ADPI_081: Passive Real Estate Investing With Marco Santarelli

Apr 26, 2019

Episode Transcription:




Hey guys what's happening? Welcome to the Active Duty Passive Income Podcast. Today's episode is absolutely amazing, so I'm not going to take too much time to get there… but I want to give a quick thanks and a shout out to all those who came to our first military house hacking seminar on Friday.  It was absolutely amazing what a blast there was so much, so much learned, I think, by all there and it was a good time. We tried to live stream it unfortunately we could not. So we promise we'll get those fixed, hopefully by the next one if not by you know mid, the one after that, but we're definitely going to figure that out. Outside of that though, we are definitely excited to do more of these and we are hoping to branch out so if you are wanting to host one of these in your area, I would absolutely love to travel out to come see you and put one on so definitely reach out to my sister. I'm going to put her email in the show notes page. Alright, so just reach out to Rosa. She will gladly help coordinate that with you and we'll make it happen. Alright, so thanks again so much to all those who came out.

And the last thing I wanted to bring up is that our rapid deploy program is open again. All right, this is our flagship coaching program, if you need an extra push, right, you need that person to help keep you accountable. Well, we will certainly do that for you. But we are only keeping an open for 20 people. All right, so you better hop in there pretty quick. I've already seen some folks purchase so I know we have less than 20 spots left. Alright, so make sure that you hop on there and you do not miss this opportunity to catch on. All right, because once it closes, it closes, and the world will be closed down for another few months. All right. So anyway, make sure that you don't miss out on this opportunity. And let's start the show.



Hey freedom fighters. Welcome to the Active Duty Passive Income Podcast. The only place where military members, veterans and their families learn how to build wealth through real estate investing. I'm your host, Mike Foster, and I'm here to show you how to stop wasting your benefits. Now, get off your ass, step up to the firing line and make ready for today's lesson.

Today’s Guest: Marco Santarelli


Shooter standby. Hey, what's going on guys? Welcome to the Active Duty Passive Income Podcast. I have another legend here on the podcast. His name is Marco Santarelli. And he is an amazing guy. What's going on Marco?

Mike, living the dream, appreciate being on your show. This is an honor.

Oh, it's an honor to have you sir.

Thank you so much and you're out in sunny or maybe not so sunny, Southern California now, right? It's usually sunny today. If you see in the back there, it's all cloudy and rainy.

So it's not sunny today.

Wow, it's a sad day. We actually think in California that, you know, the taxes that we pay, or the high taxes goes towards the sunshine. They call it a sunshine tax. It drives me nuts to even think about it. But now today we're getting ripped off. Sunshine tags. Well, I've actually never do that.

That's hysterical. Yeah. Hey, well, I mean, you need to go knock on local Sam's door then and tell me to fix it up for you.

But all right, well, thank you so much again, for coming on the show. For those of you who don't know, Marco Santarelli. He's the CEO and founder of NORAD Real Estate Investments. He's also the host of the Passive Real Estate Investing Show, and he has his own turnkey company and we're going to get to a lot of wisdom from this gentleman as soon as we start dating this podcast.

Could you give us a like background about yourself and how you got started in investing?


Yeah, so the shorts the short version is this I, at a young age, I just knew that real estate was a good true wealth creator and wealth preserver I just looked around and I didn't see flashy people driving Ferraris but I did see people who I knew had wealth whether I observed it or people told me but the one thing the common denominator they had is they all owned real estate. Man, I remember this one guy who walked around older guy, you know, beat up car cane, the whole ball of wax. He had just a, you know, a stream of these four Plexus on Center Street in the city I grew up in and I got thinking, yeah, you know what, there's something to it. So I made the decision to get involved in real estate and I became an investor at the age of 18 made the decision as a 17-year-old, but I waited until I was 18. Because I needed to be 18. To qualify for financing. I just, I didn't have the capital to buy all cash. So I bought my first condo actually was an end unit townhome, bought it, fixed it up, put a sign on the lawn. There was no internet back then. So I couldn't advertise online.  Took applications paper did the quote unquote interview I didn't know what I was doing. I kind of just rolled with it. But at the end of the day, it was pretty much textbook. Believe it or not in this business, it's a lot of common-sense people overcomplicate real estate investing. But, but ultimately, I ended up renting and managing this, this townhome unit and I'm and I kept it for a good number of years. And it was the right time I ended up getting quite a bit of equity growth in it.

