Build Your Real Estate investment Dream Team - Sep Bekam
Going Long Podcast with Billy Keels
Want to avoid mistakes in Long Distance Investing? Download your FREE document at http://billykeels.com/7mistakestoavoid Episode 3: Build Your Real Estate investment Dream Team. In the conversation with today’s guest, Sep Bekam, you’ll learn the following: Sep’s life journey and lessons learned on the way to becoming an expert in real estate investment [02:27 - 08:33] Why Sep went for Going Long investment over investing close to home: There was a limit to opportunities in the local area, so it made financial and practical sense to invest further afield. [08:33 - 11:34] What a turnkey provider is, why they are sought after, what some of the pitfalls are to turnkey investments, and how having a strong team can help navigate those pitfalls. [11:43 - 14:49] The importance of knowing the real numbers of income and expenses, and how the right team can help keep the scales balanced and ensure that your investment doesn’t fail . [14:49-17:28] The secrets behind assembling a perfect investment team, including making sure your property management company is making money, and that you can trust all parties. [17:53 - 24:41] The key members and roles that make up a successful investment team. [24:58 -27:17] How technology is leveraged as part of an effective system, and the benefits of working in syndication over going it alone. [27:17 - 30:55] What markets and locations Sep’s company, Bekam Investment Group, are investing in, and what drives that choice making process. [31:11 - 34:17] The special changes Sep has made to adapt to the COVID situation. [35:48 - 37:28] Here’s what Sep shared with us during today’s conversation: He lives in Orange County He has realised it is worth learning from the mistakes made from investing in problem areas, but to not give up on investing in similar areas in future. Book recommendation: The Creature from Jekyll Island, by G. Edward Griffin Be sure to reach out and connect with Sep Bekam by using the info below: www.bekaminvestmentgroup.com Email: email@example.com Start taking action TODAY so that you can gain more Education and Control over your financial life. To see the Video Version of today’s conversation just CLICK HERE. Do you want to have more control and avoid the mistakes that I made getting started in long distance investing? Then you can DOWNLOAD the 7 Mistakes to Avoid in Long Distance Investing Guide by clicking HERE. Be sure to connect with Billy! He’s made it easy for you to do…Just go to any of these sites: Website: www.billykeels.com Youtube: billykeels Facebook: Billy Keels Fan Page Instagram: @billykeels Twitter: @billykeels LinkedIn: Billy Keels
E62: Sep Bekam - Real Estate for Inflation and Alternative Investments
Sep Bekam is a real estate pro and an encyclopedia of knowledge on alternative investments. He is the Founder & CEO of Bekam Investment Group, which specializes in single-family and multi-family properties. Sep joins us to talk about his beginnings in the real estate world, and how money really works. We get into deep lessons on the Federal Reserve, and the concept of currency versus money and how they are tied to inflation. Sep also touches on gold as an investment, and how to approach buying real estate at a discount. Reference Links Sep’s Email firstname.lastname@example.org Bekama Investment Group http://www.bekaminvestmentgroup.com/ Real Estate Guys Radio http://realestateguysradio.com/ Bigger Pockets https://www.biggerpockets.com Robert Kiyosaki https://www.richdad.com/ Cashflow Game https://www.richdad.com/apps-games/cashflow-classic Conspiracy of the Rich by Robert Kiyosaki https://www.amazon.com/Rich-Dads-Conspiracy-Rules-Money/dp/0446559806/ref=sr_1_2?keywords=Conspiracy+of+the+Rich&qid=1571697374&sr=8-2 The Creature from Jekyll Island by G. Edward Griffin https://www.amazon.com/Creature-Jekyll-Island-Federal-Reserve/dp/091298645X/ref=tmm_pap_swatch_0?_encoding=UTF8&qid=1571697398&sr=8-1 Rich Dad Poor Dad https://www.amazon.com/Rich-Dad-Poor-Teach-Middle/dp/1612680178/ref=tmm_pap_swatch_0?_encoding=UTF8&qid=1571697473&sr=8-1
"If you focus on the pennies you'll get pennies, if you focus on the dollars you'll get dollars..." "You are the CEO of your company" The average CEO continues to educate themselves which is a major factor to his or her success. Education is a key factor that we continue to advise individuals to take the time to do on a continual basis. You are the average of the people you spend time with. It is important to spend time with people that can help you achieve your goals, not lead you away from them. You get what you pay for, and having a mission statement is vital important to understanding WHY and WHO you are serving and the IMPACT behind it. This is one loaded episode, that you may have to replay. If you have been truly wanting and desiring to get into real estate, here is a guy with great experience and wisdom and knowledge to share about this area of business.
Sep is a multifamily real estate investor who has made an unusual transition from multifamily to portfolios of single family homes. When I first heard about the transition, I was a little skeptical. But the rationale for the shift makes sense and is sound. Sep has dealt first hand with the difficulties of managing economically challenged properties in rough neighborhoods. That learning has shaped his current investment choices. Many investors have made the same mistakes in some form. I love his willingness to share his mistakes so that all of us can learn from them.
