Podcast Series 11: How to buy Small Apartments with Joint Venture. Featuring Real Estate Attorney John Gutierrez

Cordell:

Hello everyone Cordell Davenport here with small apartment investors and I’ve have a YouTube channel and I have a podcast that I talk about mindset skill set when it comes to small apartments and my very first podcast I mentioned that I want to introduce different people and bring people the main pillars when it comes to being successful and those are CPAs real estate attorney ,a mortgage program property management those like the four main pillars, you got to have somebody like that on your team and what I have today. I have John who represents the wheelhouse so to speak for the real estate attorney side of things everyone but on camera is not working right now.

I’m going to give a little intro about John he’s going to tell us about himself and then today he’s going to talk about joint ventures. John is and has been real estate attorney in good standing with the state bar of California. For 30 years specialized in practice his exclusively transitional real estate land use and business law practice includes among other things business information joint ventures partnership corporations limited liabilities buying and selling businesses, which is a great one.

I didn’t know you did that actually John that’s a good thing. Buying a selling leasing real estate both residential commercial subdividing property to create. Lots and condominiums and developing an entirely property for residential commercial use purposes use a graduate of University Wisconsin Badgers, I’ve been in Wisconsin. He went to UC Berkeley School of Law.

So now I welcome everybody John.

John:

Hey everybody, thank you for that introduction. Cordell. I appreciate the opportunity to be one of the first people to participate in your adventure. Thank you. It sounds very interesting. And I appreciate the opportunity to meet anyone or every one of the people who are listening.

Yeah, I name it. Sorry. I’m just going I’m just adding good good, all right. So, my name is John Gutierrez. As Cordell has read to you. I’ve been practicing law for 30 years. I grew up. I was born in Mexico came to the United States at a very young age grew up in the Midwestern part of the United States at.

Attended the University of Wisconsin studied economics and political science, of course and attended the University of California. School of Law formerly known as Bolt Hall School of Law. And. My initial incarnation as an attorney was as a corporate and securities law attorney. I practiced in Chicago for a few years and then moved back to California after a couple of winters and summers reminded me what the weather was like in the Midwest came back to California.

Continued practicing corporate and securities law. Took some time off and managed political campaigns state local and national campaigns. And then returned to the practice of law this time practicing business and real estate law. And I have to say that in general, I have found real estate law practice to be more satisfying and fulfilling.

Than some of the other more esoteric areas that I practiced and really it comes down to real estate is something you can see. It’s something you can touch. It’s something you can feel and it just made it more interesting to me.

The simplest explanation is that. I decided in my first year of law school that I did not want to be a trial lawyer. I preferred transactions to litigation. There’s a certain pro lack of a better word. There’s a certain personality that does better as a litigator and that sort of showman is just not me.

I’m much more sort of practical and I like connecting dots and make. Things which is how I view transactions as opposed to personality conflicts and clashes, which is how I see litigation no disrespect to my brothers and sisters who practice litigation but as I said, it just wasn’t for me and I found transactional work to be much more satisfying.

It’s collaborative. It’s working with someone on the other side to arrive at a mutually satisfactory conclusion, whether it’s a joint venture, whether it’s to acquire real estate. Whether it’s to develop real estate. And to have something standing after I finish my representation is satisfying to me as opposed to just having a notch in my belt of having one or lost the lawsuit, so that’s that’s the short answer.

Cordell:

All right so now we’re going to get into joint ventures and the thing about a joint ventures everybody is it’s something actually that I’m going to try to do next year myself. But the thing is for joint ventures is that you can basically accomplish more by 20 forces of other people and sometimes where you have a strength the other person have a weakness or vice versa a person may have money my person may not have money with I know the one thing that John is going to probably talk about is that everybody has to have an active role in comes to a joint venture and joint ventures are.

John:

All right, well we’ll just sort of wing it here, okay? So joint ventures are is just a fancy way of describing collaboration, it’s two or more people as you said Cordell two or more people with different strengths different weaknesses combining with each other to create synergy to create something bigger than two people or three people.

There are different ways people do that they form partnerships, they create corporations or limited liability companies. They all become owners of the same entity whether as shareholders or as members or as the partners. Or they do it as joint ventures where they can either be separate but connected in a variety of different ways or the members of the joint venture can all operate under a single umbrella such as a corporation or a limited liability company or a partnership so one of the things that’s interesting about joint ventures is that there are many different ways that you can structure the joint venture depending on what the needs and objectives.

Cordell:

Of the different members of that joint venture or JV how do you slice up the pie though in regards like one person may do let’s say asset management or paying how big the property is or what kind of property it.

One person may say okay well I’m come up with the down payment and I come up with earnest money and one person makes a young. I’m gonna manage all the contractors. I’m gonna manage to rehab. I’m gonna do whatever it is. How does that typically work? And setting up my percentages of who gets what within a joint venture.