Ultimately, I made the mistake to sell it and the reason I share that point with your audiences is that was a big mistake. I didn't know it at the time. I thought I was you know, doing great. I cashed out I got you know, five figures a good decent five figures of equity that I pulled out but then you know, what do you do with it? If you don't reinvest it, you end up blowing it you know, you go on vacation, you buy a better car, right? Maybe you pay down some debt. Then we all you know, we all want to do that, you know, the Dave Ramsey's of the world tell us hey, yeah, you know, live debt free, pay down your debts.

Well, there's some truth in that. However, I disagree with my friend Dave Ramsey.

But that's how I got started with real estate investing. And then you know, the writing was on the wall. As they say from there, I just kept my interest. I got my real estate license, I started selling real estate. And then I just kept buying and to kind of finish answering your question if you fast forward to 2003, 2004. I took the time in 2004 to acquire 84 units at four doors to add to my personal portfolio, nothing was syndicated with these were all my deals. And I did that from 3000 miles away from Southern California. I was investing across the country and that ultimately became the business I have today is helping other people do exactly what I did back in 04.

Wow, that is awesome. And were these 84 doors with a multifamily or they single family was it?

It was it was it was a mix, there were single family duplexes for plexus, and then I had three small apartment complexes. So that just added to the mix. And back then credit, as you probably remember, credit was relatively easy to get the running joke was, if you could fog a mirror, you could get financing. And that's where these types of loans came out where we call them, you know, no income, no asset. And then they came up with the ninja loans, which is no income, no assets, no job, right. And so, you know, so credit was easy, and it made it a lot easier for me and other people to acquire real estate. And that's, that's how I was able to get so many units in such a short period of time.

Wow, that is awesome. Well, you know, you take advantage of an opportunity, and you were able to capitalize on it, because you're experienced, right. And I think that that is something that a lot of folks don't take it for granted. You know, they say, oh, well, I'm going to wait for the time when the time is right. I'm going to wait when the time's right. But the time is now it sounds right. I mean, you have to take advantage and build the experience while you can. I mean, you didn't wait 18 as awesome

Yeah, yeah. And that all starts with education. I wouldn't say I was overly educated at the time I built my education as I gained the experience. But again, the experiences I took action and did, you know, did took the action to invest. So it kind of all came together. And today in hindsight, looking back, I tell people all the time, look, the best thing you could do is, you know, listen to Mike's podcast, read books, educate yourself, because I have these 10 rules of successful real estate investing. Number one on purpose is educate yourself. Because knowledge is the new currency. That's what we use to trade and to further ourselves. And so if you don't educate yourself, you're basically following other people's advice, and you don't know if that advice is good or bad. So knowledge will help take you from being a good investor to a great investor. And that knowledge also helps you create a passive stream of income for you and your family. So you would be nuts not to be educating yourself and you know, education, a lot of it is free today. They can listen to podcasts like yours podcasts like mine, read books, but there's a lot of free and good information online. Now granted, there's some bad information online too. But that's can be the same. Same thing can be said for podcasts and, and your friends’ advice. So, so just educate yourself.

Yeah, that's true. That is very, very true. Education is huge. And we always talk about that, and even more so than that the network to right. I mean, education will take you, you know, a long, long way. And then network will help get you over the edge so you can take action. That is awesome. But back when? Great, great. So I love what you said to you said that a lot of people overcomplicate real estate.

Can you speak to those that are still in the education phase?  They have been in the education for years and years now; how do they take the next steps from that phase?


