I think that it’s
0:16
important to look at our most recent
0:18
election to give us a bearing on what
0:21
kind of impact social media have I think
0:24
it’s important also notice that God of
0:27
the days when information that we’re
0:29
being spoon-fed it is sent to us through
0:33
the filter of the gatekeepers that
0:36
professional media the network
0:38
television and radio stations and so
0:41
forth and today is the new world of
0:45
democratized information where
0:48
individuals get to come directly to the
0:51
center stage with information that is
0:54
important and in that with that
0:56
information can make them an expert in
0:59
their field that’s one of the reasons
1:01
why it’s important for we baby boomers
1:02
to pick up on this kind of technology
1:04
whatever we’re promoting going forward
1:07
it’s going to require that we embrace
1:10
this kind of technology today we’re
1:11
going to be talking with Jessica Rhodes
1:13
who operates a company that actually is
1:15
a vendor mine called interview
1:17
connections and she’s recently written a
1:20
book on what is known as how I rock the
1:23
podcast from both sides of the
1:25
microphone she’s an expert on the
1:27
subject and I think you’re gonna be
1:28
really interesting much USA so stay
1:31
tuned let’s welcome Jessica to the show
How to become an online celebrity or expert in your field as a Baby Boomer or Senior
1:34
I Jessica thanks for joining me today
1:36
and thanks so much for having me on i
1:38
really appreciate it
1:39
you know I’ve got two before i get into
1:41
my questions
1:42
I’ve got to make it a mission as little
1:46
as a year ago I didn’t really know what
1:49
a podcast was so could you do me a favor
1:53
and explain to me and my generation or
1:56
for the benefit of my generation exactly
1:58
what is a podcast and why do we need to
2:00
rock it while you are not alone because
2:03
actually a large percentage of Americans
2:06
still don’t know what a podcast is no
2:08
you are ahead of the curve a podcast is
2:11
on-demand talk radio show that’s kind of
2:15
the easiest way to describe it is so if
2:17
you think about any old interview show
2:18
that you hear on the radio
2:20
the what makes a podcast podcast is that
2:24
it’s something you can listen to at any
2:26
time anywhere so it’s typically
2:28
pre-recorded content that is published
2:32
online and then distributed through an
2:35
RSS feed which basically means it goes
2:38
onto itunes and any other app that reads
2:42
RSS feeds don’t ask me what RSS means i
2:46
don’t know i just know somehow magically
2:48
tonight it’ll for real simple standard
2:52
ok picked up the place but yeah I’m
2:58
learning something here too and so I it
3:01
takes your content puts it on itunes
3:03
stitcher radio there’s also apps called
3:06
google play and iheartradio so people
3:08
can literally access podcast from all
3:11
these different places and then of
3:13
course they can you know play mp3’s on
3:16
on website so on podcasting k can be any
3:19
length it can include music or to be
3:22
just talking it could be interviews it’s
3:24
any number of things but the key is its
3:26
on-demand content
3:28
ok so you’re you’re you’re losing me
3:31
with the RSS is and the the iPads and
3:33
iPods and the promise that’s basically
How to become an online celebrity or expert in your field as a Baby Boomer or Senior
3:38
what you’re saying is that it is
3:41
allowing an individual to create some
3:45
kind of radio program as if he was being
3:48
given an opportunity through what used
3:50
to be the gatekeepers like the radio
3:53
stations on the television stations and
3:55
things like that that person he or she
3:57
can create a program and they can put
4:00
that program out on this this kind of
4:03
thing called a podcast where other
4:07
people can grab that
4:08
listen to it and and receive that
4:11
information so I I think I get that and
4:14
the fact i do that now a lot myself I
4:16
mean I in this last year I went from
4:19
never knowing what a podcast was in fact
4:22
thinking basically that it was
4:25
an area where comedians went to post
4:28
things that they wanted to pay for get
4:30
paid for you know they had a stand-up
4:31
routine or something and and they kind
4:33
of broaden their base by posting a
4:36
podcast so that that people who couldn’t
4:38
make it to the venue could download that
4:41
or that it was people you know young
4:44
20-somethings that were so full of
4:46
themselves that they want everybody to
4:47
know that they just made a chicken
4:48
sandwich
4:50
oh it’s any range of those things and in
4:54
that the powerful thing is that with a
4:57
podcast you now own your own media
5:00
yeah so that that brings me to the point
5:02
that we’re in the past my generation
5:06
grew up in an environment where we were
5:09
simply passive participants in any kind
5:13
of information that we were consuming it
5:15
was being presented to us we didn’t
5:17
really have any choice
5:18
someone at an advertising company or
5:21
someone at the network’s decided what
5:23
they thought that we should see and what
5:25
we should know and so what we saw was
5:27
mom apple pie and Chevrolet and we saw
5:30
mom putting the apple pie in a picnic
5:32
basket all the kids piling into a
5:34
convertible chevrolet and then driving
5:37
off to the park to have have lunch and
5:39
we were supposed to infer from that that
5:41
the Chevrolet was good car and mom’s a
5:44
good cook
5:45
now what we’re seeing is that we’ve kind
5:48
of democratized this in that an
5:51
individual who may be sells cars into a
5:55
podcast and become an expert on talking
5:58
about that car and so what we’re really
6:00
getting at is this kind of
6:01
transformation that if you have anything
How to become an online celebrity or expert in your field as a Baby Boomer or Senior
6:03
that you that you want to promote and it
6:05
doesn’t have to be online stuff it can
6:07
be things like selling cars baking
6:09
cookies building treehouses whatever you
6:12
happen to be good at are interested in
6:14
and maybe want to promote it gives you
6:17
the ability to become an expert is am I
6:20
getting that right
6:21
absolutely yeah i mean we’re moving out
6:24
of an age where everything that is being
6:27
soldiers getting to people be
6:28
advertising
6:30
and we’re in an age of content marketing
6:32
you’ll even see it with you know major
6:35
companies utilizing content marketing in
6:38
addition to advertising a good example
6:40
is low the giant hardware store you’re
6:43
going to see them having Instagram
6:46
accounts at like an Instagram account a
6:48
facebook account where they’re creating
6:50
videos that teach you how to do certain
6:52
things around your house so by providing
6:55
valuable and free content that helps
6:58
people use the products they sell its
7:00
getting more people to buy from them
7:02
it’s the same idea when you have a
7:04
podcast when you’re providing free and
7:06
valuable information as a business you
7:09
are attracting your target market to you
7:11
because you are providing value to them
7:13
they’re going to be more likely to want
7:15
to buy what you are selling because you
7:18
given them something of value
7:21
yeah so there again for my generation
7:25
for the benefit of my generation it
7:28
gives us the opportunity to become this
7:31
expert and gained a following in a
7:33
community of people who who are
7:35
interested in the same thing that we’re
7:38
interested I’m going to quote from your
7:40
book how to rock the podcast and we’re
7:45
going to talk about this in a minute but
7:46
this is a quote from page 129 Dan
7:50
Kennedy if you’re not systematically
7:52
rapidly expand establishing yourself as
7:55
a celebrity at least to your clientele
7:58
and target market you’re asleep at the
8:00
will ignoring what is feeling the entire
8:02
economy around you neglecting
8:04
development of the men of the measurably
How to become an online celebrity or expert in your field as a Baby Boomer or Senior
8:07
valuable assets which is you
8:10
in other words we need to remind our
8:12
audience what we’re doing
8:15
correct absolutely you have to be
8:18
presenting yourself as a celebrity and
8:20
positioning yourself as such people will
8:22
pay more to work with and purchase
8:25
products from celebrities it’s just
8:28
affect you’ve got to get yourself out in
8:31
front of your company as the face of the
8:34
brand as the face of the company and
8:36
establish yourself as an expert because
8:39
that will attract people through you and
8:43
dan is absolute
8:44
right if you are not establishing
8:45
yourself as a celebrity you are losing
8:48
out because otherwise you’re just a
8:51
commodity where people are just going to
8:53
price shop but people will pay more
8:57
they won’t pressure up they will pay
8:58
more for a product or service where its
9:02
associated and owned by ur run by
9:04
somebody that they perceive as a
9:06
celebrity great so let’s talk about you
9:10
and your company I know what you do for
9:13
me because I’m one of your clients your
9:14
company’s called interview connections
9:16
and you help me line up the people that
9:19
we interview every week which is
9:22
extremely helpful to me
9:23
so tell me how that that differs from
9:28
your goal on teaching people how to rock
9:32
the podcast in other words in in my case
How to become an online celebrity or expert in your field as a Baby Boomer or Senior
9:35
you’re not really dealing with me at all
9:37
on the podcast itself other than helping
9:39
me line up these these interviewees but
9:42
tell me about your your weekly blog
9:43
where you’re telling people and you’re
9:45
teaching people how to actually
9:47
effectively utilize a podcast so that
9:51
it’s just not boring stuff that people
9:52
tune out to exactly yeah I to pull back
9:56
the curtain and answer your question I
9:58
my goal in my business is to be the
10:01
chief marketer and sales person and so
10:04
as the chief marketer i am constantly
10:08
producing content that is valuable and
10:11
relevant to my audience so I have grown
10:14
a team so I have a team of about 12
10:16
guests Booker’s and we’ll leave and
10:18
they’re doing largely all the guests
10:21
booking and I certainly did my toes in
10:23
the water every now and then and and get
10:25
guest book but I built a team that can
10:28
kind of do the operations and book the
10:30
guests and then I’m on that front line
10:32
positioning myself as a celebrity
10:34
providing content which attracts people
10:37
to me and so I have a weekly I i produce
10:41
three kinds of content every week a
10:43
weekly blog post where it’s just the
10:45
written form of what I teach in terms of
10:48
you know how to repurpose your podcast
10:51
into written content which is my blog
10:53
that came out this week how to make your
10:55
show more compelling how to fight
10:57
guess everything about how to rocket pod
10:59
guests as a host and guest and I also do
11:02
a weekly podcast called roads to success
11:04
where I’m again talking about all the
11:07
topics that are relevant to my audience
11:10
as it relates to podcasting and then I
11:12
also do a video every Tuesday and i’m a
11:15
big proponent of producing content on
11:18
all three of those platforms because
11:20
there are people that prefer to listen
11:22
there are people that prefer to read and
11:25
then to watch videos youtube is huge so
11:28
I really think it’s important to have a
11:30
youtube channel and to have a presence
11:32
in video form and the great thing about
11:35
any of these is that you can repurpose
11:37
all of the information so just as we’re
11:40
doing here we’re recording this
11:41
interview on a video skype call so Dan
11:44
you’re able to use the audio in a
11:47
podcast on itunes and you can upload
11:49
this video to youtube so you can reach
11:51
people that might not know what a
11:52
podcast is maybe they don’t have itunes
11:54
or not looking at a podcast out that
11:56
they can still get the content on
11:58
YouTube and then you can also take all
12:01
the content in your podcast and habit
12:04
transcribed or summarized and use that
12:07
in a blog post or in a book so a lot of
12:12
what’s in my book is content that i have
12:14
been teaching on my podcast and in my
12:16
blog and I work to compile it and write
12:19
it in a way that obviously reads like a
12:21
book my book is not a transcription of
12:24
everything I’ve done but it is a lot of
12:26
the same content that i’ve been teaching
12:27
and i put it all together in a book so
12:29
when you’re doing content marketing you
12:31
want to be repurposing and using so much
12:33
the information because people need to
12:35
hear things a lot before it sinks in
12:37
they need to be reminded of it and you
12:40
want to get the same information out to
12:42
new people so video that i did two years
12:44
ago somebody that finds me today isn’t
12:46
probably gonna go back to my videos from
12:48
two years ago so i can do a new video
12:50
How to become an online celebrity or expert in your field as a Baby Boomer or Senior
with probably the same tips and it’s
12:52
going to reach a whole new audience of
12:53
people so you mentioned teaching over
12:57
and over
12:58
do you also have a school or is this
13:00
just threw your your weekly updates
13:04
how do you help free everything that I
13:07
teach is free
13:09
so I you know I thought about all
13:11
creative course and it just seems like
13:13
more because for me the revenue and the
13:17
prophets is an interview connections so
13:19
my strategy is to teach everything for
13:21
free and once people see that I am the
13:25
expert in podcast interviews the next
13:28
logical step is to work with us at
13:30
interview connections if I worked and
13:33
maybe it’s something I’ll do in the
13:34
future so don’t you know quote me but if
13:37
I were to create a course and sell it
13:39
for 197 that’s really not that I would
13:42
make yeah i would put that same effort
13:44
into interview connections and make a
13:46
lot more buddy who I teach everything
13:49
for free and and again you know I’d
13:52
almost the end of almost all my posts
13:54
and podcasts videos there is a call to
13:56
action that hey you like what you heard
13:58
if you need help with this come work
14:00
with us at interview connections we can
14:01
help you
14:02
I think it’s been a great interview I
14:03
think that’s the hell that people are
14:05
going to be really interested in hearing
14:07
it and we’re gonna be putting links to
14:10
both your site and and also your book in
14:14
the notes section of this interview and
14:16
of course this will be going through
14:18
amazon affiliate so I’ll get paid for
14:20
when that happens correct it will be
14:25
amazon uh but you can get interview
14:28
connections book.com it’s a free book it
How to become an online celebrity or expert in your field as a Baby Boomer or Senior
14:31
just be busy shipping and handling so
14:32
interview connections book.com you can
14:35
get it you can buy direct from me
14:37
ok thank you thank you very very much
14:40
and I’ll talk to the near future
14:42
thanks so much bye bye thanks for
14:43
joining us on this episode i hope that
14:45
you found it informative please check
14:48
out the notes section for more links and
14:50
relevant information and if you like
14:52
what you’ve seen please make sure that
14:54
you like us on Facebook and also
14:57
subscribe so that you up-to-date on a
14:59
weekly basis of what we’re doing
15:00
thanks again hope to see you next week

