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You get three or four tenants in, none of ’em ever pay. They all squat. They all destroy the property. And then you finally sell the property because you don’t wanna fix it up one last time and you end up selling the property and you take a loss, right? You take a bath. That would be a real worst case scenario, but in that is also partially your decision making.
That could be a part of that. 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 transac. 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. What’s up everybody, and welcome to Replace Your Income with Kevin and Steve.
How’s it going man? It’s going well. How are you doing today? I am absolutely Fanta Tabul. I don’t know if that’s a word, but I like to say it. My daughter likes it. Ah, that I’m Fanta Tabul. I would interpret that as a pretty darn good day. So let me ask you this question. So you’ve got a teenage daughter.
Yes. She’s graduated though, right? Yeah. Okay. So. I don’t know. When your kids were teenagers, that was kind of like the advent of the, the popularity of text messages, right? So now my kids are growing up in a world where everybody text messages, but my daughter, she’s 12 and she does this thing. And if you’re listening, please let me know.
Do your kids do this? She texts with their friends and frankly, I’m really happy that it’s this innocent. But they do this thing where they use a bunch of animal emoji. And type out the sounds that animals make and they just go back and forth and it’s somehow apparently hilarious. Have you heard of this?
Is this a thing that your kids did? Uh, that must be a new development. Okay. All right. So it’s animal emojis is what we see. She shows me this morning, she’s like, Dad, look what Isla did. It’s so funny. And she shows me and it was like, Isla had put a bunch of unicorns and then typed out the words that would be the sound that a unicorn might potentially make if I don’t remember what it was.
And I was like, You guys just text this cuz we’ll check her phone. And I see stuff like this all the time. And I guess, you know, like our last episode, I should celebrate the micro win. That it’s not swear words and, and nastiness, right? I should just be happy and thankful that it’s animal emojis and things like na mu and stuff like that.
Well, what I am really interested to find out what Kevin is. Would you mind please making the sound that a unicorn makes? I am not aware what that sound is, so please. Interpret. I feel like it would be the sound of a magic wand. I feel, you know, if there was like a sound, you know, I don’t, I don’t know if I can mimic that sound, but I feel like it would be, That’s what it would be.
Kind of like a a, a ethereal, floaty magic wand sound would be the way a unicorn would knee. I think that’s okay. Let’s just go like that. There you, there it is. I like it. . Well, hey everybody, thank you so much for joining us. We’re so glad to be back with you. And today we thought we’d talk about something.
This is actually something, Steve, I’ve been getting a lot of questions on this. And I thought this is something we ought address, cuz I don’t know if we’ve really ever addressed it on the podcast in this way. Like we love to come on the podcast and talk about all the good things that real estate does and how you can replace your income because that’s really the life that we live.
It’s the world that we live in on a really regular basis. But I know you probably get the question, I definitely get the question on the front end of the company, whether that’s people chatting through our website, On phone calls or as we’re onboarding folks and, and helping to get them introduced to the company.
I get this question often, and here is the question. What is the worst case scenario? And I think this question comes because as people are looking at doing real estate, right, they’re realizing that they’re gonna invest a pretty significant sum of money to go and invest in real estate and no matter how good, We try to make that system, no matter how good the Moneyball real estate approach is, there’s still risk in real estate.
There’s always risk in real estate. You can never avoid risk, but there’s things you could do to minimize or mitigate it. But the question is, if I’m gonna take this risk, if I’m gonna make this leap, if I’m gonna become a real estate investor, if I’m gonna go down this path of replacing my income, what is the worst case scenario?
What could possibly go wrong and how wrong could it go? And so Steve, I’m gonna ask you, what is the worst possible scenario for somebody looking at doing single family residential investment real estate in this way with a company like done for you real estate, utilizing this Moneyball mentality? What’s the worst case scenario?
Well, and, and I think that this concept has been on, or this question has been on people’s minds more lately than ever before, is because everything that’s going on in the world, right, like I. That this pandemic is one of those things that a hundred years from now, people will look back and will be like, Hey, when the pandemic of 2020.
Right, Right. Like, this is a moment in time when it’s changed everybody’s paradigm, when it’s changed the way. Everybody looks at the world and everything in their own personal world, including real estate. Like when the pandemic first hit, it was the sky’s falling. Real estate’s gonna get crushed and everything else right, right in the world is gonna get crushed.