Yeah, a lot of people think that they never know enough to actually take the next step and make turn their knowledge into the material world to materialize what they know. You have to understand two things. Number one, you'll never learn everything and you'll never know enough. And you will always be educating yourself. You should be a life student. I was just talking to Robert Kiyosaki who I'm sure you know who he is, and I'm sure all your listeners know Robert Kiyosaki. I was talking to him last week. And you know, the one thing I was on a cruise with him a year ago, the one thing I observed about Robert Kiyosaki, which I admire is he's a perpetual student. He's literally sitting there in rooms listening to other speakers talk that are not as successful as he is not as experienced as he is. But he's got his notepad out and he's frantically taking notes and writing stuff. He's reading books all the time. He's got more tabs and more little dog ears and post it notes stuck in a book than I've ever seen him. It just it looks like this fluffy piece of paper because there's so much stuff in it, right but he's a, he's a lifelong student and that's what you should be as a lifelong student. So, but don't think that you need to know everything to take action. You need to that was point number one-point number two is you get to a point where you know enough to start becoming successful or taking your investing to the next level. And you may not know that, but the key is to have the right team if you start to surround yourself with the right people that are experts in their field, whether it's a real estate attorney, a CPA, someone who can acquire properties for you, whether it's real estate agent, a wholesaler, a turnkey provider, like our company, you know, a deal finder, your property manager, a home inspector, if you start putting the right people on your team, then you don't need to know every everything and you don't need to be the smartest person in the room. In fact, you actually want to be the dumbest person in the room because you want to try yourself with people who are smarter than you. So they can help take you to where you want to go help you reach those goals. So, be a lifelong student, constantly educate yourself. And number two, surround yourself with the right people have the right team. Those two things together are magical. They're powerful, and you cannot help but be successful.

Amen. Amen. That is awesome. Thank you. And I know that analysis paralysis can be something that a lot of people struggle with, especially coming from a more conservative mindset now to taking the risk for the first time.  But that's smart, you know, you got to put yourself in the position to do it.

What were some of the challenges you faced when you first started investing?


I mean, I know being young too, I mean, getting into this game, I'm sure presented a lot of challenges in and of itself, but were there anything else anything that stands out to you that you would have done differently as you know, now I would say that everybody, especially on your first deal, bumps into fear because you're venturing out into the Unknown, Unknown for you proven historically proven for hundreds of years, that real estate is a solid investment done right. So you don't know what you don't know. And because of that unknown, you have this fear from this inclination, from this unconscious in competence that you have. But as you start to do more and more, you start to become consciously incompetent and then eventually you become consciously competent. And that experience just comes through time and taking action and doing it and working with people. Sure, you'll probably make mistakes.

But you know, the successful people are those that get up, learn from their mistakes and keep moving forward. It's just like a, you know, a baby and a parent. You know, the parents going to continually pick up that kid and make them walk, no kids going to continue to fall and eventually the kids going to you know, stand up, walk and keep walking and he's not going to fall again but you need to be doing the same thing. But taking action I mean this this, I mean, you're going to hear me say this again. You could listen to you know all the podcasts in the world and read all the books but until you actually start, you know, finding those deals or writing contracts on real estate and working with your team you're not you're going to be in the same place you are today. And tomorrow as you were yesterday, so you really have to take action that that that's really the thing now, I don't know if I'm answering your question, Mike, but fears would be the first answer to your question, you know, looking back you know, I can't say I really had huge problems in my in my investing career quote, unquote, right? I just look I don't look at me, maybe this is something that you know, people should change their, the way they look at things, their attitude.

Rather than look at things as being roadblocks look at things as being hurdles, because there's virtually everything. There's virtually nothing out there that you cannot overcome if you put enough mental focus and time or energy into it. So I don't look at anything as a showstopper. I look at things as just a roadblock, and I just need to go over it under it around it. I'm going to get through it one way or another, right? And if you look at it that way, if you think that way, then nothing's going to stop you.

Absolutely, no, I think it's huge. It's a mindset thing. Right? And you mentioned out with fear, there are certain things that hold us back. But in the military, we train all the time for worst case scenarios. So now when we plan for the chaos, it always happens. It finds a way of happening but we're ready or prepared right for that. So that's good. You know, having that mindset to say okay, well there will be problems by just find out how you can get around them or over them or underneath them.

Right, or whatever you got to do, but you just got to get through it. And I'm but that's it right. So that's good. Yeah, that is awesome. Cool. So um, can we talk a little bit about, so you have a turnkey company right. And I want to kind of get a little more into the weeds on turnkey. We talked a little bit about them, but I don't think we emphasize them enough on how…

How can turnkey properties be a great tool for those who are starting out? And can you go into some of the details behind acquiring a turnkey deal?