Boomers & Seniors Buying An Online Business Through Flippa.com

Notes Section

Boomers & Seniors Buying An Online Business

Flippa.com is an online marketplace where you can buy online businesses that are already generating traffic and income. For most Boomers, Senior, or retired individuals looking to obtain additional income, this may be a good fit. Flippa.com will provide you with all the relevant data you need to get started and they work with different budgets.

If you would like to contact Flippa

Visit Flippa
http://bit.ly/boomerflippa

Facebook
https://www.facebook.com/boomerincomeideas

 

Boomers & Seniors Buying An Online Business

0:00this is boomer income ideas dot-com and
0:04your host Dan Farnsworth hi welcome to
0:08this week’s segment boomer income ideas
0:10dot-com today we’re going to be talking
0:11more about online businesses i believe
0:15that this is a solution for many of us
0:18boomers and seniors and so I’m doing a
0:21three-part series the third installment
0:22today we’re gonna be talking with the
0:24Griffin sin and Joseph Karel of flipper
0:28deal flow which is not online
0:30marketplace and with that let’s welcome
0:34Griffin and Joseph the show welcome to
0:36the show thank you very much thanks for
0:38having us that I’m really excited to
0:40have you guys on the show because i
0:41think that online businesses is
0:45something that can be very very powerful
0:48for
0:50boomers and seniors if we just simply

Boomers & Seniors Buying An Online Business
0:53know a little bit more about if we have
0:56a better understanding of it so you guys
0:58are kind of a part of an overall series
1:00that I’m trying to do to put together so
1:02that I can really get a lot of
1:04information that helps us gain knowledge
1:07that’s not good
1:09yeah sounds great ok so flipping deal
1:12float give me a little bit of a
1:14background very quickly about what
1:16exactly you guys do how you do it is is
1:18flippin and dealflow two separate
1:21companies or is that the same thing
1:23yeah just doing it up yeah so so clip
1:27that is our core company it’s Norma I
1:30marketplace a lot like in a right so
1:33instead of selling a little tennis
1:34racket come up with but you can sell
1:36your website or your domain or your app
1:39on now within flippa it is it is a

Boomers & Seniors Buying An Online Business
1:42full-service do-it-yourself marketplace
1:44right so you actually would come with
1:47your website time to flip to start an
1:49auction in our users can place bids on
1:51it with dealflow it’s a little bit
1:53different in that it’s a full-service
1:55brokerage so you have a broker will
1:57actually take your business due
1:59diligence on it listed for sale and
2:02handle all negotiations for you
2:04the marketplace side you’re gonna be
2:05doing that yourself on the deal flow
2:07side you have a broker to do all that
2:09for you
2:10oh that’s kind of primary ok so if
2:13you’re just actioning your site off if
2:15you’ve got some site that’s in place and
2:17it’s generating some income and you
2:20simply want to auction it off you can
2:22list it on flippa in the auction and
2:26you’re handling everything in the
2:27transaction yourself on the other hand
2:30if you are it’s kind of like a
2:32difference between a of a one-percent a
2:35real estate company in a six percent
2:37real estate company of you if you
2:39actually want someone with expertise to
2:41help you figure out how much it’s worth

Boomers & Seniors Buying An Online Business
2:44how to market it how to get the most out
2:46of your your site you’re going to come
2:49to deal flow which is that brokerage
2:51right tell me feel close mainly going to
2:54be focused on businesses that are going
2:56to sell anywhere
2:57between you know 75,000 on up to eight
3:00figures if you have a business that’s
3:03you know in the 10,000 20,000 dollar
3:05range i flip marketplace is probably
3:08your best option if you have a business
3:10that’s more complex it’s got you know a
3:12lot of different kind of cabins to it
3:15maybe you’ve got inventories on-site
3:18you’ve got about twenty thousand dollars
3:20inventory you’ve got multiple employees
3:22across the world then you probably don’t
3:24want to think about going through the
3:25broker charm because they’re going to be
3:27able to really help you sell that
3:29business a lot of people might only sell
3:30one business their entire life on so
3:33going to a broker does this every day
3:36definitely have some advantages when
3:38you’re talking about a more
3:38comprehensive complex business
3:41ok on the on the auction site
3:45tell me a little bit about that if
3:47someone is selling their their site is a
3:50reserve can they can they put it on that

Boomers & Seniors Buying An Online Business
3:52you know i’m going to start this auction
3:54but if I don’t get to this specific
3:56level than then I haven’t had the
3:58reserve and so I’m off the site and then
4:00maybe I’ll go to deal flow and have you
4:02guys actually listed and sell it
4:04how does that work yeah yeah yeah so you
4:08can start your auction at whatever
4:09dollar amount you want we recommend a
4:12dollar just because it gets a lot of
4:13interest and and right out of the gates
4:15and you do have a reserve as well so
4:19let’s say and you know best case
4:22scenarios let’s sell your business for
4:2350,000 but you’d be ok selling it for
4:25thirty to thirty thousand dollar reserve
4:28and one sure once are bitter see that
4:31the reserve has been met though and
4:32they’re usually a lot more aggressive
4:34and because they know each and every bit
4:36at that point really counts and then
4:39also yeah we do have by analysis and
4:42which you can see on the side of the
4:44listing and we also tell her our buyer
4:47base you know maybe hold off on sending
4:49a buy-it-now until the last day or two
4:51of the auction because at that point you
4:53really know where the interest levels
4:54are ok do you help the people on the
4:58auction site try to figure out what
5:00their sites are actually worth are you
5:02just leave it up to them and so it
5:04really depends and you can submit
5:06evaluation request to us and so if you
5:09are earning
5:10and I don’t know what the requirements
5:12are right now is it a thousand or more
5:13and about 15 ok so if you’re making at
5:16least five hundred dollars net per month
5:18and you’re eligible to get a free
5:20evaluation from us and and potentially
5:23and it would make sense for us to
5:26represent that business on deal flow but
5:30you know even if we don’t end up
5:32representing their site where at least
5:34providing them with evaluation so they
5:36can have some peace of mind and
5:38understand where the the market value
5:40currently is for their business and we
5:42can we do have some sales assistants on

Boomers & Seniors Buying An Online Business
5:44the marketplace side so if you do have a
5:4615 twenty-thousand-dollar website on
5:49that doesn’t quite qualify for Gil flow
5:50also got account managers who can
5:53basically provide a deal flow sort of
5:55light service on the marketplace where
5:58they’ll help you through every step of
5:59the auction will optimize your listing
6:02will help you with negotiations but as
6:05far as who actually is in contact with
6:07all the buyers it’s still going to be
6:09you on the individual not broker on
6:12that’s me that’s sort of the main
6:13difference
6:14dropshipping so there was a there was a
6:17product that was involved that these
6:20sites basically take an order and then
6:23it’s dropship from a warehouse which
6:26typically means that they’re they’re not
6:28actually purchasing the merchandise and
6:31inventory it themselves they’re just
6:34having a dropship is all right after
6:37these two ok whereas the the male health
6:41review is basically an affiliate site