And thankfully that wasn’t the case. You know, we’re not all the way through the pandemic. I don’t think that we’ve yet seen all of the results of the pandemic, uh, is going to be the culprit of. So I think, anyways, I think that that’s why that’s on people’s minds more real quick, I have a question. Do you think there’s gonna be any Covid 19 pandemic mask making Millionaire?
I think that’s already happened. I know. I wonder. I haven’t thought about that. Like, I wonder who made fortunes in masks China. Cause a lot. Cause what’s that? China China. Yes. China was like, okay, we’re gonna stop making all the other things and we’re just gonna make masks. And now all of the other stuff that China is making is sitting off the port of Long Beach.
It’s great. It’s good. Good times, right? Good times. Yeah. I just thought about that. Covid pandemic. Mask millionaires. That could be like an entire, Maybe there’s like a support group for those folks. Maybe they mastermind together. I don’t know. But I think you’re absolutely right that when things are going wrong, we love to look at it and say, Well, what could go wrong for me?
Cuz that’s really the question, right? Yeah. When somebody asks. What’s the worst possible scenario? What’s the worst case scenario? They’re saying, What is my potential risk? For me personally, they, they ask the question generally, but really they’re wondering about themselves. What is my personal potential liability and risk if I go and invest in real estate?
And so let’s dive into it, Steve. What is the worst case scenario? Okay. And what should somebody be aware of or be considering? So years and years ago, Kevin, when we first kind of started this company, we actually addressed this question in kind of a funny way. We actually, we put a video together. I don’t know if you remember that show called, uh, what’s the one where Yellowstone explodes, right?
Oh gosh, I don’t remember. Oh, wait, wait, wait. It’s uh, like TW 20 20 20 20 20 12. 21, 20 12 something. Yeah. 2012. 12. So 2012. And there’s this scene where literally the coast of California is falling into the ocean as this plane is flying through the air and swerving around. Falling buildings and broken glass Love.
Yes, me too. I watched it not too long ago. It’s kind of a fun show. I love that movie. But we actually took a clip from there. It’s like this is worst case scenario if you happen to own real estate on the West coast and it fell into the ocean. That’s kind of worst case scenario. I’m here to tell you that that’s not really worst case scenario.
Yes. Because, well, that’s a pretty bad case scenario. Yeah. That’s not great. Especially if like you’re in the house when it happens. Definitely not great. Yeah. But, but from the standpoint, Of that being worst case scenario, at least you’ve got insurance and it’s probably gonna pay for, you know, your, yeah, you’ll be compensated, right?
You’ll be, you’ll be paid. Here’s what the really worst case scenario is in all practicality. You have a tenant who chooses not to pay and they squat, which means they, they refuse to leave the home. And let’s say that it takes a couple of months to evict them. And while they’re in there, they destroy the property, right?
They break the windows. When they do finally leave, they steal the cabinets, they rip the copper wire out of the walls, and cuz they wanna sell it, they steal, you know, the compressor for the air conditioning unit, those types of things, right? Where you’re left with this home. For, call it for three months, you didn’t receive rent, so you had to make the mortgage payment on it, and then you had to dump a bunch of money into the property to get it back in rent ready condition.
Honestly, Kevin, that really is, That’s real world. Real life worst case scenario. Yeah, sure. Cause then you’re gonna be operating at a real loss for a while. Right? Right. So, Now having said that, what’s the likelihood of that scenario happening? Well, I’m gonna tell you right now, that’s one of the reasons why we buy in the areas that we buy.
We try to buy properties that are gonna attract a certain type of a tenant and attract a certain type of property management. And in our world, out of the 4,000 plus properties that we’ve helped our clients buy that scenario, Like, is infrequent enough that I can’t even think of that scenario off the top of my head, although I’m sure it’s happened a small handful number of times where that has been the case.
Yeah. And quite frankly, that is, you know, worst type scenario. Well, and here, and let me put it this way too. So, so even with that worst case scenario, right? We look at that and we say, Okay, we’re operating at a loss for a time. But you and I both know Steve, that the real worst case scenario is that that happens again and again and again, right?
Like if you. Could not put a real tenant in that, and that every single person trashed the property. The likelihood of that is extremely low. But even with that, even with that, If you hang onto the property for long enough, the likelihood of a positive outcome is still fairly good. Now, depending on how much work needed to be done in the property, but that could be the true worst case scenario, you get three or four tenants in.
None of ’em ever pay. They all squat, they all destroy the property, and then you finally sell the property because you don’t wanna fix it up one last time and you end up selling the property and you take a loss, right? You take a bath. That would be a real worst case scenario, but in that is also partially your.