So if you're listening to this, you have to put yourself on a spectrum. You are either on one end of the spectrum where you're an active real estate investor, or on the other end of the spectrum as a passive real estate investor and then there's you know, some Shades of Grey in between an active real estate investor someone who's going to roll up their sleeves and get involved time wise and or financially and, or managerial Lee whatever the case may be, but they're basically creating a business or a job for themselves because they're the ones who are finding the deals, finding the deals, fixing the deals, maybe flipping the deals or, or keeping them in their portfolio and managing those deals. So you're involved in many pieces of that, of that real estate transaction or that real estate deal. On the other end of the spectrum, you've got a passive real estate investor that wants to be involved, but be involved in the sense that they just want to identify the right properties that fit in their portfolio, add it to their portfolio and continue living their life, building their career spending time with the family, and work towards having the investment capital to buy or invest in the next one, and the next one And the next one, so all they want to do is build that portfolio with as little time involvement as possible. So…

For those people that are more on the passive side than the active side, turnkey investing is an ideal solution. So, you can really do one of two things. If you're a passive real estate investor, you can be fortunate and put the work in to find a real estate agent or broker that is an investor and understands investors and understands real estate investing. The sad truth is that maybe not a gross exaggeration is 99% of real estate agents out there. don't own real estate are not real estate investors and don't understand the real estate mindset, the real estate investors mindset and their needs. In fact, a lot of them don't even understand what a cap rate is. You know, it's, it's kind of crazy, but that's the reality. So there is not there aren't a lot of real estate agents that can help real estate investors. So the other option on the passive side

You work with someone who specializes in real estate investments like turnkey real estate investments, and I'm not talking Wall Street and you know investing in a real a real estate investment trust where you're buying shares, you're essentially a shareholder in essentially a large syndication of real estate. I'm talking about actually owning that real estate having control over that real estate. So if you work with a company like ours, and this is not meant to be a plug, but you asked me what turnkey real estate is absolutely turnkey real estate investing is that is that passive approach where a lot of it is done for you and you can work with the team of people, where it's basically handed to you on a silver platter. In our situation. We're in 22 markets in the US, these are all markets that makes sense from a financial perspective and an economic perspective. We have ready inventory and those markets their tenant occupied, they are professionally managed, their cash flowing from day one. They're typically in B plus neighborhoods, sometimes a minus great neighborhoods. So there you know, middle America, bread and butter communities, their newly renovated sometimes their new construction. So there's no deferred maintenance, you're not walking into, you know where they call that term, a money pit or whatever it is, you know, right there, there's no deferred maintenance, these things have been newly renovated. So what I just described to you would be our definition of a turnkey real estate investment. So when you take that product, have a turnkey real estate investment, and you bring in all the right team members, and you have a process and a system to be able to, to pick another shop, but pick a property in a market and purchase it and add it to your portfolio. That whole process is what we refer to as turnkey real estate investing. And so that's a long answer to your question. But that is, in my opinion, an ideal suit solution for a lot of people on the passive side of the spectrum.

That's awesome. No, I think that's great. And, and it gives people again, like you said the opportunity to get into it with they know, they don't necessarily want to do all the hassle, but they want to buy it and then they want to go back to their lives, right. And in the military, you know, we don't really have all the time to get involved into the real estate, weeds new out of focus on the mission. And, and it can be a great tool to get started for those that are trying to build wealth, you know, the passive way while they're in and then when they're ready to transition out, now they can go and, you know, pursue it more, or they can, you know, continue to buy, you know, turn keys if that's their prerogative, but, but that is something that's great, creative tool to use. Thank you for that.

You mentioned cap rate, can you please break down what that is and explain it for those that do not know what it is?


