Commercial Real Estate Podcast

JF1375: A Syndicator Just Found an Apartment Deal?Now What? Part 3 of 3: How to Secure Commitments From Investors with Joe and Theo

Written by Joe Fairless | Jun 8, 2018 4:00:00 AM

Time for part three of the Best Ever Series on what to do after finding a deal as an apartment syndicator. Today’s episode is focused on how to secure commitments from your investors. If you enjoyed today’s episode remember to subscribe in iTunes and leave us a review!

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Mentioned in this episode:

How to Avoid the Shiny Object Syndrome in Real Estate Investing

Joe’s interview with Ash Patel about tax abatement

7-Steps to Presenting a New Apartment Deal to Your Private Investors

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TRANSCRIPTION

Joe Fairless: Best Ever listeners, how are you doing? Welcome to the best real estate investing advice ever show. I’m Joe Fairless, and this is the world’s longest-running daily real estate investing podcast. We only talk about the best advice ever, we don’t get into any of that fluffy stuff.

We’ve got Follow Along Friday. I’m with Theo Hicks, as usual on Follow Along Friday… Part three of three from our series of “Okay, you’ve got an apartment community. Now what?” We’re gonna be talking about securing investment commitments. How do we wanna approach our call?

Theo Hicks: As you mentioned, this is part three. In part one we talked about due diligence. In part two we talked about everything surrounding securing financing from a lender, and part three, which you will be doing all three of these simultaneously, is securing the commitments from your actual investors.

We’ve broken this into five different steps for the general process that you want to follow once you have a deal under contract, to closing, to get all the money you need to actually close on the deal. So maybe at first we should explain what [unintelligible [00:01:58].21] you’re getting the money from the investors to cover all the expenses related to closing on the deal. That would be the purchase price to the property, so the loan associated with that, any fees that you as a syndicator are charging, closing costs, financing fees, any due diligence costs that we mentioned before, and then any costs associated with the attorneys, which we’ll get into in step five of the five-step process.

Joe Fairless: And the cushion for the operating budget too, right?

Theo Hicks: Yes, the operating fund and the reserves fund.

Joe Fairless: That actually came up yesterday… I was speaking to a recent college graduate; he’s a finance major, and he does underwriting for a company… I don’t know if it’s real estate-related; it’s an insurance company. He was just asking me about the money that is required for closing, and he said “Okay, so you just need to raise the money for the down payment…” and that could be a fatal flaw, or a fatal mistake for a real estate investor and a syndicator, where we look at how much we need for the down payment and we bring that money to the table, but lo and behold, you need an operating budget, you need closing costs, you need a contingency fund — well, an operating budget is the contingency fund. You’ll need money for — maybe you have to pay the insurance in advance. There’s all sorts of things and costs that need to be allocated, so there’s a lot of things to consider there.

Theo Hicks: Yeah, definitely. And maybe someday we’ll do a deep dive into the underwriting process, because that’s when you’ll wanna account for all of those various things you’ve just mentioned.

So the first step after you have a deal under contract is you wanna create some sort of investment summary package for your investors. I’m assuming if you’re listening you’re familiar with real estate. The investment summary is very similar to the offering memorandum that you would see when a broker is listing a deal. It’s not the exact same, but it’s got kind of a similar purpose. In essence, they’re trying to explain the deal to the potential buyers.

For your investment summary, you’re trying to explain the deal to your investors, so high-level you’re gonna have things like an executive summary where you summarize everything that I’m about to go over that’s supposed to be in there. You’ll wanna have the investment highlights, so you’ll kind of hit on the main, key highlights of the deal, so things like “What are the returns going to be? How much was the down payment required? What’s the upside potential (if you’re a value-add investor)? What do you plan on doing to the property and how much do you plan on getting in rental premiums?”, and things like that. So anything that you want to get across right away to your investors.

