Agents Building Cashflow

EP 188: The Proven Path to Real Wealth with Mark Hayes

• Mark Hayes

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Founder and President of Bridge South Investments, LLC, Mark Hayes, shares his journey from flipping houses and managing rentals to his transition into hard money lending, multifamily properties, and RV/mobile home park investments. Bridge South Investments is a Nashville-based private lender with over 20 years of experience in real estate.

Mark offers actionable advice for real estate agents looking to grow their passive income, emphasizing the importance of property management, leveraging lines of credit, and adapting to market shifts. Packed with practical tips, personal stories, and investment strategies, this episode is a must-listen for anyone aspiring to succeed in real estate investing. Tune in for Mark's wisdom and valuable insights!

Key takeaways to listen to:

  • Emphasizing the importance of delegating property management to scale your business effectively.
  • Transitioning from single-family homes to multifamily and mobile home parks for diversified investments.
  • Evaluating financing options, including owner financing and creative deal structures, to close challenging deals.
  • Leveraging rental property equity through lines of credit to fund hard money loans.
  • Identifying your investor type to align with the right real estate strategies.

About Mark Hayes

Mark Hayes is the Founder and President of Bridge South Investments, LLC, a Nashville-based private lender specializing in short-term bridge loans for real estate and seed funding for entrepreneurs. With over 20 years of real estate investing experience, Mark has built or renovated over 100 homes, managed rental properties, and grown multiple successful ventures, including West Nashville Living, LLC, and Bridge South Investments. His expertise spans acquisitions, property management, urban development, and financing, with a proven track record of scaling businesses and fostering community development.

Beyond his business ventures, Mark is an active philanthropist and community leader, contributing both his time and resources to causes such as Habitat for Humanity, Big Brothers Big Sisters, and Vanderbilt Children’s Hospital. A Vanderbilt University engineering graduate, Mark enjoys pickleball, golf, and cheering on his kids at hockey games. He resides in Franklin, Tennessee, with his wife, Dawn, and their four children.

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Mark Hayes: [00:00:00] If you're already a real estate agent, a lot of people listening to this, it's probably good to get a little experience, to manage it yourself, maybe just do it for the first year.

One single family is not going to be a whole lot of time, but if you decide to start to grow more or maybe after that first year, then you get a property manager and then you're managing them when they're doing a good job or not. 

Intro: If you're a real estate agent earning 200, 000 a year and you want to grow your passive income, this show is for you. Learn secrets other agents use and hear from experts in our field who will guide you on your journey to investing in assets like apartment communities. So you can take your commissions and turn them into cashflow.

Here's your host, Randal. Let's dive in.

Randal McLeaird: Hey, welcome back guys today and gals. Today's guest is Mark Hayes. I am excited for this conversation and hope you enjoy what he has to share. Mark's been investing for over 20 years. He's got experience [00:01:00] in all kinds of different strategies on the single family front. And he has recently broken into The multifamily and looking at RV parks and mobile home parks now.

So we talk about all of that and his history and what he's worked on. He has also written a book that we talk about at the end of the show. And there's a link in the show notes as well to go through, to figure out what type of investor you are and what types of strategies you may want to pursue based on what type of investor you are.

Solid conversation and you're getting something out of the show. Please go on rate and review always helps us out, bring on awesome guests, just like Mark. And as a reminder, we are raising capital in the RAM capital fund. Go to the show notes and you can go directly to see the RAM Capital Fund.

We are raising money buying single family houses and owner financing those. You can earn up to 10 percent on your money just for investing and it's backed by real estate in the Texas market. All right, let's jump into the conversation with Mark. Here we go. Hey, Mark. Welcome to the show. It is awesome to [00:02:00] have you on today.

I'm looking forward to the conversation. We were just talking a second ago. We have some mutual acquaintances in the seven figure flipping world and that sort of thing. I'm excited to have the conversation, see what you're working on these days and have you share your knowledge with us?

Mark Hayes: Yeah, thanks a lot, Randal, for having me on and I'm excited to chat. 

