SUMMARY

In this episode, Steven is joined by fellow investors, Amber and Glenn Schworm.  After getting into real estate investing in an attempt to clear credit card debt, they have gone on to teach others their success formula.  Listen in as Steven, Amber and Glenn talk about creating a compelling vision of your future, the security of real estate to reach it, and passive investing through lending. 

Key Takeaways

  1. When you look at real estate, on a long enough time horizon, the security is very strong.
  2. Learn that process of flipping houses, because just through the finding process, you’ll become such a good investor moving forward, and once you know how to find deals, you can’t help but see them and apply it to larger projects.
  3. You can create a higher return if you’re willing to invest that time and be willing to have those interruptions of your life to make those core decisions when managing a property in a semi-passive investment strategy.
  4. To really start to make that change, and start to understand the strategies, you want to get around other people who are doing this actively, and start building your team of advisers that are going to help get you access to the type of deals you want.
  5. When investing make sure that you are going to get a note and a mortgage that’s going to be filed with title. Insurance is also a critical piece for protection of your investment.
  6. The worst looking deals are the ones that people are the most hesitant about but that does not mean they cannot be profitable.

 

Resources Mentioned

Interested in connecting with other like-minded individuals? Then join our VonFinch Private Capital Network.  Learn more at http://www.vonfinch.com/invest

 

About our Guest:

Amber and Glenn Schworm
We started our career in real estate investing out of sheer desperation. We were in $80K of credit card debt and needed to make large chunks of cash to get out from under it. In 2007 we flipped our first house and made $17,000. On our second flip, we profited $33,000 in 33 days. That’s when we knew we were on to something. We always wanted to help people, so when we proved the model, we set to do just that by offering and teaching our successful formula. We wanted to show other people how to change their lives as we changed ours through Real Estate Investing. We’ve now flipped over 1000 houses and counting. 

Episode Transcription

Steven Pesavento 00:05
This is the Investor Mindset podcast and I'm Steven Pesavento. For as long as I can remember, I've been obsessed with understanding how we can think better, how we can be better, and how we can do better. And each episode we explore lessons on motivation and mindset for the most successful real estate investors and entrepreneurs in the nation.

Steven Pesavento 00:28
Welcome back to the Investor Mindset podcast. I'm your host Stephen Pesavento and each week, we share mindset tips and real estate investing strategies to help you take your business and your investment portfolio to the next level. Today is no different. Today in the studio, we have Amber and Glen swarm. How're you guys doing today?

Amber Schworm 00:46
You're good. Thank you.

Glenn Schworm 00:47
Doing Great Steven. How about you?

Steven Pesavento 00:49
I'm doing phenomenal. I'm excited to have you guys on the show today, we have a very similar background, you know, started out flipping houses, we no longer do that anymore. You know, we flipped a couple 100 houses and you flipped over 1000 houses over a 20 year period. And you guys are investing in a bunch of different areas, and you help people get started investing in real estate and being active real estate investors, people who are managing and operating and making the decisions on the investments that you're investing in. So that's very exciting. We'll get into a lot of different things today. But before we do, let's start out by looking back at earlier in your life, what events or influences from your childhood shaped each of you on who you are today.

Glenn Schworm 01:37
So for me, I gotta say my mom and dad, I mean, just, you know, very, very, very hard working. We were brought up pretty poor, but we didn't know it. My mom and dad made sure that we had a great experiences in life. And I think that the hard work that I learned from them. I didn't you know, didn't realize later in life, how much I learned by watching just how hard they worked and what they did. I think the hard work, you know, you can be the hardest worker, but you have to be in the right vehicle, right? So I've had my parents been in real estate investing and we'd have been more wealthy growing up, right. But that wasn't what they read. My dad was a butcher and my mom was a stay at home mom and lots of lots little home businesses, a piano teacher, she still is today. She's 85 years old, still looking out, you're still kicking it and still working. So I think that that work, that work ethic for me was big. And that was great for me.