Joe Fairless: Just a quick note on that… You mentioned what’s the down payment required – we put what’s the total equity required for the deal, so that they know what the total equity is, too.

Theo Hicks: Exactly. And actually, a key aspect of this is the sample distribution for an example investment of $100,000 or a million dollars, just so they can see exactly what they’re projected to make, versus just seeing the percentages in the equity investment.

Also, you wanna include a section on the property description, so kind of an overall snapshot of when the property was built, how many units is it, who pays the utilities, what are the amenities… And then you also wanna include what the various forward plans are. That’s something that would be very similar to what you’d find in the operating memorandum, just with your own spin on it.

And the meat of it is gonna be your financial analysis. That’s where you put your summarized underwriting data for your investors to see. You’re gonna have a five-year proforma, so your projected five-year income and expenses, and then obviously you’ll wanna have your line items at the bottom for the different assumptions that you made. So you’ll have a section below that saying “I made the assumption of 5% loss to lease, and here’s the reason why…”

We also wanna have it broken out by the rental comps as well, because that’s what you’re using to determine the rental premiums. You wanna have a section where you show them the comps that you actually used and the rents at those comps, remembering that you want to use comps that are renovated, whether the utilities of the property are paid by the same person, that they’re actually by each other and not one is in a really nice college area and the other one is in a not nice area…

Then you also want to include a market overview. This is where you have things like the demographics, things about the population, the economy, businesses, any type of new developments… If a new highway is being constructed by your property, if there’s some sort of new mass of entertainment hub being built that’s 100 million dollars here… Things that reinforce the strength of the actual market.

Then as you become more and more experiences, what you wanna do — well, you do this regardless, but this section will pop more if you’re more experienced… You wanna have case studies. For each of the deals you’ve done, you wanna show them what the results actually were for those deals, or if they’re ongoing, you can still provide what those results are. That’s something that’s powerful, because it shows the investors that what you’re doing – you’ve done this before, and here are the results that you’ve gotten, as opposed to saying “Hey, this is what I plan on doing here” and just leaving it at that.

And then lastly, you’ll wanna have information on the actual team – you, your property management company, if you’ve got a business partner with you or a consultant… Or as we talked about last week, if you need to have someone who has that experience that you don’t have, this is where you want to discuss their background.

I know I went over that really quickly, but that’s the main skeleton of the investment summary, investment package. I know for you, Joe, you’ve had a different approach for what you actually do with this. The next step is sending out an e-mail telling the investors that you have a new deal… But I know in the past you have not included this in the e-mail. You’ve said “If you’re interested in a more detailed analysis of this, e-mail me.” I don’t know if you might be changing that up here in the future.

Joe Fairless: Yes. When I started on my early deals – actually, all my deals up until the one I’m about to send out today or tomorrow to my group of investors, depending on when the purchase and sale agreement gets signed… I have sent the e-mail describing the opportunity to the investors, people who I have a pre-existing relationship with, who are accredited, and have expressed interest in partnering up.

That e-mails lists out some high-level selling points of the opportunity, and all other deals up to today – but today moving forward it will change – I have said “Reply to this e-mail and I will send you the investment package to review.” Not an efficient way of doing it. The efficient way is simply having a link in the e-mail, so that they can download it. However, I did it intentionally, because then I would know who is expressing interest and I would be able to personally follow up with him or her afterwards… So that I know who’s looking at it, and if I don’t hear back from them, then I can follow up.

Well, what’s taken place is that I don’t need the follow-up anymore, because there’s so much demand for the deals… So now, I am going to include a link to the deal, and they can download it, and I say “Okay, whenever you’re ready to commit, feel free to reply, and if there’s a spot available, then I’ll confirm you’re in, pending your review and execution of the legal documents and funding.”

