Gary Boomershine has worked in a variety of emerging growth markets for more than 24 years in Silicon Valley and India. He has been successful in emerging markets and public markets in a broad range of industries including Residential and Commercial Real Estate, Private Lending, Enterprise Software, New Media, and High Tech Manufacturing. His most recent venture, www.RealEstateInvestor.com, with their flagship platform “REIvault” made INC 500 Fastest Growing Company List for 2016 as #503 in the United States, #16 in Real Estate and #18 in the San Francisco Bay Area.
In this episode, Brian and Gary discuss how this is an opportune time and what can a team-owner, a broker-owner, or someone who’s running a real estate business do to really create wealth during this massive shift of wealth.
In this episode, we talk about…
- 3:10 – Gary talks about their new hybrid iBuyer model
- 6:32 – What exactly is an iBuyer and how are they working in this market shift and how you can capitalize now.
- 15:56 – From an investor’s perspective, Gary talks about a new dynamic and opportunity for those looking for cash partners.
- 20:50 – With a huge inventory problem, Gary is able to see a long term buyer’s market coming.
- 30:16 – With the COVID-19 taking a toll, how do landlords handle tenants not being able to pay rent?
- 34:05 – Gary explains how can agents create wealth for themselves using somebody else’s hard money.
Brian Charlesworth 0:36
Hi, everyone. Welcome back to the GRIT podcast. I’m Brian Charlesworth. I’m the founder of Sisu, and your host of the show. And today we are here with Gary Boomershine. Gary has been in Real Estate now since I think 1987, a long time. For the last 16 years or so he’s been investing in real estate and buying real Real Estate, and we’re really excited to have him on the show today. Gary is actually my first interview since the Covid 19. Chaos. I’m really excited Gary to learn from you as to is this a great time for our Real Estate, team owners, broker-owners to just start diving into this business. But before we get into that, why don’t you give us a little more detail on your background?
Gary Boomershine 1:27
Yeah, super excited, Brian to be here with your loyal listeners. And I know a lot of crazy times, right? Sort of what should we all be doing? I love this. I love this real estate niche because we’re all so connected. And there’s such an opportunity for business owners and entrepreneurs to be sharing what we’re doing, how we’re adjusting and kind of grow together because we are in a little bit of unshared charter territory. My background – it’s Gary Boomershine. I run a company called real estate investor.com. And we’ve got about an about 600 agents and I should say agent, brokerage teams and investors all over the country using a combination of our platform. And our team. We have a group of inside sales agents and resources that are experts to basically manage marketing and a lot of the sales activities.
Brian Charlesworth 2:28
Gary on that friend, a lot of our listeners have heard from Jeff Cohn because Jeff is out talking about us pretty frequently. Isn’t he one of yours as well? Doesn’t he work with you guys and utilize your technology there?
Gary Boomershine 2:44
Oh, yeah. I actually just talked to Jeff. I’m in multiple masterminds with him. Good, super good friend. Got to hang out in Omaha with him. We went to the Berkshire Hathaway shareholder meeting together a few months ago.
Brian Charlesworth 2:56
Gary Boomershine 2:56
I love Jeff, super sharp guy. He has a client of ours. And we have a hybrid model. And I will definitely go into this today, we’re finding a lot of agents that are that have been seeing this whole eye buyer model and an opportunity to participate in offering more solutions to sellers where you can come in and offer the typical listing, but also at the same time, an instant offer to sellers. And so he’s got an agent team. I think they did 700 transactions last year on the brokerage side, and then they’re buying properties all over the country. And we’re powering them up.
Brian Charlesworth 3:45
Everything they’re doing on the investment side or call it iBuyer or whatever that is being done using your systems.
Gary Boomershine 3:51
Yeah, it is. And then there’s another, do you know Erik Hatch.
Brian Charlesworth 3:55
I do. Yeah,
Gary Boomershine 3:56
So we’re firing up. We’re using his team in Fargo has been using us I actually got I was with him and Mexico just a few weeks ago. And he was giving me some numbers. I think they we drove 127 seller appointments off of our marketing engine for him and his direct team and Fargo and he said that as of the time I spoke to him, he said they bought 60 houses. And at the time they had 160 listings.