John:

That’s a good question so let’s assume then that the joint venture is you and I and a third person coming together the first thing we decide is what is each of us bringing to this opportunity. Is it money is it real estate is it a skill set is it some or all of those things?

And presumably the reason people create or become part of joint ventures is because they’re lacking in something of the money the expertise and knowledge the motivation even so let’s assume that in this particular joint venture there are three of us and we organize ourselves as a single limited liability company.

Or an LLC. Each of us will be a member of that LLC each of us will have an ownership interest in that LLC. In terms of dividing the ownership interests. First and foremost we look at what is each of us bringing to this party. Cordell, you may already own the real estate or it could be that you’re going to be the primary person who scouts.

A location for a particular type of property and you find that property it might be that you have the deepest pockets among all of us, you’ve got the most cash. Available. For again you have the expertise from your property management background from your mortgage lending background, all of those different things have taught you things that perhaps I or the other member of our venture don’t have or not as strong in so often enjoyed ventures, the property has already been either identified or has already been acquired.

And sometimes it’s one person who already owns the property who is going to contribute. That asset to the joint venture. In that scenario where you’re the owner of the property your probably the biggest player in in the joint venture. So your share of ownership is going to be bigger than say my side which might be I have no money but I have a lot of expertise and so we put some value on my expertise and the third person who’s joining us.

May also have a an asset in the form of a big pile of cash. So with one of us already owning the real estate, another person who’s going to provide the sort of lubricating Greece the money to make things happen and the third person who’s going to be the sort of engine that’s pushing whatever it is that’s going to be done with that real estate.

So often the purpose of acquiring somebody else’s real estate as part of the joint venture is. To change that real estate in some way to make it bigger more productive oftentimes someone who is a member of the JV will own raw land or they’ll own property that has either a single family home or a small number of residential units on it and the plan of the joint venture is to scrape that land and redevelop it into 10 units 15 units 20 units30 units, etc.

So again in that scenario you the landowner probably have the biggest piece of the pie typically we try to create some sort of financial profile to value all of the different assets that each of the members are going to contribute. My know how your real estate somebody else’s cash and the percentages will probably flow according to the relative.

Percentages that each of the three of us or the values rather of the assets that each of the three of us is going to contribute. So as the owner of the of the biggest asset. And again the purpose in the scenario that I’m describing is we’re going to take an asset that’s worth let’s say a million dollars the real estate that you already own and we’re going to scrape it and we’re going to get it entitled for 20 residential units and we’re hoping that those units will either be rentable and a high market rate or they’ll be saleable.

Typically as condominiums. At a much higher value. So we’re hoping to take our million dollars and turn it into 10 million dollars.

Cordell:

But let’s say that someone’s going to buy a 30 unit apartment building and but now is it like five is max? I heard regardless of JV members live about five people.

John:

No. Well, there’s no. Well, let me say it this way just to try to keep it simple.

JV’s can any any collaboration any joint venture any? Investment to organization that two or three or four individuals might create together.

May look simple on the surface and has a lot of complexity below the surface and one of the complications or potential complications is that and in this case I’m speaking specifically about the law and the mechanics of creating an operating a joint venture. So one of the first questions in determining the organization of of a joint venture is who are the members?

What are their backgrounds and qualifications both intellectually asset-wise sophistication? And net worth. And how many people do we need in order to hit the target that we’re trying to reach? One of the questions that comes up is that generally speaking selling somebody a membership interest in a joint venture can be considered a security.

When people think about securities they think about the stock market. However, a stock in a corporation is just one form of security. A security can be anything that. Arises from one person investing in the knowledge brain power and capital of another person who is going to take that money and try to make it grow.

So party a giving money to party B in the hopes that B will turn the money into a three times five times ten times return. Potentially can be treated as a security. And as a security it has to comply with either registration requirements before the membership can be offered and sold.

And the people who are acquiring security may need to have certain qualifications in order to minimize the process. Or avoid the process of having to register securities with the commissioner of corporations in California. So determining who are the members of the JV what their backgrounds and qualifications are will lead to the conclusion that selling them an interest or having them invest either will result in a security that has to be registered because they are a passive investor which is often the I’m sorry the other way around.

Because they. I’m sorry. I’m confusing myself here. Securities generally speaking must be registered, however, there are certain sales of securities that can be exempt in order to determine whether or not registration will be required or that the sale of interest to different members will be exempt hinges upon whether or not the people who are investing contributing are of a certain net worth.

Incredibly right. Accredited or sophisticated in California, it’s not merely accredited it can be people that have done business transactions with the promoter in this case you a promoter or sponsor it can be people who have a net worth of a million dollars independent of any equity in in their home or it’s people that own individually $200,000 per year or as a couple hundred thousand dollars per year.