Boomers & Seniors Buying An Online Business
6:45meaning that this person basically
6:48writes reviews and from those reviews
6:51the the readers are then clicking on
6:55some affiliate site and buying whatever
6:57the the product that you know he’s
7:00describing at the time which is why he’s
7:03got ninety six thousand dollars in
7:06revenue and ninety three thousand
7:08dollars in cash flow is that right
7:10am i understanding that correctly yeah
7:12it says very minimal expenses and yeah
7:16so it’s a minute looks like a heck of a
7:18business this is yeah that looks like a
7:19type of business that i would love to be
7:22operating because
7:24essentially it’s in place it’s got a
7:26base of readers already really all you
7:29have to do is just take it over and
7:30continue to write these reviews is that
7:34right or am i missing simply no that’s
7:37correct
7:37yep what is the risk what’s the downside
7:39so for something like this your primary
7:43risk is going to be you know if traffic
7:46stops going to it or if traffic really
7:48slows down and perhaps you don’t update
7:52the reviews as often as the previous
7:54owner was which could impact the SEO
7:57rankings and for the the rankings for
8:00this business which in return
8:03could you know and DQ decrease the
8:06revenues and gear old net profits
8:09yeah and so if you look at the traffic
8:11sources the top traffic sources organic
8:14search so it’s sitting about
8:15eighty-seven percent of its total
8:17traffic comes from organic search so you
8:19have to kind of balance that I like the
8:21risk if that traffic source was suddenly
8:24gone tomorrow and we know with google
8:26updates from one month to the next you
8:30might have rankings that are very solid
8:32bringing you a very stable source of
8:34income and google doesn’t update and all
8:36the sudden you lose your entire ranks
8:38when you got eighty-seven percent of
8:39your total traffic reliant on one single
8:42source on to me that’s the biggest risk
8:44I would definitely if I was looking at
8:47buying this business do a lot of
8:48research on the backlink profile on you
8:51know what kind of links are supporting
8:54this business and I without getting too
8:56technical links are a huge factor in
8:58search engine rankings so you would
9:00really want to dive into those links eat
9:02you know are they high quality media
9:05sources are they
9:07links that come from websites that are
9:09very relevant to this space maybe there
9:11are other gyms or maybe they’re other
9:13male review sites on those are going to
9:16be high quality links if they’re just
9:18blog comments and you know very poor
9:21quality links then the chance that this
9:24traffic sources sustainable is going to
9:26be a lot lower so I would do a lot of
9:28research on that and there’s companies
9:30out there if you’re brand new to this
9:32space center has a good one
9:34they’ll actually do
9:35due diligence for you on a business like
9:37this and come back to you with the
9:38report and say here’s the main risk that
9:40we’ve identified your sort of that what
9:44we think you should know going into
9:45negotiations on and I would always
9:48always recommend that if you’re new to
9:50this space which i’m sure a lot of your
9:52listeners are right on get get some
9:54professional help and analyzing the
9:56business because on the outside like you
9:57said this looks like a very high-quality
9:59easy to run business but I again if you
10:02don’t have a lot of experience you want
10:04to really get someone into the process
10:06with you and help you evaluate that so
10:08what was what was the name of that that
10:10company again that you mentioned the
10:11does the due diligence
10:13yes so it’s a century and comm center
10:16ok so I I kind of look at that as a
10:20acquisition expert or in terms of real
10:24estate that would be the appraiser
10:25essentially all right yeah and they’re
10:28also essentially making sure that the
10:30foundation is solid
10:32yeah if you kind of want to compare to
10:34get to home buying on so they’re really
10:37diving into the business and doing due
10:39diligence on your behalf and they’re
10:41going to say here you know this is a red
10:43flag this is a red flag this is red flag
10:45and this is our findings at and they
10:48really just kind of and you know provide
10:51peace of mind in that sense
10:53okay great getting back this health
10:55men’s room men’s health review I know
10:58it’s not your listing but typically how
11:00much assistance is given by the seller
11:02to the buyer
11:04I’m taking over that that business and
11:07continuing on that path of success
11:10yes so we always recommend and that
11:15there’s so if we represent and an asset
11:19we have the seller essentially sign off
11:21and say i’ll provide somewhere between
11:22one to three months minimum of
11:25transition time and working with new
11:27ownership and but the ultimate amount of
11:32time is really negotiated upon and
11:35that’s part of the deal terms with
11:36someone submitting an offer and so you
11:39know maybe that ask price on this is
11:4095,000
11:42and someone might say hey i love you
11:44know i’ll give you 95,000 with that said
11:47and I want you know 12 months of
11:50transition time working with you
11:52so even though it’s an all-cash offer at
11:54full ask
11:55maybe you know the seller doesn’t have
11:5712 months to provide with you know
12:00helping out new ownership so that really
12:03is you know one of those key factors
12:07that you have to figure out when sifting
12:09through different offers and to kind of
12:12go back to your question now
12:13yeah I’d say that the average amount of
12:15time is one two three months and you
12:16know maybe they’re spending 20 hours a
12:18week with each other on a very complex
12:20business and it’s not very complex maybe
12:23it only takes 20 hours the first week
12:25and then just a couple questions here
12:26and there i’m over the course of the
12:27next month or two
12:29well this guy must have done a very good
12:31job at SEO if he’s hitting eighty
12:33percent of his traffic through organic
12:36search so as you mentioned Joseph that
12:39can be kind of a two-edged sword it can
12:42be great because it’s all free traffic
12:43coming in at the same time you can be
12:45very vulnerable because something can
12:47happen to that algorithm that then
12:49pushes you down and really affects the
12:52the ongoing business i noticed that you
12:57have something called submitted my
12:58request can you kind of give me and the
13:00anatomy of that take me through that
13:02process
13:03yes so my request is sort of a new
13:07initiative that were running at Philippa
13:11and basically the idea is to really turn
13:13the marketplace on its head so I flippa
13:16when you show up to the the actual
13:20website you’re prompted to start selling
13:22it it’s a marketplace where sellers can
13:24list their assets and we obviously have
13:26many many buyers that are looking for
13:28things on but one of the store
13:30challenges we have is that because we’re
13:32so large and we have so much inventory
13:35on there so many different things going
13:37on on the website on its been somewhat
13:41of a challenge for by buyers to find
13:42something that it really really fits
13:45with their criteria and what they’re
13:46looking for on again going back to my
13:49previous example if you have
13:52an existing business in the coffee space
13:54and you want to buy a bunch of other
13:56websites in that space on you want to be
14:00able to come on the flip but and look at
14:02just other coffee websites on and so the
14:05idea with the by request is that we can
14:07actually leverage our 900,000 users and
14:11ask them do you have any copy sites so
14:14you come to us you fill out this by
14:16request and you basically say here’s my
14:18budget i’m interested in any websites
14:20that have to do with coffee i’m going to
14:22close within 30 days on and you know I
14:26want website that’s making at least
14:27three thousand dollars a month needs to
14:29get at least fifty thousand unique
14:31visitors a month and so what we’ll do is
14:33we’ll take that criteria will call it up
14:35we’ll put it out weekly newsletters will
14:37put it out on our social media on and
14:40will basically tap our network to see
14:42what comes back in response and usually
14:45anytime we put out by request we’re
14:47getting between 40 and 50 submissions
14:49that match that criteria so again going
14:52back to the coffee example we might get
14:5440 to 50 coffee sites and within that
14:57there might be four to five that are
14:59very very solid matches so we’re having
15:02a lot of success with that I think trip
15:04just got about pretty a pretty nice
15:07six-figure business sold through my
15:09request on and so the basic idea is that
15:12fire comes to us you give us your
15:14criteria will put that criteria out to
15:16our audience and people can submit sites
15:18that match that criteria back to us on
15:21it it really something were only
15:24focusing on that sort of the more than
15:28ten thousand dollar range so if you’ve
15:30got a budget more than ten thousand
15:31dollars
15:32this is definitely something email us
15:33about email myself grip will be able to
15:36help you out off if you’ve got a budget
15:39that’s less than ten thousand dollars
15:40were working on a couple of product
15:42features on that could that could
15:44potentially help you get that criteria
15:47to our audience but not something really
15:48doing at the moment
15:49well are you able to help us figure out
15:52what we’re looking for and by that what
15:53I mean I’m 60
15:56I come to you and I say you know I’m 60
15:59years old i’m from the traditional world
16:01primarily online is something that i use
16:04but it’s not something that I
16:06really know a great deal about I’ve
16:07heard terms like affiliate sites and
16:09dropship sites and FBA sites and things
16:12like that
16:12I’m not sure what I want I’ve got about
16:15a hundred thousand dollars to invest I’d
16:17like to invest in something that will
16:18generate about a thirty percent return
16:21on that hundred thousand dollars on an
16:23annual basis i’m pretty good at writing
16:26I don’t want anything that I’m actually
16:28going to have to hold inventory for and
16:31how can you help me find what I’m
16:33looking for is that makes it that is
16:35exactly what we want that is the the
16:39perfect vision of a user we want to come
16:42and and ask us about my request because
16:45we can we can take that criteria we can
16:48go through and say look you’re good at
16:50writing on your interested in fishing or
16:54you’re interested in and and some random
16:56niche on we can go and we can literally
16:59find but put some detail into the the
17:03answers they in the criteria given us
17:04and we can put that back out to our
17:06audience and get you probably 10 15
17:09websites that are really good match
17:10within a day or two on and then we can
17:13just continue the process we can go
17:15through each of those we can say hey you
17:18know how does this one look to you what
17:20it what are your problems with this one
17:21this is why we thought it would be a
17:22good match for you on it takes you know
17:2523 hours a week we know that you only
17:27want to spend 23 hours a week so we can
17:30really go into that detail with you and
17:32help you through the process and yeah i
17:34mean for us that’s that the best type of
17:37my request we can get so you will help
17:40me fine tune that in other words i just
17:42gave you kind of an overview but then
17:44you’ll your kind of come in and i’ll be
17:46figure out well yeah but do you like to
17:48talk about fishing or do you like to
17:50talk about airplanes you like to you
17:52like to talk about furniture and
17:54decoration do you help me try to figure
17:57that out so they initially only yeah
18:01there’s really only eight or nine sort
18:03of key data points that you really want
18:06to focus on and the first one is always
18:08going to be like site type which is you
18:10know is an e-commerce site is the
18:12content site is it software-as-a-service
18:14I is it services
18:18which is you know just actual service we
18:20provide meets all my marketing on or is
18:23it a marketplace like flipper so there’s
18:25really only five sort of sight types and
18:28then there’s monetization well how does
18:30it make money is it
18:32advertising is an affiliate is it
18:34ecommerce if you’ve got really
18:37reasonable expectations really clear
18:39criteria on and we can help you get
18:41there as i mentioned then yeah where I’d
18:45say we were been pretty successful with
18:47this so far and i would think we can we
18:49can find something that I is it is a
18:51really good fit great
18:53you know I think that the biggest
18:56hesitation for most of us boomers and
18:58seniors is that we who this is kind of
19:02an unknown for us as I mentioned we we
19:05know how to you know utilize the
19:07internet we know how to go to amazon and
19:09order something and miraculously shows
19:11up two days later on our doorstep
19:13negative thing but we don’t know the
19:16code behind it we don’t know what hTML
19:18is we don’t know what c++ programming is
19:20we don’t know what happened how shopping
19:23cart works all of those kinds of things
19:25what’s the minimum that i really need to
19:28know in order to get into this so that
19:33I’m so that I’m not just totally out of
19:36my league
19:37does that make sense it does yeah I’m
19:42that’s a very good question and I would
19:45say the majority of our buyers and maybe
19:49not the majority but a good chunk don’t
19:51know a whole lot either that’s so that’s
19:55encouraging
19:56yeah absolutely
20:00I and there’s really a lot of resources
20:02out there so and perhaps you don’t know
20:06a whole lot about development and you
20:08find a site that requires you know
20:10almost two hours a day worth of
20:11development work on the site you can
20:13always find and outsourced certain tasks
20:19of the business so again if you if you
20:21don’t know how to and code find someone
20:24who can code for you and their sites
20:26like was a freelancer freelancer.com and
20:30where you can you know already where
20:31yeah we can find these different and
20:35individuals who are willing to work and
20:37at you know you discuss the rates and
20:39everything with them and if it makes
20:41sense financially hire them up and you
20:44know set them up with the business and
20:46then that way you’re just sitting back
20:47in and hopefully the business is fairly
20:50passive about that point if you’re
20:51hiring a couple freelancers and yeah
20:54just collecting checks really are you
20:57guys able to give us an outline of what
20:59we’re going to need based on the the
21:02site that we’re looking at if I was
21:03looking at this min self-review for
21:05instance would you be able to tell me
21:07then you’re going to need someone who
21:09can do some videos you need need someone
21:11who can do some editing you’re going to
21:13need someone who can post a youtube and
21:16facebook
21:17these are the these are the things that
21:19you’re going to need and if you can do
21:22any of those yourself great if you can’t
21:24you’re gonna have to realize that you
21:26can have to go hire someone to do that
21:27so just be aware that part of your costs
21:31going forward is going to be providing
21:35those services that you can’t do
21:37yourself and here’s the list can you
21:39help us with it yet so it’s so every
21:41business that we represent for sale we
21:43conduct a seller interview or we conduct
21:46an interview with the cellar with in
21:47that cellar interview that we post on
21:49each listing and there’s like an
21:51operation section where the seller’s
21:53really break down their day-to-day tasks
21:55the best way to protect yourself it
21:58really comes down to do diligence so
22:00hire company likes ensure occur make
22:03sure that the business is strong and if
22:05there are red flags flush those out and
22:08with the seller or maybe you also get
22:10you have century kind of diving deeper
22:12and if the business ultimately does look
22:16solid make sure you understand exactly
22:18what the day-to-day looks like maybe
22:21you’re asking the seller saying you know
22:22hey can you run me through it you know
22:24at a day in your life essentially now
22:27you can really determine whether you
22:29have the technical expertise to be able
22:32to run with this business all right I
22:35think that’s great answer
22:36one last question who is not a good
22:39candidate for
22:41an online business give me a profile
22:44that the type of person and i’m sure
22:47you’ve you’ve seen them as they’re
22:49coming through and you just look at that
22:50profile say this guy should not be in
22:53this this this business
22:56yeah not going to do due diligence so
22:59someone who’s going to just buy with you
23:01know being sort of careless and just
23:03take all the claims at face value and
23:06just just buy it and believe it’s gonna
23:07just keep pumping out money someone who
23:10thinks that passive income is true us of
23:14its really fast
23:15I’m someone who’s talking about website
23:18and kickback their feet and is
23:20definitely i been working out looking
23:24for three years and I’ve seen maybe an
23:26ample truly truly passive businesses on
23:30that don’t require any effort on and and
23:33even that has sort of a timeline on it
23:36at some stage you’re going to have to
23:38get involved so expect to work expect to
23:41put in the work on because like we said
23:43truly passive opportunities are few few
23:46and far between Joseph and Griffin I
23:48really appreciate this time I think this
23:50was a a lot of really good information
23:52and I’d like to keep in touch with you
23:56guys are probably talk to you about a
23:58couple of opportunities at the near
23:59future so that thanks again for for your
24:02time and I look forward to talking with
24:04you in the future already thank you so
24:06much for having a stand-in and thanks
24:08for joining us on this episode i hope
24:09that you found it informative please
24:12check out the notes section for more
24:14links and relevant information and if
24:16you like what you’ve seen please make
24:18sure that you like us on Facebook and
24:21also subscribe so that you’re up-to-date
24:23on a weekly basis of what we’re doing
24:25thanks again hope to see you next week

