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Real estate has provided us the ability to do what matters to us. Right? Yeah. You know, to be able to, you know, my neighbor walks over and says, You know what, my man, my family’s really hurting right now. I wanna be able to fill that need. I wanna be able to help people. Real estate gives me the ability to do that.
Yeah. And for our listeners, our mission at Par Real Estate is to help 10,000 people create financial freedom with real estate. Meaning not financial freedom to do nothing but financial freedom to fulfill your mission, cuz I believe everybody’s been called to do something. What would your life look like if you could replace all of your working?
With simple and conservative investments that could do it for you. Over the last 13 years, we’ve helped thousands of clients transact over half a billion dollars in simple and conservative real estate transactions, allowing them to begin replacing their work income with real estate investment income.
Each week we’ll be pulling back the curtain on the ins and outs of real time retirement based real estate transactions that will transform your financial future even if you have no real estate experience. This is replace your income with me, Kevin Clayson and Steve Earl. All right, everybody will welcome to replace your income with me, Kevin Clayson and the one of the only.
Steve Earl, who’s not here today because I have a very special guest for you, and this is a guy who I’m written we would’ve had Steve on, but, but we only have two microphones, so I’m not gonna, We, I wanted Mike to have his own microphone, so I booted Steve out of the, out of the studio. But you guys, I am so excited to welcome today’s special guest.
Now, you guys know sometimes we have special guests that come on the program. This guy is somebody who has been a friend of mine for what, Mike? Five, six years now. Yeah. Yeah. Boy, five, six years ago we met. Man. It seems like it was like, like, it seems like we’ve known each other for decades. It, it does. We are, we are cut from the same cloth and by that, uh, we mean extremely attractive.
Um, I’m just kidding. That’s not, if you’ve ever seen my picture, you know that’s not true , but we are both 49 are fans, which make us both, uh, which make us important people in the world. But, but, but but important . And I gotta tell you, Mike, I remember Mike the first time that I ever saw you, and just so everybody knows, the reason I’m interviewing Mike, Is because Mike is an extremely successful real estate investor, but Mike does not do the same kind of real estate that we do, so you know, on replace Your income.
Our job on this podcast is to have conversations that inspire you to know that real estate is a thing that can help you replace your income one property at a time. Now you guys know that at done for you real estate, largely what we do with single family residences, and there’s a variety of reasons for that and we’ve talked about those.
Mike is more of a multi-family residence type of guy and he’s been extremely successful and we thought, I thought it would be so good for you to hear his perspective, what it is that he loves about real estate, how it’s provided lifestyle and success for him. Because if you’re out there listening and you’re one of our awesome listeners and we love you, all we want is for you to.
Ideas and thoughts that can make your life just a little bit better, where you can utilize real estate in a way that maybe you didn’t know was possible before you jumped on this podcast, so that you have just a little bit more potential, a little bit more possibility, and you can experience a little bit more of the things that you want most in this life.
And real estate provides this incredible way for us to do it. And so as we interview Mike today, I want you to be paying attention. To, What are some of the ways that, the things that Mike sees, the way he views the world, the way he views real estate, the kind of real estate that he does, how does that benefit you?
How does that bless your life and your real estate potential? But I gotta tell you, the first time I met Mike, it was not in a real estate capacity. Wasn’t Mike? No sir. Man. No. We were, we were, uh, we were on the road making a difference. Yeah. I remember I, Mike and I were both a part of a mastermind now. We were both mentoring kind of with the same guy.
Yep. Who, who, who had a, a, you know, Speaking, he was kind of teaching speakers how to get booked. And I remember you were kind of ce the event just before he sent you up on stage cuz you used to be a standup comic. Right? Right. And Mike, you know, he used to be a comic. He’s, he’s been a pastor. He’s worked a lot with youth.
He’s been a successful real estate investor. He’s spoken at colleges all over the country. Uh, he’s owned businesses that help teach speakers how to. He was nominated for college Speaker of the Year. He has an incredible wife who’s absolutely brilliant. I mean, Mike has seen a lot of life, and here I see this guy on stage.
He’s hilarious. He’s warming the crowd up in conjunction with this guy that we were both kind of mentoring with. And it was, that was the. First time that I saw you, Mike, I had no idea we’d be friends. I had no idea you do real estate. I had no idea the kind of impact you would have on my life. And I just gotta tell you, I am so thankful for you.
I’m thankful for who you are. I’m thankful for how you show up to life. I’m thankful that you do real estate in a, in a slightly different way than we do. But it’s totally created this incredible lifestyle for you. And we see eye to eye on so many things. And so Mike, I am so thankful that you’re. Thank you for joining us on Replace Your Income.
Well, I don’t know if I can start talking after that introduction. Uh, he, he paints a pretty good picture. I’m not near as good as he says , I’ll tell you. I really do appreciate that, Kevin. One of the things that I have learned over the years, you can start companies. You can grow companies, you can make a lot of monies, a lot of money.
You can generate millions of dollars. But it is the relationships you build along the way that you actually remember. It’s what assigns meaning and value to experience. And I’ll tell you, one of those relationships has been you and it’s been really excited to not only see the amazing company you’ve built and, uh, you’ve with your team have built not only to.