Brian Charlesworth 4:28
Now was this over like a 12 month period?
Gary Boomershine 4:34
It was a nine-month period off of a fairly small amount of marketing. He’s in he’s in Fargo. So, you know every part of the country is going to be a little different, but it’s been pretty cool. So he’s what Eric is doing. And a lot of these agents are doing kind of the snap offer approach. That’s something that Eric has coined, and the snap offer is where you can come in to the seller and be able to say hey, we can buy your house. Right now, all cash, or we could list your property. And you know, with some improvements, we think we would be able to net you this and if you did more of the following more traditional for a retail buyer, you know, we would end up here. And so he said that he’s getting about maybe 40% of those transactions. He’s ending up by and about 60% are turning into the listings. But what’s not what’s nice is it’s really the competitor, the competitor to the eye buyer, institutional, you know, the Zillow, the open door, the offer pad model. Yeah, we’re seeing a lot of invest a lot of agents doing that a lot of the Top Producing agent teams kind of seeing that they need to be more fit for the, for this new market. And, and also, I’m excited about what’s going on with Kobe, I shouldn’t say excited, right. I’m probably the ultimate optimist on everything, but we’re going to see a lot of the institutional Investors right now pulling out. So this is a really great opportunity in my from my perspective for the investors and even more so for the agent teams that could actually…
Brian Charlesworth 6:11
For those that don’t know i mean maybe share with us this got started, iBuyer, back in Phoenix years ago. And now some of the companies that were the original founders of this, do you want to maybe set the, the, just the stage here but they’re backing out now, right? They’re no longer making investments.
Gary Boomershine 6:34
So iBuyer is is really an instant buyer. It’s being able to where a seller can instead of going and doing the traditional listing and waiting and having open houses. They can actually get an instant buyer. And so Zillow, and there’s, I believe the last half right before this covert announcement there was over $3 trillion coming in and Fact. And what we’re seeing a definitely on the investor side is price, a massive price competition where you know, an investor or a cash investor might offer 100 grand. And we’d see Zillow come in at like 120 or 127. And Zillow is model as they didn’t care about making money now as long term. We’ve actually Zillow just announced they’re pulling out of that right now. And so we think a lot of with with this with this turn in the market, we’re thinking that a lot of the, the, the institutional money is going to be pulled out just like we saw in 2008 and 2009. But the but, but the opportunity is still there. So this is an opportunity in my in my book and a lot of us for for a massive transition of wealth because in all these market turns, there’s always been a transition of wealth, right? Like what side of the curve do we all want to be on? And a lot of us are saying, Hey, we want to be on the curve. have the opportunity. So we’re also seeing a lot of people that may have been doing rehabbing and rentals are going to have a lot of more price sensitive or they’re going to have more pressure right now. And those that are you know that have got cash or access to cash will do very well in this coming market.
Brian Charlesworth 8:20
So a lot of what we do here Gary with the the GRIT podcast, we really focus on what can someone who’s running a real estate business, do what are some things that a team owner or a broker owner, what could they do to really create wealth and you said, this massive shift right now, right? There’s a massive shift of wealth that that is an opportune time to have that happen. The last time we had this was really in 2008, when people either crashed or they took advantage of it, and that’s when you can gain the most wealth. So let’s talk about somebody. I know a lot. This is definitely top of mind for the real estate industry. There’s no doubt that I buyers had the biggest impact of anything that’s come in to compete with the industry. The eye buyer has had the biggest impact on taking market share, right? Correct. And I think a lot of people thought it for so long a lot of people have jumped in and joined that now. But if I haven’t done that yet, what’s the best way to do that? You know, how much money I mean I’ve got so many questions How much money do I need to invest on a monthly basis you were talking a little bit ago about you know, that he didn’t invest in those nine months he didn’t invest a whole lot of marketing dollars. Like if if I want to get into this now because my real estate business is getting slow. People are not selling as many homes today with with people not leaving houses, although I know homes are still selling my wife’s team actually happens to be having their best month I’ve ever had. But how do I jump out of this? And not necessarily jump out of what I’m doing but add on the iBuyer, Gary, what’s the best way to do that. What would I need to do if I’ve never stepped my foot in it?
