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Podcast Transcription
Dave Dubeau [00:00:09] Well, hey, everyone, this is Dave Dubeau here with another episode of the property Profits Real Estate podcast coming at you from beautiful Puerto Vallarta, Mexico. And on the call with me for this special investor spotlight episode, we’ve got Tim and Leah Francisco, who are a real estate investing powerhouse couple coming at us from Beautiful Bow County, Montana. How are you guys doing this fine day?
Tim Francisco [00:00:39] Good, thanks for having us. And silver and silver, but your clothes?
Dave Dubeau [00:00:42] Well, there you go. Yes, so, my apologies. So you guys, you guys are focusing, you’ve been doing it in the real estate game for a number of years now, and you’re focusing primarily on by fixing seller flipping properties. So tell me a little bit about what got you into real estate investing in the first place.
Tim Francisco [00:01:02] That’s a good question. We were at a business seminar for a completely different type of business, and the speaker was talking about how Rob Break Yusaku recommends having seven different streams of income. And of course, a lot of people who wrote the book Stand Up for Dad and there’s they saw that
Dave Dubeau [00:01:22] famous purple book
Tim Francisco [00:01:23] investing. So. That’s right. So we started looking into Omar and doing some more research and we knew that that’s what we wanted to do to build a passive income for a variety of reasons.
Dave Dubeau [00:01:37] So how did you guys get started? What was your first thing after you read the purple book, then what did you do?
Lia Francisco [00:01:43] Next week will be our anniversary. So six years married we started by deciding to buy a duplex to live in for our first house, and we lived on one side and rented out the other. And we had a really great experience, but eventually we moved out and rented out both sides and then eventually sold it for a Profits.
Tim Francisco [00:02:03] So that was how it all started. Another one, as
Dave Dubeau [00:02:08] well as exciting stuff. I think they call that these days house packing. So your house packing up what was even called Osaki. All right. Well, that kind of got your feet wet with that kind of thing. And then and then what kind of real estate deals have you done since that?
Tim Francisco [00:02:25] We’ve been mainly working on wholesale deals at this point. We have to be moved out of state, so we had sold those properties and we wanted to build up below that quicker. Some cash nest egg for real estate investing. So we’ve been doing wholesaling the most recent.
Lia Francisco [00:02:43] And I’m also a real estate agent, so I’ve been working with both buyers and sellers. And also, we did have some rentals for a while and are now looking into what we should be closing on to rentals here and soon. So we’re looking forward to that.
Dave Dubeau [00:03:00] Well, that’s wonderful. So that’s exciting because the beautiful thing about wholesaling for people who aren’t familiar with what wholesaling is, is basically you’re finding motivated sellers and you are getting involved in that deal and then basically passing that on to other investors. But by doing that, you’re getting very, very good at finding properties that are under market value. Would that be a fair assessment?
Tim Francisco [00:03:25] Yeah. Yeah, that was there. You spent a lot of time doing that, for sure.
Dave Dubeau [00:03:31] And I would think Leah correct me if I’m wrong. But your position as a realtor gives you a unique overview of things because you’ve got first access to properties has become on the MLS. You’ve got an inside insider’s view into these kind of properties. So it’s really kind of a double whammy there. You guys have got that double impact with the wholesaling and the realtor side of things as well.
Tim Francisco [00:03:55] It’s really nice because we’re also in Montana is now just close your state. And so in order to figure out what properties are being sold that need to have a realtor to help you with figuring out comparable sales to see if you’re what you’re buying is a good deal or not, so much is your wife. That makes life a lot easier.
Dave Dubeau [00:04:17] That’s the perfect power team to have right there, Tim. You lucky son of a gun.
Tim Francisco [00:04:21] I tell you what that’s great.
Dave Dubeau [00:04:25] OK, so now you guys are starting to focus on buying fakes and sell. Some people call this flipping. Talk to me a little bit about that. Why is that your focus these days?
Tim Francisco [00:04:36] One of the main reasons is you get a quicker profit with those and you do with rental properties. The two properties that we offer right now that were ready to close, we had thought about them. They just don’t happen to be good properties to flip in terms of getting a profit, but they are great properties for rentals. But we have to, but it’s going to take time to make money off of those in the beginning, you know, as we’re building up the rental income. Thanks, epilepsies. You’re going to be in there, hopefully just a few months. The property fixed up and then you’re selling it for a profit. We can get that money back quicker to reinvest in other properties. Many other benefits that it’s, you know, as a deal, you know, parcels of being a landlord or management, although we’re going to have to do that. It’s that’s the one benefit. I want to focus a little bit on the fix.