The former approach where you don’t have the link to download is what I recommend for everyone starting out, until you have demand so great where you don’t need to follow-up with your investors. You just simply send something out, and it gets funded. At the beginning, I would send something out and I would personally e-mail each person who I didn’t hear from, and I’d scrape and claw until I made it happen… And that’s what we have to do when we’re starting out. But as you build a track record, as you get more experience and as you perform and as your network grows, then you can evolve to the other approach.

Theo Hicks: That’s great advice. I could imagine if you have 500 people responding, doing 500 individual e-mails would be pretty tough.

Joe Fairless: The last deal was the straw that broke the camel’s back… We raised, in total, on the 890 units we have under contract – 23 million dollars, and we did that in about seven days… That was unnecessarily labor-intensive on our end, so we decided to change that approach from here on out.

Theo Hicks: I bet. So as Joe kind of already alluded to, the next step – this is kind of all happening at the same time… Creating the investment documentation — well, I guess you have to have it done if you’re gonna send it to them… The e-mail to your investor database. So you’ve got your listed investors, you’ve got your new deal – you’ve gotta let them know you’ve got this new deal going under contract.

The process for this e-mail kind of depends on what you wanna do and the type of investors that you have… But you want to obviously tell them that you have a new deal and have some sort of main point about the deal that you wanna get across that you can put kind of front and center as your subject line… Instead of just saying “A new deal from Theo Hicks”, you can say “New deal that we’re purchasing at 30% below market value”, or “New deal with a substantial value-add opportunity”, things like that. That’s why creating this investment package will help you.

You also want to include some information about who’s going to be managing this property… Nothing too lengthy. For each of these points I’m mentioning, there’s a paragraph each. But the main point that you wanna get across is that you are going to have a conference call where you’re gonna go over the deal in more details, and include the information for that conference call, which will be what I talk about in the next step.

Then also some housekeeping items, like what’s the minimum and maximum investments, what’s the funding schedule, so what are the dates where they can officially fund the deal, when’s the deal gonna actually close, and things like that.

I think I hit on all of those points… Did I miss anything, Joe?

Joe Fairless: A couple clarification points. One is you mentioned putting in who’s managing the deal, and I think you mentioned the main thing is you wanna put the conference call information… In my opinion, the main thing you wanna do prior to constructing the e-mail is think about what are the two selling points about this deal. Top two reasons why you’re investing in the deal – I assume you’re investing your own money in the deal; if not, top two reasons why you’re presenting this opportunity… And highlight those.

The operations might not be one of the two. I don’t put who’s managing the deal in the e-mails unless for some reason it is one of the top two reasons for why we’re purchasing the asset. For example, it might be off-market and there might be room to renovate, so those address both the conservative nature of the deal, off-market… I’m gonna assume that you’re getting it at a price that is lower – it might be slightly, but lower than what you’d get at the market… And then a lot of room to renovate – that’s the upside. So you’re addressing both the conservative nature of the deal, but then also the upside to the deal.

If you talk about the management – well, then that’s great; that could address the conservative nature of the deal, if you don’t have another conservative nature of the deal that is above and beyond that aspect.

So the main thing prior too is just think about what are the top two reasons you’re buying the deal, and highlight those… Because you’re providing them an investment package that has all the details on the deal, which includes who’s managing the deal and includes all of the other stuff about the deal that you described in the first step… And that is, to me, the most important thing, because when we read something, when we watch a video, when we talk to someone, we come away with 1-2 takeaways. If we’re really smart, we’ll come away with lots, but over time, when you think back to that conversation, you’re still gonna come away with 1-2 takeaways, therefore it’s important to reinforce the 1-2 takeaways you want your investors to have in that initial e-mail.

Theo Hicks: There you go. That can also include a point about the market, as I kind of mentioned in the investment summary. If there’s a massive, new development occurring, a massive new retail development, you can also include that to kind of reinforce the deal.