Decision making that could be a part of that. The other way that I look at it is if we say, what about just the market crashing? Right? I tell people all the time, they go, What’s the worst case scenario if the market crashes? And I go, Well, here’s the worst case scenario. Let’s say, do you buy a property today?
The market crashes. And the market tanks just like it did in like what, 2010 or whatever. Well, the only real dangerous if you. Right. If you sell when it’s low, then you may look back at it and say, Well, that was a huge mistake. I took a bad loss, Right? So your worst case scenario is you get somebody who has no idea how to manage the property.
You get a terrible tenant who’s never gonna pay rent, who’s gonna destroy the property? You gotta go fix it up three or four or five times and it all happens again. And then you end up selling the property at a time when the market is just totally tanked. And then you’re gonna look back and say, Wow, that was a big fat mistake.
But to your point, The likelihood of that happening is extremely low. And part of the reason why the likelihood is extremely low is all of the things that we’ve tried to develop as a company. So that, and just with this Moneyball mentality that can avoid or address some of those worst case scenarios.
And so what Steve and I wanted to do was say, Look, let’s take you down to the depths of hell, right? The depths of real estate. Hell would be what we just. But then what are the things that we have found to be beneficial to do a, hopefully as good enough of a job as possible to avoid some of those pitfalls, to avoid some of those difficulties.
And then we’re gonna finish the episode by talking about what’s the more realistic, you know, outcomes that may not be ideal, but can be mitigated through the process. And so when we look at what this worst case scenario is, we talked about the fact that you get a tenant in the property that squats that never pays rent and that destroys the property.
So let’s talk Steve for a moment about what is the process of selecting a tenant. And I think even before we talk about selecting a tenant, let’s talk about the kind of neighborhoods that we have found are most effective to go buy real estate in that attracts a certain type of tenant. Yeah. And it even goes beyond, attracts a certain type of tenant, but also.
Prospective tenant can afford Right. Attracts the, the, a certain type of tenant. So, so number one, you know, we’re buying in middle income neighborhoods, median priced homes where rents, you know, in today’s rent dollars, you know, our average rent right now is probably close to 1650. So that’s gonna attract, you know, somebody who’s, whose income is such that they have a responsible job.
They’re earning enough money that they had to. Prove themselves that they had to develop certain skills, they had to go to school, all these different things, right? That when you get somebody in that category, typically they’re responsible, they’re accountable. They’re not interested in living in a place that’s destroyed.
They’re interested in living in a place that is well kept. And so they tend to do some of the upkeep themselves even, Or at the very least, they let the property manager know when somebody does go wrong because they don’t wanna be walking around. A toilet that’s overflowed for three days instead of calling them three minutes after it happens.
Most people don’t like to walk around overflow toilets. That’s super weird. Is that, is that a thing? Is that real? Um, That’s what I hear, yes. Okay. All right. Cool. Yeah, it’s like one of my favorite things, but I guess whatever. Yeah. Right. So, so that’s the very first thing, right, is we look for the right type of property in the right type of neighborhood.
And then secondly, we know that the right type of property, in the right type of neighborhood being managed by the right type of property manage. We’ll attract, not only attract, but then the person who’s gonna live there, who’s gonna rent it, has to qualify. So there’s that on top of that. And then on top of that, the property managers are vetting the tenant.
They’re checking credit, they’re checking work history, they’re checking prior rentals, right? Mm-hmm. to make sure that they weren’t evicted from a, a prior place or, you know, cause problems. And so all of those things mitigate that issue in and of. Well, and that’s so interesting and it’s really something that, you know, we get a lot of questions about this and I think when most people are looking at real estate and they’re looking at how they can avoid or mitigate risk, they do think about, you know, I mean, how do I go find a good property manager?
Like how many times have you talked to somebody, Steve, who said, I went and I bought a home and I just could not get a good property manager? And so as a result, I had a really bad experience. Well, when you back that train up a little bit more, which is what you just described, what if you back it up and say, It’s not just the property manager, it’s the neighborhood in which you bought the home.
And what if we back that up even further like you did and we say, It’s first and foremost looking for the market and looking for the type of neighborhood that attracts a good tenant because a good property manager is gonna work with a good tenant. But if you go and buy a really bad home in a really bad neighborhood that’s really cheap, that might attract really bad tenants.