Yeah, cap rates are not my favorite metric. A lot of investors talk about it in throw it around, it's actually a better a better metric in the commercial world, not the residential world of real estate. But the only thing a cap rate is which is short for capitalization, right? It's really what the rate of return on a property would be as if you purchased it with all cash meaning no financing. So, the way you calculate that is essentially take what is referred to as the operating income, often referred to as noi net operating income and that's just a fancy term for saying, My I taken this much rent, and I subtract all these expenses, not mortgage financing just expenses, which is like insurance, property taxes, maintenance and repairs. You're what did I miss property management, you budget for vacancy. So when you come up with this net operating income, you divide that that's essentially the income the property is producing. You divide that into the purchase price or the acquisition price. And that is the cap rate. So often you'll see that 6%, sometimes 7%, sometimes 8% just depends on the location and the type of property. So, but that's that cap rate is unfortunately one dimensional. It's only one element one metric of a property’s performance. I prefer to look at things like the cash on cash return, because most investors are going to finance their real estate, they'll put maybe 20% down finance the other 80% of our investors do that 99% of the time, it's very common place. But that increases your that leverage increases your rate of return, it magnifies your overall returns and allows you to take your limited investment capital and spread it across more properties. That's the beautiful thing about real estate is the ability to finance or leveraging investment capital so you can control a larger pool of properties with the same amount capital as if you had no other option, like if it was just an all cash. And you can't do this with any other asset class, like if you're investing in commodities, or stocks or precious metals or anything like that, you can't get that kind of financing. The best you can do is 50%. Like, you know, a one to one ratio with stocks, like if you get a margin account with a stock brokerage, then you can leverage 50 or, you know, one to one…

In other words, 50% finance, your equity or your investment in stocks. But the problem with that is this. You've heard of a margin call, right? So what happens is, is if the stock goes down, and stocks are very volatile, you know, they don't sit smoothly and consistently from day to day, week to week, month to month. If the value of your stock portfolio drops below a certain point, what they call a threshold, you'll get a margin call, you're gonna have to come up with a difference because they're not going to sit there and be your brokerage is not going to be over leveraged on the amount of margin that they give you to acquire those stocks. That doesn't happen in real estate. If a lender gives you 80% financing on your property, and the property value fluctuates, which it does, but slowly and smoothly over time, it goes down in value, guess what doesn't change your mortgage payment doesn't change your loan amount, you're never going to hear from your lender, if you're making your monthly payments, which you're not your tenant is your tenant, you know, is basically paying off your loan for you. You're never going to hear from your lender. So real estate is not only relatively stress free as an investment, but it's very forgiving and you have time on your side. It's a slow-moving asset class, therefore, it's a get rich, slow type of investment.

That is right. That's a man as awesome.

Can you touch on a few items that someone can look at to ensure they know what a good deal looks like?  For example, when looking up a deal on Zillow, what are some indicators that it is a good deal? Metrics, etc.


Well, I don't mean this as a criticism. But what you just asked me the way you asked me, what you described, is actually how a lot of investors look at their investments, which is in my opinion, a mistake. It's very myopic. You know, you said what other metrics Can someone look at now maybe you didn't intentionally mean you know it to be that narrow and scope. But the reality is, is most investors make the mistake of looking at the property and the numbers and making their decisions are basing their decisions on mostly that that's a good point. That's a great so for me, my six rules, my 10 rules of successful real estate investing, which you know is a post on our website, it's kind of a perennial post is to take a top down approach to actually know if you have a good deal or good investment, you always have to start with the market.

So, so you start with the market, you want to make sure that you're in a healthy market with a healthy housing market, that there's a balance between supply and demand that the numbers make sense in that market. It's economically strong, there's good jobs and job growth and you don't have high unemployment. Ideally, you want to see positive net migration coming in. So it's, it's about the local economy and the housing market within that metropolitan area, the city, the town, wherever you are looking. Then you start looking at the sub markets. And then you start looking at neighborhoods, when you've identified those areas that makes sense in terms of, you know, affordability, schools, crime, all that stuff.

Now you can start looking at actual properties. Now, sometimes you will go backwards, you'll be presented with, you know, a bunch of properties, great. Don't get too deep into those properties, you can do some quick, you know, litmus test, litmus test checks on that property, just to see if it's worth investing the time to look at the market in the neighborhood. And that's fine. But you really have to consider like a funnel, you know, the top down approach the market, the areas, the neighborhood, then the property and then the management team, you know, the rest of the people involved, it's not just the property, it's, you know, who's managing that property? And what, you know, how good are they what's their reputation? Are they full-service provider, property management company? So you got to look at all those types of things. So looking at just cap rate or cash on cash returns is important, but it's only one element or one dimension within you know, all the dimensions of real estate they should be looking at right now that's absolutely fair. And that's actually really, really good because is important, you want to make sure that the market is correct, right before you actually start, you know, digging in the weeds and all that that's a good point. That's a great point. So, so once the market is set, right and you do know that you found a good area, what are some good litmus tests that we can use to analyze a deal? So, I'll give you a couple. So, in terms of the area or the neighborhood, you would ideally, I mean, everybody has a different criteria, investment criteria and risk tolerance. Some people are very more are very season they have thicker skin, they can you know, diversify within their portfolio and put in more C class neighborhood properties.