But also just to, uh, the kind of speaker you are, the book that you wrote four or five years ago that is changing so many people’s lives. I’m just so passionate to be here today and your listeners wanting to replace your income, what you’re doing, helping people. Create freedom. I cannot explain how much of a difference you guys are making.
So thanks man, to be on your podcast as an honor brother, and I mean from my heart. Thank you. And, and I got to be on your podcast too. You’ve got an awesome podcast. Tell everybody about your podcast. Yeah, so our podcast is called Power Real Estate. We primarily focus on multifamily real. Date, And I had Kevin there kind of as he’s having me here.
He, I had him there as our single family expert talking about kind of how he has built a company that’s transacted a half a billion dollars in real estate. Uh, he’s known 4,000 homes, multiple markets. I mean, this is, no, this is no, you know, mom and pop organization. They, but they run it so people centric.
And so I’m like, Kev. You treat your clients, everyone, like they’re your only one. You’re doing half a billion dollars in real estate. I gotta get you on my podcast. So my podcast called Power Real Estate. Again, we’re mainly mul, uh, multifamily focused. We teach people three things, how to find deals, how to find money, and how to operate them like a pro.
And it’s a gr it’s a great podcast. And what I love about you, Mike, and your business and everybody listening, We are here to talk, replace your income. And Mike, that’s a big thing you talk about too. And, and guys, you know, if you’ve listened to the podcast, we’re not saying that you have to have real estate replace all of your income tomorrow.
It’s the idea that real estate can replace a piece or all of your income, not because you wanna stop working. Maybe you wanna keep working. I don’t know about you, Mike. I can’t ever imagine what a quote unquote traditional sort of definition of retirement would be. I’m not somebody who’s gonna go sit on the beach, you know, toes up looking at the ocean.
Marveling at the, the waves crashing. I’ve gotta be productive in doing things. Totally. And a lot of our clients, a lot of you listening, are very much the same way. So real estate gives you the ability to replace as much or as little of your income as you want so you can experience more of the things.
That you wanna experience. Exactly. And I know that’s a big philosophical underpinning of what you teach as well, right? Absolutely. Absolutely. In fact, one of the things that I always tell people is maybe love your job if you hate your job. It doesn’t, To me, the whole point of real estate for me is to not allow freedom to do nothing.
But it’s. Actually to allow freedom to do what you’ve been called to do, and I don’t know what that is. Maybe that is truly, you would like to be a stay-at-home parent and really raise your kids and spend more time with your kids or homeschool your kids, or you wanna take trips with your family, or you wanna go serve your church or go on a mission trip or.
I don’t know what that is, but for me, it’s not about time off, it’s about time spent doing my mission. And for re real estate, for me has been a vehicle where I could say, Okay, here’s how much money I need a month. And I have a, a kind of a, what I call a freedom number, the number where I consider financially free.
How do I get there with real estate? And then I can live, I, I can serve in my church, I can serve the community, I can serve my friends and family, my nephew. I don’t have any kids. My wife, my wife and I don’t have any kids, but our nephews and our, our bonus niece, we call her our bonus niece, is uh, that’s our life.
And they live all in different states and we see them a lot. And the reason we see them a lot is not because we FaceTime them, although we do, it’s because. Real estate a affords us the ability to travel to see them. They can’t get on a plane and just travel to see us. We can go do that because real estate has provided us the ability to do what matters to us.
Right? Yeah. You know, to be able to, you know, my neighbor walks over and says, You know what, my man, my family’s really hurting right now. I wanna be able to fill that need. I wanna be able to help people. Real estate gives me the ability to do that. Yeah. And for our listeners, our mission at Par Real Estate is to help 10,000 people.
Create financial freedom with real estate. Meaning not financial freedom to do nothing but financial freedom to fulfill your mission. Cause I believe everybody’s been called to do something. Yeah. You know what I mean? And I know you do too. We talk this all the time. We had lunch today and Kevin and I mo we, we were went there to talk about business.
We ended up talking about mission the whole time. Yeah. Because we believe that real estate. I, I’m not passionate about bricks, mortar, citing, and shingles. What I’m passionate about is a life free to follow my calling. Yes. You know what I mean? Does that make sense? Yeah, No, 100%. And I’m exactly the same way.
Steve’s exactly the same way. And guys, if you’re listening, I hope that that’s the essence of what you get from this podcast. We feel like it’s our job to have the conversations so that you can kind of listen into conversations that maybe you are not having in your life. Maybe you are having them, but just to give you the ability to open up your eyes in a little bit of a different way to.
How is it that real estate can play a role in my life? And I love this thought that, that real estate can fund the life that you want. And that’s kind of the way that we look at it, right? Let real estate fund the life that you want to have. So for me, we have this awesome company. We get to serve these clients and I love what we do at done for You real estate.
But Mike, you know that my passion and, and guys, uh, the last episode that we did on the podcast, you know, Steve interviewed me about my. Flip the gratitude switch and we talked about gratitude as we were kind of leading up to Thanksgiving. You know, my passion is going and speaking to youth and teaching them and adults frankly, and teaching them principles that like, it’s okay to find joy in life, even in the middle of difficult times.
