How to Invest Out Of State & Lose a Lot of Money. What is the Funeral Test to Help you Save Money

Video Closed Captioning:

all right so we are here with

michael zuber how are you michael i’m

doing good man this topic’s gonna be fun

because i think about this all the time

so why don’t you set it up for us yeah

so

my question to michael we were getting

on to do the financial news the friday

financial news and i got on and i said

hey i’m a little frustrated and

not

am i missing something is really kind of

the thing am i missing out oh do i have

some of that uh what do they call it

fomo fear of missing out yep right and

so what it is it’s interesting that i’m

seeing a lot of my friends

a lot of my associates

and i’m seeing them buying properties in

places like they live in california but

they’re buying in

south carolina or they’re buying in

florida and then they’re buying another

one in texas and then they’re buying one

in

maybe um

oklahoma or then they’re buying up in

pennsylvania

which i’ve never even been to

pennsylvania so it’s a wonderful state

how to get there

it’s over there

yeah it’s over there somewhere so and

i’m just wondering there there seems

like you know in the facebook groups and

some of the masterminds and some of the

meetup groups

i see a lot of what i would almost call

like wildcatting where people are just

buying buying stuff up

and i just wanted to get your take on

maybe some of the pros and cons of that

and am i missing something because

i want to focus

yeah

more regionally

yeah

in more of a regional space and am i

missing something yeah so there’s

there’s a couple of things that i want

to say here first and foremost i see

this all the time i’ve been actually

seeing it for the last couple of years

there’s a lot of people who live in

california like us that just assume you

can’t invest in california i mean one of

the crazy and one of the thing i hear

most frequently is

why would you ever invest in california

i mean it’s it’s it’s like not even a

thought for lots of people which is fine

less competition for me it’s all good

um but so there’s a couple of things

first and foremost there is absolutely a

right way to invest out of state

i believe it’s pretty much just like i

invested in fresno right fresno for me

is two and a half hours away you can get

a lot of places in two and a half hours

on an airplane but here’s the deal

you’ve got to go there you’ve got to

meet the team you’ve got to look at the

market you got to have a buy box you’ve

got to do the work you’ve you got to be

extra disciplined you got to do surprise

inspections because money is involved

people will disappoint you and it’s all

fun and games when things go up you

really learn about people’s character

when we have a slow down or the market

goes down and i say this as someone who

saw people blow up in o6

right the the difference between so you

and i have been in the bay area i knew

two different flippers that were

flipping multi-million dollar homes in

the bay in o6

one of them

was arrogant and thought anything they

touched turned to gold and that people

didn’t understand what they were doing

they didn’t want to take a small loss

and they kept buying

which eventually meant their hard money

costs ate them alive and they lost

everything

the other one

who actually was less time

realized that you know what i used to

have a hundred people on an open house

last week and i had two

i’m gonna do another one and oh by the

way the same deal i only had two

so they changed their business they sold

what they had they got out early they

took some small losses

they retreated then they watched the

market unfold and they just started

flipping starter homes

they stayed local

why do i bring this up

one of the things that i can guarantee

you is the market we are in will change

and what feels good today a la i’m in

seven states with seven units feels good

today

that won’t feel good tomorrow what you

will have by wildcatting to use your

phrase and not building a team and not

systems and not god forbid not going to

look at them

oh talk about the kiss of death

these people are going to be that

flipper

in the first scenario because they

didn’t do the work anytime in real

estate you get cocky and don’t do the

work

it will feel good for a moment and then

you are going to get gone if you’re in

seven markets maybe three of them turn

out

but four won’t maybe four will turn out

but three won’t but those three that

don’t turn out will be

bad

so what i would tell you is the same

thing i tell myself

focus daily discipline keep building

where you’re at don’t don’t get

distracted because in a changing

environment

your focus will benefit you because you

will strike and more importantly you

won’t be distracted by the alligators in

pennsylvania in texas and oklahoma

because believe me those things start

not performing and not paying and the

property manager steals from you and

this that’s going to take brain cycles

and pretty soon you’re not going to be

able to focus here so what i would tell

you is just like last time

at the peak

you almost want to change you want to go

do development you want to go do this

and that

remember how that felt you didn’t feel

very good you’re in that same

environment so stay focused stay

disciplined again wish your friends well

hey i hope it works out for you

i i believe out-of-state investing could

be amazing

if you do the work if you go see the

properties if you double check your team

if you audit if you’re just gonna sit

here and pick randomly

you are walking into a casino and the

house always wins

not my cup of tea

very good insight uh very good insight

and so and i just want to be really

clear

what michael said isn’t out of state is

a bad idea not at all

know your buy box know your market go

see it touch it do the work god damn it

do the work wait hold on you got to

point at your hat there you go

that’s the hat so there it is do the

work i love it i love it you also said

something before

that you’ve said this before in past

conversations where

also like as an example i used to own

rentals in vegas

and i did very well with them i had a

good friend and i have several friends

that live there boots on the ground so

to speak people that like know my kid

like family you know friends that are

like family

and so just maybe elaborate on your

thoughts there too about picking a

market yeah out of state one of the

things that i’m very big on if you’re

going to do out-of-state investing i

call it the funeral effect

if you’re going to be if you’re going to

be in a market

and you’re going to put your heart in

capital and you just can’t get there a

lot you better have somebody there that

is going to fly out to your funeral

it is that simple because you need

somebody to tell you bad news if you are

relying on people who you pay

they’re going to tell you half truths

they’re going to be slow

they’re going to bend they’re going they

may be not all out live but they’re

going to

shave the edges because they’re getting

paid by you

you have somebody that comes to your

funeral they’re going to take a picture

as they drive by your house and go dude

your freaking tenant’s parking on the

grass

dude there’s a freaking

trash can upside down in the yard what

the hell are you doing

so again the biggest thing i would tell

you

if you can’t invest in your market

because you live in beverly hills and it

doesn’t work i get it

pick a market where you have somebody

that you don’t pay that is going to fly

out to your funeral that’s that’s kind

of my rule of thumb

very good very good well michael thank

you for all that you do as always i want

to show the book real quick if you don’t

have it

buy yourself a copy if you have it give

the man a five star review on amazon

also take a selfie send it to him tag

him on instagram social media facebook

and so he can repost it and just share

the good vibe so michael show people

tell us about your hat there i love that

yeah one of the things i’m trying to do

is is really

really get behind what how to get

started one rental at a time is right

the course that’s now helping thousands

of people that you’re a part of

and

really what it comes down to is i’m

coaching more and more people it’s like

guys stop fighting the system do the

work right

so yeah that’s that’s that’s my thing so

do the work

i love it i love it and where can people

get information on the course

uh just go to onerentalatedtime.com it’s

all there uh the hats clothing all that

stuff and just so you know if you don’t

like black hats i do have it in white

too

i think the purple pops more on white

but you know

there we go looking good feeling good

ought to be in hollywood i love it have

a great day thank you so much michael

for all that you do take care bye thanks

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