Amber Schworm 02:23
Yeah, I think I think for me, it was probably mostly my dad, you know, he was he was an entrepreneur. So I knew that I never wanted to go like into corporate America. But he owned a real traditional brick and mortar business. It was rubber stamps and engraving, it was very glamorous. But it was really a glorified job. But But I did learn that work ethic and I wanted to be an entrepreneur. And you know, I didn't get so much of that from my mom, she was a stay at home mom, which is great. And I'm a mom, we have four kids. But for me it for me it's not enough. Like I like being an entrepreneur. I like building. I like the ambition. I like all of that stuff. So it's kind of like I just did the opposite of my mom. So it was still an influence. It was just influenced me in the other direction.

Glenn Schworm 03:07
I would say too Steve, I want to I have three older brothers and my my older brother closest to me, Gary, he's seven years, my senior. And he's the one who really started building more businesses in our family, my two older brothers were with the airforce, military and got jobs and they got out and Gary started his own business early on, and did that for a number of years. So I kind of grew up in my teens, flying out my summers and learning and working for him for you know, my pay for the entire summer was the pair of sneakers that was my, you know, gotten maybe not the best labor for me there but but I learned a lot by watching him run a business. And I think that that's what inspired me to always start my own early on.

Steven Pesavento 03:45
Yeah, it's these early life experiences that can really set the path towards how we show up later in life in our business. And I find that a lot of people can really relate to that. And so for you, as a listener, no matter where you're starting from, it's always possible to start getting on this path towards creating not only creating active income, but then being able to eventually turn that into passive income. So one of the things that we really believe in over here at the investor mindset is, you know, in order to change the way you think about money, you need to understand how to make money, you need to understand how to multiply money, you need to understand how to manage money, you need to do that, in that order. If you're trying to manage money that you don't have, you're going to try to save a buck at Starbucks, but you really are focused on the wrong thing. And you guys have really mastered the art of making money using real estate and in particular using flipping as a vehicle. Talk to us a little bit about how you've used this strategy to start generating active income that can eventually be invested into wealth creating type assets.

Glenn Schworm 04:50
So we are big proponents. Every time we do workshops and do any trainings, we're big proponents on you know, learn, learn flipping the learn that skill, like learn the skills now you know what you're looking for. So when you, we want you to start using that money as soon as you can towards rentals. And we even even in the skills that we teach our students, we teach them how to build a rental portfolio without using their own money by using their skills start to build that passive income. Because as much as we love what we've done, the flipping houses thing doesn't excite us anymore. What excites us is adding another rental port, we just closed on a nine, we're just about to close out another nine unit in our portfolio. And those are the things that we love, like having passive income from real estate. We're not big stock people, we don't like the stocks, it's just not the and I'm sure some of your listeners love it. And they might be you know, shoot Pooh poohing me. And that's okay. I just don't like the roller coaster I like to drive by and at least see a picture of my assets and know that I've got, this will be about 50 6060 doors we have now something like that. So you know, we love

Amber Schworm 05:50
what we do. I actually just did a marketing video right before this podcast, and it was something to the effect of, you know, the dollar is down, stocks have totally sucked over the last 12 months and crypto crashed. But what do you have that still appreciates and pretty much doubles in value every 10 years? And that's really the thing? Yeah, it's the most solid, and it has the most awesome track record of any way to create that kind of income

Glenn Schworm 06:13
out there. And the tax and the tax benefits are tremendous. People forget all that.

Amber Schworm 06:18
generational wealth.

Steven Pesavento 06:19
Yeah, well, when you look at real estate, on a long enough time horizon, the security is very, very, very strong. So one of the reasons why we actually stopped flipping and focusing on that is because the time horizon was so short, and we were starting to get uneasy, because once we had made some money, then we wanted to hold on to it, which actually is something that is it's a great thing to do. But when that fear starts creeping in, it actually stops you from being able to do the thing that got you to where you are today. And so, you know, I really do believe in creating a skill set that's going to make money. And flipping is a phenomenal way of doing that what I'm hearing from you is you're really seeing this as a stepping stone and opportunity to to gain some experience the the entry point is so low, and it's so easy for somebody to do and wrap their head around, that they can go from not having really any real estate experience, maybe owning their home personal home or something to being able to go and flip a house and see a result to be able to build that belief that it's possible in a short amount of time.