Gary Boomershine 10:05
Well, it’s a, it’s a really great question. And I can I can say, specifically what a lot of us are doing right now around it because this topic is is the one that we’re having. So it’s a perfect question. The, the opportunity in my mind is, especially for agents would be to be able to in this market to be able to find sellers that are probably panic selling a bit because there is a lot of panic. There are a lot of people that are glued to the TV. So there’s a lot of people right now they’re going to be glued to the TV, in panic and fear and not doing anything. And a lot of us entrepreneurs, teams, business owners are saying hey, this is not a time to do that. We’re actually going to a, get our expenses in line. Make sure that we’re you know, our expenses are all in line with with with with a change. In the market, that’s number one I’m seeing number two is how do we actually reach those sellers and a lot of us are actually using the off market approach. So like a company like real estate investor calm, we’re doing heavy amount of direct mail, I think we’ve done almost 50 million pieces of direct mail as an as an example. And, and so we’re having a lot of success with that. We’re also doing cold calling. So we’re able to take the same types of targeted mailing lists. And I can even go into that in a little bit of detail. And then we’re pulling the phone numbers but it’s called Data stacking. We have a tool that that our team does that or or we offer it to our clients where they can actually pull phone numbers and provide it over to a professional team. That’s very, very good on the phone, especially scripted at this time. Because, you know, sensitivity and be able to talk to sellers who are interested in receiving offers for properties.
Brian Charlesworth 12:08
So do I need to provide you with that list, or do you guys have that list?
Gary Boomershine 12:11
Either! A lot of our clients coming to real estate investor calm. They see us as the expert, because, I mean, we’ve been doing this direct response direct mail forever. So we have the mailing lists. We have a two of them primarily. And but we have clients like Jeff Cohn, he has his own list on top of ours, they have their own mailing list and so they’ll provide it to us. And then our team has the ability of managing it and making sure making sure it’s you know, it’s going out most effective etc. And then we’re also doing cold calling. And then more importantly as those leads come in, is the follow up is absolutely the key. It is less than 3% of the initial calls are are where profits come from? It’s almost all through, follow up, through follow up text messages and keeping kind of front Top of Mind with the seller we do, we do that we have a system and a team that can actually do all that phone follow up and scheduling appointments for our clients if they need it. Now, the opportunity that I think is presentable is do what the buyers, the buyers were able to come in with an instant offer. So if you’re an agent, and you can come in with an offer to a seller to buy the house at one price today, that’s gonna be highly attractive for a lot of these sellers. And I can explain why or if they don’t want that being able to give them an opportunity to list the property. And so now you’re really coming in as a solution provider, an expert solution provider that says hey, you know, we’re not just you, you know, we can offer you multiple solutions. And, and, and so the I’m seeing a lot of opportunity now if you don’t have the money to do To Buy yourself, you could in your local market find those cash buyers, or those those those particular buyers that are looking for either rental properties because there are a lot of them. A lot of people right now that have been sitting on cash and they’re waiting for this opportunity. And as an agent, you could have, you know, your Rolodex of people ready to go. So you can either bring somebody in right then and there to make an offer. Or you can actually list the property and take a traditional listing and i think i think the market is absolutely perfect for this.
Brian Charlesworth 14:33
So, if I don’t have the cash and I want to bring somebody in as a partner to to invest in this, how do I make my money?