So determining who the membership is important because it has consequences or potential consequences at the very beginning of the transaction even before anything has happened in terms of taking money from people or starting the the business of the joint venture. So as I say oftentimes joint ventures look fairly simple on the surface, but when you scratch them and you look below you discover that maybe there’s a wide variety of potential investors and they vary according to their net worth.

They vary geographically. If you are trying to solicit money from people outside of the state of California, then you have to be mindful of the laws of the state where the person you are soliciting reside. And again, generally speaking it’s securities laws that we’re looking at because you’re selling something to someone who has the expectation that they’re going to make a return or a profit on their investment and depending upon whether they are actively involved or passively involved that may have some bearing on how you manage the securities law compliance process.

Cordell

Good something to add on to that, so I know it’s syndication yet a GP yet the LP General Partners under Department so analogy. I was told is like a airplane. Everybody in the car kick are the GP’s they’re the one deciding or the land and make decisions the people who are the passive investors are the LPs, so they can’t they can’t make any calls they just put up their money and get a return but because of joint ventures everybody has kind of quote-unquote say so right they all have.

All have a viewpoint how is it worked out when the disagreements come about and like what are the most common disagreements that are within a JV structure that people should be aware about if they want to go that route sure.

John

That’s a very interesting question often the most challenging part of the JB first let me just say that again, there are different ways to structure a joint venture there are many joint ventures, whereas Cordell is suggesting everyone is an active participant there are also JV’s where some people are more active or less active than the other members and again sorry to keep harping on this going back to securities law if everybody is inactive player.

And there’s a California resident then generally compliance with securities laws it’s very simple if somebody is a passive player then there may be more need to understand that person’s background there may be more paper to push with the state but assuming we get over that that hurdle the disagreements that arise in JV’s are similar to the disagreements that arise in life in general.

Either because there’s a assumptions that are erroneous. Or because information has not been communicated clearly and there’s a misunderstanding or there’s disagreement and they can fail for personality reasons as well generally the kind of joint ventures that we’re talking about are small, they’re not necessarily limited to five people but I think most people have found that big events are great in certain instances, but in other cases keeping its.

Small is better it’s more intimate it’s more manageable communication is easier administration is less bulky and expensive and like any small group personalities can differ so I think one of the important things is you pointed out Cordell is to understand at the very beginning what are the strengths and weaknesses of the different participants and to try to assign roles in a way that capitalizes on somebody’s expertise and in a way that minimizes.

The risk by putting responsibilities on others who may not be qualified to handle those responsibilities. A big drivers generally speaking in a joint venture are the expectation of making money. And. The disagreements often arise when the amount of money then it costs to run the joint venture to try to make it successful exceed what the projections were.

So again, very important to have a very sober view of what it is that you’re trying to achieve and how you think you’re going to go about achieving it best not to let yourself get carried away with you know, pie in the sky. Projects that you’ve never done before dollar signs that are you know, unrealistic etc.

So that money doesn’t become the divisive problem that it can be. And again, it’s money in the form of. Suddenly the members are told that it’s going to take more money than we originally projected. And the questions are going to be why did that happen? Why didn’t we anticipate thisin the first instance?

It can be a problem at the back end. Everything went smoothly during the joint venture, but the market just wasn’t where everybody hoped it would be when the joint venture started a year two years three years into the joint venture when again depending on the type of. Investment we’re talking about here if the intent was to rent at a certain level possibly rents have dropped as we’ve seen during this pandemic residential rents around the Bay Area have started to move significantly.

There are a lot of projects that have been in the pipeline for which this covetine pandemic is just completely out of left field. It’s skewed all the numbers and even the feasibility or practicality of projects as we’re discovering now people. So thrilled to live in high-rise buildings that have elevators and common hallways.

So the numbers that the promoter and the investors were operating on 18 months ago, when they first started the project now suddenly look different not necessarily through the fault of anyone but the numbers are different because rents are dropping or the value of condominiums in high-rise, for example. Another joint venture project has dropped and some.

Of their disagreements and disappointments that arise because of the failure to achieve expectations either because the projections were wrong to begin with. Or something completely unpredictable like a pandemic happened. So, people disagree about what their roles are they disagree about. Whether or not you’re doing your job properly, they disagree about why it is costing X and not why?

Why is my return X and not Y. And then there are. As you can imagine all sorts of misdeeds that happen when we’re talking about money.

Cordell:

Yeah. In fact, the checks and balances things like have someone who’s going to deposit a check to reconciliation. Now. For the memorandum, that is the document that I guess is that everybody goes off.

Does it work for you when you work with people like? You say okay here you guys here’s a checklist or here filling a blank. You fill in a blank and then I’ll get this document and then I’m going to make up your legal document and then this is what is going to be so everybody’s on the same page is it?Does it work something like that?

John:

Um, there’s some people like you mentioned okay, we’re going to sign rolls okay, you’re going to do this you’re going to do this you’re going to do this. But the point is how would you even know what to look for? You know? Yeah, that’s a good question.