Glenn Schworm 07:21
Yeah, if I find somebody is looking, let's go out and get you 100,000 A month in rental income coming in, and that will blow their mind. But you know, even one house sale to get one house, you got to make 200 bucks a month, like it's not worth the effort, right? So I want to teach them and we want to teach them the skills of how you can because in flipping a house, right, you got to find it, find it, fix it, flip it or hold it, right. That's kind of what we teach. So when you're even when you're building a rental portfolio, if you if you don't have a ton of cash that you want it because there's ways to do it, if you have cash, you can invest, you can be in a syndication, right, you can do that you could buy bigger things, this place, you can put your money, you could be a private lender, we work with private lenders who make 10% on their money all the time. That's been going on for 15 years now. And so that's another side of this, if you have money, listen, I think what we're really great for people that have a little bit of money but want to have a lot of money, right? They really want to turn that into more money, they want to multiply it like you said, they're like, quite turn that into more money. So we get them starting to listen flip, we our big thing is flip two houses in a year, make yourself an extra around $100,000 in profit in year one, learn that process, because through that process, just the finding process, you'll become such a good investor moving forward, you know, we've done a couple 100 deals, Stephen, you know, like, you know, once you know how to find deals, you can't not see them, right? So that you see if you like, you know, and you know whether you want to buy themselves or not, you know, they're there. So you get to drive

Amber Schworm 08:43
around in the car and point them out.

Steven Pesavento 08:44
Yeah, yeah. So yeah, absolutely. Once you have that skill, you can apply it towards larger projects. So I applied it to 200 single family homes. And then now when I go look at a 200 unit building, I can say hey, well, it's the same type of ideas, it might be a different way of running the numbers might be a different approach. But it's a very similar concept. And so it's really I think, when you're flipping houses, what you're really looking for is how can you find value? How can you solve a problem? And how can you then create profit off of those problems. And the same is true throughout the whole process of investing. And what I like about flipping is that for people who are not high income earners, who are not in the two to 300,000 or above range, it can be difficult for you to get into a syndication invest enough money in a short period of time to really be able to create the passive income that maybe you desire over a long period with many doubling cycles, many times of compounding, anyone can get there and we can show you exactly how to get there, for sure. But if you want to get there faster, and you want to take your time and you want to exchange that time for more money, and you have a little bit of money or you want to borrow money from Someone else, you can multiply that very, very quickly by going in flipping houses. So talk to me a little bit about, you know, after you've gone through this process and you flipped a bunch of houses you started create this little war chest of money, how have you been able to then build passive income for yourself, where you're seeing money come in every single month without needing to do all of the work day in and day out?

Glenn Schworm 10:27
I think for us, we didn't necessarily use all the money that we made to do that, ironically, we just found at in the process of finding houses to flip we'd find one and go, well, that person wants a little bit more for the house doesn't need quite as much what if we turn that into a rental. And so we we would use our prices, how we do it without using any of your own money, we use our private lender to fund the purchase in the renovation of a rental property, right? Yeah, and when we do a minimal fix up on it, make it a rental, not a full, not a full renovation, there's techniques for that. And then we put a tenant in there. And then we go to the bank and do a cash out refinance, pay off the lender. And if we did it right, we could actually put some tax free money in our pocket at the same time, hit 15 $20,000. One time we did $50, there's ways you can put that in your pocket tax free, and then let the tenant pay that loan back. And so I'm making a couple 100 bucks a month on the on the house. But yet I got all that I got limited money to work with. And I haven't used any of my own money in the deal. So when you're looking at a return on investment, it's an infinite return on investment, it is time on your part right to do it. So it's time for your cash is a minimal, you know, minimal outlay to get that done. So that's how we started. In a one year we we had the first first one we bought was in 2003. And we bought it we bought it to favor the worst worse than we ever bought in our lives. Well,

Amber Schworm 11:49
you can say that, but it also got us into real estate.

Glenn Schworm 11:51
Yeah, it did. Yeah. Out to the end today. Yeah. So the funny part is years later now that things are Kashkari because we

Amber Schworm 11:58
tweet at the time but but that's the beauty of real estate is you can even make a mistake. And over time that mistake, that mistake paid off.