Gary Boomershine 14:41
Typical couple of a couple ways. Usually you might actually get the the traditional listing I know a lot of cash buyers will build their six or sometimes even higher than 6% commission or their fee structure into the deal, so that you’d get paid right out of escrow, because all of these deals all go through escrow. It’s all traditional, it’s just coming in instead of having to wait and looking for kind of a retail, FHA, you know, traditional buyer, you may be coming in with somebody that is looking for property that needs work, right 54% of all the properties last year, according to our records were investor types of properties, right? Not all properties are perfectly you know, beautiful kitchens and remodel, they might have you know, a lot of work and so what investors out there cash buyers are typically looking for properties that are value add properties where we can come in and, you know, improve them and either put them into a rental pool for a long term investment or possibly fix them up Turn them and, and profit off of that. So I think the agents that are able to come in and make those multiple offers to a seller are going to are going to do really well.
Brian Charlesworth 15:56
Yeah, it’s one more opportunity to get in front of people. Right, if you’re going to give them an option, I’m happy to sell your home. We’re also you know, we’ll give you a cat instant cash offer if you want, right, let me get it. So it’s a way to get in front of the customer.
Gary Boomershine 16:13
Now, let me throw one more thing. Now, this is some, this might go over a lot of people’s head. But I will tell you from an investor perspective, what we’ve seen in the last cycles, where there are a lot of sellers that have properties that are like a lot of burned out landlords and properties that have been inherited, that have a huge amount of equity. And right now a lot of those sellers are are worried about the banks. So this is, historically A lot of us investors will also come in with the potential seller financing option, as a, hey, we could actually buy to even a higher price if you’d be willing to carry back. And so a lot of investors are now going down the path of Hey, I can give you a cash offer. Let’s Say $100,000 cash offer, we could list the property. And here’s what we think. Or we could actually, you know, you become the bank and you’re going to get an income stream over the long haul. And, and and so sellers are actually there’s a lot of people because they’re worried about, oh, if I sell where am I going to put the money? Do I put it in the bank? Is there going to be a potential issue there? And so now it just creates even another dynamic and opportunity.
Brian Charlesworth 17:26
So again, if I’m not in this business, Gary, and I want, I want to be I mean, ultimately, maybe I’m just making a commission. Maybe I’m wholesaling. But maybe I’m doing, you know, maybe I’m finding ways to get an investor behind me get hard money, you know, then go replace that hard money with an actual investment loan from a bank. Tell us I mean, how would you go about building up this opportunity, if you were just getting into it and didn’t have, you know, large amounts of cash sitting around.
Unknown Speaker 18:04
Brian Charlesworth 18:07
how do you build that up the quickest. So you can really capitalize on this market because there is a key opportunity today. Yeah. And so I already miss it. Right? Yeah.
Gary Boomershine 18:15
Yeah. And I think no, the opportunity is right in front of us. Right now. I think that if you don’t have cash, if you’re sitting on cash, this is, you know, what is what it was a Warren Buffett said that you actually want to buy when people are panicking and in fear and when there’s huge amounts of optimism is usually when you want to sell. Right.
Brian Charlesworth 18:35
Exactly. So without end with, with stocks, right, right.