So again, I guess the short answer is it depends on and how many participants you’re looking?

Is it is it a handful of people? Is it three people? Is it 10 people 15 people?Generally, there’s sort of an upper limit of 35 people for securities laws purposes. But we’ll leave that out because I think what we’re talking about is something smaller. Yeah, the bigger the venture.

The more burden there is on the promoter to define what that venture looks like to define what it will entail. Including to define what are the risks associated with the venture? So the bigger the bigger the joint venture you intend the more people you intend to solicit than generally the more information you or the core group will need to put together in a presume what you’re referring to Cordell is a private placement memorandum.

Yes a PPM. A private placement memorandum refers to the fact that, Securities can either be offered publicly or privately. So, in this instance, it would be a private offering of a security. Ownership interest in this joint venture. And the,

The information about the joint venture. About its scope about its risks about the projections of what you hope it will generate in a return is something that generally the promoter puts together. You may know. Who you want to go out to who the pool of people are that you want to go out to and you might structure the joint venture in a way that that fits the interests or needs of those people but generally speaking if again if if we’re talking about a handful or more of people then it would probably be on you or the core promoters to come up with the plan including some sort of written offering statement.

PPMs are not required in all transactions but generally speaking again depending on who your audience is again based on their sophistication and experience based on their net worth etc. You may need to provide more information in some cases or less information in other cases in order to attract those investors.

But it’s a function that the core group or individual puts together then circulates. The two potential investors and you can get feedback from investors that say I don’t like this type of venture. I don’t like this type of structure. I don’t like this type of return and so you might modify it before you actually start taking money.

Cordell:

Okay, one more question for your time now for things at a person to do this to generate a joint venture, what is the cost illegally to do all the paperwork around what’s the range?

John:

Well, that’s a good question. Just to keep it very simple and again folks we’re talking in generalities today.

I look forward to having more conversations with you Cordell where we can dig deeper into some of these points. So today is not definitive legal advice for orally talking about generalities what it will take in terms of paper what it will take in terms of structure and management what it will take in terms of cost will depend.

On your specific project. But, in and this is a gross generalization based on looking back over the last few years the transactions that I’ve handled for small groups of investors. The cost is the cost typically of organizing an entity and the more entities that you want to use and by entity I’m referring to a limited liability company or an LLC or a corporation.

There’s cost associated with organizing an entity if you plan to have multiple entities then obviously the cost of organizing those entities goes up according to the number that you have there will be at least one or more different contracts that find the different members, it could be a single operating agreement or a shareholders agreement and operating agreement is the is the, Just as it suggests the operative document for the members, the owners of a limited liability company in the case of a corporation, we call it a shareholders agreement in the case of a partnership we might call it a partnership agreement, but it’s an agreement that defines what the rights and the obligations of each of the parties are in some JV’s there is a management company that exists as a separate entity and the JV LLC will contract with the management company to handle.

The management there is a loan documents or there are loan document. To be reviewed in the case where the JV is borrowing money either to acquire property or typically to acquire and renovate or construct property, so there might be construction loan or purchase loan documentation there is depending on the nature of the project applications that have to be made or may have to be made for land use permits for building permits to a city or a county.

Again, very important to define what the project is to understand what the different aspects of it are and what are the different paper needs of all of those different aspects of the project but to boil down your question to something really simple and basic generally speaking a an operating agreement for a small number of investors again a handful of investors typically you could go anywhere from five to ten thousand dollars.

It can get even crazier than that depending on again the complexity of the project the type of investors the number of investors, so just the cost of creating an agreement that ties the joint venture together. For ten and then the other costs associated with other contracts and applications that you make for permits etc. all have the their own costs but the organizing costs are generally the cost of creating an entity in California.

Filing articles of incorporation or articles of organization is measured in hundreds of dollars low hundreds of dollars. The state of California requires an annual minimum payment of $800 to the franchise tax board in order to maintain and operate an LLC or a corporation. And then there’s the cost of creating the operating agreement to shareholders agreement or partnership agreement.Those are your basic setup costs.

Cordell:

Okay, well right that’s going to be it for this one. So everyone hopefully next time sometime next month, we’ll have John back. John how can people get in contact with you?

John:

Thank you. Cordell, it’s been a pleasure. My offices are in Berkeley, California.

My telephone number is 510-647-0600, my email address is John J. O H n at metal long string of letters without breaks at J the initial. Gutierrez law the outcome that. It’s one word j g u t i e r, r e z l a w.com. John F. J. Gutierrez law.com, okay, all right all right then now it’s been a pleasure have a good day stay safe everyone look forward to meeting you with you again, okay bye for now.

Don’t make excuses when it comes to achieving your goals with owning Small Apartments.