Rental Property, Is It Right for Me?”

Have you ever wanted to know how much money you could possibly make from owning one or several rental properties? In this video, we talk with Kathy Fettke, owner of Real Wealth Network. Kathy has been featured on Fox News, CNN, & CNBC. In this video we explore the do’s & don’ts of owning and making from a rental property.

Would you like to learn more? Visit the real wealth network by click HERE

Dan Farnsworth: Yeah well, I’m really excited to have you on the show because I think you offer a really valuable service to our viewers. And before we get into the nuts and bolts, can you give us kind of a overview of Real Wealth Network, what it is and what your purpose is?
Kathy Fettke: Sure. Well, we are 24,000, actually almost close to 25,000 members now. And we are here to help people understand market cycles, give you the education you need to be able to succeed without having to spend all the money you would hope to invest in real estate on education. Instead, we make it either free or really really affordable, like ten dollars a month affordable, to get really high level investor education off a … through the blog and the podcast and through the membership.
But then, once you’ve got the education then there’s actually finding the deals. So we have teams set up in all the best markets in the U.S. The best markets would be those with the highest job growth, population growth and stability and areas where the cities are investing in themselves.
In those areas we find teams who know how to find the deals, get them totally renovated and rent ready. Have property management in place to make for a, what we call, real turnkey rental property.
Dan Farnsworth: Okay. So, if I understand correctly, you don’t actually sell the property, right? You put people together. You get them enough education that they can make an intelligent decision and then you put them together with people in your network that actually have the properties available. Is that right?
Kathy Fettke: Yeah. We find that network. The first thing we’ll do is we’ll find the area. One example is Detroit. There’s been a lot of money pouring into Detroit and these are the things that we look for.
There’s three metrics.
One is job growth, as I said.
Second, population growth.
Third, affordability.
Then fourth, we want to see infrastructure grow within an improvement. And when a city is really investing in itself, billions of dollars, that’s a sign. Especially when large corporations are moving as well.
And so, we actually have just brought on Detroit as one of our newest markets. We’re going to be featuring them in December.
So, we find these areas and then we go there an find the teams in those areas. Experienced investors. Not real estate agents. I’ve nothing against real estate agents. They just don’t tend to … Most real estate agents don’t understand investment property and many don’t own any.
So, we want to work with people who own investment property, understand it, know the rental market. Are able to find deals in creative ways. Sometime it’ll be probate, auctions. Suppose it will be the MLS or just pocket listings. But they’re able to find these deals for cheaper than we could. They can renovate them for cheaper than we can because they have their crews there and they’re on payroll.
And then they do this in bulk so they can get materials cheaper than we can. And then they’re there to manage it for us. So, it makes for a, like I said, a turnkey investment, cause so many people don’t live in Detroit. Don’t want to live in Detroit but they might want to own property there. Or Florida. Or, you know, Chicago. Or Pennsylvania or Ohio. Any of these areas that are really good right now.
Dan Farnsworth: Yeah. Actually, I was on your site just the other day and I saw … I was looking at Jacksonville. I’m really interested in Jacksonville, personally.
Kathy Fettke: Yeah.
Dan Farnsworth: And I saw that you really, you still have homes that are 1500 square feet for 100,000 dollars. That’s just incredible to me.
Kathy Fettke: Well, here’s the thing. Yeah, I mean, I was just on an interview before this and the woman was, the radio show was in California. And when I told her that, she was like, “You’re joking!” You can’t even fathom that because the truth is, you cannot build that house for a 100,000 dollars. There’s no way.
So you’re able to buy a property for much cheaper than it cost to build. Much cheaper. And rent it for more than 1% of its value and watch the values are increasing in Jacksonville because builders can’t make a profit there. So they’re not there. They’re not building. It’s hard for a builder to make a profit.
Costs have gone up 30% alone and when you’re competing with inventory that’s like 100,000 for a finished house, you can’t do it.
Dan Farnsworth: And that 100,000 is a finished house. I mean, that’s already renovated. That’s not buying a fixer upper that you’re going to go in and put 30 or 40,000 dollars in. That’s move in ready. Right?
Kathy Fettke: That’s right. You got it. Yep.
Dan Farnsworth: That’s amazing.
So, let’s talk about, I think one of the key things about your program is the education. I know you have a thing called the Academy. Can you talk a little bit about that?
Kathy Fettke: Yeah, you know, we’ve been giving free education for thirteen years. It started with me wanting it just for myself. You know, I’m sure you know my story but my husband … I was at the peak of his career. He had just come out with a book called Extreme Success, was traveling all over the country, was like the new Tony Robbins. He got the highest advance that most any new author would get. And everything was great. Until it wasn’t.
He got news from the doctor that he had melanoma. They thought it spread. They told him he had six months to live.
Dan Farnsworth: Wow.
Kathy Fettke: So I had to figure something out. Yeah, it was horrible.
And I had two young children and I didn’t want to leave them. I wanted to be stay at home mom so I thought, “I’m in broadcasting. I’ve got a radio show. I will just turn this show into understand how to make passive income so I can be a stay at home mother.” That’s all I wanted to be available.
And so I started the education really for me. And I would just interview everyone and anybody who would tell me how to do this thing I didn’t know how to do.
And so I would bring in attorneys and CPAs and credit repair specialists and lenders and you know, just anyone, mostly millionaires who were living off of passive income, to show me what they did.
Dan Farnsworth: Well, you know, as a investor myself, I know how extremely important that education is. Because, you can go out and make a mistake very very quickly and it’ll just wipe you out. Or you can go out … You know, I look at it kind of like fire. Fire can either warm your house or it can burn it down. If you’re not controlling it properly, it’s going to burn it down.
So, I think that’s absolutely essential.
Tell me about the types of investments that you have. In other words, I know we were talking about the single family home in Jacksonville, Florida, where I’m assuming you’d put me in contact with your network representative there. And if I wanted to buy that, it’s a straight transaction, where I’d buy the house, whether I pay cash or I finance it. It’s deeded in my name and I own the house.
Kathy Fettke: Absolutely.
Dan Farnsworth: You have other types of transactions as well, is that right?
Kathy Fettke: Yeah, I mean, first and foremost, there’s a lot of people in the stock market that shouldn’t be there and they’re realizing that. And you know, the volatility. You know, just one headline story and bam! You know, the market tanks and that’s not where you want to be when you’ve spent your whole life saving for retirement and to just see it be up and down and all over the place. From a single headline. Forget about it.
So, more and more people are realizing they want to be in hard assets. But they don’t even know where to begin. They’re used to … They’ve been trained for so many years to just hand their money over to a financial planner and hope for the best.
And so, when they get in real estate, we wanted to just make it, the transaction, very gentle. Because you do have to be more hands on when you own rental property. Even though we try to take most of the guess work out and we try to do most of it for you. At the end of the day, you’re the one who, you know, needs to make sure that the rents are coming in. You’re managing your property managers and so forth.
So, we like to start people with single family homes because that’s easy to understand. It’s not that hard to figure out. I wrote a book, Retire Rich with Rentals. You can read it in an afternoon. It’ll give your your checklist and help you really understand what you need to know.
From there, then maybe you want to jump right into multi-family but I got to warn you. Everybody wants to be in multi- family but there’s a lot to it and there’s a lot of dollars chasing it. And cap rates are low and prices are high. And you know, as a new investor, I’d be very careful. I would only do something that large if you were partnering with someone who’s done it forever. Many many years, with great success.
There’s commercial property but one of the things that we found is a lot of people just want it to be totally passive. And so, we’ve started syndications, which means that investors, you know, invest together. It’s a group investment. And then we put a very experienced manager that takes care of everything and we’ll do bugger deals. Deals that you wouldn’t and shouldn’t do on your own.
For example, in Reno, a booming, booming market. Oh my gosh. Tesla’s there. Google. Amazon. Everybody’s there in Reno. One developer in our network found this land that… It’s just almost impossible to find land in Reno but he found it. He got it discounted because the seller was in a distressed situation, a hard money loan. It was coming due. So, we got this amazing deal and its was 16 million dollars! And that’s neither you nor I, if we had the check to write, we shouldn’t ever put that much money in one deal unless you’re able.
And so, but even then, I’d want to see that you have ten times that somewhere else, you know. You’d want to diversify. So instead, we had investors come in, paying 50,000 each to a 100. Some put in in 200. And we are almost there to our goal of 16 million. That’s the biggest we’ve done.
But we do lot of projects like that, where we have a highly experienced developer or investor whose got decades worth of experience and track record and success stories behind him. We partner with those people and do deals like that. That are totally passive for those who don’t really want to manage homes or anything.
Dan Farnsworth: Yeah so, in that case, are they also on title, as if they were buying a single family home? Or is that a different kind of instrument?
Kathy Fettke: Well, kind of. I mean, when you buy a home, we’re connecting you with the investor who owns the home and so when you buy a rental home, you’re buying it. You’re on title or your LLC or you know, your company.
Dan Farnsworth: Right.
Kathy Fettke: And then, and you make all the income. It’s yours.
But we’re there to make sure everything is going right and to negotiate on your behalf, making sure that the property manager’s taking care of you because if they don’t take care of you, then they don’t get to be on our referral list. So, we have leverage there.
But in the other thing, like the land development, we get to be equity partners with the developers. So, we open up a LLC, a limited liability company. And everybody buys a share and that limited liability company is on title. But we’re the owners.
Dan Farnsworth: So I think the key here is that you have a variety of different programs. If someone like me is very comfortable in just having a single property that my name’s on that title and I know it. You’ve got that opportunity. But if someone is more speculative and wants to be totally passive and join a large group that’s really, pretty much vetted already, by you. You have that available as well.
Correct?
Kathy Fettke: Yeah and I wouldn’t even necessarily say more speculative because it’s still secured to real estate and it’s discounted real estate. So in some cases, our bigger deals are less speculative. For example the Reno project. We raised $16 million cash and we own that land outright.
Now when we first purchased the land, we got an offer from a national builder who wanted to buy half the lot for more than we paid for the whole thing. So we would’ve owned a 100 lots free and clear, had we taken that offer. I do not see that as speculative at all.