And gratitude’s one of those things that can do it when it’s active and, and when it becomes something that, that’s this portable philosophy that you can utilize that is a huge. Huge driving force in my life, and it’s who I am. Totally. And real estate in our company gives me the ability to do that without some sort of financial obligation being tied to how many books I sell or how, how large my speaking fee is or, or whatever the case may be.
And I know Mike, somebody like you who spent a bunch of years going and speaking, collecting speaking fees, writing books. I think you’ve written five books, right? And you’ve, you’ve had this incredible career. On that side of it. But I know you’ve made a transition recently where you said, Look, I just want, In fact, would you mind, I hope I, I hope I’m not putting you on the spot, but, uh, if you guys have listened to this podcast, you know, Steve and I, we have a strong belief in God.
Mike also has a strong belief in God. While this is not a religious podcast, we just like to let you in on the conversations we actually have. Totally. And you shared something with me today about that transition that you wanted to make and saying, Look, if my. Where you had a conversation with God and said, Look, if my real estate business can succeed, that gives me the more of the ability to do what my heart feels called to do.
Will you just kind of share that with everybody? I think that’s such an important conversation type of conversation for everybody to have with themselves. For years I spent. Uh, on the road speaking as a professional speaker for about a decade, um, just under that, about seven, eight years. And, um, I was, uh, as I was traveling, you know, every day was the grind of emailing people that book speakers and asking them if they needed speakers for the upcoming events, right?
And, and of course, I was always attached to how much they had in their budget to pay me because that’s how I paid my bills and supported my family. But when I. When I got that money, I had often invested it into real estate. But what I told God, I, I realized that I love to speak. I, it was kind of what I was built to do, but I misunderstood what I was supposed to speak about.
And I, I believe I answered the right call to talk about the wrong thing. And, um, the right call was to, to use my voice for change. The, I I, but, but I was first, for seven, eight years, I really was speaking on something I wasn’t that passionate about. And I, what I realized is I’m passionate for. 10 years I’ve been, because of real estate, as I’ve been traveling the country.
When I’m home, I’ve been able to, which, which my wife has been able to go on the road with me. We’ve had lunch together for a lot of years, just at our house each day having lunch together when I’m home. If I’m not home, she’s often traveling with me. Well, what’s provided us the ability to do that is real estate.
And so when I said, You know what, God, if you will help this real estate thing take off, I will just go speak for free. Cuz I wanna tell people about my message. I wanna help people. I wanna help people see how good you are. I wanna help people see how amazing it is to follow you. I wanna, I wanna share this message.
I don’t even care. I don’t care if I get paid. I want they to them take that money and help other people with it. But real estate is how I, I get the ability to do that. That’s so powerful and, and I love that. That’s who you are. Give us a little bit of background of. What is the Mike Fritz’s real estate story, right?
Yeah. Because I know that you got your first property when you were a young married guy and, and you kind of house hacked right at the beginning. And we’ve done an episode on how does somebody get started in real estate if they don’t feel like they have a lot of money. And we talked about house hacking and here’s a perfect example.
Mike Fritz sitting directly across from me, who started his real estate career in a really. Simple way. And now you have grown this incredible portfolio when are helping other people invest in real estate. So give us, give us the Mike Fritz real estate story. All right. Here’s, here’s, here’s it in a quick nutshell.
When I was, I went on my first date in sixth grade, um, I asked a girl to recess, and I went up to her and I said, The creepiest thing that any man’s ever utter to a woman. I leaned into her, and this is the pickup line I used. I would not encourage anybody to use this. I leaned into her and all I said, I’ve noticed you and like she should have said, like from the bushes, you psychopath, What the heck is wrong with you?
You’re but to bunch a big bundle of psycho leave. But she ended up saying yes. Now why do I tell you that story? It was the greatest first date in the history of first dates. And now you say, how do you know was the greatest first date? Well, uh, cuz I’ve been married to that woman for 19 years and, uh, she is my soulmate.
I met her with literally when I was in sixth grade and we have been on again, off again. We got married when we were, I, I proposed to her at 19, uh, seven months outta high. And we got married when we were 20. But right before we got married, I, I started a construction business and I was building houses as my whole family’s kind of construction people.
And, uh, I, I watched my mom and dad grow up. We had this big farm, this farmhouse, not big farmhouse, but medium size farmhouse, but on our property was this little like 400 square foot, one bedroom house. It was tiny. But my parents rented that out and that paid for like 80% of their mortgage. And I learned growing up.
Let be cool if somebody could pay my mortgage. And so in the early two thousands, this was 2001, I asked my dad, I’m 19, I’m just about to get married. I’m making like 500 bucks a month on . As a brand new business owner, you know that you can support a family on that. And uh, so I said, so I had to find a creative away.
So I asked my dad, I’m like, Hey dad, would you help me get a loan? Actually, mom and dad, would you help me get us get a loan? I’m gonna build a duplex. Uh, so they did, they helped me get a loan. I picked out a piece of property that was zoned for multi-family, and I built this duplex nights and weekends. I mean, I was a grinder, man.
Nights and weekends. I’m slinging the hammer, I’m pulling out the, the, the tool belt. And I built a duplex and I hired some stuff out, but we got it done. We moved into that duplex brand new place, and we live for a hundred dollars. That’s awesome. When we were just married. Now, here’s the funny thing. When I was 23 years old, I felt the call on my life to go into ministry to become a pastor.