Gary Boomershine 18:41
The if you have cash right now, there is I see into the future, we’re gonna probably see an adjustment. We’ve had a massive seller market. I think we’re going to be transitioning from my perspective into more of a buyer market is historically some of the money from the banks. Financing sort of starts to disappear. that’s yet to be seen. But if you’re brand new, let’s say you have cash, so opportunity to, you know, actually build income streams off of, you know, buying. If you don’t have any cash, you can actually find in your local market, a handful of the people that are looking for properties. And there, it’s not very hard. Most of them are on Facebook and LinkedIn. So you can find the real estate investor and the local market interact with a handful of them. Typically, if you’re an agent, what we’ve found is you can have an agent, and you’ll have one or two or three buyers in your market that are looking for 10 or 20, or 30 or 50 properties over the next year. So you don’t have to have a huge buyer pool. If you’re brand new, you need a couple of buyers that are interested in it. They’ll usually teach you as an agent. They’ll say, Hey, here’s what I’m looking for. I’m looking for this type of product. three bedroom two bath these price ranges in this type of area and here’s how I typically will make my offer so an agent will pretty much know like where they need to be right they can go out very quickly in three minutes to value the property and say okay, I know my cash buyer will pay this amount and then if they’re talking to the seller, they’re bringing that off you know a direct a direct contract offer from that buyer. I know guys like guys like a lot of us who are agents we may be coming in as the company to buy it. And then we may assign that contract to somebody else. And that’s a lot of that’s that’s kind of a hybrid, and I may be getting way too down the rabbit hole for for people but
Brian Charlesworth 21:00
One of the questions I have you talked about you think it’s shifting to a buyer’s market. And, you know, it’s gonna be different all throughout the US. But I know here in the Utah market, we have so many tech companies moving in, even from the Bay Area, so they’re leaving you and coming to us. And we have so many startup tech companies such as Sisu, right I mean, we’ve been around for about three and a half years now that there’s a huge inventory problem, right? You can’t find houses anymore, there’s not enough land to to build and buildings getting out west so. So it seems like that the difference between weight and today was no eight, there seemed to be a lot of reasons like, you know, getting loans just based on telling people what your income is, right. There are a lot of problems with the economy, whereas we haven’t seen that up until this covid virus right. So do you see a long term buyer’s market coming here? What What do you really think? what do you think is going to happen?
Gary Boomershine 22:01
Personally, I do I actually think we are going to see a correction a short term correction on price. And then with the printing of money that’s going out of control there, what are they talking about a $1.5 trillion stimulus package, a stimulus package, where does that go it typically leads to inflation, which means you want to be sitting on assets. So, I see a short term pressure going into a buyers market with inventory starting to see a lot more inventory. And, and then, so buying opportunities for the investors or the agents that also want to be investors. And then so decrease in price initially, and then once this thing gets back to normal, you know, a rush back into much higher prices. So you know, if we look at other countries as well, you know, if you go over to China, if you go over to India, most property are not even obtainable for the common person. When I before coded before Cova, 19, just a few weeks ago, I, the number that I heard was like 64 to 67% of the population could afford a median priced house. Right. Now, if we look over the last 50 years, the real number, the average has been closer in the 4040 to 42% range. Right. So I think, over time over the and when I say like the next 18 months, I think massive buying opportunities, really good deals that are going to be coming, and then massive appreciation, and which means the dollar gets deflated. But you want to sit on cash assets. You want to sit on assets, which would be like properties.
Brian Charlesworth 23:50
So you see and I really respect and appreciate your opinion here. You see this being more like what happened in 2008 where it’s going to take a year and a half to two years before prices jump back up. Whereas I think a lot of people and you know, I’m we’re all reading a lot right now, right? Everybody’s got their opinion. A lot of people think that this is maybe more of a three, four-month thing we’re going through and the virus goes and prices are back up and the markets back on fire. So Time will tell Right, right. But yeah, so what advice would you have for us, knowing what you do? I mean, you’ve obviously given us a lot of advice, but how long do we wait, right? I mean, you’re like, jump on this now. Prices are going down. You think prices are gonna stay down, though, for 18 months. So that would give some time to really build and create a business in this space.