Glenn Schworm 12:05
I want you to talk about though, because what we learned about two and a half years ago, pre COVID Right before COVID started was that. You don't have to sell for 200 bucks a month positive cash flow while you're building wealth and taking advantage of appreciation and tax benefits rental. If you can make more money on the same rental and we looked at short term, we look to short term rentals, we have well over a dozen rental short term that we turn some of the rentals we start buying houses to be short term rentals, an amber and our son on that business. So for me, it's 100% passive, the first 100% passive and for me it is so

Amber Schworm 12:38
rentals whether they're short term or long term. That's the one thing if we could go back in time, we would have started doing that earlier business flipping that, that, you know, it's not as sexy or fun necessarily. But when you look at the amount of work that goes into it, or that doesn't have to go into it, because it's a rental versus a flip. And that it's short term and long term. You know, it's cashflow and long term wealth. It's just it's mind blowing. And Glenda, the segment on this at our home flipping workshop where he shows on a spreadsheet, like what those numbers look like, it's phenomenal. And I think when people see that they realize, Oh my gosh, this is not like pie in the sky stuff. This is adding like one at a time and what what happens in 10 years, like it would blow your mind and it blows away any sort of retirement program out there. But back to the short term rental. So we started doing that right there were COVID said, like Len said, and we've got about 13 of them right now we're looking to add to that, but the house across the street from us, for example. And we're talking about normal residential, upstate New York neighborhood where we used to live where we used to live. These are not you know, these are not travel destination, because even nobody says Hey, honey, let's hop on a plane and go to Albany, New York. I mean, it just doesn't happen. So I want to make that clear that these are not traveled. Oh, absolutely.

Steven Pesavento 13:57
Absolutely. You can you can VRBO or Airbnb, a house, it's in any city across the country, it just has to have people who are looking to come there for some reason and short term or midterm type rentals. So it sounds like what you're doing is you're just to, to kind of essentially that you're taking those same rentals and you're applying a new strategy that is then going to create a better return on investment. And again, you're investing your time or you're paying somebody else to invest their time in order to execute this strategy. And you're making those decisions on what happens is that right?

Amber Schworm 14:34
Right, and you can 2x or 3x you know that that house across the street from where we live, for example, you know, would have rented for maybe 16 $1,700 a month and we're getting close to four grand a month. Sometimes it's more than that and it's summer. So it's a whole lot more sense to have that as a short term rental we're

Glenn Schworm 14:50
we're in southern Florida we're going to the beach and are all of our portfolios actually upstate New York. So it is a we are involved with some stuff, but it's pretty passive for us and our Yeah, rentals, that's 100% passive. That's all done through a property management company. That's what we encourage people to do don't know it's a toilet or take a phone call middle night, if you think you're saving money to not pay somebody eight or 10% to manage it for you crazy. Yeah, you've got to make it passive, you'll do more, and you'll grow your wealth. And you wake up. My house isn't worth how much, huh? Yeah, that's happened. Oh, yeah.

Steven Pesavento 15:24
Yeah, I absolutely agree. I think it's a phenomenal strategy, especially for people who are in a position where you want to accelerate the money that you're making in the short term back in 2013, and 14, and 15, Iran, a number of Airbnb is, and back, then we were making 7x return. So you know, it's changed a lot since then they put a bunch of regulations in and then the market kind of became more stabilized. And now you've got a really phenomenal strategy. Now, what I like to do, as I like to clarify definitions, a lot of people would say that that is passive, I would say that's semi passive or semi active. Because I would define passive as an opportunity where you put your money to work, and you are no longer making the day to day decisions, or responsible for the results. And in a position where you're buying single family homes to rent, or single family homes to Airbnb, at some point, you're gonna have to ask that manage, which means you're gonna have to make those decisions, you're gonna have to decide, do we replace the furnace, or do we fix it, we're gonna have to decide when this person is going to get evicted, or we give them a little more time, even with the property manager in place, you still have to be the asset manager. But it's a great place to be. Because you can create a higher return if you're willing to invest that time and be willing to have those interruptions of your life to make those core decisions. And oftentimes, when you get a good team, like you guys have, you feel as if it's mostly passive, because now you have people you trust, you've got systems in place. And although you do have to make those core decisions about what happens and what's going to be the best for your investment, that's a place that you're happy to be because now you're experts, your operators, and you're active with the expertise to be able to make these decisions. I think that's a phenomenal path. What I'm curious about is, you know, we really define financial independence as the moment that your true passive income reaches your target, which is double what your living expenses are. So when did you realize that you guys made it, that you were financially independent, and that you were free to do whatever you want, whenever you want?