So I stepped foot on a college campus when I was 24 years old for the first time. I never read a book till I was 23 years old, and I graduated high school with a 1.9 gpa. I tell you all that because if you think you need. Incredibly smart to buy real estate. Let me encourage you, you do not . And so I tell people that all the time.
I literally did not read a book until I was 23 years old. I got a very low gpa, couldn’t get into any really good college. I just couldn’t. And uh, in at age 23, I felt to call it ministry. And so, so I, I went off to be a pastor, but that duplex I had. And we built that for $129,000. That’s with the land and everything, cuz I did a lot of the work and in three years I sold that for $185,000, $185,000 as a 23 year old making almost 60 grand on a property.
I had $60,000 in my bank as a 23 year old. Awesome. Which I invested into my education. I paid all my, I paid most. And you bought a book, did you buy a book at that point? Yeah. Yeah. Gotcha. Actually, Read my first book. And so it was probably Rich Dadd Poor Dad, right? Oh, you wanna know a funny story about that?
So let me, let me also tell you this. Uh, ladies and gentlemen, make sure you are careful about the person you spend your life with. This is who you wanna spend your life with. I’m sleeping one day. All of you probably know about Rich Dadd. Poor Dadd, if you listen to replace your income, if you haven’t read it.
Please read Rich Dad, Poor Dad. Yes, please. But, but, but, uh, I’m, I’m napping. One day my wife read Rich Dad Poor Dad before I did. And my wife reads awesome. Rich Dad, Poor Dad comes and wakes me up. She says, Hon, I found a duplex on Craigslist. We have to buy this thing. I just read this book, You’ve gotta read this thing.
And I get up and I start reading through it. And of course I was addicted. , my wife is at, The reason I start my real estate story in sixth grade is cuz Tru. My wife is one of the biggest advocates of our real estate, and uh, so that’s my real estate journey. Then actually, I took a big hiatus of real estate.
I didn’t invest in real estate from the time I was 23, till the time I was 33. I took 10 years off. Mm-hmm. from 2003 to 2000, uh, I’m sorry, nine years off till 2012. I bought my first property again. Guess what I did when I became a pastor in 2012. I was a pastor in 2012. I house hacked. Nice. Next house I bought, I bought a duplex, Lived in half.
Yep. The other half out. Lived for free. Pastor, you go make a lot of money. I had to figure it out, right? and so, and I wasn’t in it for the money, but I had to figure it out. So then after that, my aunt calls me, my mom calls me, she says, Hey, my grandpa had passed away and he had like 28 duplexes. He gave him to all the family as a part of his inheritance.
He was a very wealthy man and he. Uh, my aunt got tax trouble and needed to sell one of them, and my mom called me. She said, Hey, would you like to buy this lean? And I looked at it, we’re like, Yeah, we would like to buy it. We ended up buying our second duplex and it was really slow, dude. We didn’t know what we were doing.
Right, right. You remember when you first started off real estate, you’re going through it, you made, making all the mistakes. No clue. Yeah. That our podcasters to help people not make those mistakes. Right. Right. Know what I mean? So that’s kind of my real estate journey, and then it just kinda kept progressing until this year.
I decided, you know what, it’s time for me to go full in. And really, really, really, not only do I want to continue to invest in real estate myself, I wanna help people do the same. That’s awesome. That’s awesome. And you know what I think is so fascinated about that you guys, if you’re listening, is so your real estate journey is gonna be your own.
And I think sometimes, Mike, we talked a little bit about lunch, at lunch today, about this idea of comparison. And listen, if you’re listening right, I want you to know straight up, hands down, comparison is the thief of joy. And, and so true. And here, and here’s the deal, Mike, you and I know when you’re in the real estate world, you may see somebody that you assume has done a lot of real estate, and you may think, I can never be like them.
I’m never gonna achieve that level of success. I’m never gonna have that kind of a portfolio. My home is never gonna be that big. I’m never gonna have that kind of a car. I’m never gonna, you know, have that kind of a net worth and what the problem. That is so often that simple comparison, which to you may just, you may just be thinking you’re observing the world and making an observation, but that comparison keeps you in, keeps you on the bench.
It says it makes you feel like you’re not even gonna get in the game. And, and what you just heard from Mike, what you’ve heard from me, what you heard from Steve and from many of the other stories that we’ve shared with you. Is that the most important time to start your real estate portfolio is exactly right now if you have not started it, and here’s what that means.
Even if you don’t have the ability to go and do real estate today, if you don’t have the down payment right now, there’s ways to begin your real estate journey, whether that’s education, whether that’s buying some sort of education, whether that’s reading a book, whether that’s figuring out, look, if I just save a little bit more money every single month so that I have enough.
For a 5% down payment on a primary residence that I can rent out the basement or rent out the other rooms or, or, you know, be able to finance a duplex and live in one side and, and, and rent out the other half. There’s a way to get started in your real estate portfolio today, and there’s many of you out there listening who, who you have.
Started your real estate journey. You own one or two or maybe three properties, and you’re trying to compare your real estate portfolio with somebody else that appears to have more in their portfolio. This is why the idea of income replacement is so critical. It doesn’t matter what somebody else’s portfolio looks like.