Gary Boomershine 24:56
First off, I have no crystal ball, right. And we’re all In in some unchartered territory, but history, history is a wonderful footprint. Yeah, see what you know, to the future. And so I just look at the history, you know, real estate has been a seven year cycle for over 100 years 2001 to 2008. In fact, it was 911 to the mortgage crash, we go back all the way to the founding of the Federal Reserve back in the early 1900s. And we look at those cycles. It’s been a seven year cycle. It’s been a seven year cycle almost pretty darn close to the day. We’re, we’re kind of at year 12. So I’ve actually been pretty vocal on the downturn market. A lot of people have, you know, if you listen to any anybody listens to my podcast, they’ll hear me over and over again about the market correction. I don’t think I’ve done a podcast out of the last 200 or I haven’t talked about the coming of the turn. Every every end of the cycle has been euphoric. And which means everybody’s talking real estate. It’s the hottest topic and then there’s the fleshing out. And so I’m just looking at the patterns historically and what we’ve seen. And there’s been a role of 18 months, where real estate is not really popular, but people are making a massive amount of money. It’s that 18 month window where there is that transition of wealth. What typically happens that I’ve seen over these turns is you do see people that were actually in retail, and that we’re buying at the peak of the market, they get hit pretty hard. So the people that have been buying, especially people are sitting on a bunch of rehab projects, maybe because of cash flow issues, and this low on the market, and that creates massive buying opportunities, right also, the other thing that I’ve seen is that the cash sort of disappears, we just saw it with the institutional buyers, where a lot of money is now frozen, right? So if $3 trillion immediately disappears from the market. That was the biggest competitor for all of us buying houses. That means where’s that $3 trillion not available, which means there are buying opportunities that usually means that it becomes a buyers market, which usually means better pricing. Exactly. So it’s so that that’s why I think people that are sitting on the sidelines right now. This is the time to be actually, you know, you know, getting our expenses in line first. But you know, not being idle. I think this is an opportunity to get in. I will tell you for me personally, I’m not buying right now. I am finding properties we’re making offers. A lot of us are making offers, but I’m I have cash buyers that I am turning properties over that are that are looking for properties right now. They’ve been going crazy because they’re there they’re buying so we’re finding sellers that actually do maybe They’ve been waiting. And they’ve been but now all of a sudden the sellers are like panic selling and they’re like, Okay, I’m ready to go. So we’re picking some of those up some of the sellers, we’re getting owner financing with and putting those into a rental pool. And we’re getting really good rates from the sellers. I mean, look, the the the rate, what is it? The rates are almost negative right now. So some of the sellers, you know, they want the income stream, but you know, a lot of them are not taking like, I got, I got three deals in the last couple of weeks that were zero-interest financing from the seller. Right, sorry. Yeah. So I think this is a fantastic time. I think that you know, I think especially for people will be looking back in two or three years, and we’re going to be seeing like I personally, I think that a house that’s 200,000 could be 500,006 or seven years, we go back to 2008 I look at the house I’m living in, we actually sold our we sold we liquidated. Before the 2008 market I bought our primary residence as an example, in 2010 that doubled in price. And if we kind of look at when they were printing money, which they’ve done a massive amount of printing money over the last decade because of the crash, yeah, a gap a gallon of milk I, when we look at a loaf of bread, has like quadrupled in price, that’s called inflation. So, so, you know, rent, that also would mean rent skyrockets, too, and in a lot of areas that, that that because I think that, you know, assets, the assets become valuable, and skyrocket, but the value of the dollar goes down.
Brian Charlesworth 29:48
Yeah, you were talking a few minutes ago about the the number, the person that gets hit the hardest as the person that’s bought all these properties and is sitting on these rehab properties. And that’s true of them. Don’t have the cash. But if they do have the cash, couldn’t they just turn those into rentals? And I mean, still a great opportunity, even if they pay top dollar if the rental income pays for the property and make sense, cash flow wise, it’s still a great, still great move on their part, right?
Gary Boomershine 30:16
Yeah, for sure. Now, I want to also share a little interesting thing I’m hearing everywhere, and I’m seeing it myself. But there are a lot of people that are already like, you know, talking about not being able to make rent right now. So a lot of the a lot of the investors and that’s another thing that a lot of these landlords, right? They’re getting calls from their tenants. And they have, you know, you know, lots of equity in their properties. And now all of a sudden, let’s say somebody’s got three or four properties they’ve had for 20 years, and they’re getting called by all the tenants saying, Hey, I’m not going to be able to make next month’s rent and those deals, those are opportunities for all of us because the sellers are going to want to liquidate
Brian Charlesworth 30:57
Yeah, I I’ve heard This recently I don’t, I don’t remember where I heard it. But it was the average. It was on a podcast, I was listening to the average household in America has like less than $4,000 cash.