And we didn’t even take the offer cause the lots have been going up in value every month and we expect to get more.
So, we’re not into speculative so much, I don’t think.
Dan Farnsworth: Well, when I say speculative, what I mean is that in one sense, you’ve got something that’s already live in, available, that you can create rent immediately.
Kathy Fettke: Right. Yes.
Dan Farnsworth: As opposed to something that’s going to be developed-
Kathy Fettke: Yes.
Dan Farnsworth: -and there’s a very good backend. It’s there because it’s backed by real estate but at the same time, there’s no income coming in-
Kathy Fettke: There’s no cash flow.
Dan Farnsworth: -yeah. So when I say, speculative, that’s what I mean.
Kathy Fettke: And I understand. Because, when you really look from a fundamentalist’s perspective, if it’s not giving you cash today, you know, that’s something you can count on, where as you never know what the future holds. But that’s why we only partner with developers who have 30, 40 years experience and they’re not in it for the training.
Dan Farnsworth: Right.
Well, I really appreciate the fact that you have all these varieties of programs that are available. So really, if someone is interested in real estate investment at all, you’ve got something in the pipeline that can satisfy that demand. I think that’s important.
Kathy Fettke: Thank you.
Dan Farnsworth: Let’s talk about, what I call, the anatomy of the deal. What if … If we were talking about the $100,000 property in Jacksonville, Florida. And I said, “You know, I’d really like to do something about that. I probably want to move forward with it.” What’s the next step? What happens?
Kathy Fettke: Okay so when you join Real Wealth Network, real like real estate wealth, like your money and network. There’s the people around the country that we work with. You get assigned an investment counselor who will walk you through the process. And kind of figure out what you’re trying to achieve, where you are today, what steps you need to take to get there and how we can help you do that.
And so, if we looked at you and saw, okay, you want to finance … Let’s say you want to finance a few more properties, we want to make sure that you’ve got the right lender ready for you. And then we would introduce you to our team in Jacksonville. Hopefully, get you up there to go see the properties.
With the Jacksonville team, we would give you those standards and so you’d know Real Wealth Network is expecting this property to come in with this quality of new roof, new HVAC, new everything. And he would show you and get an inspection. First of all, you tie up the property. Then get the inspection. Make sure it hits all the things that we expect in that property. The appraisal. You finance and then they’re there to manage it ongoing for you.
So really, all you’ve got to do is go pick out the property.
Dan Farnsworth: Okay. In most cases, if I understand correctly, there’s already a tenant in place, is that right?
Kathy Fettke: It depends. Our Jacksonville team prefers that method. Sometimes for some of our groups, their inventory is like … like Tampa for example. For whatever reason, our California people really like Tampa so there’s like … huge wait list. So as soon as a property comes in, someone buys it. Well, someone’s in line for it and they have to wait for it to get renovated and then, it takes a little while to rent. And when I say that, I mean like maybe 4 to 6 weeks.
So, it just depends on the market and how much inventory they have and how much demand but definitely in Jacksonville, they put together a portfolio that’s already rented and ready to go because they’ve worked with a lot of hedge funds and they have that inventory.
Dan Farnsworth: And you mentioned, these are managed by them. They have a property management company or something in place that takes care of that. So, it’s truly a totally passive income.
Kathy Fettke: It is and with that said, it’s still … you’re still the landlord. So there’s still things you need to do. It’s not as passive as our syndications. But we have a checklist to make sure that you’re doing those things and again, it would be, you know, ordering your inspection, ordering your appraisal. You know, hopefully going to see the property. Although I would say most of our members never go because they’re from all over the world and can’t always make it.
But you can cause you’re close by. To go see it.
And then, you know, it’s important, I think even you mentioned it to me, to spend some time every month. Just going over your properties and seeing how they’re performing. Checking out your income. Is it really, truly performing the way that you thought it would. If you haven’t heard from your property manager, give him a call. Find out what’s going on.
You need to be somewhat active. And when I say active, I mean a couple hours a month. It’s not overwhelming but just to make sure that you’ve got your proper asset protection. If you have an LLC that is updated. That you’re running the numbers and can say, “You know, this property really isn’t performing the way I’d thought it would. Maybe I’ll sell it and get one that’s better.” Or “Wow, my property’s doubled in value. Maybe I’ll sell it and buy four instead of one.”
You’ve got to pay attention but it’s very passive. Not totally passive. How’s that?
Dan Farnsworth: All right. I got it.
You know, this is Boomer Income Ideas and so we’re talking about income. To just to kind of finish up the anatomy of this transaction, the bottom line is what kind of income can we make from it. So, this $100,000 property in Jacksonville, Florida. I’m going to assume that it’s going to be rented out at about $1000 a month,, which is 1% per month of the purchase price. After all expenses, taxes, insurance, property management fees, things like that. What can I expect to net on an annual basis?
Kathy Fettke: It depends if you financed it or paid cash.
If you finance it, you’re always going to get a little better return. So, I’m going to say anywhere between 8 and 12 percent, if you paid cash. If you finance, it can be anywhere from 12 to 25 percent, again depending on the area and the property and if that area is on the rise.
Dan Farnsworth: Let’s talk a little bit about the risks involved. What should your people that are working with you on these investments expect as far as risk and risk tolerance is concerned?
Kathy Fettke: Great question.
So the biggest risks in owning rental property typically is property management. So you could buy the best house and have it in the best neighborhood and near job growth. All the things I’ve said, in a booming area. But if you get the property management piece wrong and you get the wrong tenant in there, then it can be a nightmare.
And not a horrible nightmare. Not like in California where it’s a real nightmare and you can’t get them out. But in the areas where we recommend owning property, it’s still a process where you have to evict them.
Now again, in the areas where we promote, it would take 45 days, so it’s not like California that can take a year or more. But there’s possible damage that could happen. But there’s always ways to mitigate that if you do it right.
So you do really intense screening on a tenant. You have an experienced property management company, who know how to do that, knows what the laws are and in a lot of these states where we recommend investing. There’s actually tenant history on the credit report so you’d know if that person has paid their rent or not in the past. Where, that’s been a really weird thing that hasn’t been on credit reports until now.
It’s been hard to understand who you’re getting but it’s getting easier with the internet and technology. It’s getting much much easier.
now, the other risk is going to be certainly slip and fall type stuff. So, somebody sees that you have a high net worth and they think that’s a good home to go slip and fall on. So, how do you protect yourself from that? There are lots of ways to do it. And real estate offers that anonymity that other investments maybe don’t. Cause you can have the LLCs and the land trusts and nobody can really know who owns that property which makes it very difficult for them to go after you.
And then I guess, the other final risk would be being too trusting.
Dan Farnsworth: We just talked about risk. What type of investor would real estate not be the right choice for?
In other words-
Kathy Fettke: Great question.
Dan Farnsworth: -you’ve, I’m sure you’ve dealt with people in the past that you just said, “Look, this is not the right thing for you.” Who’s that?
Kathy Fettke: Yeah. I think it’s people who don’t get along with people. Honestly. I mean, there’s a place for you to play in real estate but if you don’t have the ability to treat your property managers well and your tenants well. If you just worry a lot. It’s not going to be a pleasant experience for you. You’re better off doing flips where you’re in and out. You don’t have to have ongoing long term relationships.
Or if you’re just kind of a person that doesn’t understand that things happen. And so, one of the things that I put in our spreadsheets is reserves. There are going to be vacancies. There’s going to be issues but you plan for it. And it’s in the reserves. It’s part of the cash flow calculation before you even buy. So don’t be surprised when you find out that when a tenant leaves, you have to spend a little money fixing up the place. That should be part of your calculations in the beginning.
But so many people forget that or they don’t put the money aside and then they freak out and then they’re upset. So, you know, if you treat real estate like a business, which means that you need to rely on others to help you and you don’t want to be a jerk. You know, you need to be able to get along with people. Because they’re helping you with this investment.
Dan Farnsworth: Last question.
What’s the minimum capital that a newbie, just coming into it and joining your network for instance, needs to have in place to get started?
Minimum capital.
Kathy Fettke: Okay. Well, for our network, we really target people who have money, have good credit, want to get out of the stock market. $50,000 would be where you’d want to start, that’s about … It’s going to be about a 20, 25,000 dollar down payment on a house.
And so, one of my things I tell people is we have a plan, a retirement plan, where you could buy 10 homes with financing, as you know. That’s about a $250,000 investment and when you target $100,000 homes, that cash flow about $300 a month after all expenses that you financed, you can have all of those properties paid off in about 13 years, by using the cash flow to pay off the loans.
Dan Farnsworth: Right.
Kathy Fettke: So, $250,000 is ideal because then you could own in 13 years or so, 10 homes free and clear that cash flow. You know, you got a million dollar portfolio, free and clear at that point that is cash flowing a lot. You know, 6, 7 thousand dollars a month after all expenses, bringing in about 10,000 gross. But in 13 years, it’ll probably be double that, honestly.
So with inflation and rents going up and so forth.
But if you’re somebody who’s just starting out and you have no money. You’re just starting over maybe. That doesn’t mean you can’t play. It just, you know, come join the network. It’s free. I’ve had people that have been a part of our network for maybe 7 years and they just loved it. They were obsessed with it but they just weren’t ready to do anything. And all of a sudden, they would come into money. And it would be an inheritance or something. And they were ready.
And I love that story. It’s almost like once you’re consciousness can imagine that you, as a real estate investor, owning these assets and then it happens faster. Because you see the opportunity.
Dan Farnsworth: Excellent. Well, Kathy, I really really appreciate this. I think this has been a great conversation. We’re going to put links to your site in the bottom of our notes section so that people have a way of getting through to you. And what I’d like to do if possible. I’m a member. Isn’t that nice?
I’d like to just kind of stay in touch every once in a while and check in with you. See how you guys are doing and I’ll probably be talking to you offline about Jacksonville. So with that, thank you again for joining me.
Kathy Fettke: Thank you so much for having me.
Dan Farnsworth: Hey, thanks for joining us on this episode. I hope that you found it informative. Please check out the notes section for more links and relevant information and if you like what you’ve seen, please make sure that you like us on Facebook and also subscribe so that you’re up to date on a weekly basis of what we’re doing.
Thanks again. Hope to see you next week.