So we wanna send that out, and then as we mentioned, you  want to have a conference call where you’re presenting the deal in more details to your investors, and you’re able to answer the questions that they have. We actually have a blog post already – it’s “Seven steps to presenting a new apartment deal to your private investors.” Make sure you definitely check that out; it’s a very long, detailed blog post on the mindset and the thought process behind how to prepare and how to execute on the actual call. It is a call – what we do is a call, and we did have a question from the group, from Dan, who asked why do we do a conference call, as opposed to a visual webinar?

Joe Fairless: You can do either one. I do a conference call because it is easier for me, quite frankly… And it works. I’m of the philosophy “If it ain’t broke, don’t fix it.” We do a call because we’re able to present what we need to present, we’re able to do a Q&A session at the end, where investors are able to ask questions; then we answer those questions, and then we record that call and we send it out afterwards.

I give them the presentation in advance, and they can scroll through as much as they’d like. It might be more bells and whistles for a video thing, but I don’t need it, and I don’t wanna introduce something if it’s not going to provide additional business value, just because there’s technology for me to do so.

Theo Hicks: Yeah. So you kind of already mentioned what the actual process of the call is, but just to go in a little bit more detail – one of your focuses should be capital preservation. I know that a story that you like to use, Joe, is the five dollar story about how we have a stronger reaction to losing five dollars than we do to actually gaining five dollars. So people want to know that their money is gonna be in good hands… And I know how you guys do it is you guys address that capital preservation by talking about the deal, the market and the team.

So you’ll explain, with evidence, why you’re gonna have the ability to preserve their capital for sure, as well as give them a return based off of the deal… So, as you mentioned before, find those main selling points – is it a conservatively underwritten deal, below market value, the opportunity to add value…? For the market, is there a population surge, a job growth surge? Job diversity is a big thing that we like – is no industry more than 20%-25% of the overall jobs in the market?

Then for the team, talk about your team, talk about your company and how many deals you’ve successfully completed, talk about the property management company who’s managing it and how they have a proven track record in this market, doing these particular types of deals… So you kind of wanna take those three points and tie them all together when you are outlining and explaining to your investors why you’re going to preserve their capital.

Then as you mentioned, if you wanna record this so that anyone who missed the conference call or couldn’t make it would still be able to listen to the information presented. A great service for that is FreeConferenceCall.com. You can set up your conference call on there, so you can get your call-in number and the password, and then it will automatically record it for you, and you can just download that and send out another e-mail after the call is over, kind of again reiterating those two points that Joe was talking about, as well as providing a link to the actual audio.

Once you do that, then it’s time to secure commitments. I know this entire process is in order to secure commitments, but I’m saying this is when you actually — you have the investors commit to investing in the deal. Joe, I know for you, when you start off, this approach was different than it is now… As you said, there’s a high demand for the deal, so if you wanna talk about maybe what you did starting out…? That might be more relevant to the listeners, and then we can talk about what you do now, which is, I guess, they come to you.

Joe Fairless: You mean securing commitments starting out, for my first couple deals…? I would send an e-mail out to not a lot of people, and then I would start following up with them. And I’ve mentioned this before, one deal was in Houston, early on, and I didn’t have enough investors for it, so I got on LinkedIn and I just started messaging people who I was connected with who were in Houston, and just started sending them all messages, a lot of them. There are a lot of people I’m connected to in Houston, I found out… None of them invested; they should have, but none of them invested… But I reconnected that way. It was just being really scrappy in following up.

One thing I did anytime I’d follow up, after I’d sent out the initial e-mail – and this is important – is that I’d always follow up with something that was new about the deal, that I didn’t tell them previously. I was not following up saying “Hey, did you get my e-mail? What are your thoughts?” I would follow up and I’d say “Quick update. First off, I hope you’re doing well. Secondly, this deal actually appraised for $500,000 more than what we have under contract. Just wanted to let you know that.” That’s much more impactful than being someone who’s following up and asking people “Hey, did you get my e-mail?” or “What are your thoughts?”