Randal McLeaird: For sure. For sure. All right. So I want to start and just get a quick history, like for listeners who don't know who you are we did a short intro, but, go ahead and tell us what got you into real estate and your progression to real estate to what you're working on right now.

Mark Hayes: Yeah in the early 2000s I had a friend back home in North Carolina who had bought a couple properties and he didn't really have a full time job. And I just said, man, how did you buy these properties? And he's kind of gave me a little legal pad ran some numbers real quick.

And I said, that's interesting. And he let me borrow an old Carlton sheets course cassettes back then. And so on the way back drive to Nashville pop those tapes in. And, I just immediately was, hooked and that's how I got started. I just started to [00:03:00] learn as much as I could start.

To meet network with others and I've pretty much run the gamut when it came to real estate in the residential world flipping rentals that I manage myself. Now I have a rental portfolio where I have property managers. That was one of the best decisions. I was going 

Randal McLeaird: to say, man, 

Mark Hayes: I want to ask you about that.

Randal McLeaird: It's 

Mark Hayes: And then I built new homes as far as like ones and twos spec homes some are kept for rentals, but mostly spec homes and then got into hard money lending 2018 lend to other investors. And so a little more passive and more of a little less stress, not dealing with codes and contractors, and then yeah, in the past few years, I've been venturing into the commercial space. So that's where I am today with investing in multifamily RV parks, mobile home park, self storage. 

Randal McLeaird: Awesome. All right. That gives us good background and what you're working on.

I do want to ask you one thing just because when I was going through it, [00:04:00] you started West Nashville Living, and is that still running? Is that something you're still doing? Or that was a big push just to get affordable housing at a given time? 

Mark Hayes: Yeah, we're Not doing that anymore because that so that was my main development business when I was building the new homes.

I had started, when I started to renovate properties here in the area, but it was mainly because. I decided to just focus on one zip code in Nashville because I was doing everything, which back in the day, I thought I had to, or felt I needed to. So I guess I had trust issues with delegation and just, the Superman mentality of running your own business.

And so it was more efficient being an engineer and my background. I was like, I'm just going to focus on one part of town. The benefit was I got to know that Zip code so well, anytime a deal came up, I immediately could jump on it. Yep. I guess looking back on it now, I there were some other deals that I passed [00:05:00] on that I could have taken advantage of, if I was thinking a little more bigger picture.

But yeah, it was for back then. Before I started to really start to delegate and branch out and grow. It was a good business concept at the time. And it worked out. 

Randal McLeaird: Okay. Yeah. Yeah. No, I just didn't know if that was like still running, if that was something in the background I'm curious to know what was the mental progression going from buying and flipping to new construction, to rentals?

Being your own manager. I don't wanna manage anymore. Let's just do money. Yeah. . So it's talk about that. 

Mark Hayes: Yeah. So it's basically, what you don't know, you don't know. I was relying on mentors and other people in the residential world that I saw in, the first.

A few mentors and people in the national area that were doing residential flips and rentals, at 1st, they said, don't hire a property manager. They're all [00:06:00] terrible and, in the early 2000s, the technology hadn't really caught up yet. There wasn't a lot of sophisticated software.

It was mostly real estate agents who were, basically brokering deals, listings and buyers representation. And then you know, maybe they weren't so busy with that. And they just raise their hand and say, you Yeah, I'll manage your property, but they didn't really have that experience, but they were licensed to do.

So the larger outfits were. Really catering to, the multifamily and the larger unit complexes, whereas the scattered site, 1 and 4 homes, there really weren't. Sophisticated or organized groups. So, I get that. So, you know, I was managing things myself. I came from an engineering background.

Management is something I had, you know, was an expertise of mine and,, I didn't necessarily enjoy it, but I was good at it. Yeah, but then it was around 2010, I want to say Robin Thompson might have heard of her. She's, done a ton of courses and seminars, [00:07:00] especially on flipping.