Ep. 65: How to Manage Out of State Properties with Sep Bekam
Target Market Insights: Multifamily + Marketing
Sep Bekam had a plan to be set for life. Study for 20 years, get a job and earn money. But after learning the sad truth that money devalues over time through inflation, he knew he had to change course. He added an investment property on the side while working as an electrical engineer. Like any novice, he learned valuable lessons from his leap. Instead of welcoming checks on his first properties, he got eviction after eviction. He learned valuable lessons that have helped him manage out of market investments. Sep had already left corporate America at the age of 31 and has been set for a more thrilling life in real estate. On this episode, he shares helpful insights on vetting property management companies and contractors, choosing the right market, and improving challenged neighborhoods. Key Market Insights: An electrical engineer without an entrepreneurial backbone Worked full-time during the day, and studied for his master’s during the night Realized that to improve his way of life, he had to have another stream of income Learned that money is devalued over time after reading Rich Dad’s Conspiracy of the Rich by Robert Kiyosaki, which talked about how recession happens Started investing in 2010 on the side, and eventually left his corporate job at the age of 31 Invested in two turnkey properties which were fourplexes in Phoenix Turnkey properties actually led to eviction after eviction, and getting fired by property management companies Major Pitfall: Reliance on pro forma without own due diligence and underwriting Properties stabilized after the third property management company and successfully sold those in 2017 Phoenix Market: Low home prices, number of baby boomers, affordable economy, landlord and business friendly Tip: Property Management Company should match your perspectives Founder and CEO of Bekam Investment Group Holds over 150 single family homes, 6 multifamily properties and an office building in six states Treats single family homes as a scattered apartment complex. Maintenance addresses multiple issues within one area only Tips on Choosing the Right Market - piggyback on other developments, and find enough properties on a street or in a neighborhood to drive scale Data Points on Finding the Right Market: population of 200,000 people or more, 2% job growth, 3% population growth California has difficult eviction laws. Much easier in Texas, Virginia and Arizona Currently working on a bank’s portfolio with 277 houses When Finding investors - know their goals and make sure they align with yours Bull’s Eye Tips: Winning your Market: Schedule numbers of meetings with brokers, contractors, and property management companies. Tracking Market Changes: Checks Google Trends regularly. Daily Habit: Meditate. Make a vision board. Journal. Resources: Berkadia Rich Dad’s Conspiracy of the Rich by Robert Kiyosaki Book Recommendation: The Road to Ruin by James Rickards Digital Resource: Dropbox Scanner Pro Tweet this: “We don’t want to make mistakes. But if we can make a mistake, learn from that pitiful place.” “There is only problem owners.” Places to Grab a bite: Veggie Grill Connect with Sep: Website: http://www.bekaminvestmentgroup.com/ Email: email@example.com
On this episode Holly is joined by Sep. Sep has been investing for 6 years, while he has lived in Orange County his whole life he did not start investing in his backyard when he got his start. After being laid off he decided to take his life savings and invest it into stocks, which he also lost. He moved in with his parents while he got back on his feet and got another job. With worries about “what ifs” Sep picked up Rich Dad, Poor Dad and realized that he wanted to start investing and increasing his cash flow. It took him 2 years to get any cash flow with his investments. While 2 years was a long wait Sep was focused on long term cash flow and did not give up on his dreams of real estate investing. Sep said that when you are investing you often focus on the property but it is much more than that, it is about the team, the area, and the customer. You need to find your investor identity when you get into this business, he found out his identity early on with tenants that were less than desirable. He expected everything to be nice and easy with cash flow immediately but that is not always the case, you have to work hard for what want and know whom the customer is that you want to serve. Holly reminds us that we need to outfit our investments to the correct spec level for the customer you are serving, you need to keep in mind that a C level customer might be scared away by an A level kitchen upgrade, it is important to know your customer when you are flipping so that you do not spend more money or time than is necessary for the investment. Sep and Holly talk about their investor identity and how important it is to know what yours is. Your investor identity has to do with the team that you employ also. You need to find a management company that is best suited for all involved in the project. Most successful and stressful deal for Sep is a deal he did in San Antonio, Texas a 520-apartment complex that was structured with virtually no money down. This deal the seller wanted to get out as quickly as possible so it was an easy buy and was able to pull all equity out of it and increase the cash flow. Sep’s biggest lesson learned is that real estate investing is a business; once you treat it like a business it is more enjoyable, more fun and less stressful. If you have a system in place your team can send you exactly what you are looking for making your business more streamlined. Holly reminds us that we always need to be flexible and ready for change when the market demands it. Sep does not manage his properties and always hires management for his properties because he does not have a real estate license and he needs a management company this is able to take care of whatever needs to be done since his properties are out of state. Holly on the other hand manages all of her properties, it is more manageable for her because of the amount of properties that she owns and the relationships that she has with her tenants. You must weigh out if it is more financially beneficial to manage your own properties or hire a team to do it; sometimes it is hard to give up that control but that can also be a point of success or failure for the property. When looking for seller financed deals you must get to know the seller; what are their needs, wants and desires, and structuring the LOI based on that. You should be prepared to give multiple options to the seller because they will often turn you down. Sep uses Craigslist to look for his next deal. When trying to find emerging real estate markets look for markets that have markets with 200,00 or greater and job growth at least 2% for the last 2 years and population growth of 2% over the last 2 years. Education is the best investment you can give yourself when you are beginning in real estate investing, you want to educate yourself and surround yourself with those who are on the same journey as you. If you are interest