You’re gonna find a bad property manager because by nature they’re constantly dealing with the crap and they’re probably not real happy with it, and they’re not real joyful. All property managers have their fair share of junk they’ve gotta deal with. If you got a lot of. But if you can back that train up and.
Where should I be looking and buying? First and foremost, that will be attractive to a tenant. And then if I’m buying a property in a market that’s attractive to a tenant and it attracts the right kind of tenant, then maybe I’m attracting the right kind of property manager that can serve that tenant.
And we’ve done episodes before on property managers and saying that you’ve gotta have a property manager that’s both caring for the tenant, but also caring for you as an owner of the property. And so one of the ways that we are mitigating even that worst case scenario is market select. Property selection inside a market selection.
And that goes down to neighborhood selection inside a market selection, which indicates property selection, which then goes to who is the type of tenant that you’re finding in selecting, and then the property managers are jumping through the hoops to try to find good property or good tenants that kind of fit that mold.
And now you’re onto the next question, which is, Okay, so even. You get the right property in the right market because we’re doing Moneyball real estate. Maybe you’re working with done for your real estate. Maybe you’re doing this on your own. If you find the right property in the right market, that attracts the right kind of tenant.
See, that is not a golden ticket, shorty, that everything’s still gonna go perfectly and go well. Right? So what are some of the things that are a more realistic scenario for what our clients see and what we see as property owners in some of these situ? Yeah. So from a realistic standpoint, it’s like, and, and I was gonna say like with our property managers, when I was doing drive arounds with them this summer, I went to teach to the markets.
The property managers quickly pointed out, it’s like we don’t even manage properties in, in this particular neighborhood, and it’s because we don’t want to deal with certain problems that we know are prevalent in this area. Right. So, you know, to answer your question, you know, so from a practicality standpoint, like what can our, you know, Doing the Moneyball real estate, the way that we do it, what can be expected?
Well, you can expect that you’re gonna get a good tenant, but tenant situations change. People lose jobs or people get divorced, right? Or life happens and it can be, life just happens, right? A spouse dies, like there’s, life just happens. And so occasionally you do have a scenario in a situation. You have to evict a tenant or you have a tenant that cannot pay or you have a pandemic.
Yeah. And so like that’s a very real world practical thing. That did happen right to us back in 2008 when the market crashed. We were in business. And so from a practicality standpoint, the beauty is that we have the ability to adjust. We have the ability to, based on experience, to guide our clients to make the right decision.
So like back in 2008 when the market. We had many people come to us saying, Ah, what, what do, should I hurry up and sell? And I was like, No, don’t hurry up and sell. That would be the worst case scenario in your situation. So what we advised our clients to do was, Hey, guess what? Rent is the great equalizer.
The value of your property just went down significantly. So don’t sell that. Doesn’t make sense. So what you do, hang on to the property and collect your 2, 3, 4, $500 per month cash flow and the market will recover. We don’t know when it will recover, but it. The market goes in cycles, and it did. By 2015, the market had recovered enough sufficiently that some of our clients began to sell and turned that one property into two and they made a killing.
And so it’s a matter of being patient. It’s a matter of executing the plan that Moneyball real estate is, and you just hang onto the property and you collect your rent and you don’t panic. Right? And in the scenario with the pandemic, exact same. People were asking us the question, Well I’ve got this property under contract, should I still buy it?
And it was like, Yes, stay the course. You have the pundits in the markets or in the media telling you one thing. It was like, we can tell you from boots on the ground experience that right now, even though they’re saying that the market’s gonna fall, I’m telling you, we are telling. That there is a shortage of properties right now pre pandemic, so not knowing even what was gonna happen five days later.
We can tell you from experience, from knowledge that there is a shortage of properties Right now. I don’t know what the other market factors are gonna be like, but when you connect all of the dots, yes, move forward this property because you’re going to find a tenant. There is going to be demand for this property because guess what?
There is a shortage of property. There’s a supply and demand issue, and so our clients move forward. They did that and really what happened is a pandemic just poured gasoline and fuel on this whole issue, and we’ve had, we’ve talked about this many times, so I won’t talk about it more, but the bottom line is, The supply and demand issue for single family homes was just expound.
Right. And so values increased even faster, and the shortage became even more dramatic, not only from a buying perspective, but from a renting perspective. And the days on market to get rented dropped from an average of about 24 days to I think like four days. Yeah. All of a sudden rentals weren’t even higher demand.