Amber Schworm 17:37
I know, we probably have a little bit different answers. They're probably similar. But for me, you know, we started the business together. And I mean, we were we were all in together. For me, it was probably when I when I was able to step away from the business as much and not not being a full time because my main job is being a mom, it's the one that I love the most one, I'm still involved in the business, but I was able to step away from it.

Glenn Schworm 18:00
For me, I get to there's two areas that really come to mind, Stephen one was when I don't remember the exact time that it was a little while back. But when I realized I could buy pretty much what I wanted without its things when the 1000s of dollars, I could buy them without thinking about it. Now it gets 1020 30,000 I'm gonna have more conversation about it still, by the way, I still want to have more conversation. You know, if I want to do service that if I want to be a genuine friends, the bill is 12 or 1500 bucks I think not enough just to pick that up. You know, that's, that's a cool experience to not have to go, Oh, my God is random I do I ever own. So that's the first one. But I think when it really it. For me, the passive part was probably about two years ago, when we moved to our dream home on the beach. And we that's what we talked about for years. And we came down here during COVID. And one thing led to another we're at a house is in the multi millions of dollars. And I'm like, and I grew up poor. So I'm like, I'm not going to that can't afford that's ridiculous, like in my mind had the mental block or like, I can't afford that. And literally, I called my mom and was like, This is the house I want. I'm like, Are you kidding me? And it needs work. We're in the millions of dollars. It needs work. I'm like a fixer. Okay, great. So anyways, I called my my friend who was my mortgage guy, he does all he does all of our stuff for our students and stuff. And I said, Hey, listen, so she's looking at this. If I put this much down, what's my payment look like? I remember him splitting the payment. I'm not mind you that rates are 2.85% back. Yeah, just the payment on I went? How much? That's actually doable. What hit me was that it was it was a fraction of what our passive income is from our rental portfolio. And I said, not only can we do that, we wouldn't have to sell our beautiful home in upstate New York and we could turn that into a luxury Airbnb, which we did people like, oh, you sell your house, they go, nope. They're like gonna sell the house I go, no matter of fact, my monthly income will increase because I'm going to turn that into a rental. And so all of a sudden we added probably two or 3000 a month more or maybe more on that house that we get on a monthly basis and that Ah, well, I didn't quite cover the mortgage payment here. But it's my my point, I remember putting the phone down, gone. And I had a moment that was sitting on I was with a realtor that had another house looking and I sat in the bed and said, we were like talking in this one room all this, I said, Hey, I said, I, this is weird. I've had a goal for 20. Some years. I'm about to hit it. And so we're doing to me. And she sat back and smiled and said, I'm glad to get the BB. And it was really cool. So as that's happening with the goalpost, yeah, yeah. Not gonna rethink new goals