 

Becoming A Freelancer Is A Lucrative Income Alternative For Boomers

In this video, we discuss how seniors can use their skills and know-how in the freelance market. Fiverr and Thumbtack are two applications to help freelances find clients without spending a lot of time and money.

See the transcript below:

DAN: Hi and welcome to this segment. I think today we’ve got something that you are going to find pretty interesting. Chances are pretty strong that you are really good at something and whatever that happens to be, there is always someone who is willing to pay for it. We call that freelancing. When you leave a traditional job and do something that you like to do and exclusively do that. We call that freelancing and the “Free” stands for the freedom to do what you want, where you want, and how you want.

Today, 35 percent of American workers are classified as freelancers. And that’s 55 million workers across the country. The interesting thing is that 57 percent of them said that they actually make more money now that they are doing what they really wanted to do, as supposed to their traditional job, which I thought was pretty interesting.

Now the question is, if that’s something that you like to pursue, how do you do that? How do you market yourself, and how do you market your skills?

Freelancing Tools For Boomers

Fortunately, there are a couple of sites that are available that I want to introduce you to. One that I’ve used extensively is a site called Fiverr. And you can see by the graphic that we are putting up right now, this is a site that connects people who have services to offer with people who want those services.

 

There is an extremely large grouping of categories. Pretty much, it covers everything. You’ll notice that if you are good at drawing and animation, you could list yourself and you will have people asking for your services. If you are good at English and grammar you and can write papers well or you can transcribe, I guarantee you that you will have a lot of people like me—who maybe had a California education, which was actually pretty poor because we can’t spell—who need those services desperately. Or maybe you are very good at designing very complicated spreadsheets in your traditional job, and you did business forecasts and things along those lines. Again, a very large percentage of people are looking for those types of services.

And lastly, the one that is currently dear to my heart because of my kids. Maybe you are extremely good at high-end math and you are able to tutor college-age kids on how to pass their physics tests. And again that’s something I really wasn’t able to help my kids with, so it was great that I had that ability.

In this environment, I use Fiverr for one thing in particular that’s very important to me, which is transcription. Now, at the end of each one of these videos we transcribe these so that we actually have written text to go along with the video. I could actually sit down and do that myself if I wanted to, but again, I really don’t want to so, I go to Fiverr.

I found a transcriber after looking through their listings and located one that I thought had the right services and right qualifications for me. I negotiated with that person and they now transcribe each one of these. I do one a week, four a month. I pay that person $25 so from me they make essentially $100. That doesn’t sound like a lot of money, except when you start to think that basically they spend about a half-hour on each one of these. So they are making $50 an hour. And if they’ve got 10 or 20 or 30 customers like me, they are making pretty good living.

So there is money to be made and there are careers to be built on this freelance type of environment.

The next one is Thumbtack. And you might have seen those on TV commercials. Again, I’ve had experience with that. In fact, I have a value I found through thumbtack. We are going to be talking to that person right now about their experience with it and why I went to thumbtack for the type of service I was looking for with this person, as compared to Fiverr.

So before I bring my next guest, I want to talk a little bit about the difference between Fiverr and Thumbtack. I used Fiverr when I was looking for a transcriber. It’s very good for a single issue need and it’s very good if you need to just contact someone for that specific item. You don’t really need to have all that communication with him and you can just kind of put it on auto pilot from there.

Thumbtack, on the other hand, is more complex. It allows you to work with the people in your local area, which is really important to me, especially dealing with what I needed to do with in this particular situation.

In producing these videos, there is really quite a bit to it. There is editing; there is technical skills; there is a lot of things behind the scenes that, well honestly, I am not up to speed on, and I know I needed help with.

So that brings me to my next guest. Brian Loriga is is with GFN Advertising and we found him through Thumbtack. I had a chance to talk with Brian directly over the phone, which is something that you don’t do with Fiverr. I also had chance to meet with him in person so we could talk about my goals, what I wanted to do, how I wanted to do it. We needed to find out if this fit into his skill set. Fortunately it did so we’ve been working together ever since. So with that, Brian thanks for joining in today.

BRIAN: Hi Dan thanks for having me.

Dan: First of all let’s talk a little bit about what you offer. I know what you do for me, but obviously the audience doesn’t. So can you kind of give the audience a background of the types of program that you provide for me?

BRAIN: Right. GFN advertising offers mainly website design. That is kind of our main pillar. From there, that’s the launching pad where we can take care of the clients’ suite of other needs. That could mean many things, depending on the business. But that is primarily SEO advertising, where we try to get the website or social media page or YouTube channel found organically on Google or Bing. That also includes social-media management, social media pay to click advertising, Google pay-to-click advertising, Bing pay-to-click advertising. We also offer logo design and video editing.

That way, we try to keep our clients all with us so they don’t have to outsource everything. Then, how our business works is, rather than dealing with the video editor, the web designer, etc., you are dealing with an assigned business developer.

DAN: Yeah, well, so far it’s working out pretty well for us.

BRIAN: Absolutely.

DAN: So that’s good. Tell me a little bit about why you decided to list on Thumbtack which, again, is where I found you. And tell me about that experience, the process, and what it takes to actually get to be a vender on Thumbtack.

BRIAN: We started off advertising using the traditional mediums: Google pay per click advertising, Facebook pay per click advertising, word of mouth, direct mail. Those forms of advertising can be costly especially to a small business that doesn’t know exactly what they are doing. You can waste a lot of money if you don’t know what you are doing. Thumbtack came around 2 or 3 years ago and we did it as a test but now Thumbtack represents about 30-40% of our new customer acquisition. We’re funneling more and more money into it just because– Google is a competitive landscape so you are competing with everyone else that wants to throw money at the situation, larger advertises. If you are a smaller business sometimes you don’t have that capital or investors to compete in that landscape. Thumbtack allowed us to showcase the services that we provide and then choose who we want to go after. In your case when you submitted a bill or a request that you needed XYZ, we can read that and say this is someone that we could actually help. We would submit a bid and the great thing is the ability to choose your customer base and, on top of that, if the client does not receive or review your bid you get that refund back. Where on Google or pay per click, once they click that’s it you’re charged. It allowed us to manage our marketing budget much more effectively.

DAN: Okay, so speaking of marketing budget, with Fiverr they basically add 5% to whatever the bill is and that’s where they make their money. I don’t think people that are actually listing with them actually pay a service fee in addition to that. So how does thumbtack work?

BRIAN: Thumbtack has their own kind of monetary system where they assign a credit. Every credit is worth, and it fluctuates, but let’s just say $1.50 or $1.60. If we wanted to go after a web design project, that might cost us 14 credits, so you’re looking at $20 something. Again, that fluctuates, depending on the request. If there are customers requesting a 5 page website, 10 page website, 15 page website, video editing, for example, would only cost us $3 or $4 to bid after. It fluctuates so they use a bidding system. You can end up spending $100, $200 and not get anything but it’s still a better alternative because you are choosing the type of client base that you are going after.

DAN: I see. So, it’s really very much like Google, in a way, in that you are bidding for a keyword like “video editing,” and any time someone clicks on your link, you are getting charged whether that’s $1.60 or $3 or whatever. You are getting charged for every time they click on it whether you actually land the customer or not, correct?

BRIAN: Right, exactly.

DAN: Alright, like every other business you have a business model that allows you to allocate a certain percentage for customer acquisition.

BRIAN: Right.

DAN: How has Thumbtack been as far as your cost of customer acquisition in relationship to the other types of media that you might pursue.

BRIAN: You know, we still play in the other pools just because we want that exposure. We are a growing brand so we’re playing in Google were the other brands play and playing in social media which is now more important than ever in today’s landscape. But, it is much more costly to acquire customer in Google. For example, the average cost per click, if someone is looking for an advertising agency, can range anywhere between $6 a click, but that is if you want to be on a lower section of Google, which statistically doesn’t not get that much traffic. Let’s say you want to be on top of the page, we were paying at times $10, $12, $13 per click. Then, when you have to do that math, you have to say well it takes about anywhere between 10 to 20 clicks to generate a buying action, and then it takes about 2 to 3 phone calls to actually close a client. Our cost per acquisition was $200, $300 at times, just to get a smaller website. With Thumbtack it ends up being $20 or $30.

DAN: Yeah, that’s good. That explains to me why on Fiverr I can only pay through the site, whereas with you, you can bill me directly, I can pay you directly because Thumbtack doesn’t have any percentage from your actual contract with me.You are paying for the clicks to identify me as a potential client and it goes from there, correct?

BRIAN: Right.

DAN: How difficult is that to set up? By that what I mean is the majority of our viewers, I think ,are kind of new to this idea. They may not really be familiar with pay per click on Google, let alone pay per click on a more proprietary site like Thumbtack. What’s really involved, as far as, what do they need to know and how sophisticated do they need to be able to use it?

BRIAN: Not at all. When we first looked into it, we did our due diligence. We started to look at how other businesses were reviewing Thumbtack. Actually if you go on YouTube, you’ll see a lot of smaller businesses, freelancers, they’ll bash it. It’s just because they don’t understand that with Thumbtack you have to, it’s going to be more expensive in the beginning but if you stick with it your cost per customer acquisition is going to go down insignificantly.

To set up you create a Thumbtack account. You register, you’ll start listing your services, you’ll add photos. It’s pretty intuitive. It’s a step by step process. Finally you’ll submit to a background check, it’s not required but it’s advised so that when customers see that background check has been applied it adds another level of legitimacy to the business. Then, when you start to get all these request, because the request starts coming to your email saying, “This customer wants a web design,” “This customer wants a video editing.” You will start to kind of cherry pick which customers you want to submit a bid to. To add to the intuitiveness to Thumbtack, they have templates so that you could save a basic website design template or an offer, you can point and click and you don’t have to retype these offers every time you are trying to go after a client. You can save unlimited amounts of templates.