Gary Boomershine 31:13
I know it’s not crazy. And by the way, less than 4000 in cash, and the amount of debt that most people have is it’s insane. It’s insane, right? It’s like people about them buying cars and living on
Brian Charlesworth 31:27
one. So basically, they have one month, maybe of expenses stored up. Yeah. And that’s it. So So if they’re not getting paid anymore, if their people are losing jobs or not getting paid today, how are they going to do that? Right. There’s, there’s going to be a major crisis like you’re talking about.
Gary Boomershine 31:47
Yeah. So you know, big picture. I think this is an incredible opportunity. I think sellers are going to need solutions. They’re going to want to, you know, they’re going to need a lot of help the agent market The investor market, I think is is a great opportunity where we can come in have compassion with the sellers, give them multiple options that whatever fits their need, and make a great living a great, you know, opportunity for some of us that are buying, we’ll be able to buy great properties as well. And I think that I’m nothing but optimistic in terms of the real estate side. I’m a little bit nervous in terms of the rest of where the world goes. Right. But economy, economy, but I think I think this is being on the real estate side right now is not a bad thing. If you have if you’re prepared into this transitional market. Yeah. And I think an advantage that the real estate agent has as
Brian Charlesworth 32:45
Well, and in some places, they’re not able to go sell homes today, but that’s going to be a short term thing. They haven’t lost their job, right? They can still go sell at home. I know if somebody needs to go sell a home, they can go sell a home, you know, in a week or two.
Gary Boomershine 32:59
Yeah. I just caught I just spoke with I have a I do a lot of lending as well first position, sort of traditional private money lending. And I the deals, the borrowers that I get come from hard money lenders. So I actually spoke with one of them yesterday morning. And they’re crazy. They basically said that they’ve got 110 million dollars, that they’ve actually all investors like me that are giving them money for deals, and they said that their business is booming right now, there is a lot of hard money available. And so, you know, for those people that want to get in the opportunities are there. Yeah, for sure.
Brian Charlesworth 33:39
So, just before we wrap up here with a few final questions, maybe just share with us how do I take advantage of that hard money? If I’m in the real estate space? I mean, the great thing about the real estate agents is they have the biggest advantage of finding these homes right and so now how can they take advantage of that and leverage that and create wealth for themselves using somebody else’s hard money?
Gary Boomershine 34:05
Yeah, usually the market there are there are the national providers like lending home.com that’s had billions of dollars that they’ve been funding on a monthly basis at pretty low rates, that money is not completely disappeared. There’s typically more private lender more traditional hard money lenders in each of the markets around the country. They’re not that hard to find that’s typically on Facebook, real estate clubs or meetup groups online meetup groups or LinkedIn you can usually type in a private lender and you can find them that’s there. They’re usually visible because they are looking You know, they’re a hard money lender usually doesn’t have their own money. They’re usually using other it’s called trusted investors. So like my in laws as an example like me, then my mom we you know, We’d love to be able to put money and be really be the bank, you know, instead of it being Wells Fargo, it’s it’s me, Gary Boomer shine right? As I’m getting a nice return rate of return and a bit of a hedge against inflation in the banks as well. And so there’s a lot of that money that the all the Think of the amount of 401k and Ira money $13 trillion from what I last heard. And so they typically some of that money will go to the hard money lenders and then the hard money lenders are working with investors all over the country. So you can if you’re looking for that money, it should be accessible in almost every market. Lending home would be one of the national ones that we use. I think they’re there in more than half of the country. And then and then the local I have a couple like there’s three in my market that have between the three of them. I think they have like 350 million dollars out at any one time. Okay, that money is definitely available. I think I think the hard money lenders will, will have even more money, the ones that have been lending properly.
Brian Charlesworth 36:09
They’ve been saving up for this day, right?
Gary Boomershine 36:11
They have a lot of the hard money lenders remember what it was like, in 2008. And so they’ve been, you know, their fundamentals are typically their funding, you know, 70 to 75% of the purchase price, sometimes they’ll do after repaired value. And, and that might adjust a little bit as we see the market unfold. But that’s a great source of money.