Dave Dubeau [00:05:28] That makes sense. So basically, you’re able to get in and out of the deal quite quickly. You’re able to create a profit for you and your investor partners very, very quickly there. And you don’t have the typical long term headaches of dealing with tenants, toilets and termites. You’re in and out pretty quickly. Yeah, well, that makes sense. And plus it really ties in nicely with your experience doing wholesale deals because you guys have gotten very, very good at finding these motivated sellers, rich guys. So you guys now are focusing more on buy, fix and sell or flipping houses. Tell us why that particular real estate investing strategy really resonates with you.
Tim Francisco [00:06:12] Yes. You know, one of the main reasons is that we can get a quicker profit from that where the fix and flips in. You just talked about the two properties that we’re buying as rentals. We wanted to flip them, but they just weren’t appropriate because we weren’t going to make a profit for those and we will profit off of those but is going to take longer. Whereas a fix of what we mean by that, we’re going to be in there for a few months, hopefully, and then be able to sell that profit from that and then be able to invest that into other properties that we sold. So the other one is, you know, we don’t have to live with the Pixel flats, you don’t have to deal with the management, the hassles of managing the property and the landlord issues that go along with that,
Dave Dubeau [00:06:56] the terrible TI’s tenants, toilets and termites. You don’t have to worry about any of those things when you go to Mexico, right? Yeah, yeah. Well, and it makes sense, too, because that really feeds in nicely with your strengths. You guys have been focusing on wholesale deals for a while, so you’ve gotten very good at finding undervalued properties or properties that you can buy at a deep discount. Leah, you’re involved as a realtor, so you’ve got good access to those kind of properties. So yeah, it really makes a lot of sense and you’re in and out very, very quickly. So you and your investor partners can get a very fast return on your money. Yeah, that makes sense. All right, so let’s talk a little bit about what market area you guys are focusing on. Where is it that you’re investing these days?
Tim Francisco [00:07:45] Hire a fix and flip and rental properties, we are focused on the insolvable county area that’s the biggest, most populated county where we all live in that category right next door. But that’s property. You know, we’re so close to home, so it’s easy to manage those properties being local and then and then for wholesaling. We have been working on Oklahoma City and Jacksonville because those are bigger cities and you have more opportunity to find better deals there.
Dave Dubeau [00:08:17] So you can say or easier to do a remote. So sorry, Leo, what would you say are some of the big benefits of this
Tim Francisco [00:08:24] market for doing
Dave Dubeau [00:08:26] by fixing cell?
Lia Francisco [00:08:28] Where we are right now is very small view is a little bigger, there’s right now a lot of people are putting their house up for sale for high prices right now, so we’re able to give people some other options. But then as a real estate agent, I can also list. So we have that benefit. And I think also it’s just a very a more affordable cost of living for people so we can keep the rent spare, we can keep fixed and spare. We can help people to buy at an affordable cost. And then that also people want those houses because they want to pay less right now.
Tim Francisco [00:09:09] Right? Yeah. And even, yeah, even some of accounting is lower. The prices are lower than the national average and lower. One of the lower than Montana themselves. So. So that makes it easier. So everybody’s like, I’m stuck in my own city as a whole. This was known as the copper to copper city, and they each had hundreds. It was one of the wealthiest cities in that country. And so now obviously, that there’s a whole bunch of things that happen where that’s not the case and there’s a lot of houses, they could use some fixed, simpler thing.
Dave Dubeau [00:09:49] So they yeah, because I’m hearing there’s some properties that need a little TLC tender loving care for.
Tim Francisco [00:09:56] Yeah.
Dave Dubeau [00:09:58] OK, so what would you guys have been in the real estate game for a number of years now? The you’re a full time realtor. What would you say is as a couple, what is your unfair advantage when it comes to real estate investing?
Lia Francisco [00:10:13] We really love working with people, and we have a lot of years between us experience with people. Tim is also a physical therapist. I’m a mental health therapist and our whole careers have been based on relationships with our clients, and we really seek to build a rapport and build trust and help people. And I think that really helps. And also, we’ve had tons of training. I mean that he has taken so much real estate investment training, and I have had a mentor for real estate and we’ve had coaches and we just seek to always learn and always wear more and give a lot of assistance to build to the different people that we’re working on.