What matters is what can you do with the resources at your disposal and how do you put those to work in a way that you can begin the income replace. Process. And so Mike, here’s what I’d like you to do. If, if you were having a conversation with your frame of reference, with the kind of real estate that you do, and somebody said, All right, Mike, I, I don’t have a lot to work with.
I don’t really know kind of what to do next. What would be the conversation you would have with them so that they could get started in real estate today? Then I’m gonna have you have the same conversation with somebody that’s begun their real estate portfolio and wants to amplify it. So, but start with the conversation you’d have.
I’m sitting across from you and I go, Mike, you’re successful in a real estate. I haven’t been, I want real estate. I don’t really know where to begin. What would you say to me? Great question. Great question. Okay, so as kept mentioned, I’m more, I’m a multi-family real estate. That’s, that’s where I live, eat, sleep, live and breathe multifamily real estate and, and define multi-family real quick.
And that’s what I was just gonna do. Multi-family real estate is multiple units inside of one building. So you might have a duplex, they call it. There’s two little apartments inside of one building, or four units, or four apartments, one building all the way up to 2, 3, 4, 500 unit apartment buildings that you see.
Multifamily is just multiple units under one roof, right? So I’m a multi-family investor. So if somebody was asking me, Mike, how do I, how do I get my first duplex or three unit or four unit, or even bigger than that? How do I do that? My first question is this, okay? What kind of assets do you have currently?
Do you have any equity in your home? Do you have a retirement account? If somebody tells me, No, I have none of that, I can’t invest it. I have no money, well, then I said, Okay, do we have any private investors that we can leverage? And I’m starting to talk to ’em about that. But my first thing, if you’re willing to house hack, that’s my first step.
Yeah, If you’re willing to house hack if, If you’re, By the way, if you’re a young single, I would say that is a beautiful thing to do. I don’t care where, if you’re gonna go be the a lawyer owning a, you know, a firm of 600 people under you and owning a 50 million company, I would still say start off with just a live in half rent, the other half out live for.
Free cuz I tell everybody, your first goal is to live for free. So your first goal, go get a two, three, or four unit building that can pay your mortgage that you’re currently living in. And I always say, I love the the Beatles, uh, quote when it says, when they all say, Okay, it’s time to go write a swimming pool.
What they meant by that is I wanna write a song that pays for my swimming pool. Oh, nice. Yeah. Yeah. And, and, and so the point is, For, for somebody sitting across me and I said, Your first step is House Act. Well, I’ve got kids in a family, I don’t know that I really wanna transplant them into a small unit. I can’t really do that.
Okay, no worries. Let’s go buy a duplex and let’s let that start knocking off the bills I have for months. So let’s say you have a mortgage payment, you have utilities, a car payment, you have whatever your, whatever your cell phone you have. Bills list all your bills out, I want to start knocking down those bills with real estate.
So I, I buy a two or three or a four unit and I say, Okay, that’s gonna generate me five, $600 a month in net cash flow. Well, that takes out a portion of my, of my, uh, mortgage right there. Okay, so now let’s go buy another one and get a little bit more. So that’s where I would start. I would just start. Get your first property under your belt and start seeing your expenses go south.
That’s my biggest, my biggest thing is get that first deal. It’s the law, the first deal. You gotta get it. And if you don’t have any capital, if you don’t have any money to invest, this is when we start bringing on, um, this is a little bit more. What do I call it? Sophisticated, uh, path maybe, but you might find somebody who has the money, maybe you know, somebody who has the money.
You go find the deal, you create a partnership and you run the deal, and you both split the revenue. It’s a, it’s a good old, good old fashioned partnership in that way. So if you don’t have the capital, you can find somebody who has the capital but doesn’t really have the time. I always say there’s four things you need in real estate.
Time, knowledge deals, money. You need time, knowledge deals, money, and you don’t have to have all four. You can have, you know, you can have the time and the knowledge cuz you’re listening to Kevin’s podcast, Kevin and Steve’s podcast and the look listening to replace your income and you’ve got the knowledge and the time.
And maybe you even found a deal, but you don’t have the capital go find somebody else to fill that hole. And so I would start there, start small, get a deal under your belt, start knocking off those bills. That’s where I would start. I love that. If I was back at my back at day one. Yeah, yeah, yeah. Exactly.
And I, and I love that. And I think that’s such a critical conversation now. Now let’s say, all right, Mike, I, I’m five, I’m seven years into my investment portfolio. I owned three or four, you know, single family residences that I’ve acquired just bit by bit. Yep. And I’m looking at retirement in 10 years.
Right. And, and I’m saying, okay, I need to amplify or, or increase the velocity or speed with which I can obtain more residual income. Replace more of my income sooner so that I can retire sooner, whatever that retirement is or, Yep. Uh, so, um, I’d like you to do two things real quick. Number one, you have an amazing formula.
Yep. For what that income replacement number is, or what that financial freedom number is. Share the formula, then share what you would. Say to me, Yep. If I have a little bit of a portfolio, but I’m looking to go a little faster, go, go faster. Great question. Okay, so my, I have what I call a freedom number.