Steven Pesavento 20:29
that way. And that's okay, because we want to set goals that we're driving for something new. But we also want to enjoy that moment of realizing that we got to a place that we didn't think was otherwise possible when we were younger. And so I see that as a phenomenal example, for all of you guys out there who are thinking, hey, I'm not sure how to get there. Let's not worry about how, you know, under the process that we talked about with the investor mindset, we really talked about naming your number, which really starts by picking your passive income number, what's your expenses, let's double them, we want to double it so that you can live better than you are today. And you're gonna have your money, keep working for you. But then the second piece of that is really creating this compelling vision, like, what does that future look like? What does it feel like? Who are you spending time with, and when we do that, we start to dream, we start to see what's possible. And the third part, which is I really think how you really set it in is you get access, you guys are big on this in the making money and flipping and teaching people about kind of getting into the rental space, you've got a community of people who are able to learn from one another, they're learning from mentors who've been down the path. And they're also learning from peers who are on it with them. And so to get access to really start to make that change, and start to understand these strategies, you want to get around other people who are doing this stuff, and start building your team, your team of advisers that are going to help get you access to these types of deals. deals like like Glen and Amber are talking about where you can be semi passive, where you can have some control, and you can make more money. And you can be in a position where you can accelerate the path by being involved in pulling some of those levers, or you can get access to other types of strategies, one we're going to talk about in a second, that are otherwise unavailable. And most people don't realize that it's possible. But if your number is $10,000, a month that you need to make passively, it's not that hard to back into that number. Realistically, most people are there and they don't even know it, all you need is $1.2 million of total assets that you could put into a note. Or you could put into a property that would kick off 10% a year, and you're living 100% passive, and most people think it needs to be another 20 years. So on that topic of opportunities and vehicles, that can be a great part of what that portfolio or that strategy would be. Let's talk a little bit about notes. Because when I was flipping houses, I started negative $40,000 in the hole and, you know, use my credit card to buy marketing in order to build my business. And then I borrowed money from from individuals, and I paid them as a private lender. So I'd love it if you guys could talk a little bit about that process, because I know you both lend money out as a lender and you also borrow money. So let's talk a little bit about what people need to think about when it comes to passive investing through lending. And what are some of the ways that people can start to get familiar with this vehicle, so they can understand if it should be something that fits into their wealth plan?

Amber Schworm 23:49
You're so right, Steven, because people don't know or don't always use what's right in front of them. So are our first two houses we got like no doc loans, because those were a thing back then. But then those like went away in 2007 2008. Like they were just gone by by contract, we had to like find money. So I was working out with one of my girlfriends, and we were like, hey, you know, you have a really nice house. Do you have equity in it? And she's like, Yeah, you know, we've done a lot of sweat equity, and we probably have over 100 grand equity in it. And we're like, you know, do you have a home equity loan? So her home equity loan, long story short was over $100,000 I think she was paying what three or 4% at the time or not 4% at the time. And back then I believe if my numbers are right, I think it was like 14% We were paying for your paycheck. Now but yeah, we're about 10 now but at that time, we were paying about 14% So she used she borrowed money to make money for herself actively and put her kids through private school using that because she know that to this day.

Glenn Schworm 24:49
Yeah, the spread the spread on that was you know, we she paid for we paid her 14 So she's making 10% on Monday that wasn't her money. So that's, you know, people think they don't have any problems the camera said and you said it's right there. Yeah, we We, you know, we have about, well, we had about 5 million, but we actually weren't, we lost one to COVID, one of our investors passed away. But we have people been with us for well over a decade that are just average everyday folks that have, you know, 100 grand couple 100 grand to invest. And that's directed IRAs. Yeah, we help them put it into self directed IRAs, if they're in an IRA vehicle, so they can, I'm sure your audience knows most of they should know about self directed IRAs, right. So they can move that money and they can direct where they want their money to go, you have to use a fiduciary company for that. But that's we help our investors get set up with that. But you know, then we're paying our, our investors 10%, on the money that we borrow, we use that for our flips. And that's what we do. We're always looking for more investors. So whenever they want to reach out to us, we're always open to have that conversation. We don't take anybody but we do like to have conversation with good people. And so it's, that's a way you can you know, if you want to borrow money to do your business, that's, that's that side.

Steven Pesavento 25:51
So let's talk about how do as an investor, if I'm thinking, Hey, I've got 50,000, or I've got $100,000. And I would love to lend that out? How do I structure it so that I can make sure that I'm protected? And how do I structure it so I make sure I can get my money back and get the best return that's available, kind of talk us through that from the perspective of an investor.

Glenn Schworm 26:18
So we so we all are on APR, so our APR is temper SAS whatever percent APR on the money for loans, we borrow it, right. And for protection, the lender gets a note and a mortgage that's filed with the state, you know, we're the county rather, so they're protected with a mortgage, just like a bank is protected. But they also have insurance for they're also named as additional insured. So of a catastrophic event happens if a fire happens or something major happens, they're fully covered in that regard as well. You know, sometimes it's depending on the structure that you have, you know, the reason that they get a little more money is because it's a little riskier, right. It's you're you're investing with now we're not arresting them 1000 bills, so we're not really at risk anymore. But people that are new, these want to lend to just, I would make sure the person that you're working with has some experience, you know, if they're brand new, and you want to back them just be helpful, if you knew a little bit about the industry, right? It'd be helpful if you knew, because if anything ever went south, you could take over that house, you know, you have to foreclose on it. But you could take over that house, and you could finish it off yourself and get your money back out of it. Right. So that's, it'll be helpful if you knew something about if you're going to lend money to a new person. But if you want to find an experienced flipper, that's how we do because banks don't loan money to us like we bank, it was bigger to our banks don't loan money to us. They don't like to loan money on flips.