Providing them with new and positive information can be really helpful, because everyone has different things that resonate with him/her, and sometimes it might be more of an appraisal equity (between the appraisal and the purchase price), other times it might be the business plan, other times it might be some new information about jobs in the submarket or the market that you’re in… There’s all sorts of things you can do. Sometimes it’s just “Hey, due diligence came back clean, minus some minor things which we have a budget allocated for.” It could be as simple as that.

Theo Hicks: Yeah, that’s a good point. Just to give you an idea of the timeline of all of this, when should people target to have the deal fully funded by?

Joe Fairless: 30 days prior to closing you should have all the funds in the account, locked in… That way there’s no unforeseen challenges with the equity. That has not happened on every one of our deals, because an investor might lose his/her job, they might have a job change, they might have a larger tax bill… That happened on a recent deal for us – investors had a larger than expected tax bill, so they had to reallocate their investment money into paying taxes… So then we brought in reserve investors.

If you have everything taken into account and funded 30 days prior to your scheduled close, then you have enough lead time. That’s in a perfect world though; we don’t live in a perfect world. There will be things that come up.

On my first couple deals it was up to closing when I was still scrambling to get the equity. Now we’ve got a completely different situation.

Theo Hicks: So we’ve kind of already touched on this slightly, but once you are fully funded – let’s say you’re fully funded and an investor says “I wanna invest $100,000 in this deal”, what do you say to that person?

Joe Fairless: Sounds good, I appreciate it. We are fully funded at this moment, but if something changes with someone who’s currently committed, I’ll let you know. I have taken into account when you confirmed your investment amount, and I do it based on the order in which the reserves are received. Someone who commits 100k after it’s all funded, they’re first in line. The next person, they do 50k, and they’re second in line. It doesn’t matter the amount, it just a matter of the order in which they came after it was fully funded.

Theo Hicks: And then, just to give people an idea – is there a certain percentage of the fund that you wanna have in reserve? I understand that, obviously, if you get above that point you’re not gonna tell people “We’re done!” Some people will be like “Alright, I want to have an additional 50% in verbal commitments, just so I know that if something were to happen, I have that backup”, just for psychological sake.

Joe Fairless: So just to make the distinction between before you have a deal, and you start looking for deals – you certainly should have at least 30% from investors who have said “Yeah, I’d be interested in investing with you.” That would be a higher percentage before you have the deal. Once you have the deal and you’ve got commitments on that particular deal, then when you’re starting out, 30% is certainly a safety net… But once you get more experienced, I’d say 10% more equity in reserves than what is — 10% of whatever you need should be on top for reserves, and let those investors know “Hey, already committed, but you’re next in line.”

Theo Hicks: Alright, perfect. The final step in order to make these commitments official – because again, at this point they’re essentially e-mailing you and saying “Hey, I commit to this much”, but to make them official, this is where you have to have them sign some documentation… For this, you’re gonna need a securities attorney and a real estate attorney. You want both of those to be local, in the state that you are investing in. It has to be in the state that the apartment is located in… And there are five documents that you are gonna wanna have created, reviewed by the attorney, and then have your investors sign.

The first one is the private placement memorandum. This is a big document that basically goes over all the risks of the deal, as well as explains in detail how the deal and the partnership is structured. That’s also known as a PPM; if you ever hear someone saying PPM, that’s what they’re referring to.

There’s also the operating agreement, which is the formation of the company or the LLC or whatever you’re gonna use that actually purchases the asset. There’s also a subscription agreement that basically describes what the person invested, but it’s in the form of shares of the company. So let’s say I want to invest 50k – I’ll get 50k shares of that company, unless a share is worth more than a dollar.

Then if you are only accepting accredited investors, you’ll need to have that — correct me if I’m wrong here, Joe, but that’s where you need the accredited investor qualified form, where they state “I am an accredited investor.”

And finally, the fifth one, which is kind of optional, but it will be very helpful to you, which is the ACH application, or the direct deposit application. This has the investor fill out their bank account information for where they want their distributions sent, so that you’re not sending out 100 different checks every single month.