Some people just don't want to some people do want to, you know, there's pros and cons. But what I would look for is a neighborhood where you have ideally, more than half of the residents Be homeowners. In other words, more than 50% of that neighborhood or that community are homeowners, the higher the better. The challenges is that when you get into, you know, the 80 90% range of homeowners those are typically well seasoned, more expensive neighborhoods where the numbers now don't make sense. Uh, yeah, they're pristine neighborhoods. They're great. They have great schools look very low crime, they have all the good stuff. But often the, the price of those properties are not are too high relative to the rent, which leads me to my second point, and that is what I refer to as a rent to value ratio and RV ratio. You could also call it a rental price ratio is essentially what does it What does that property rent for every month relative to its purchase price. So the example I give all the time is $100,000 property. Ideally, you want to see that hundred-thousand-dollar property rent for about 1000 a month, it could be 900 could be 1100 but somewhere around 1%. That's a litmus test. It's just a quick metric. If it's around that area, I'll continue to dig deeper and do more due diligence. But if that hundred-thousand-dollar property rent only rents for 500, which is actually commonplace here in California, and they're not hundred thousand-dollar properties, we're talking like a million-dollar property. You know, it only rents for I say only in quotes, it only rents for, oh, probably, you know, five, four to 5000 a month, you would want to see that rent for about close to 10,000 a month. I know, those are crazy numbers, but that's just what we see in coastal California. Right. Right. Right. That's why it's harder in those kinds of markets, you know, and you see a lot of people moving to those Midwestern markets, where the purchase price may be, you know, 50,000, but it's renting for 500 and above.

So, yeah, guys. Great. Yeah. That's the nice thing about the Midwest, the South, southeast. Parts of Florida, parts of the Northeast. You know, those are the 22 markets that we're in that I mentioned before, we're where we have investment inventory. That's where they're located. We don't have anything west of the Rockies. You know, it's just those markets just don't make sense. I mean, that ship left a long time ago.

It's a different play at that point, too, right. You're investing more for appreciation versus cash flow, which is a whole different market. Different game. Yeah. And there's a danger there's a danger there. There's a danger in what you just said. Because if you are investing for appreciation, more often than not those so-called investors are speculating their quote, unquote, investing with an eye on the future they are expecting and hoping that the real estate market will do something for them. Pause It is meaning that property values and prices will continue to escalate, and they may, or they may not, you know, and they or they may for a year or two and then flatten it may come down. You know, if you look at the coastal markets and particularly in parts of California, it's this is what we refer to as a cyclical market. It goes up and down more like a roller coaster than it does, you know, a smooth wave in the water. So, a lot of people think their investors and think they're investing because they're not getting cash flow, but they're hoping that's the key word they're hoping for appreciation over the next 235 years are more like gamblers than they are true investors. Right?

Exactly. Thank you so much mark. I really appreciate your time on this podcast because this is so much wisdom and amazing. You know, we'd love to have you on here again, too. If we can, you know, dissect those 10 steps that you that you've been briefing. A little bit has been over by… Um, I gotta take you into our bonus round just because we're running out of time here. But I've got three final questions for you.


What is your favorite book?


I've been asked that many times, I don't have one favorite book. And that's the problem is there's so many good books out there, right? That's what I would say. If you're really, really new to this. I would probably say start with a book like Rich Dad, Poor Dad, that gives you a bit of a financial education but also gives you the right financial mindset. And that lays a foundation to just start adding any and all books on top of that. But that's a great starting point. Yeah, if you're more if you're a little more seasoned.

There really are a lot of great books out there. The Millionaire real estate investor by Gary Keller is covers a lot of different things. But it's, it's good because of that it's good because it's not focused on any one type of thing. So that would be kind of my second pick. I think it's just a good rounded book.

Outstanding. Yeah, I definitely loved Gary Keller's book. There was one that I think I read like five different times.

Oh, really? That's good. That's it. Right. Okay, awesome. Now question number two…

Who is your biggest hero and why?