Cordell here with the very first podcast for small apartment investors and I’m going to do things differently.  There are a lot of people on the hunt trying to find the same people, I shouldn’t say the same people but different people every time they do a podcast.  It is always an interview,  a Q&A which is good. I’ve learned a whole lot that way.

When it comes to multifamily Apartments a lot of the time these are syndicators that are talking to people about their business and how they do their business,  I’m not knocking it. I’ve learned a lot through that.  But my approach is different. I don’t want to be an indicator and I don’t want to invest in a syndication.  My goal is to hold small apartments and my goal is to find people who speak the same language as I do.  That has the same goals as I do.

My thing is I’m going to introduce four different people and I have the same people talk so once a month I’m going to have a CPA once a month my real estate attorney once a month will have a property management company and once you might want to have a mortgage broker that talks about buying a managing small apartments.

First I want to talk about mindset self improvement and it is very important that you and I develop those skills and so everything starts to self improvement mindset and I have this Mantra that I always preach mindset + skill set + performance = results.

On my website small apartment investors.com I have a free report that took a lot of work to make.   It’s called have your family living expenses covered by small apartments you own.

So this very first video recording I have decided to talk about complaining.   When you or I or someone you come across, complains.  Now when it comes to complaining about events and your life you complain and you don’t put forth any action you will make no progress.   The thing is you want to say don’t blame it own it.  Until you accept responsibility and take charge of your life nothing is going to change.  A lot of people like to have this,  become this type of person,  have good qualities, look a certain way and although they may know what they have to do to achieve certain goals they have the excusitis syndrome.  They say someday, I’ll someday get this someday,  the truth is the road someday,  will lead to the town of nowhere.

Of course, responding differently means you must give up blaming the event itself. At times when something doesn’t work, we blame what happened rather than our reaction to it.

When you don’t take responsibility and make excuses, you:

• Procrastinate
• React rather than be proactive
• Blame others
• Justify your actions or lack of actions
• Not act humble

Once you begin responding decisively to signals and events as they occur, life becomes much easier. The feelings of hopelessness and lack of control go away. You start seeing differently. No longer do you say to yourself:

“I feel like a victim.” “I feel used.”

“Only bad things happen to me.”

Rather now you say:

“I feel better.” “I’m in control.”

“I can make things happen.”

 

You need to accept the fact that you are the one who has created the way things are. You took the actions, you thought the thoughts, you created the feelings and you made the choices that got you to where you are now.

YOU ALONE HAVE THE POWER TO MAKE SOMETHING HAPPEN IN YOUR LIFE, WHETHER YOU ACTIVELY CREATE IT OR PASSIVELY ALLOW IT TO HAPPEN OR CONTINUE.

What are your favorite excuses for not making the changes you know are necessary if you want to achieve your goals? The starting point of personal liberation is for you to accept complete responsibility for who you are and for everything that you become. You can never give responsibility away. The only thing that you can giveaway is control.

so what are you going to do once again check out small of her you bastard, and I’ll come back later some more videos okay y’all go get it

The correct thoughts will speed up your results with owning Small Apartments

Hey. What’s up y’all? Cordell Davenport here again, small apartment investors.com. This is the second video podcast that I’ve done as I said. I’m gonna continue to roll these out by clockwork, that’s the game plan. Go to the website small apartment investors.com. I have a free report for you it’s called have your family live in expenses covered by small apartment to your own.

It’s about 38 pages a full with a lot of data. I went to the lab big time to come together to bring that document together, so check it out, you can learn some things. And I always say mindset let’s scale set plus performance equals results. I’m going to focus on mindset these first several videos that I’m doing or recordings.

And then when it comes to the skillset, that’s why I’m going to introduce the team that I have of the property manager attorney CPA and mortgage broker commercial at that so that you all can learn. I can learn. I’m selfish to be honest, not just selfish but you know when I’m doing these things and as I learned in a I want to know what to do as well, so as I’m learning as I talk to these.

Four individuals like I said before this is going to be a merry-go-round. I’m not going to deviate and trying to talk to other people every week trying to be on the hustle on a grind trying to find somebody to talk to that’s not what I want. So. What I’m going to talk about in this recording is thoughts in the past I listen to.

Probably 50 different audiobook recordings. And they have a common theme. And the number one thing that really stands out is thoughts is how a person controls their thoughts. And that’s what I’d like. I said, I’m going to talk about in this recording. Now there are things that you can control.

Really. Number one is thoughts. To his actions three is the disciplines that you have then the fourth one is friends. Now the acceptance of responsibility is not optional. The words I am responsible are perhaps the most powerful words in any language to short circuit negative emotions and gain focus your job is to accept responsibility, even if you are only responsible for how you respond to the events that come your way in life, you can only claim your surprise once and after that you’re unprepared.

Whether you just differences between successful people and those wish they were successful is how they respond to opportunities in life successful people make better choices and they practice self-discipline while unsuccessful people don’t success comes in many shapes now, my definition is to go from. Knowing your goals and you accomplish your goals.