Those are the five main documents, again, created by – depending on the document – a real estate or securities attorney that’s local to the state. These will just be sent to investors and they’ll fill it out to finalize their commitments.

Joe Fairless: And just a point if clarification – the securities attorney does not need to be local to the state, but the real estate attorney needs to be in the state that you’re buying the property in. There’s some laws that they need to be familiar with that other attorneys outside of the state wouldn’t be.

Theo Hicks: Perfect. So just to summarize, the five steps for the entire process of securing commitments from the investors – first, it starts off by making that investment summary document. Second is sending out an e-mail to your investor database that highlights the two main points of the deal, as well as explaining the information for the conference call. Then you’re gonna prepare and execute on your conference call, and then send the recording to your investors after the fact.

Then you’re gonna secure commitments, which if you’re starting out involves some hustle (as you’ve explained), and as you get more and more experienced, it’ll be coming to you. As you said, on one of your recent deals you funded the deal in seven days. Then finally you’re going to prepare and send out the required documentation to make those commitments official. That aspect of it – make sure that you check out the first two parts as well. For part one on due diligence, and part two on the financing, so you have a complete picture of what all occurs from contract to close.

So let’s just transition here – do you have any updates or observations?

Joe Fairless: Yeah, two quick things. One on tax abatement… My good friend Ash, I interviewed him – and this is actually how I got to know him… Episode 477, Ash Patel. He told me recently about a deal that he was going to purchase, it was a commercial deal. Everything looked good, until right before closing, the taxes weren’t what he thought they were; I don’t remember exactly why there was a misunderstanding there… But he then went to the town and talked to the officials there, and he actually ended up getting a tax abatement for 10 years… Because he buys distressed commercial properties, so he was gonna be putting money into the property and elevating the property, and consequently, the community.

That is something I suggest everyone do who’s buying a commercial property – it doesn’t hurt to try, and the answer is yes until you’re told no… So I suggest going to your local point person for that.

He told me that, so obviously we tried to go do that for our apartment communities, and not so much… It didn’t work out, and the reason why, 1) for Dallas they said it needed to be new development, so it needed to create a new tax base, and in Tarrant County in Forth Worth… The two things for Tarrant County was 1) it had to be commercial and residential, so mixed use, which we don’t have; we just have residential. And it also needed to be 20% low-income housing allocation.

It’s worth to exercise though, because let’s say you get that tax abatement and you sell in five years – that’s very desirable for the new buyer to have five years of a tax abatement. And if you don’t sell, then great, you get to enjoy that all yourself.

So that’s one thing I wanted to mention… And on a completely separate note, I’ve got a lot of messages about how the sound is terrible, and I am so sorry about that, with the keyboard typing… I get multiple messages a day, so I’m mentioning this because starting June 18th, or perhaps 19th – I forget which day – all episodes after that will be fixed. The problem was keyboard typing – I mentioned that earlier, on a previous episode… I didn’t know about it, because I don’t listen to the episodes, since I’m experiencing the episodes, and unfortunately we didn’t have a process in place internally where the team notified me about it…

Anyway, so we’ve got about 30 or so days of that, previously. We’ve got about 15 days I think, and then I think we’ve got another 10 days or so where I was told it sounds like I’ve got squirrels in my attic constantly during the interview. So I apologize for that… It’s sickening to me, because we put so much time in this, but it will be resolved. I’ve got a silent keyboard, and I appreciate you sticking through the bad-sounding episodes.

There might be some sprinkled in in the way future, because I record Sunday episodes and they are recorded way in advance… But it will be 95% addressed on all episodes moving forward, starting June 18th or 19th.

Theo Hicks: Perfect. And the tax abatement thing – that’s huge, because the real estate taxes are such a high percentage of your expense… If you’re gonna reduce that, and also have it after you sell, too – it’s also gonna be a huge selling point for that.