I never thought about that before. My biggest hero…

Well, I guess I'm going to I'm going to maybe give you two answers. Just to be fair here to, to my parents. I got I think I've got some good qualities from both my parents. They also my parents are kind of like Rich Dad, Poor Dad all together. I I've learned a lot of poor advice from them. But I also got a lot of good qualities and good advice from them. So I guess in that sense, I would consider them you know, my heroes. Because of all the good stuff I got, but at the same time, there's a lot of great people out there, like Robert Kiyosaki who I would say, I could call a hero as well, because even though I was already investing, and investing pretty heavily, because I didn't read, Rich Dad, Poor Dad until 2006, or 2007, around that time frame, so I was already deep, deep into real estate investing. I just didn't know much about him. And I never really stopped to think about reading his book. But after I started learning more and more about him and his philosophy and what he teaches and talks about, you know, I, he really helped me out a lot post investing. So, because of that, it made me much better than I am, that I was. And so I guess, I guess he would be a mentor for sure. If not hero.

There we go. All right. That is awesome. And then final question…

What are three nuggets of wisdom you would like to share with those who are just getting started in Real Estate investing?


Well, the first and it's well worth repeating. I've said it before and I'll say it again, educate yourself… far too many people spend valuable time doing things that would be much better. Such as, you know, shave off a couple hours of TV a week and trade that in for, for reading some books on real estate investing and whatever else finance, creating wealth, whatever it may be, right, but it cannot be under s cannot be understated how important it is to educate yourself. So that's my first tip.

My second tip or nugget would be to set yourself some goals. Again, a lot of people hear that and they don't do anything about it. They literally don't write it down. They hope and they wish but that at the end of the day, a goal is different from a wish you know, you could wish to be rich but that doesn't mean you ever become rich or wealthy. When you start writing it down and you make it a clear very specific, tangible and measurable goal, and you start breaking that down Chungking it down into smaller steps and then smaller steps to the point where you realize, oh, that first step is easy to take. And all that second step is not that hard I can do that. You start to build momentum when you start taking these micro steps are baby steps. But literally, you have to think about what your goals are, write them down, and break them into steps. And you'll find that once you do that, you actually start doing those things. Like if it's as simple as read one chapter this week, or tonight, you'll do that if the next thing is go on Zillow, or go on our website and start looking at properties you're not buying, but just start looking at the properties gets the gears turning in your head. We have investors who do that all the time. They go to our website, like every day or every week, and they're just, it's like window shopping. They're just looking at the deals. They're saying, Oh, I wish I could buy that or i or i the better question is, I will invest in one of those properties. But you got to start with those goals.

And third, and I mean there’s a lot of nuggets, but the third nugget would be basically take action. And that's where I think a lot of people fail, is they make plans and they educate themselves, but they never actually take it to the next step where they materialize. What you know what they want to do? Right.

Wow, outstanding. Marco. Thank you so much.

This has been an amazing, amazing time here. So much was thank you just to share with our folks and so how can our folks get in contact with you? Or your team I guess…

The two websites that we have are really the best places to go because we have tons of resources free stuff, tons of education, our core site where you know, people can as I said window shop is no rata real estate and o r a DA no rata, real that that's our site that we've had up for over 15 years. And then our show the podcast is and that's for the show passive real estate investing.

All right, awesome. So guys, make sure you go check out both those locations, check out with Marco center and his team are doing amazing things out there and so much wisdom knowledge learned. Thank you so much for your time Marco. I really appreciate it.

Hey, thank you, Mike. I it's been an honor being on your show. Thank you.

Outstanding. Thank you so much Marco for your time. Really appreciate it and thank you for coming on the show.



Guys make sure that you reach out to him at the links mentioned and also make sure that you subscribe to this channel because we've got more awesome guests coming on the show up ahead. If you guys are ready to get started, make sure that you check out www dot activity passive income com to get linked up to our group or start the spark page and also get involved one of the programs we just reopened, rapid deploy, super excited for that and we are only taking 20 members so if you are looking for mentorship and coaching this is the perfect and for you. If you are gung-ho and ready and motivated to make it happen, all right, anyway, catch you guys later. I am working on a lot of stuff in the background and I know that we've got some great stuff coming up here shortly and given away, but you gotta stay tuned. All right later.


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