That can be wealth health spirituality fitness, whatever it is. That’s what it is, it’s to know what you’re wanting to get that’s what success is in my book, so you have to write your future what you want. Now most likely sometimes. You try to live your life. But you’re missing something.

And that missing something is really self-improvement. And practicing habits to get better you may lack vision you may waste a lot of energy without getting really where you want to go because you don’t know where to go you can’t hit a target you can’t see thus, you don’t reach your goals because you like vision you let confidence to keep you going through the hard times.

You may not bother to learn what what really is self-improvement. How can I get better? Tony Robbins says successfully is clues find them. Sometimes you may hang around around crowd wrong crowd we all heard the same birds are the same feather flock together how true is that well you hang around with your socialists are.

Can bring you up or they could be crabs in a bucket pull you down. Winners makes progress makes excuses don’t be stuck on the loser mindset, but making excuses have self-different discipline. To do anything is how you do everything. Discipline is what puts the gas in the tank. Discipline is the glue to keep you going it what it does it creates stain power.

And I don’t play sports anymore. Well actually I’m starting to learn how to play golf. I haven’t got on a course yet just been on the golf range trying to get my swing tight, but um, I used to play who basketball once a week. Grew up playing a high school in college, but those days are gone.

But I can tell you what? All the good players that I’ve known that I played with. Or against they had good self-discipline and all the great players have self-discipline not just ambassador ball, but it can be anything that a person wants to do. So hope this has helped. And I’ll see you back next one go to the website small apartment investors.com get that free report.

And I’ll holler at you soon. Go get it.

Self Improvement is key to accomplish your real estate goals

Hey. What’s up Cordell? Davenport here small apartment investors, once again. Go to the website small apartment investors.com get your free report, have your family living expenses covered by small apartments you own. And as I roll these videos out. I’m trying to disperse what I’ve learned from books from podcasts.

I’m a constant learner. And I always want to improve. And a lot of times I have ideas. I always have ideas, but I try to put those ideas out. And create something out of ideas because ideas are nothing without follow up in action. So here I am, this is the third recording of my video podcast recording.

And. As I mentioned when these beginning stages of these videos, it’s just gonna be me and I’m gonna only talk about self-improvement. I always say mindset plus skill set plus performance equals results now the skill set aspect is gonna come into play when I start showcasing my team of CTA attorney mortgage broker.

And property manager. And I’m gonna give them the floor and have them talk about a variety of different topics so that we all can learn what the with the goal of owning portfolio a small apartment. And so in this report being mindset is still the nucleus and I’m gonna continue to talk about thoughts no my thoughts are important and key.

Now. We all live our lives. And sometimes when we live our life we have to look at what is coming into our head. And sometimes we have to block it. And sometimes we have to purposely program thoughts in our head to make us endure something to help us push us through tough times to.

Entice us to do more. Now when it comes to thoughts. What are thoughts come from comes from the brain? A brain is always with us. But are you really putting your brain to best use?

What are you pumping in your head? Are you letting unconscious things go into your brain into your life it’s your work. Or are you using your brain proactively so it can serve you well. Then about a computer you punch a lot of buttons on the computer much this it does this app do this it does that app.

Now. You punch a different set it gives you different items different conclusions. And if you’re not getting what you want guess what you may be punching the wrong buttons. Maybe you have not installed the right buttons. It’s the formula. So you have to know what’s the right buttons to push what’s the wrong ones to push which ones to install which ones are like a virus.

So you have to analyze yourself do a self-audit. And when it comes to self-improvement it covers a lot of things in life from your family, your spouse your friends your money. Your your your relationship with the creator. Now for me my journey itself improving started 2006. Friend gave me some audio books and I devour them.

I mean devour them and from that it kind of started off a chain reaction of rotting things to help me improve myself. And it’s always now about constant never in being improvement. Now the goal is to make this really a part of your lifestyle. On how you do everything.

Now it when I say everything and anything really we think about diets diet is going to work. Because the person goes right back to how they used to do things they have to change their lifestyle. And I’m not saying because I’m like totally in shape. But at the same time I know what to do and I don’t do those certain things to.

So just as speaking of eating you are what you eat, you are what you think you’re always you put in your head. You are what you think about most of the time. Your thoughts make your character. Your life is parallel to the thoughts you have there are things we can control there are things we cannot control in any given situation we can control our thoughts decide our reaction tell ourselves who we are and how to respond.

So you need to direct your thoughts for what you want. Now. It’s up to you. Go get it.

Self Talk will destroy you or propel you in your Small Apartment endeavors.

Back at it. Cordell, Davenport, small apartment investors.com. Still on the journey talking about mindset. Go to the website small apartment investors.com pick up your free report, have your family live in expenses covered by small apartments you own so 38 page document. That has some gold in it. And. Once again mindset plus skill set plus performance equals results.