Before we wrap up, I wanted to mention we have a question about the conference call. If you do a webinar, you can use Zoom; that’s a good software to use for the webinar version. And again, for the audio version it’s FreeConferenceCall.com.

Make sure you guys join the Best Ever Community on Facebook. That’s bestevercommunity.com, where we post our question of the week. We had a battle in the comments section last week; we thought it was gonna be a blow-out, because the question was “What’s more important to success, hustle or knowledge?” We both agreed that it was hustle, and we thought “Everyone will say hustle, too”, but it wasn’t… It was actually a split, and there were some good arguments on both sides, so that was fun to watch and to read.

Hopefully, this week’s question is just as entertaining and informative as well. This question was actually inspired from someone from the community, his name is Darren… So thank you for inspiring this question… And it was about two deals that he’s looking at, and he wants to know “How do you conquer FOMO or fear of missing out?” and the example that he used is let’s say you’ve got two deals, and they’re a little bit off for matching your exact investment criteria. How do you move on and get over the fear of missing out on the opportunity, rather than buying it because it’s almost matching your criteria, but not exactly? Or do you just buy it, and ignore the fear of missing out altogether?”

I think that’ll spark some good conversation on the Facebook Group. I don’t think I have an answer right now, but when I think of one, I’ll put my comment on there.

Joe Fairless: I have an answer, and it’s two parts. One, you’ll want to assess your criteria and see how conservative or aggressive that is to begin with, because we need to know what your baseline is… And let’s just assume that it is where it should be – then if it is where it should be, then my suggestion is the second thing to do is listen to interviews of people who I’ve interviewed who lost a whole lot of money on deals, and that will remedy your fear of missing out, because you don’t want to be in that situation.

If you’re in the first part, if you’re underwriting is too conservative and perhaps have a couple people look at your underwriting and give their opinions, people who are doing this (whatever you’re doing) and they find it’s too conservative, then update your underwriting. Go buy that deal, if it falls in line with a still conservative deal. First, do a self assessment of what your criteria is, have a couple people look at it and ask them, people who are in the business and doing well, and second, if it still is too aggressive to purchase, then simply go listen to some interviews, people who have lost a lot of money, and then you won’t feel as bad for missing out.

Theo Hicks: Yeah, one interview that we wrote blog post on… This person was actually included in the first Best Ever Book. If you go to the website and you use the search tab, just type in “shiny object.” The blog post is “How to avoid shiny object syndrome.” Brie Schmidt explains how she fell for shiny objects at one point and lost some money on a deal that didn’t meet her investment criteria, and she kind of talks about some similar strategies to what Joe just explained on how to avoid the shiny object syndrome.

Joe Fairless: Cool. That’s at thebesteverblog.com.

Theo Hicks: Yes. Alright, and lastly, before we get out of here, make sure you guys go to iTunes and subscribe to the show and leave a review. It’s very, very helpful, as Joe mentioned; it helped us catch the typing aspect… But it also helps us to improve in other ways, as well, and also tells us about what we’re doing right, so we can do more of it.
This week’s review comes from Ellie Mac. The review title is “Extremely helpful”, and they said:

“I am new to real estate investing. Joe goes out of his way not only on the podcast, but through his website and blog to make entry into real estate easy for the average person. Thank you.”

Joe Fairless: Well, Ellie, thank you for that comment. You are not the average person, because you are taking the initiative to listen, so you’re selling yourself short there… But I’m really grateful for that comment, and thank you for listening and thank you for taking the time out of your day to write that.

Also, Theo, I believe we had two questions that were asked, and you probably sent an e-mail to those individuals saying we’d address them on the show… We don’t have time today, so those two individuals who e-mailed us and you said we’d address it – we’ll get to those questions on a future episode, so stay tuned.

Thanks a lot, everyone. I hope you have a best ever day, and we’ll talk to you tomorrow.