Yeah, exactly. And we don’t have to go into all of those reasons. Anyways. Did that answer your question? Yeah, no, 100%. Because what I wanted to talk about is this, that look, when we say what’s the worst case scenario, we’re really just wondering what is at risk for me. Well, if you buy the wrong property in the wrong neighborhood, and maybe it’s the wrong price point, you may attract the wrong kind of tenant, which also may attract the wrong kind of property manager.
And so as a result, you may have a tenant that just never, ever pays their life can happen. Even if you did get a good property in a good location or whatever, life can happen. You may have a tenant that doesn’t pay. But it’s interesting because I feel. Times tends to heal most wounds when it comes to real estate, right?
If you can hang onto the property for long enough, if you could continue to collect rent, if you’re getting rent, you can hang onto it long enough. But what happens if you have the right property in the right market and you’ve got a tenant in there and they are, or they are not paying, or maybe there’s some repairs that need to happen.
So one of the other things that we do is not only market selection, which attracts the right kind of tenant, which attracts the right kind of property manager, and we’re also talking about long. Ish real estate, not short term real estate. We’re not looking to sell when the market takes a dip, but one of the other things that we strongly advocate and that for you in your real estate, one of the other things, there’s really, you know, you look at time can heal a lot of wounds in real estate and so can money, right?
So time and money are things that can really heal, obviously. The mentality, the philosophy, the selection. That’s a big part of how you leading into it. You try to do some pre-workout, you know, to make sure that everything’s gonna work out once you have the property. But if you have, we always call it a sleep well at night account, and this is something that I think, yeah, just a reserve account.
A reserve account, something that helps. Right. Which is. If you are gonna go and buy a property, right, If we assume that all of the factors should be working well, that everything’s looking pretty good, if you have some reserve set aside for every single property that you own, or at least a reserve account that has enough in there so that if you have a tenant that’s not paying, or you have some repairs that need to be done, You’re not having to go into your own personal coffers, your own personal checking account or your savings account.
You already have earmarked and money set aside for real estate. And it’s also a pretty good idea to continue to contribute a little bit of money every month outta the cashflow that you’re getting to a fund that could continue to be there in the event that something were to go wrong. That’s another way you can kind of mitigate some of the worst case scenario, right?
So it’s selecting the right market. It’s selecting the market that’s gonna attract a good. Which then means you’re gonna hopefully get a good property manager. So it’s selecting a property manager, selecting a tenant, selecting a market, and then making sure that you’re hanging onto the property for a long enough amount of time that you’re allowing the economy to do its work, which should, in large part, help to heal any of the wounds that could come from owning real estate.
But then as another safeguard, you have a reserve account, a reserve account that could be set aside, dollars set aside, so that if something happens, if something goes wrong, you already have. That’s there that could potentially heal some of those wounds that’s taking place. Yeah, and so getting to your point, like we talked, worst case scenario, we talked practicality, you know, in.
What you can expect, right? Like when you buy Moneyball real estate, what can you expect over the long run? And what I love about that question is the answer to that question is on every proforma, right? So we take into account, you know, what your rent’s gonna be, what your increases in rents are gonna be, what your.
Mortgage expense, insurance expense, HOA, and everything involved, right? What you can expect from a cash flow standpoint, but we also work into that, you know, what can you expect from a vacancy and repair standpoint and what you can expect from an appreciation standpoint. And so what you can expect is that this is a physical asset, and over time it’s going to need some repairs.
If you live in an apartment, if you live in a. You know that things break. You know that things from time to time, you need to replace the water here from time to time you need to do these different things. And so part of the mitigating of that is understanding where all of those things stand when you buy the property, which is also accounted for in the proforma, all the way from what are your rehab expenses.
So we take into account the age of the roof, the age of the water here, the age of the, the HVAC system, and all of those things that are kind of the bigger expense type things. And so, You plan for those. If you know that the home that you’re buying has a roof that’s 12 years old, you’re probably gonna have to replace it sometime in the next eight to 10 years.
Like, or at least you’re gonna need to reshingle it. And so you build that into your expectations of, for that particular property, right? And so those are important factors. And so what you can expect is you can expect to use some of your reserve. Along the way. And so if you have that expectation, you have that set in your mind that, again, that is your expectation.
Then you go into it knowing, and then when, not if, but when that happens, you’ve got that factored in, you’ve got the reserve ready to go, and when it happens, you don’t have to, you know, there doesn’t have to be any weeping, wailing, and gnashing of teeth. Right? That’s right. It’s like, it’s like, okay, what’s the issue?