Going to focus on mindset later as I mentioned after I get through with these mindset I recording so I’m going to introduce. Professionals that talks about skillset. And now after you learned a mindset, hopefully not just for me, but you get it from a variety of people. I know I did.

You get that skill set under your belt not a performance up to you. I could pass you the ball but I can’t make you shoot. And I mentioned earlier about thoughts and how it’s so key. And it’s very true and I’m going to stick with thoughts of talking about thoughts.

And there are things that you need to consider about thoughts. And that is like how you think is how you act. And you can determine how you act sometimes by using self-talk. What do you say to yourself? So talk can be done out loud. Or it can be done silently.

And we talk to ourselves constantly. Throughout the day. Now there are types of successful self-taught them their self-delimitating self-talk. That’s the starting gate really to success is learning how you talk to yourself it’s how you explain events that happen in your life how you direct yourself what you tell the brain most it will accept that’s true.

Now no one’s in charge of your happiness except for you realize that all your habits are learned and that’s your past thoughts your past self-talk will influence your future some explanations we give ourselves our positive their empowering others, they give us anger, they feed our frustration at least a depression despair, but most people don’t stop and think about how they talk to themselves.

If you listen to yourself talk, you can then change that talk as necessary to help you change help you improve your behavior your results accomplish your goals. And form new beliefs if you need that self-talk is a song that’s burnt into your mind. Now you hit the play button when something happens and stored by paying attention to what’s going on in your head, you’ll be able to decide for the thoughts and then sing a new song that gives you different thoughts.

When you repeat a mistake. It’s time to mistake a decision. So when you say to yourself any of the following things. Of this negative type of self-talk, like I have to I should I need to I’m trying to keep what you really want. You have to change it. Change yourself talk.

I choose to I will. I must I am. That’s how. Self-taught. Now. That little book was not the book the little trained a little engine that could Google that story. Where he goes trying to go up the mountain. I think I think he’s talking to himself. So just be aware what you say to yourself.

As you live your life. In our those self-talk. Affirmations helping you or they hurt you. Now, go get it. See you later.

Program your mind to be a successful Small Apartment Owner

I’m back y’all. Cordell. Davenport, small apartment investors.com. Preaching mindset plus skill set plus performance equals results, check out the website, small apartment advances.com, get your free report, have your family live in expenses to be covered by a small apartment that you own. And as I mentioned and I continue to say.

Everything starts with mindset is a foundation of all personal growth and there is a weave that consists of thoughts goals self-discipline. Self-talk affirmations and about dress some of those previously. And in this one they talk about mindset, I’m going to continue to talk about thoughts, but also talk about affirmations and how they can help.

To help you accomplish your goals. And so when it comes to self-talk it changes thoughts, and as I mentioned to you all earlier that thoughts are things thoughts are very important. And thoughts change beliefs beliefs change attitudes added to the change at actions. And actions will change the future now if you want to break the cycle of negative thoughts you have to repeat the positive statements, these are called affirmations statements of the reality that you want to create as if it’s already true, although it hasn’t happened they can help you erase fears change attitudes focus on what you want for yourself make beliefs create focus, create confidence.

And to use affirmations you have to speak in the present tense and describe what you want as if it’s already accomplished let’s say that you’re afraid of heights and don’t want to be afraid so make an affirmation. I’m enjoying being high up. I love these views although you may not feel that way you can trick yourself into believing the commands that you give yourself and acting as if it’s true.

Now when you hold yourself back. Aren’t you acting as if you believe your fears to be true over time the affirmations you tell yourself will become just as powerful as the old negative statements now to reiterate these positive statements should be in the present tense as though they have already happened they’ve already been accomplished but using affirmations say what you want not what you don’t want don’t say.

All right. I will not lose my temper say I am relaxed calm impatient don’t say I won’t break my diet say I prefer nutritious foods, don’t say I’m getting fit do say I am fit. Now let’s say that you have found out that your car is in the shop and these major repairs you you say I can’t pay for this.

Why me? How do I get to work? This think it makes you feel upset that kind of thing it doesn’t provide a solution to get the situation focus on how to make it better. Focus on what you want now what you don’t want change around something like I’m grateful that I have this card.

It has provided me with good transportation in the past and now I know my car is gonna be a shop. I’ll be a little time. I can always get a ride from a coworker and pay them. Now, you notice how you change your feelings to a change what you say to yourself.

Negative so talk great limits us if you are constantly saying to yourself, I’m not smart. I won’t ever amount too much. You probably won’t try to learn a new skill that’s because learning the skill doesn’t fit in with what you’re telling yourself. Thus become a prisoner of your own beliefs.