Amber Schworm 27:33
Oh, hey, thanks for a pain in the butt. Yeah, but

Glenn Schworm 27:37
they still want loan can we borrow, we'll borrow the renovation money and or I'm sorry, the purchase money and the renovation money just to keep it we have. Like I said, I think last year we did 101 deals or 220 21. This year, I think we're around 80 deals this year, something like that. So we have a lot of buying that runs through our company, right? So and our investors always bothers to stay invested here it takes the more you invest and get invested. So we give them a statement every month, you know, we treat like a real investment garden. And we build such a trust factor with our with our investors over the years, it's been very lucrative. So it's, when we're done, we wire the money back to him plus their interest. And when we go in that's exactly

Steven Pesavento 28:13
that's exactly it. So that's really powerful. So one thing, people want to make sure that they're gonna get a note and a mortgage that's going to be filed with title. So that's actually going to secure that loan to the property, meaning if they sell the property, the money's got to come out to pay the loan. The other thing you mentioned was insurance. That's huge experience and track record. Absolutely critical. I personally would recommend not investing with anybody who's new, right? Understandably, as we're teaching people, and knowing that everyone's got to start at some point at some place. This is a good reason. I think that new people should partner with experience people and give up the upside. In order to get that experience. That's how I got started. That's I think a lot of people do. I really believe that the person who's borrowing the money needs to have some cash, they need to be able to make sure that they have enough money to run the deal. Now that can be hard for people who are smaller or less experience. But that's why investing with a group like yours, or with a large company that is putting these notes together. And doing a lot of this due diligence can be good. But I also personally look for a personal guarantee. Not everybody is going to be interested in giving one. What a personal guarantee does is it actually ties that person's personal wealth or assets to the loan, essentially saying if the deal goes bad, as the individual borrowing the money, they're going to personally pay it back and they're liable for it. Now, very experienced operators and investors will say, I'm not interested in doing a personal guarantee. I have so many investors that want what I'm offering and they are willing to take the risk so it's not always available, but You especially want to get that if the person has Maybe less experienced, but they actually have some assets. Those are things you want to think about when doing notes. For

Glenn Schworm 30:06
sure. And we on the other side of it, Steven is, you know, we we also do some lending, right? So we do some lending to people and we have a brand new show that just hit your listener never want to see it or watch it. It's called the Big flipping break, where we actually took a young couple pastor and his wife and help them through, we coach them over, we gave them the money for the whole, we gave them the whole all the money for the whole deal. And then like you said, we potentially partner with them, we split the profit at the end of the deal. It's an eight episode show that takes them through, they're not big, it's not, you know, HGTV just kind of glorified a lot of acting going on there. This is real, real hardcore stuff. But we, it turned out really good. Yeah, that's what we do now. So we lend out money to investors. And you know, I, they that was their first deal. Now, we now the the big flipping break was now we are their event, they prove themselves to us, we got to watch for the trenches, while we were with them. And now they've done they're on their third 123 Fourth deals since then. And we now are their vet. So they have that because I know when you have when you're an investor, you know, when you're a flipper or a real estate investor, you have access to capital, you can move, like, that's how we moved so fast. We moved it so many deals that we had, we had access to our capital, we started building that reputation. And people started trust us. And this has been, you know, 15 years ago, and it's still to this day, people still haven't invested I've never met, they reached out to me. They just over the phone. They said we read about you, we saw your show, we saw a book or whatever it might be like you taking investors and sometimes we are sometimes we're not, but it's like, you know, yeah, no, let's have that conversation. So it's, yeah, this opacity outside is really great. You can you can secure yourself in that little money out. And that's a great, it's a great way to build income. And you know, again, I go back to if you flip the couple house yourself or have some rentals, maybe just kind of understand the game. You feel more secure and all nervous and jerky about your money. And you're like, Wait, that house was like crap. Well, of course it does. This is part of the bad kid. How does this work? So yeah,