And, she did this. She came to Nashville to our local Ria and she talked about eliminating your M. W. A. S. your minimum wage activities. And at the time, I was managing my rentals. I was doing like 1 or 2 flips at a time and after the 1st break, I go straight to her and I just said, here's my situation.

What do I do? And she goes, you need to hire an assistant. And that scared me, I was like, nobody can do that better than me, but I really just started to realize all the time that this admin stuff and bookkeeping was taking me and, way of my time from being able to do more deals.

So I hired someone. That was my 1st best decision in my business, because then I grew from doing 1 or 2 at a time from, projects to 2 to 4 again, I was still working 1 area and then, [00:08:00] my 2nd best decision was when my admin person left. Because she was also taking some of my property management roles.

And I had a maintenance guy, but she left. And at that point, where it was around 2013, I think I had to make a decision. Do I hire another admin person? Or do I go to a property manager? Some friends of mine here in Nashville had started a brokerage just to manage Properties for investors that have had like, 10 or more properties and so I moved my , portfolio over to them.

And again, that it's my business exploded there because it just gave me more time to do more deals and generate more income on the development side of business. 

Randal McLeaird: Yeah, I mean, Managing that I still do it. It's just this conversation alone. I say I do, but my wife and I do. And And it's a headache and so what we moved to was just selling notes, right?

Or selling on a [00:09:00] note and that's a little easier. And then we have 3rd party note servicing. And again, that takes out a lot of the paperwork and the issues, but for the few that we have kept as rentals, it's, a full part time job for sure. Just getting maintenance, dealing with requests, dealing with all those things.

And yeah, we've moved away from that. But yeah, it's go ahead. Go ahead. 

Mark Hayes: Yeah, I was just going to say, for a new person, and I talk about this in my book that just came out in June is, , let's say you buy 1 single family rental, or you lived in a home, you move, you make it a rental, you have 1 rental, , you do have that choice.

Am I going to self manage? Or am I going to hire a property manager? I don't think there's a right or wrong answer because. To do the 1st, 1, especially if you're already a real estate agent a lot of people listening to this, it's probably good to get a little experience, to manage it yourself, maybe just do it for the first year.

One single family is not going to be a whole lot of time, but if you decide to [00:10:00] start to grow more or maybe after that first year, then you get a property manager and then you're managing them. When they're doing a good job or not. 

Randal McLeaird: Yeah, definitely would give you the inside, inside baseball understanding.

Yeah. Did we collect rents on time? Did we do this? Are you doing that? You may not know the questions to ask if you just jump in and give it to a third party manager. You may assume that they're doing the right way. So yeah that's good advice. Okay. So again, then you move from managing acquisition, disposition rentals.

To having that off your plate and focusing on the development side and then getting out of that and going into notes or selling, paper essentially, so What was that transition like and why did you make that move? And is that still so as bridge south investments, is that the lending arm?

And do you still do that or do you only on commercial now? 

Mark Hayes: Yeah You know in 2018, like I said as I delegated more, I had a general contractor for my new builds Property manager had an [00:11:00] admin I went from and due to the market was good here in Nashville for building new homes in the 2010s I went from building 2 to 4 homes to 6 to 10 homes and I started really evaluating the revenue generated from that.

In 2017, 2018, and I looked at it and was just like, I'm really not making that much more money doing double the volume. I'm really just getting a little more bald and stressed out because construction and codes, like I said, with contractors and the codes had gotten a little more difficult, more fees, more inspections, as more development.

Increased in the area, which is understandable. So I evaluated, my situation just said, why am I doing this? And fortunately, because of the market, especially here in Nashville like other cities in the South, the rental portfolio I had over the years, you know, had grown in value.

A lot of [00:12:00] it was just. Because of the land cost and so I looked at into setting up a line of credit on my rentals because I had some good equity and so any of the loans that I had on my rentals that were the bank loans with, what we call many perm loans where they were new every 5 years.

But I packaged some rentals together and put them on lines of credit. And I started to lend those funds out to do hard money loans for others. And actually was enjoying that and helping borrowers I'd been in their shoes, get through a few situations when it came to a tricky transaction or something that was maybe holding them up.