Tim Francisco [00:10:54] Yeah. So for example, you know, just as with a seller, as an investor, it doesn’t have to be just, you know, one hopper. So the salary can provide many different offers to them to help them or whatever situation they’re in, whether you know, to be wraparound mortgage, you know, all different scenarios that we know that a person that wants to sell their property can be and that we can offer solutions for them. And that’s what we truly, truly desires. As Christians, we really want to demonstrate God’s love to these people and being able to offer them solutions to their problems is as what we want to do for them. And I think that, you know, is an unfair advantage for us to help people.
Dave Dubeau [00:11:39] Yeah, that’s a wonderful outlook. You really are looking to create win outcomes for not just yourself and your investor partners, but for the home seller as well. Because again, typically these folks are in situations that they need help from, and you can offer them a variety of different solutions. Yeah. Very nice, very, very nice. No. What would you say is the biggest lesson that you guys have learned from real estate investing over the years?
Tim Francisco [00:12:10] What is nothing’s guaranteed, you know, whether it’s the real estate market, you know, which us to depend on can depend on the global economy. It could be that the deal or the property now there’s so many different variables in the real estate that you really have to be flexible in your mindset. Going into each property and in your business. Is that you? That really helps, you know, you can’t be certain this is the way it’s going to work, and this is when you have to be flexible. And like you said, even with America, you know, sometimes the American says rentals are better, you know, sometimes to fix up us better. So. So just I think that’s the biggest lesson I’ve learned for them.
Lia Francisco [00:12:52] Yeah. To add to that, I would say that I’ve learned that everything is negotiable. So there’s no I guess I didn’t realize the amount of work I have to do on myself to be in real estate because it’s the way that you look at things that I’ve looked at things as big problems sometimes and crises, but real estate just kind of everyday life. You never know what’s going to happen. You can predict the rest you can plan, but there’s things that come up. So you have to look at it like challenges to learn and to grow and not as insurmountable problems. And then also that you have to work. And then it goes patience. And usually things will come around and they’ll work out.
Dave Dubeau [00:13:32] That makes a lot of sense. And I would imagine that both of you with the years of experience that you have and the fact that you know, Leo, you’re working in this day in, day out with other real estate clients. Pretty much any scenario you’ve probably seen it by now,
Lia Francisco [00:13:48] there’s that many I didn’t know I would ever see, but I did. Yeah, yeah.
Dave Dubeau [00:13:55] So you guys, you’re big fans of real estate. I’m a big fan of real estate. Do you think real estate investing is for everyone? Do you think everybody should be involved in real estate in one way or another?
Tim Francisco [00:14:07] I think in a practical sense, everyone could do it, but I think everyone well does it or will do it and or follow through with it, you know, just that’s just the way it goes. But I think that if you have money, you can still invest in real estate and you don’t have to do the work. You can partner with investors like us to do the work, and you can still invest in the real estate and get your and get your Profits out of without having to put all that work in that we’re putting in.
Dave Dubeau [00:14:40] That makes a lot of sense. Yeah, because there’s active investors and there’s passive investors. You guys are very active investors, your boots on the ground, you’ve got the experience, you’ve got the training, you’ve got the know how other people would like to get all the benefits of real estate investing without getting their hands dirty, so to speak. So it’s kind of a match made in heaven. If they come on board as passive partners and you guys are the active partners and everybody shares the Profits, it’s a win scenario. Yeah, it’s great. So you guys, this has been a lot of fun if people want to find out more about you and connect with you. What’s the best website for them to check up?
Tim Francisco [00:15:18] Our website is Tell Francisco Properties dot com. That’s T l Leah Francisco Properties dot com.
Dave Dubeau [00:15:27] That’s pretty easy. That’s fantastic. Well, thank you guys very much. It’s been a lot of fun having this conversation, and I wish you making us. I wish you continued success with your real estate journey.
Tim Francisco [00:15:41] Pretty much. I really appreciate it.
Dave Dubeau [00:15:43] All right. Thank you very much. Everybody. Take care. We’ll see you on the next episode. Well, hey there. Thanks for tuning into the property Profits podcast if you like this episode. That’s great. Please go ahead and subscribe on iTunes. Give us a good review. That’d be awesome. I appreciate that. And if you’re looking to attract investors and raise capital for your deals, then we invite you to get a complimentary copy of my newest book right back there. There it is the money partner formula. You got a PDF version, an investor attraction book dot com again. Investor attraction, book dot com. Take care.