What’s the problem? What do I need to do to fix it? Property manager, can you get me three bids on that roof? That’s right, and you just move forward and you make the decisions accordingly. So if you expect to spend a little bit of money along the way, on the, on the repairs and to keep the home in good upkeep, here’s the other thing that you can expect is, you know, each time there’s tenant movement and our average tenant stays, Pretty close to three years.
And so every three years you’re probably gonna have a little bit of paint, maybe a little bit of flooring, maybe a little bit of, uh, repair to get that property back into rent ready condition every, uh, two to three years. And so if that’s part of your expectation and you know that and understand it, then you’re good to go.
Here’s the other thing that you can expect. Is that you’re gonna expect to hold onto this property five to 10 years. We shared in a last episode the story of, of a gentleman who bought a home about 12 years ago and, and what that home did for him and the expectations that he set and, and the little micro wins that he had along the way, and the fact that in his plan, he just wanted to pay that property off, which he did in about 1213.
And then ended up selling it and had, has a 10 31 exchange for $524,000 that he’s now putting into three to five properties. And that can be the expectation based on the decisions that you make along the way. Absolutely. So the last kind of thing I wanted to touch on, just another way to kind of mitigate some of the risk and to do some of the things like we’re talking about what the worst case scenario could.
What the realistic scenario could be. There’s one other little facet that can help to mitigate some of the risk and that is to be properly insured. And you know, one of the things that we would love to offer to everybody, look, if you are not a client of ours and you’re wondering if you’re adequately insured, give us a call.
We’ve got an in-house insurance brokerage that agents that are phenomenal, and there’s a difference between being adequately insured and having insurance. Right. Having insurance means I’ve got an insurance policy, I should be fine. But is it covering the things that it needs to cover? Do you need a liability or an umbrella policy in addition to the policy that you’ve got on your investment property?
And so if you are picking the right kind of market that’s attracting the right kind of tenant, that also attracts the right kind of property manager. If you’ve got time on your side and realize that you’re gonna hang onto the property for a certain significant amount of time, and if you’ve got reserves and you’re going into it with a plan that you know you’re gonna have to spend some money as you go, and you make sure that you are adequately insured, not just insured, but adequately insured.
All of those things stack up to say, Look, there’s risk in real estate. Not everything’s gonna be perfect. There are worst case scenarios that could be at play. And then there’s realistic scenarios of what you really might see. If you’re doing all of those things, you’re mitigating and minimizing risk to the greatest extent possible.
It doesn’t mean everything’s gonna be perfect, but it does mean that you are gonna be far better off than had you not done those things. So again, if any of you are kind of wondering, I, I adequately insured, do I have proper insurance? Feel free to reach out to us. You could chat with us on our website, dfy dash real estate.com.
We’ll connect you with the right people, and we can investigate that and take a look at that. But it is one of those things that you ought to be considering as well as everything else that we talked about in the episode. So, Steve, any last words before we sign off today? Yeah, no, I mean, this is the type of topic, right, where we’re like, Do we even talk about this?
Because it can be kind of like the Debbie Downer kind of a. Not nothing against anybody named Debbie. Right. So Especially if her last name is Downer. Yes, exactly right. So I think it’s an important one though, Kevin, because a lot of people have those questions. Worst case scenario versus, you know, what’s the most likely scenario to also just understanding when you get into real estate, at least you know the type of real estate that we do.
What can you expect? And I think that everything boils down to that word. Yeah. Expectations. That’s right. Expect. I think that’s it. Super critical. And so guys, look, we know real estate is awesome. We talk about all the good that comes with real estate, but we also, we would do you in injustice if we didn’t say, Look, but here’s the reality of some of what can happen.
But then also here’s the whole system and here’s the whole mentality and here’s the whole process and here’s the whole. Kitten caboodle of what we try to do to mitigate and minimize those things. It’s all part of the same story. And the story is, we know that real estate should be a part of your portfolio.
We know that real estate will make a huge difference in your life if you’ll utilize it the right way. And so we hope that today was. Beneficial. At least we’re talking about the things that are realistic and things that could happen that aren’t maybe super realistic, but it is the worst case scenario.
We hope that it was helpful. We hope that you found some information that was beneficial and we’re so thankful for you guys. Thank you for continuing to listen. Please go with rate and review if you have not done so, and uh, we’ll sign off today and we’ll see you next week. Have a great day. Thanks so much for listening to replace Your Income with Kevin and Steve.
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