Or just, little tips here and there built a little core of borrowers that, just kept coming back. And then interest rates in the last 2 to 3 years, as everybody knows, have jumped up, which increased my cost of funds with my lines of credit.

So I started again, evaluating that looking that, Profit margin went down [00:13:00] and started to just slow down on that and then really get into the multifamily game which, I've really enjoyed. In the last couple of years. 

Randal McLeaird: Awesome. Okay. Let's transition into that then, because that's what I'm doing and I like it.

I want to talk about it. All right. So what are you seeing right now in Nashville? And I guess what, have you transacted on either storage? I know you'd mentioned storage, multifamily RV parks and mobile and parks. Okay. So there's a bunch of different stuff in there. So have you transacted on some of those asset classes?

And if so what does it look like? 

Mark Hayes: Yeah. Specifically in Nashville proper, not really looking here. I definitely know. I gotten to know and built relationships with a lot of the multifamily brokers in the area. So there are some deals here and there. I am looking at 1 right now in what I would call natural proper.

But most of the deals I'm looking at are in. Like Knoxville, Chattanooga [00:14:00] Clarksville, so most of Tennessee Jackson, Tennessee and so the reason is a little more value there but still cities that have growth so I did a 1031 exchange where I sold some rentals here in Nashville.

And then purchased a 19 unit in wrinkle, Georgia, which is just across the state line and near Chattanooga. And then I've got a RV park and, mobile home park 2 different properties owned by the same owner out near the Jackson, Tennessee area. Under contract where me and some financial partners are purchasing , that.

Randal McLeaird: Awesome. Okay. All right. So congrats unit and the in the 10 31 successful 10 31. Especially if you're selling multiple single families trying to 10 31, all of that. And it's like juggling a bunch of different transactions trying to get squeezed into that timeframe. That's cool. Yeah.

Good for you. How's that property [00:15:00] performing and how's that going? Did you have to do value add, like just high level it real fast? Can you tell me what's going on there? 

Mark Hayes: Yeah, I did there are definitely some lessons learned on that 1. I've owned it just for a few months now. A situation where it came on the market back in October of last year, 2023, and we looked at it briefly.

Thought the price was too high. There were still several of the units that needed some renovation or, updating in the inside. Just put it on the back burner. And then the broker followed back up in January and said. The seller has dropped the price, and I think part of that was just, the market shift with the interest rates, sellers and buyers in the multifamily world were pretty far apart, last year and because of the interest rate change, buyers were holding true and then sellers were holding true.

Thinking they could still sell, at a better price. So he came down and I think he was also, you know, want to take those funds for another property and then also all the units have been renovated [00:16:00] on the inside. By the, except for like, maybe 1, but by the time we purchased it, all the units had been renovated and there was like, 1 vacancy.

The lesson learned there is he had a, in house property manager, like a lady on payroll and they were only charging like a 300, security deposits and renting the plus like 2 bedrooms for 1200. And we've had a few tenants that weren't necessarily qualified from our property managers, qualifications.

And so there were some delinquencies. We've had a couple that. You know , We set up on payment plans. So there were some high delinquencies in the beginning. We've gotten those, down but we do have a few vacancies now. So there's a little bit of, turnover but in the end, it'll be a good thing where we can get, some good solid tenants and get it stabilized here in the next few months.

Randal McLeaird: Yeah. Nice. So did you get bank debt? [00:17:00] What kind of financing did you do on that? 

Mark Hayes: Oh yeah. So ended up getting a bank loan. I couldn't do an agency debt through Fetty Freddie Mac or Fannie Mae, because it was on septic. So for those of you out there looking for a little knowledge that's 1 thing that they will not that's like a hard.

No. If the properties on septic but, yeah, so I got a bank loan and then use the funds from the 1031. 

Randal McLeaird: yeah. Yeah. All right. Nice. You said something else in there. I guess what's the biggest takeaway then for security deposits? Again, if anyone's listening, they're buying some multi or they're buying units themselves, like I know Rhino is an option, but do you guys have any kind of security deposit program that you are putting new tenants on so that you guys are covered?