Nothing has changed when you first change your self-talk except the signals you sent to your brain which caused you to feel a certain way, but this simple change has huge impacts remember the minds of cockpit in the airplane your mind controls the body. Tell me someone you hate your job cannot help your job by telling yourself you are unhappy with your job, you are most likely will not like it if you want to change certain behaviors, sometimes the trick is to say exact opposite of what you feel but what you currently do.

If you’re always late say to yourself, I’m always on time. I’m always on time. If you want to quit smoking don’t say I have to stop smoking say I no longer enjoy smoking smoking is disgusting. If you want to stop procrastinating focus on the benefits, you can achieve I enjoy getting things done on time.

So those little samples that I just relate to you. Has nothing to do with buying and managing small departments, but they’re transferable skills. That you can utilize and sometimes you may have to get a depend a paper or write yourself an email and create things. So if you have a certain goal that you want to achieve whatever it is.

Right affirmation, look at those affirmations read them out loud that can help. It’s helped me. Once again go to my website small apartment vessels.com, get your free report, have your family live in expenses covered by small apartments you own. See you later. On the next one. I look forward to still talk to you about mindset.

Your beliefs will determine your future in Small Apartment ownership

All right Cordell Davenport here again, small apartment investors com go to the website get your free report, have your family then expenses covered by small apartments that you’ve owned. Got some good data in there, go check it out. Mindset. Plus skill set plus performance equals results. Foundation is mindset and so these videos that I’m doing right here these recordings is talking about mindset.

And then soon I’m going to introduce my team CPA attorney, property manager and mortgage broker. And those are four main pillars when it comes to. Owning and managing and buying apartments but my niche is small apartment. Margo is to own a portfolio a small apartment. It’s multiple reasons why I’m not going to get into it right now, but that’s Michael.

If you have the same goal as me check me out online check out the website, follow me here as I try to. Push out information that I. Digest so to speak. And this video I’m going to talk about beliefs. And your beliefs compose your purpose. Your purpose formulates your desire your desired fuse your actions your actions manufactured your results.

And your results determine your success. Now you most likely are familiar with the story of Wizard of Oz. But have you really thought about the lessons that it could have for you? Like the little engine that could. The Wizard of Oz has been inspiring children who are now grandparents even great great grandparents this author lineman.

Frank bomb born shortly after civil war. Lived enough. To see this beloved story come a hit a play throughout the years became a movie and now here’s my summary of it. Once a tornado blew through a town a girl named Dorothy from her home in Kansas and brought to us place called laas lost she was lacking a roadmap of directions she relied on the advice of a good witch who advised her to follow the yellow big probe to Wizard of Oz who maybe can help her get back home because he was powerful now on the way to the wizard George made a scarecrow we’re joined her now.

I hope that the wizard could give him some brains the name both made a ten man, he wanted a heart because they wicked witch had put him under a spell removed his heart. By now Dorothy and Escare Corps are such true believers in a power of the Wizard of Oz that they easily convinced the 10 man to join them.

Lastly, they meet a line. It was afraid of everything and everybody. He joined the journey hoping the wizard can give him courage to be the king of the beasts. As in any good story, there are problems on the way. First there’s the guard who tells him that if they have come for a stupid reason the wizard might get angry and destroy them all because this was the belief that the Wizard of Oz the projected.

The Wizard said they couldn’t get what they wanted until they killed the Wicked Witch and brought him proof in spite of vast odds and lots of trickery on the wicked which is part they prevailed in the end the wizard is revealed as a fake but he can’t do two important things which is acknowledged that the scarecrow tin man and line already have had the quality song like courage brains and a heart also being from Kansas.

There was a hot air balloon that they could return to Kansas. The stories of brilliant portrayal of how easily our beliefs can trip us up. Hoffman, are you like the good witch who makes pronouncements based on nothing more than hearsay how often are you like Dorothy he was so quick to believe the pronouncements of others how often are you like Dorothy’s traveling companions who look outside themselves for the power’s already have the story also shows how basic is the human drive to better ourselves often the main characters reinforced their beliefs.

That they could get what they wanted. Remember the 10 men saying he could hear that he had not yet found. The heart beating in his body how often do you go beyond your limitations because you want something so much how often do you find just the right allies because you are so engaged in your journey of change that they want to come along to.

How can you like Dorothy at the end rediscover the joy and possibilities in your world that you have once overlooked? What other stories from this childhood have powerful wisdom for you as a dumb. So, Everything about. Wizard of Oz was about beliefs. And. There is a quote that I heard I ran actually.

And it says a belief doesn’t he does not need to be considered a belief all you need to do is believe it and is true to you. When you live your life, we’ll believe are you rolling with?

Are they limiting beliefs? Time will tell. But the first step is really for you to be aware. So we had Wizard of Oz. They go on this journey. But that journey didn’t really need to be to happen because they had everything they needed. All right, so that’s it for this little brief recording on mindset.

I look forward to sharing some more now, go get it.