That’s what Kevin’s just mentioned. I have a freedom number. That freedom number is what I feel like, cuz I say my, our goal is to help 10,000 people create financial freedom. Well, what does that mean? My, my financial freedom number is expenses plus play times two. Now here’s what that mean. Let’s say your mortgage and your car payment, your cell phone and everything costs you.
4,500 a month, I don’t know, whatever. And, uh, and you also, you go out to the movies a little bit. You, you do a little bit here. You know, you have a hobby, you have a gym membership and Oh, that, that costs you, you know, three, $400 a month. Okay? So now we’re at five grand a month. Okay? So I take 5,000 a month and I times that by two.
That’s 10,000 a month. So your goal is to create 10,000 a month. In passive revenue. Now you’re, you might be thinking, Mike, that is such a huge number. I can’t get my head around that. Believe me, this is why I love replace your income in DFY model down, down for your real estate, is we believe that it’s it’s doing the right thing over time and you’ll get there.
You just can’t get there overnight. And anybody selling you an overnight story is just not selling run to truth run. Yeah, that’s exactly right. Well, and and real quick before you continue your answer there, uh, Speaking from experience, Mike, you and I have known a lot of people that look good on stage, on paper, on YouTube, on Instagram.
Um, we both know a lot of people that, that on the surface appear to be very successful. But you and I also know that the book cover doesn’t always match the contents of the book, Right? Just cuz it looks good from the outside doesn’t mean that the, that. Inside is is the same content as what’s reflected on the outside.
Exactly. And so again, avoid that comparison. Just know that there’s plenty of people that will sell you a dream. Totally. That will tell you that you have to, you know, 10 x your results so that you could just be super duper awesome. Oh my gosh. And, and you should feel bad about yourself if you don’t. And that, but we take the other approach as you know, on replace your income, we say Stop swinging for the fences, go hit real estate singles, and it’s gonna be with consistency over time.
And I just think that’s important for everybody to understand, Mike, as you know, because so many of us get caught up in this dream of what we think others are achieving in the success others are having. Absolutely. And it robs us of joy and it makes us think we can’t achieve it. So that being said, now continue that answer of, I’ve got a little bit of a portfolio, I know it’s gonna take time.
What do I do? Yeah. So, uh, I’m actually gonna, I’m gonna hit pause and go back and answer a question you asked me a minute ago. What would I tell anybody to do if they were starting off, um, and they didn’t know anything? I actually would say, I wanna tweak that answer a little bit and say, get a coach. Get a mentor.
Yeah. A really good mentor that can, That’s why I love what you guys do here at Dun for real estate because you, in essence, are their mentor. Sure. Through a process, making sure they do the right thing. And so I will tell you this, I heard Michael Jordan say one time. I am the greatest. They say I’m the greatest basketball player on the planet.
Might be true, might not be true, but they say it’s the greatest basketball player on the planet. And I have a coach and he talked about his relationship with Phil Jackson, in my opinion, one of the greatest NBA coaches, if not the greatest NBA coach of all time. And um, he said, Now how many of you think I could take Phil Jackson one on one?
He says, Not really a question. I can take him one on one, he says, But when I’m dribbling up the court, he sees things I don’t see. He tells me things like, Hey Michael, every time you go right, you take a step left. The defense knows where you’re going. You have to stop giving him that teaser step and just go right, whatever.
And so he, he said he saw things I didn’t see, and so as I back up, I would. You need a coach. Yeah. Every single person needs a coach. Yeah. And to Kevin’s analogy about swinging for the fences, let me tell you why you don’t do that. I had one of the best hitting coaches when I was in high school. He was, he was actually one of the hitting coaches for, uh, pro team that remain nameless.
And he, he was, uh, his son was on our team. He was just unbelievable hitting coach. And he told us the number one ways to hit home runs is to. At that middle of the ball, which is how you hit base hits by the way. You hit by the middle to top of the ball, you hit there. That’s the best way to hit home runs.
He says the, when you swing for the fences, you hit the bottom of the ball and it’s how you pop out. Mm. And so the, the, That’s great. The number one way to hit great home runs is to hit singles. Yeah. Because you just hit the ball harder and it’s just a long single. That’s great. And so the the, But the problem is so many people wanna swing hit up swing for the fences.
Right, Right. That’s how they strike out. Cause remember Babe Ruth, Number one strikeout king of the world. Right? That’s right. He also hit a lot of home runs, but yeah, he struck out more than anybody else. Right. And so the point in saying all that is you do wanna swing for those singles. So now if I come back to your question about, I wanna scale that portfolio.
Yeah. So we’re back at like, okay, I wanna, I, I, I’ve got four single family homes. I wanna start kind of turning up the volume. I wanna start, turn up the speed, however you wanna say that. There’s really two paths. In multifamily. You can either be the owner operator, Or a passive investor. So in multifamily, there’s this thing called passive investing where you can take capital.
You have, you can refinance out of properties, you have sell properties, you have however you wanna do it, and you can invest in another operator’s deal, and you can still maintain most of the equity, 70%, sometimes 80. And so you can actually make money in multi-family without doing anything, which is beautiful.
That’s huge. That’s huge. Or. You can actually take your money and buy it yourself, and you can go and so let’s say you have four or five single family homes, you wanna refinance the value out of those. And buy a, you know, a half a million dollar to a million dollar multifamily. And the beautiful thing about multifamily, let me tell you the quickly why I love multifamily.