Mark Hayes: It's just, I didn't really think that through, when I was reviewing and doing due diligence on the leases that, really, I think they were just trying to get some tenants in there to fill the spaces. And the lowest amount, they could work with people to get them [00:18:00] in was okay with them because, their strategy was, they're going to sell the property versus someone like myself, who's going to hold it for, 5 to 7 years, you want somebody that is going to put a security deposit usually around at least a month's rent.

That, it's holding them there to agree to the terms of the lease makes them a little more accountable when they put in that amount. And then also, if there are any damages. That can be hard to collect afterwards. At least you have that one month's rent to to cover.

Randal McLeaird: Yeah. They're just if you're listening. So you've got a couple really important points in there. When you're looking at. Either it could be a single family and if you're buying it as a an investor and you're coming in you're looking for an occupied unit. Make sure you look at that lease and review and re underwrite that tenant.

Because what happens a lot, unfortunately, is a seller is going to put somebody in there just so it looks like it's rented. Get one month's rent, at least [00:19:00] get something so that their NOI is increased. And then they're able to sell the property for a little bit higher price point. And. You're stuck with a tenant who may or may not be able to make the payments.

If you aren't looking at that lease, then you may be stuck with that, right? And you're dealing, you're picking up the pieces on the back end. So that's a good point. And then on the other side, there are programs that exist. Again, RINO is one of them where a tenant can come in with a smaller security deposit, but the insurance company essentially is giving you a policy.

That will make you whole if they don't pay the rent or if they cause damage to the property it's basically an insurance policy that the tenant is getting for you and they can pay 30 to 50 bucks a month for something like that. And then you, as the operator are actually getting a portion of that on a monthly basis. So it increases your NOI actually when you put them on those types of policies. So a couple things just, 

Mark Hayes: yeah, I didn't actually know that the property manager I'm using there, they actually have this, a program and I think it might be run through app folio, which is their software that [00:20:00] a lot of property managers use.

I think it's called something egg. So they can work out some payment plans for let's say a, a tenant might be behind or, they can work out the payment plan where we receive the full amount from that nest egg group and then the tenant is paying them monthly.

Randal McLeaird: Yeah, it's like that, but there's also one you might want to talk to them about it that honestly, on a monthly basis, if it's called a 30, 30 premium, instead of them giving you any money there's no security deposit whatsoever, but they pay 30 a month.

You send 15 of that to this insurance company, essentially. And if they don't, then. They're on the hook and that insurance company is structured to go after the tenants, right? So they're going to collect those funds or put the judgment or do something like that. Yeah, 

Mark Hayes: technology has really improved the property management business.

Like I said, the app folio or is what all three of my property managers, cause I got. Probably manager in [00:21:00] Clarksville, one in Nashville, one in Clarksville, all three of them use that folio. 

Randal McLeaird: Yeah. 

Mark Hayes: And it's great. I can just pull up my reports. Yeah. I don't have to, I don't have to call somebody and get them 

Randal McLeaird: to email me.

Mark Hayes: Yeah. 

Randal McLeaird: Yeah, so much cleaner. And then when you go to sell the property, it's going to look 10 times better than if you had, a ledger on a, scratch yellow pad or something. Jim Bob paid me last month. I'm pretty sure it's like, all right, there's still some sellers that, for sure you get a discount whenever you buy from them because you can't really verify it.

Okay. That's interesting. Again, congrats on that deal. If you just bought it, it's, that's exciting to move into that space and have that deal going. And then I'm very curious about this other deal that you're working on. So you've got you're looking at it, you've underwritten, you guys have done it, obviously, without talking about details.

If it's not under contract, then walk me through the deal and what you guys are looking at. I have had. Mobile home operators on and we've talked about it but I have not talked to an RV operator and [00:22:00] I've looked at them myself, but I've always looked at it in the sense of, it's a transient population that's coming in and out.

And so what does that look like as far as turnover goes and how who's managing all of that? It just seems like a much more management intensive business. It is. So yeah, to talk, walk me through the thought process, and what these deals look like. 