Steven Pesavento 32:01
yeah, you started understanding that it looks bad, that's great. This is something to be excited about instead of something to poopoo. I know from being a syndicator, and raising 10s of millions of dollars for these deals. Sometimes the worst looking deals are the ones that people are most hesitant about. And I'm like, the most money year, bro, like, this is money. It's not pretty, but we're gonna make it pretty. But this has been super fun. It's great to, to hang out with the guys here and be able to share, you know, for the listeners, really understand where you're at, in that process, make multiply or manage. Focus on making money. If you're in that position, there's some great strategies take advantage of mentors, like Glen and Amber who are experienced in this and can help show you the ropes on doing that. If you're in a position, you want to start building some semi passive income, and owning your own and managing your own stuff. And putting managers in place you can do that. Or if you want to go fully passive, we talked about how you can actually start lending money to people that you know, or potentially people that you don't know people that are experts in the space. So this has been phenomenal. We appreciate you guys coming on. Where can people find out more about you hear about the books and some of the other great things you guys have put together? And how can they get in touch?

Amber Schworm 33:20
Yep, so the best way is to go to Glen and amber.com. We do have a lot going on with books and shows our own podcast and links, all of our social media and all that there's a link to go to the home flipping workshop on there. So that's probably the best way to reach out to Glen and amber.com. And Glen has to

Steven Pesavento 33:39
this has been a pleasure. As you guys are thinking about it. Answer that question. Where are you at along the process and go take some action, learn a new skill, join a community, make an investment and start building that path towards financial independence. Thanks so much, guys. And we'll see you next time. Thanks. Thank you.

Steven Pesavento 34:02
Today's episode is sponsored by VonFinch Capital. If you're interested in investing alongside me in the same type of real estate opportunities that I personally invest in, then head over to VonFinch Capital and join their private investor network. You can do so at vonfinch.com/invest. Join me on that next deal. I look forward to seeing you on the inside.

Steven Pesavento 34:22
You're listening to the Investor Mindset podcast. If you liked what you heard, make sure to rate reviews, subscribe and share with a friend. Head over to investormindset.com to join the insider Club, where we share tools and strategies from the top investors and entrepreneurs and how to take it to the next level.

NEXT EPISODE:

FEATURED EPISODES

Learn from the smartest minds in business & investing.

lines
Rod Khleif

Rod Khleif

Director at The Lifetime CashFlow Academy, Best Selling Author & High Performance Coach
Kathy Fettke

Kathy Fettke

Co-CEO of Real Wealth Network, Host of the Real Wealth Show & author of Retire Rich with Rentals
Chris Voss

Chris Voss

World's #1 Negotiation Coach, Bestselling Author "Never Split The Difference"
Brandon Turner

Brandon Turner

Cohost of BiggerPockets Podcast, Author and Managing Member of Open Door Capital LLC
David Allen

David Allen

Leading authority in organizational and personal productivity, Author of Getting Things Done
Joes Fairless

Joe Fairless

Host of Best Real Estate Investing Advice Ever show, Co-Founder of Ashcroft Capital

About The Show

What separates those who succeed from failures? Join thousands of listeners who learn the mindset of real estate investing and how to create multiple income streams. From busy professionals interested in passive investing or the real estate entrepreneurs who are primed to scale all come together to learn the mindset of creating financial and time freedom.

The Investor Mindset is a mix of interviews, and solo shows from Steven you’re not going to want to miss. Hit subscribe, and get ready to change your life.

Steven Pesavento

YOUR HOST:

Steven Pesavento

The Investor Mindset Podcast & President VonFinch Capital

Steven Pesavento has always been obsessed with understanding how we can think better, how we can be better and how we can do better. He is an active real estate investor who curates Commercial Real Estate Investments for clients.

5 principles of success

The Top 5 Lessons Learned From High Performing Real Estate Investors

I’ve interviewed almost 100 guests on The Investor Mindset Podcast. They all give their best advice. But what’s THE best advice, and what does it mean for us?