I haven’t told you that yet. There’s four, really four reasons. Number one, I love cash flow. Now that’s true single family too. But I love cash flow and I love cash flow from a per, uh, I love cash flow, which leads me to my second reason. I love multifamily because if one tenant moves, I’m still safe with the expenses of the property cuz I have another tenant paying me that month.
So it’s not just one tenant. Right? So that’s one of the reasons I, Second reason, the third reason is what we call forced appreciation. When you get five units and above, the bank sees a multi-family, property is a business, meaning they determine it’s a value based on its income. So if you take a multi-family property and you can increase the rents and increase the amount of income it makes per year.
You can control if the value of the property increases. You don’t have to wait for the economy or the neighborhood to tell you it’s worth more. So that’s one of the reason. Another reasons I love and the fourth reason is it’s much easier to get a commercial, many commercial loans than it is to get a lot of residential loans.
In fact, I love, I love hearing Robert Kiosaki and Dave Ramsey go head to head . Cause Dave Ramsey’s like no debt ever. Robert Kiyosaki has, I think he says $700 million in debt and he believes debt’s the best way to build wealth and Sure. And you know, Interesting to hear their different perspectives. I’m a little bit more from a real estate investment side on leveraging bank money cuz I think you can get there faster on Robert’s side on that stuff.
But, so if you wanna fuel your, your income forward, I would, the first question I would ask is, how much time do I have? Do I have time to operate the properties? If you do, then I would just buy the properties yourself. Yeah. Or take your capital and partner with somebody else who’s who also has capital and you guys can do a big property together.
Or if you’re like, You know what? I’d just like to see my money as soldiers in the world working for me. Great. Then invest your money into to an operator. That’s what we do at Titanium Capital. We partner with people who have capital. We buy the properties, manage the properties. You would never have to deal with tenants, termites, toilet, and trash, and we take care of everything.
So there’s that way. So there’s the passive way or there’s the active way, and you just decide, how much time do I have to do the. Yeah. I love it. So somebody can, I, I, the way I see multifamily is I like it for, obviously we do single family residences and we’ve talked about why we love that we, we haven’t talked much about multifamily, but that’s just because Mike, we’re not experts at multifamily, right?
You are an expert at multifamily and I think there’s a lot of value to doing something like that. And what I love about it is now it gives me the ability on a single family. Even at done for you real estate, we’re doing 95% of the work, but there’s still some that’s required for you on a multifamily kind of deal.
Somebody that they, they can transition to that piece. All of a sudden they get back a little bit more time and, and now they can still generate capital. Now maybe they, they sacrifice some of the ownership. Maybe they don’t own that property 100%, but. For that trade off. They’re getting more time back.
They’re having somebody else continue to do 100% of the work. Absolutely. And it’s still generating income. It’s still tied to a tangible asset. It’s still real estate. It’s still where the vast majority of Americans want to live and work. It’s at middle income, middle class type. Just like the single family residences we do.
Multifamily is very much the same. It’s middle class, middle income. It’s where people live. Yep. And so if that’s where people live, that’s where the. Demand is, if that’s where the highest demand is, that means you’re gonna have the best luck at finding tenants. And those tenants are the ones that are effectively paying off your mortgage and giving you the money that’s generating the cash flow so that you can replace your income and become that person.
Yep. That’s now experiencing a little bit more. Freedom. Yeah, totally. Totally. And and I, I, I love what you said there cuz you know, in a single family home you own a hundred percent of it and a multifamily home. Often if you’re a passive investor, you don’t. And what I always tell people is, would you rather own a hundred percent of a grape or 30% of a watermelon?
There you go. And so, so sometimes less percentage is actually more income. Sure. And so that’s why I want people to see, and he, by the. This is not an either or no. Yeah, people make money in all kinds of real estate. I have a friend that only invests in strip centers, like, not strip, not like strip clubs, like strip like, um, uh, Free strip malls.
Yeah. Mall. I said strip centers. I’m like, that came off like, wait a second. Now what I meant, No, but he, he only invest invested in, uh, like places that where like you’d see a Subway or a Big Lots or these, these company. He, he. Owns strip centers. That’s what he does. And there’s people that just own storage units and just own land.
They just flip land or fix and flippers or wholesalers or buy and hold single family, like done for real estate does. So you can, there’s so many ways to invest in real estate. And so one of the things I love about people that are willing to show you all kinds of ways to invest in real estate is there’s a lot of different ways because you know that, Here’s the thing, Kevin, and.
Well, our income’s gonna change no matter what you do. We just wanna see your income change because of what you do. That’s right. You know what I mean? I just wanna see you pick a path that you’re gonna execute on. Yeah. Whether me or Kevin. Now I will say, I will say this from the bottom of my heart, that a lot of times when you partner with people like that, it can cut the learning curve down and you don’t make all those mistakes.
Yes. Cause when you’re alone on your first property, you’re absorbing a hundred percent of the error. Yeah. And that’s taught, Sometimes those blows are irreversible and sometimes they kick people out of the. Real estate game forever. Yeah. They give one house, it goes south, and they’re like, I’m not doing that.