Mark Hayes: Yeah, so this is in Jackson, Tennessee area.

It's a West Tennessee between Nashville and Memphis and it's a really growing area. I looked at some apartment complex, multifamily deals there in 2018, 2019 and the market rents are like 400 to 600 a month. And I just, I was like, this is, No, I'm a hard pass . Now it, there's some, some industry that's come in there.

The big one is what they're calling blue O City. Outside of really in between Memphis and Jackson there's a big Ford plant that's being built there. That's huge. They're going to be [00:23:00] manufacturing batteries for electric vehicles and they plan to do a truck there.

 And so it's creating, thousands of jobs for the construction because it's a 10 year construction project. And then it's thousands of jobs for people once it's finished. There's a seller that. Has 8 parks in that West Tennessee area. And the broker, I know send it out to me when he 1st got it.

And I just glazed over it. It was like, okay I'll check that out later. And then what happens is, brokers, they follow up with you. They send me an email while I was at the beach this summer with my family said, hey, offers are due, this week for and I was like, I'm just sitting here on my laptop.

I'll take a look and so I started digging in and I picked the 2. Best ones, in my opinion revenue producing and location wise and pluck those out of the 8 and really just, started diving into those 2. [00:24:00] 1 was a mobile home park where all of them, except for 1.

Mobile home were tenant owned. Yeah, so what I like about that and again, for. For people looking in the space is, you're just collecting lot rent. You're not having to deal with all the maintenance on the mobile home itself which I have a buddy who owns a couple mobile home parks where.

He owns, the majority of the mobile homes and it's just a total different 

Randal McLeaird: Yeah. 

Mark Hayes: Ballgame when it comes to maintenance, like the parts and everything. Like you can't go to Lowe's and Home Depot and get supplies, you gotta go to a special place and it's just a lot of different things when it comes to the plumbing and so I like that.

It also had some RV spots there on that property and then the other property is right off the interstate. Was all RV and it was, again, mostly lots, but there were a few that the owner owned that [00:25:00] they rented out. Basically the whole tenant base of the RV park.

Our construction workers. For this blue oval city and I know that's going to be a long, like I said, a long project. And we will probably have to. If I keep it long enough, pivot to get some more diverse clientele. There because that construction project will end.

Key to this deal is the management and you alluded to that in the beginning. And and there's a lady that the owner has on payroll and she manages these 2 properties as well as.

And so when I went to do my site visit, in addition to, getting really familiar with the properties and looking at them, my main objective was, how is this run and really interviewing her to keep her on board. 

Randal McLeaird: Taking her flowers, taking her to lunch. 

Mark Hayes: And so after, talking to her and really answering just a [00:26:00] lot of or asking a lot of questions and getting the responses out from her,, I could just tell, I was like, this is the key, basically offered her the job on the spot.

I was just like if we move forward with this, will you stay on board just to manage these 2 properties, basically at the same pay you're making now there's going to be a little more responsibility for her, but I'm also going to incentivize her as far as, there's non refundable deposits that. She collects because she's just on a salary. We're going to incentivize her and give her a portion of that. And that's the key and I've been talking to her on a weekly basis since and just to stay in touch and she's very motivated and enjoys it.

That's awesome. Yeah that's the key component. I think. 

Randal McLeaird: All right. So then between the 2 and just in general, when you're looking at it, because I have not, I feel like. The cash flow should be higher, so that the cap rate should be higher and yet, what are they trading at? What is a typical, what are returns looking [00:27:00] like on these deals?

Yeah. 

Mark Hayes: Yeah. So we're buying these two properties combined at a 12 cap and we also negotiated some owner financing. Okay. And so that's been the challenge is the financing component. So the broker introduced me to a mortgage broker who had already worked with the the owner.

And they basically had the relationships with the banks that had an appetite for lending on mobile home parks and RV parks. 

Randal McLeaird: Yeah. 