The other thing that also helps is they have an app so you can respond to these bids on the go. Especially for a small business or a freelancer, sometimes you are a one man shop and you are kind of wearing different hats. You may be visiting a client but you see a lead that comes in and you are like, “Awesome! I want to go after that so that.” You can respond using the Thumbtack app.

Finally, you have to stick with it. In the beginning you are a new business on Thumbtack. A lot of client still look for reviews. This is the nature of the beast right now, clients have a lot of power when they decide who they want to send their money to or give their business to. They typically look at anywhere between 1-3 alternatives before they make their decision. If you don’t have reviews then that’s where your personal salesmanship comes in because no matter how good the medium is if you are not good at selling your company or selling yourself you are still going to have a hard time regardless of the advertising medium. In the beginning you are going be kind of trying to convince customers to trust you. There are things you can do to help circumvent that. If you are a web designer, create sample website so a customer can kind of see your portfolio, don’t try to wait for a client and let that be your first project. Then as you acquire customers and gain those reviews and build those relationships later on your cost for customer acquisition just goes down leaps and bounds.

DAN: Really, what I am seeing here is that something like Fiverr, if you have an offering that is fairly low cost like you are willing to transcribe something for $25, you really can’t use Thumbtack for that because that’s just too low. What it cost you to actually acquire a customer is going to be much greater than that. Something like Fiverr is great for those lower cost, smaller, one off jobs maybe a voice over, or a letter, or something like that. For the more complicated and more complex situations where the contract is going to be greater, there is going to be enough room to pay for this kind of cost of customer acquisition, Thumbtack is going to be much more valuable than one of these other types of sites so simply because of the format. Would you agree with that?

BRIAN: Absolutely. Fiverr is great. We have a lot of client that use it but it’s more for the freelancer rather than the small business. Not to take away from fiverr because we have tried to use it in the past but not to success of Thumbtack.

DAN: And one last question, what advice would you give some new person who’ll be coming into this for the first time and they want to taste the water without getting burnt? As you know and I know advertising online can do that if it gets away from you it’s like a fire.

BRIAN: Yeah.

DAN: What would you suggest that someone does, let’s assume that they have a pool cleaning business, for instance. They want to start to advertise on Thumbtack in the local area, how should they go about doing that?

BRIAN: You know, the first thing I would say is if you are going to step into this, if you are going to, for example, let’s say you have a $300 budget, just to throw out a number, spread that over three months.

The other thing I would suggest is you have to build this portfolio. When you go on to Thumbtack, when you are creating a profile and your pool cleaning business, in order to effectively portray the type of service that you are, take pictures, take videos of some of the pools that you’ve cleaned. If you are just a start up, clean a friend’s pool, clean a family member’s pool, show before and after pictures and put that all into your Thumbtack. Then spread any type of budget you have over three months because with Thumbtack you did those reviews because in Thumbtack anytime you are hired you’ll see the history of how many times you’ve been hired. A lot of times if you give it 30 days you’re not allowing enough time to pass so the customers can kind of see.

The other thing I would suggest is call Thumbtack. They have a really great support system and they will actually walk you through the setup process. Their response time is really quick. Anytime we’ve had a slight issue they’ve been great about walking us through it or just doing it for us. If we couldn’t add video editing, for example, it was a new thing Thumbtack had setup, I just emailed my representative and it was done two hours later.

So create an effective profile, take a budget spread that over a small period of time, and call Thumbtack themselves so they can make sure that you give yourself the best chances to put yourself in the best light to any potential client.

DAN: Great. Well, Brian, thank you I appreciate your time. Thanks again. I will talk to you later.

BRAIN: Absolutely. Thank you.

DAN: Thanks for tuning into this episode I hope that you found it informative. Please make sure that you check the note section below. We’ll have additional links and you’ll have some access to information that we think that you will also find informative. If you like what you’ve seen, please make sure that you subscribe so that you are up to date every week on what we are talking about. Lastly, hopefully like us on Facebook. I look forward to seeing you on our next episode next week. Thanks again.

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What You Should Know About Alternative Financing Options

If you would like to speak to Rob from Smarter Finance USA, simply CLICK HERE

Have you ever wondered what the benefits are from getting a loan from anything other than a Bank or Credit Card Company? Are you a baby boomer looking to start a new company and need the funds to make the next chapter of your life a reality? This video has everything you need from an unbiased source to help you make that decision.

Transcript  below:

THE TRUTH ABOUT ALTERNATIVE FINANCING

DAN: Hi, welcome to this episode of boomerincomeideas.apps-1and1.com. Hopefully you will find this pretty interesting.

Today, we are going to be talking about alternative financing. Now if you are in business at all, at some point in the future you are going to need access to cash. In most cases, most people prefer to go to bank and take out a loan. But actually it’s not that easy. In fact with most businesses, it’s impossible. Only 18 percent of businesses that actually apply for loans at their banks are actually approved, which creates an entirely new industry called alternative financing.

You are probably familiar with that. You’ve seen dancing people go across the stage on television, advertising some kind of business loans where a doctor, a baker, or mechanic can get a loan overnight. We call that alternative financing. We are going to be talking to an expert in that field today. His name is Rob Misheloff. He’s with Smarter Finance USA. Rob welcome to the show.

ROB: Thanks for having me on, Dan.

DAN: So tell us Rob, what exactly is alternative financing?

ROB: Well, alternative financing is any sort of loan you get for your business that doesn’t come from traditional sources. Those traditional sources are just banks or your credit cards. If you get turned down or don’t want to go through the process which is getting any sort of financing through your bank is like going through a colonoscopy. And, so alternative financing is, in theory, easier, faster, and more accessible than other form of financing.

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DAN: If that’s the case, why doesn’t everyone just skip the bank and go directly to you?

ROB: The bank is cheaper. So if you want a 7 percent interest rate, typically you have to get the financing through your bank for most businesses. Incidentally, we tell most of our customers if they want that type of financing to go to the bank first. If they can qualify for a bank loan then go for it. But the fact is 85 percent of small businesses that apply for bank financing get turned down. The same is true with other traditional sources like an SPA loan.

DAN: OK so what types of loans are there in the alternative financing world? In other words, I know there’s leasing, etc. Try to explain to us what’s available

ROB: So there’s equipment leasing, which typically is anywhere from 24 months to 60 months for various types of equipment for any type of business. There’s short-term financing, which is typically the daily or weekly payment loans that can take the form of the merchant cash advance or what’s called the business cash advance. Then there’s term loans, which are anywhere from 2 years to 5 years with a monthly payment. Then there’s another product, which is called Invoice Factoring. This is where you receive money today for invoices that might not be due for 30 to 60 days.

DAN: Okay! So let’s take a merchant cash advance for instance. I think that most people don’t understand what that means. Can you explain that what does that mean?

ROB: Merchant cash advance is a type of short-term lending product that’s usually anywhere from 90 days to sometimes up to a year where they take money out of your credit card once every single day, Monday to Friday, until the advance is paid off. It’s set up to be a certain percentage of your revenues. That sounds really great, but if you do the math it’s usually going to be your last choice because the interest rates are very, very high. When I say very high it means that often times that wall up to about 50 percent. We’ve even seen or heard of merchant advance rates go up to even 200 percent, which is outrageous.

DAN: Now why will someone take on a loan like that? It sounds like it can’t make any sense.

ROB: In most cases it doesn’t. In fact sometimes we help a lot of our customers get out of this type of horrible loans. We don’t like them at all. In many cases, in fact ,in the vast majority cases, these cash advance products with very high rates obviously have very high profits for the lender. Unlike the consumer lending world where there is extreme regulation for the most part of business lending is not regulated. There’s a variety of smoke-and-mirror tricks that folks will use selling these products to obscure the rates from you. In fact, the math is very difficult. People who do this for a living have trouble unless they use a tool of figuring out what the actual interest rate is on some of these products.

DAN: OK again, why would anybody who has retail business—for instance, I am assuming that’s what merchant cash advance is, it deals with retail business. They’ve got some kind of credit card receipts coming in on a daily basis. Why would they need that kind of loan? Because they have some large requirement to buy inventory going into Christmas or something? And because of that they need a big cash infusion that they are going to pay off over time?

ROB: Well that can be. Those are the cases where it is does make sense. It’s usually not that 200 percent rate, more reasonable rates. I use to term reasonable loosely when you are looking at you know 40 percent to 50 percent rates. They can make sense, but most of the folks we see taking on these sort of loans are taking them up because they can’t get approved anywhere else. It’s a product for someone who has a sub-600 credit score, hasn’t been in business for very long, or has other challenges that no sane person would lend them money unless they could get an enormous amount of interest out of them.

DAN: So that product sounds like it’s some kind of a payday loan. It’s on a treadmill to actually eventually break you. What type of loans do you specialize in? Because I know that in your environment, you don’t deal with that shady kind of thing. Tell us about your business, your loans, and what you do to actually help real business people.

ROB: So 70 percent of our business is about equipment leasing or equipment financing, which is helping folks get the equipment they need to run the business, whether it’s a dump truck or food truck or restaurant equipment or anything else.

The remainder, the bulk of which is startup loans, we can help folks starting a business who have good credit, and by that I mean 700-plus, access very reasonable options and then also the term loan options, which are the 2 to 5 years term loans. Again, for folks running a reasonable business, who have decent credit and the rates for those products can range anywhere from 7 to the mid-20s, depending on the situation, depending on the rate profile of the person that needs the money

DAN: So again let’s take an example. Let’s take someone who has been working as a dump truck driver, but now he wants to go out on his own. He wants to build his own business. He’s got his own group of clients that he has been working with. Now he wants to purchase/lease a dump truck. It’s going to be very high interest rate, obviously, because he has not been in business before and it’s obviously a risk. How would you deal with that person?

ROB: So first of all, the first question is not what the rates are but what the payments are. And what sort of return do you expect to receive off that asset versus what it’s going to cost to actually lease or to finance that asset?

Here’s what I mean by that: So we will talk to a number of dump truck owners who can go get a contract. The revenues on that contract might be $20,000 per month or so. The first step is looking at what are the actual costs that will be around the business.

We talk to these guys maybe they feel it’s going to cost $3,000 per month; the insurance may be $500. When we put all the numbers together, their profit before the payment of the truck might end up being $13,000 or $14,000. That’s a pretty common number that we’ve seen for one dump truck.

Same is true for semi-trucks or bigger trucks. It always gets down to per vehicle, and they are usually $13,000 to $14,000 monthly before payments. You take the payment, whether it’s $2,000 or $3,000 and you take that figure maybe $10,000, then you compare that to what they are making driving someone else’s truck.

In most cases, the rates don’t really make any difference. It doesn’t make business sense. But also mention that the rates are in the 100 percent range for this kind of loan because it’s a secured loan for an asset. There’s a lot we can take if the payments aren’t made. So even in a startup situation, you know we are typically looking at rates of 15 percent to 30 which some people feel is high. But it’s all about what an you make from the assets versus what your payments are going to be.