Yep. Yep. And it’s like, well, you didn’t buy the right house. We could have told you that. Yeah. We’ve seen this and, and that’s why this podcast exists and why we wanna help people because, but again, I love multifamily for a number of reasons, but I think that what it gives people is it gives people the opportunity to own property that pay you month after month after month.
Even if the economy crashes and you lose your value of a multifamily property, because the United States is becoming primarily a renter nation, you’re gonna maintain your cash flow. You’re gonna keep making money month after month, after month after month until your value increases and comes back.
That’s the power of multifamily. I watched the 2002, uh, eight, 2009 recession, and I saw one asset class weather, the storm the best, and it was multifamily only because, uh, it lost its value too. It’s just so many people lost their home, they became renters. So the demand of rentals went up and people that owned single family homes that were renting them out.
They won during the recession as well because it was people that owned properties that they could rent to others. And so, again, I love multifamily for so many reasons and anybody can get in it. This is one of the biggest, uh, hurdles I see people get into. You mentioned it earlier. I can’t, It’s a million dollars.
I can’t buy a million dollar property. Yeah. I can’t tell you how many times I said that. How do people, you know, make a a million dollar? Well, first of. It’s only 250,000 cuz that’s, you’re 250 to 300,000. You don’t need the full million. And there’s ways to raise the money. That’s how Wes, what we teach people.
And so you can, you can do this, the mindset’s, the ceiling of all growth, you know, It’s so true. And, and what I love about this guys is we kind of wrap up the episode is, for me, different types of real estate is kind of like different types of ice. Right there is really, really good premium ice cream and there’s not so good ice cream.
And if you eat the not so good ice cream, then you’re, you’re, you’ve, you’re taking on these calories and it was like, fine. But it maybe wasn’t that impressive. But if you’ve had really good ice cream, you’re like, not only was that delicious, but I want more of it. Yep. What’s important is that you have somebody in your life that can help.
Cut the learning curve down so you know which type of ice cream slash real estate that you wanna look at. But even among the premium ice cream, some are gonna like strawberry, some are gonna like chocolate. It doesn’t mean that straw is better than chocolate or that chocolate is better than strawberry.
And so when it comes to this type of thing, what we like to share with you on replace your income is the premium ice cream of real estate. But then you ultimately get to decide what’s the flavor that resonates with you. Such good, what? Good. So, and it’s just because I love ice cream and I want some right now, like right this second.
Um, but, uh, so guys, I hope what you get from this episode is number one, Mike Fritz is an amazing man. You need to get to know. The name of the podcast is Power Up Real Estate. And what’s the website? They can go visit? They wanna check you out. Yeah, so you can check us firstname.lastname@example.org. Titanium capital hq.com.
That’s our capital company where we help people invest in real estate. You can also catch me on YouTube. Just go to Mike. Um, or you can actually even send me a personal email at mike PowerUp real estate.com. Yeah. Thank you so much. Thank you for coming on, Mike. Guys, at the end of the day, here’s what we want you to know.
Real estate gives you the ability to live a different life than maybe the one you’re currently living. So utilize real estate in a way to replace all or some of your income and go find. Flavor that’s a good fit for you. And then go find somebody that’s done it, that has the experience that knows what they’re talking about, that can help you make sure that you’re picking the premium ice cream of real estate and not the really crappy kind, just cuz it’s cheap and it looks like it’s probably good enough.
You wanna make sure that your capital is being utilized the right way. There’s so many nuggets from today, and I would end with this just like Mike said, Guys, it, it’s what we talked about earlier. Let’s just go hit some. You know what? Some are gonna like to hit curve balls. Some are gonna like to hit those fast balls right down the pipe, but you gotta get swinging and you just need to make contact.
Contact. So get off the bench, make contact. Mike’s a great contact done for you. Real estate can be a good contact. There’s other great people out there. Make sure you’re working with the best of the best and you can avoid some of those mistakes in pitfalls and shorten that learning curve so you can begin replacing more of your.
Sooner. So, Mike, last words for the group. I think that, uh, number one thing that keeps people back from real estate is, um, and even if you’re already in real estate for multi-family, real estate is thinking that it’s outside their league. It’s only for the uber wealthy. Uh, that is a hundred percent not true.
I was a hundred percent broke when I got into real estate. So it’s not for the uber wealthy. You can do it. But I will tell you this in this, in the book, Rich Poured, when you see, he says, When you see something that’s outside your price, right, you don’t say, Man, I, Why can’t I afford that? Or I can’t afford that.
You say, How can I, And if you wanna bust into multi-family real estate, how can you position for your first deals? The question you need to be asking yourself, cuz you can do this. Your mind is your biggest uh, adversary and it’s also your biggest teammate. You just have to learn to leverage it. I love it.
That’s awesome. The most valuable real estate in the world is the real estate between your temples. It’s that brain. So thank you so much everybody for joining us. Mike, thank you so much for Thank you, Kevin. Being in town and being on the podcast. We appreciate you so much. All right, everybody. We will see you next week.
Thanks for joining us on Replace Your Income with Kevin and Steve. Do you wanna learn more about our company done for you real estate and to see if you qualify right now today to begin replacing your. Simple and conservative real estate investing done for you. Visit DFY intro.com. Click the orange button, watch our super quick webinar, and fill out the little form on the right side of the page.
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