Mark Hayes: It's been a big time saver to use them cause they, vetted the deal. They're familiar with the deal already or the properties already. But they vetted the deal, vetted me and then sent it out to 20 banks.

Now A lot of banks aren't willing or wanting to do loans with the owner financing component because even though the bank would be in 1st position, the. [00:28:00] The seller note was going to be in 2nd position. Still consider that a risk if something were to go wrong, they would still feel obligated to go and pay off that 2nd loan.

It's taken a little bit to work through all that, but what we ended up doing was we're going to bring the owner into the ownership of our entity. We're going to bring the owner into the ownership of our entity. And basically the terms that we agreed upon are still going to be the same.

It's just going to be worded that, instead of being an equity owner, they're going to be have a different interest ownership 

Randal McLeaird: portion of it. Yeah. Something like that. Yeah. 

Mark Hayes: And yeah, that's 

Randal McLeaird: interesting. 

Mark Hayes: We did that and the bank's great, we're fine with it. And the owner was fine with it.

Me and my partners were fine with it, but. To do, how did 

Randal McLeaird: you guys, how did you figure that out? Was that an attorney you guys had on board or was that something you guys just kept iterating on a deal making or what? 

Mark Hayes: Yeah, it was [00:29:00] a few iterations talking with the lender that we were going to use because originally they were, thinking, okay, we are okay with the owner financing, but we might want to change the loan amount.

We could lower his loan amount. In 2nd position and increase ours. Here's the other component. I learned that lenders still want you as the owner to put in at least 20 percent equity, we had actually negotiated the contract where it would have been where it was going to be a 70 percent loan to value with the bank and 20 percent owner financing.

So we were just going to come to the table with 10%. Basically learned really quick that there weren't any banks out there that were willing to do that. And if anybody knows 1, I'm still like, leave a comment in this podcast. Yeah. Yeah. 

Randal McLeaird: I think you'll be closed on this deal by the time this airs.

But that's why I was thinking about a second ago. I was like, this is going to come out in a couple of [00:30:00] months. We'll probably talk about it. Yeah. 

Mark Hayes: Yeah. And we'll it would be good to know for future reference, but for sure. And so there's so yeah we can't, there was a few iterations and then he took it.

 Loan committee. And then they came back and this is a Friday afternoon coup few weeks ago when I got the call and was like, Hey, they're not gonna do the loan with any owner financing. And I was just like, you've gotta be kidding me. . And after all this because they were ac actually out of the 20 that they sent it out, there were only two that came back that said they would do it with owner financing.

And the 1, we passed on just the terms were not competitive. There were going to be a lot of hoops to jump through with personal guarantees even on limited partners and all that. And so I was just like, forget them. We dealt with this guy. Then they go and change it.

And yeah, I just thought, again, when you're real estate investing, especially for over 20 years, like myself, a big part of your job is problem solving especially on the transaction side. And yeah, I just thought about it over the weekend and came up with that idea [00:31:00] and yeah.

And it's good that it's, worked out because really I was actually surprised that everybody was just totally fine with that. Yeah, it's really not a big change to me. 

Randal McLeaird: No, it's just how it's papered. That's funny. Yeah. And I will second that sentiment. It's.

I don't like when I hear, Hey, we can't do that. It's Hey guys, it's not, we can't, it's how can we let's figure it out and there's a solution. Let's go make it happen. And that's really how real estate gets done. It's just one of those things. So that's interesting. That's a good story. I am curious.

Are they cross collateralized both projects or one loan or is it going to be two separate loans or how did you guys structure that? Yeah, it's going to be, yeah, one loan. Okay, on both. Okay. Yeah. Yeah. Interesting. All right. Look, awesome. Again, congrats. Hope that deal goes the way you want it to go.

Again, hopefully you'll own it by the time this airs and and then we can, follow up and see how that deal's going. But before we go, I want to talk to you. [00:32:00] Okay. You wrote a book. What's the title of the book? Let's get it. Let's get it in there. All right. Yeah. It's called dip your toe into real estate investing.