DAN: You gave a scenario on numbers on the amount of cash flow. What does he typically need to have in place to be able to qualify for that loan? What does his factor score need to be? His bank account need to be? Work history need to be? What are the requirements? Can anybody just say, “I want to start driving a dump truck,” and ask you to lease it to him?

ROB: So if someone has 50 percent down, it doesn’t matter what their credit is or how much experience they have. But typically folks don’t want to put 50 percent down because they need to have some cash to run their business. Typical buyers have 650 above credit score for at least 2 years driving experience and 10 percent down. We also like to see if he has at least $5,000 to $10,000 in credit when starting the business after making any down payment on that vehicle.

DAN: All right! Let’s look at another scenario of someone who is a machinist and has a company that he wants to place a large order for. And he needs capital to buy raw materials to fulfill that order. He needs $100,000, and again, it’s just a small machine shop. What would be involved in that? How will you handle that? How will you satisfy that order?

ROB: Well in a case like that, we use a product that we call purchase order financing, which is something I don’t do. You can always specialize in so many things so I don’t know the rules about purchase order financing. But when folks come to us and say I need money on a very short term to fulfill this order that I have, typically we just refer them to a purchase order.

DAN: OK! Where would someone go to figure out who he needs to talk to one what kind of loan he needs to get?

ROB: Well that’s very difficult. I mean you go to the internet. Most of us thought the internet is garbage. The answer is I don’t know. I did a podcast recently with someone that specializes on SPA loans, and I asked them where you go to find where to get this kind of SPA loans and the reply was, “I’ll have to figure it out.” And I asked what the requirements for SPA loans are? He said, “Well these are the ones we use, but there are others that are like that and it really depends on where you go.”

There are over 500 people that offer SPA loans and almost all of them have a different program. So everyone kind of has their own method.

DAN: Well just as you mentioned you are the finance dump truck. Some guys will tell you we want to finance dump trucks that are built on Tuesday and distributed through Ohio. If not that then we don’t want dump trucks either.

ROB: Right! Right! Well for that reason, when you are looking for equipment financing in particular and also any sort of working capital, you really have to go kind of through a broker who knows all these different sources. We run into that all the time. We’ll get a deal and there’s 50 different banks we can send that deal to, potentially, base parameters. Depending on the time and business, credit, geography, the type of the equipment, the age of the equipment, the amount of time the person has been in business and the rates would be vastly different depending on who you go to as long as they specialize in that asset.

DAN: So essentially you need to start with the broker because the broker has got much wider spectrum of what you can learn now and who he’s going to learn through. Then from there, try to focus down to someone, or some company, that specializes on exactly what you are looking for. You are going to hope to find some broker who is at least friendly enough that if it’s not in their wheelhouse, they will direct you where to go, as oppose to just saying, “Well, I can’t help you and have a nice life.”

ROB: Right, that’s correct.

DAN: So after all these years and all these technology and all the things that we see on television for alternative financial and lending and so forth, it’s still a needle in the hay stack type of environment. There is no clear path to figuring out what you need and going after it, right?

ROB: That’s pretty much the case we see a lot of folks claiming the new fintech. They’ve got the system where you just enter your stuff and you get a reply in 5 minutes. That’s not really the way it works. They make it look like that so they can get an application out of you, but then they’re playing Chinese Fire Drill just like everybody else.

DAN: Give me an example of couple of deals you’ve done in the past where it was a good deal. In other words, all the stars aligned and you could help these people obtain their loans and the loan turned up well and what they generated from that loan was great for them. Then give me an example where you’d look at something and say this is not going to go. By that what I mean, everyone who has any kind of new business idea is an optimist, otherwise they won’t be trying to launch their business. When you are that optimistic they always believe no matter what, it’s a great idea, it’s going to fly. Just give me this money, I guarantee you I am going to make a million dollars. I mean we used to send pet food for 50 pounds through the internet and that didn’t work out well for the investor. So give me an example of really good deal and really bad deal.

ROB: About a year and a half ago, we did a food truck; it was a hamburger truck. You never know 100 percent, but you can take a look at the deal and take a look at the person that you are talking to and have a pretty good idea if they’ve at least got the wherewithal to make the business successful. Part of that wherewithal is having enough liquidity when they start the business or being able to acquire the liquidity they need so if they don’t sell enough hamburgers or chocolates or whatever they want in first month, they are not out of business.

Within 6 weeks — in this case we help somebody finance a hamburger truck and the guy had a business plan— he knew how much his basic cost is going to be for food, insurance, gas, all those things. He had a general idea of where he was going to sell hamburgers at and we financed the truck, He came back a little over a year later to finance the second truck. In this case, he was making revenues say about $25,000 a month. His costs were coming in about $8,000 a month. So he’s taking home $16,000 a month profit that he and his wife were living on running, just basically, a mom-and-pop hamburger truck and that was a great business.

You know cases like that the interest rate didn’t matter. There was no way without financing. He was going to build a business that was going to cash flow $200,000 a year profit.

On the second truck, there is going to be less profit because he’s going to have an employee. Still again, the interest rate didn’t matter at all and on the second time his rate were low because he already proved himself to be successful with the truck.

The folks you can tell aren’t going to be successful, we’ll get a lot of inquiries from people that are trying to start a business, get a truck some of any kind, or other piece of equipment, and they have $500 down. They have no money in their bank account and they want to buy a used piece of equipment with a million miles on it because that’s the cheapest equipment you can find. You take a one look at it and you now that if the clutch fails around that vehicle they are already out of business and a lot of people get upset and angry when they can’t be approved, but nobody in their right mind does that sort of a deal. You’re just going to have repossess that vehicle and everybody is going to lose.

DAN: Have you done any of those?

ROB: Oh yeah all time.

DAN: I thought you were a nice guy Robert.

ROB: It’s just lending. When stuff doesn’t paid for, you got to take it back. Incidentally, I’ll mention that we often get an argument from folks who want lower rates. Well it’s a secured loan, you’ll just take the asset if I don’t pay. But on average, but it depends on the asset type but on average, we are lucky to get 50 cents on a dollar after all costs are considered in auctioning the equipment if we have to do a repossession.

DAN: Right. Give me five reasons why people would choose alternative financing. Obviously, the first I will give to you: Without that lending, the guy you talked about with a hamburger truck wouldn’t have been making $16,000 profit a month. So number one is that you can actually make money that you would not have otherwise made by having this source available. What else?

ROB: Number two would be you can get approved. The rates for alternative type products, it’s not really anybody with a pulse, but anybody that a sane person would lend to can typically get approved for some sort of alternative financing product. They may not be the best rates. Sometimes they are really bad. Sometimes they are not that bad, but generally most people get approved for an alternative product.

For a lot of the products, they are off balance sheet financing so if you go get a loan from a bank or if you go get a credit card, that has to go on your balance sheet. For certain purposes, you may have to keep certain ratios. So for instance in equipment leasing, that’s a lease, that doesn’t go to your balance sheet. I doesn’t affect your amount of your liabilities.

Thirdly, it’s faster. If you go and you do a bank or an SBA loan, it could take weeks or months. Or it can take you dozens of hours put together the paperwork. Whereas a lot of these alternatives programs you can just fill out a credit application and send it three months of your bank statement and you will get an answer pretty quickly.

DAN: What about security? I know that in most cases SBA loans are actually secured by your home, so you’ve got to pledge that asset if that loan goes bad, you are going to lose your house. What about these loans?

ROB: That’s correct. In the vast majority of the loans we do they are either, in the case of a term loan, they are an unsecured loan or they are secured by the asset that you are purchasing versus your rate in the case of SPA landing. Usually there is a minimum of 20 percent down payment or collateral and that collateral being the home.

DAN: And then lastly, not five but give me 1 or 2 reasons why you would suggest to someone that they just don’t bother. In other words, they come to you and they are telling you about their idea and you tell them quite frankly, “Look this thing is not going to fly; you are going to lose. You’re silly if you go further.”

ROB: So if you don’t have an idea of how this loan is going to help you and not just a general idea but to know if I take out x amount of money and I get x amount of dollars it’s going to turn into this some multiples. So if I get a $10,000 loan, I know I can turn it around and make $30,000 in 6months. I can buy a truck that is going to provide me with a $10,000 a month income. Well it does make sense. Sometimes you talk to folks they say well I haven’t really gotten around or thinking about that yet. You already know that it’s not going to work. The only thing we see is folks with too much doubt like the numbers just don’t work, you know? What I mean by that is we see a lot of folks that half of their business revenue is already going out the door repaying loans and putting more money. Lots of folks are in business and have gotten over their heads. That is time to not be in that business anymore, and we see far too much of that.

DAN: Yeah I can imagine that there is very much like someone who loses their job and they’ve lost their income. The first thing they do is try to maintain that income by cracking up their credit card and taking out as many losses they possibly can. Eventually it all collapses in, but they are desperate to try to maintain it in someway. I can imagine a lot people coming to you that are already in that situation and business is not doing well. They are just trying to hold on by their fingertips and they think an infusion of cash flow somehow magically will make everything okay. Do you see that a lot?

ROB: Yeah we see that quite a bit. It’s called business loan stacking. It has gotten pretty bad for the last years with the proliferation of easy at money high rates. We see folks that have 3 or 4 different daily payment loans, each of which is set up to take 10 percent of their revenue. Once 40 percent or 30 percent of revenue is going towards loan repayment. Another loan just gets you into a bigger haul.

DAN: Alright, one last question. What about changing occupation? Maybe someone has been in the corporate world in the last 30 years and now wants to simply become a baker. He wants to open a little bread shop and he wants to get a loan for that in some way, but he’s never been a baker before. In fact, he’s never been in business before. What should he do?

ROB : The first thing he should do is always go to the bank with the SPA first and see if you can get approved. They have the longest terms, the lowest payments, and the lowest rates. But following that, first of all you figure out how much you need.

You typically tell people, “Figure out how much you think you need to start the business. Then double it.” Because in every business, stuff comes along that you don’t plan for. Typically what we would do if it’s something like a bakery — where there is a significant amount of the investment is for the equipment, but there is also a significant amount of that loan is going to be for just the basic working capital, to open, to higher employees, to pay just the basics.

Typically, a person will get two loans and you shop around it and you see, number one who is going to be the most transparent, who is going to treat you honestly, who is going to treat you like a partner — not just like a mark. But really, you know, talk to 3 to 5 different companies and find out what they have to offer.

DAN : All right, we really appreciate your time. I think this has been a very good conversation. I think it’s been informative so thanks for that. Hopefully sometime in the future, we would check back with you and see how you are doing as well.

ROB: Sounds great! Thanks for having me on Dan.

DAN: Thanks for tuning into this episode. I hope that you found it informative. Please make sure that you check the note section below we have additional links and you have some access to information that we think that you will find informative. If you like what you’ve seen, please make sure you subscribe so that you are up to date every week on what we are talking about.

Like us on Facebook.

I look forward to seeing you on our next episode next week.

Thanks again

 

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