All right. And you were talking to me about it a minute ago. You said, okay, you have a quiz in it. So I want to know one what is the cliff notes version of the book? Tell us what we're going to get out of this book and dipping my toe in. What am I going to learn? 

Mark Hayes: Yeah. It basically gives an overview of all the different types of real estate, commercial and residential and then all the strategies.

Now, I don't really get into super creative financing and. All that some of the other strategies that you might come across, but it gives just the basic overview. So the 1st, 2. Chapters might be a little, boring, but you get through there from there, it really gives tips and tricks real life stories.

Some that are, hilarious that really happened to me or other people. I know. And then actually give some [00:33:00] tips on how to enter the space a little simpler than some people might think and then also the traditional method to get in the space. And then it ends with.

Figuring out what investor type you are. So I basically identified eight investor types, for, so for example, like someone that wants to do flipping, I call it the chunker, cause you make chunks of money at a time. The, somebody that wants to wholesale, I call it the dealer, you're wheeling and dealing if you want to do hard money loans, you're the banker.

So there's 8 types. There's the partner and the facilitator, which are more, passive, you have funds to invest, but you might not have the time. This is a lot. Yeah, so there's just a few examples, but, the genesis of it goes back to when I 1st started investing when I would.

Go to a seminar or go to a meeting or talk to someone that was experienced investing. [00:34:00] And, for example I know you've heard this before. It's oh, you don't want to own rental property. You don't want to get calls in the middle of the night, and that goes back to the whole property management discussion.

But people will either, Take you in 1 direction, or you get excited about 1 aspect and then somebody totally shoots it down. I felt in the 1st, couple of years, I was just going in these different directions. I developed this quiz and I'll admit, I stole the idea of a quiz from the rich dad, poor dad website.

There's a little quiz you can take to figure out what kind of, investor you are. But I was just like, oh, I'm going to do that, but make it for real estate specific. And so it's just a simple little fun 10 question quiz, and then it it'll spit out what investor type you are. And, when you do it to, it'll actually give you, some results.

So there might be a couple that, score a little closer. But yeah, it's not to say the end all be all okay. If it comes out, you're the chunker, then, you should, go gung ho, but it's just a fun thing to [00:35:00] take and just, get an idea of which aspect to go into 1st 

Randal McLeaird: On a legal pad buried somewhere in this office is.

Hey, there should be a real estate quiz. Literally. I have this and I, for sure. And and when I started creating content and doing all that stuff, I was like, this is one of the best things to do because then somebody who's trying to get into it, they could quickly go through. And so I love it.

I don't know if there's a link to it or what, but we should put it in the show notes and anyone listening should go take it if you're looking to get into investing, because. That's all it really is. Awesome. It's like a quick leg up into the type of strategy that you could pursue based on your personality type or based on your risk profile or whatever it is.

Yeah. So 

Mark Hayes: the quiz there's a QR code in the book dip your toe in the real estate investing book is just sold on Amazon. It's the easiest way to get it. And it's a short read too. I always used to judge, if I'm going to read a book or not by the thickness of it.

Yeah. So it's, including, we'll put a link in the show notes around 100 pages. And and [00:36:00] then but yeah, the quiz there's a website, you can do the quiz. It's no vest life. com. 

Randal McLeaird: Okay. Awesome. I think we leave it there, man, because a lot of different strategies you've done over your career and things that you've been working on kudos again to that 19 unit.

It is especially now, like right now, multifamily is somewhat challenged. So to be able to transact and get a deal under your belt and have that thing and be into a new asset class and have another deal that you're working on right now, that's awesome. Kudos. Again, thanks for sharing your knowledge, info, jumping on, talk to us about what you're working on.

Hey guys, we'll catch you on the next episode. Did you know that 80 percent of the agents we speak with got into real estate in order to gain passive income so they could obtain financial freedom and become work optional? If you want to stay up to date, the best way is to make sure you're subscribed.

So if you haven't done that, go ahead and do it now. We'll catch you on the next episode. 

People on this episode

Head Shot

Randal McLeaird

Host
Contributor

Mark Hayes

Guest