Brian Charlesworth 36:35
Yeah, Gary, it’s just thank you so much for your time and sharing this knowledge with us. So many people in this space in the real estate space, definitely want to migrate into what you’re doing, and just haven’t known how to get there. So just want to ask you a couple questions and I’ll get your contact information. Let people know how to get ahold of you and your company because your company is obviously going To give me the means to be able to do that without having to go create all those expenses. So what’s your favorite book or or favorite source of learning? Where do you spend your time learning?
Gary Boomershine 37:10
Oh gosh, I am such an avid reader. I usually am reading three books at one time or audios. So traction by Gino wickman is probably one of my favorite books that I’ve read over the last couple years. That is an investment book. It’s It’s It’s actually an entrepreneurial business manager book, a building a business and an execution model. So that’s one of my favorites. That’s real popular. It’s not a real estate investor book, but it’s a small business owner book. I’m huge on teams. I’ve got over 125 people working for me. And I have and in three, three continents actually were a large team in the Philippines, large team in India. And so I’ve been reading I love you We’ve built an incredible culture. We’re people first more than anything else. We’re fully distributed. So I have no office and the book that I am the big fan of is called multipliers by Liz Wiseman. And it’s a wonderful book on building teams and management style multipliers is how do you actually have an abundant mentality? And how do you get producers within your organization? And I think that Liz Wiseman does such a great job. I mean, huge multipliers. Yeah, and of course, most of us most a lot of people on the agent side, I’m a huge Gary Keller fan. And My One Thing. I actually just interviewed them actually the guy who wrote the book for Gary. I just did a podcast with him a few weeks ago, but the one says I, I live my life entrepreneurially I have a 5/10/3 rule. So I wake up at five, I don’t start my business day until 10. That gives me five hours of personal time. And during that time I come up with my one thing. What is the one thing that I’m going to do today? That’s going to move the marker in my business, and I do that before anything else. And then the three is, those are three hours. I run in my business as a CEO. And so that’s my working time that I’m available is three hours. So that’s what I’ve been doing for probably the last two years. And then I love that. Yeah, so that came from Gary Keller and The One Thing.
Brian Charlesworth 39:45
What’s your favorite place?
Gary Boomershine 39:49
Maui. We have a we have a rental property in Maui. And we’re hoping that doesn’t get canceled because we’re we’ve got I’ve got I actually was there for I went over there by myself every year I do a sabbatical and actually literally my wife my wife said she goes, it’s really hard for me to tell my friends that my husband, the entrepreneur went on a vacation to Maui without me. So, but I usually do a sabbatical every year Maui is my place. Yeah, it’s just I love I love it. They do have Maui on lockdown though heavily right now. Not even the beaches
Brian Charlesworth 40:29
And what’s your favorite thing to do and your personal thing?
Gary Boomershine 40:32
I am an avid health and wellness guy. So I work out I actually lost I think over the last couple years 40-45 pounds and huge into nutrition. So even this morning, even with everything I said, you can take my Liberty but you can’t take my gym. So I have a small gym that’s like I’m with a private personal trainer that I go see. Pretty much every morning my wife goes there and even my coo That’s part of our perk for our business and so we haven’t been able to close the private gym down. I just got back doing my workout today.
Brian Charlesworth 41:09
How far is that from your house?
Gary Boomershine 41:12
Well, if I had to I could walk or rollerblade is more likely I’m a big rollerblader
Brian Charlesworth 41:17
Well, I know you’ve got a hard stop here. How can people get a hold of you Gary? You and your business what’s the best way to do that?
Gary Boomershine 41:25
Yeah, the business is realestateinvestor.com. I have a podcast the Real Estate Investor.com Huddle that I do that we’ve been active for the last couple years. I love interviewing, gosh, people around the country that are doing really great stuff in their business and got a lot of information on the real estate investor comm site and if people are looking for an expert solution for finding deal flow, specifically finding buyers And sellers in this market, we’ve got a great solution both of technology and resources that I provide over 600 people around the country. So real estate investor calm, and lots of information there for everybody.
Brian Charlesworth 42:17
And then what about on the lending side? Are you looking for more people now to be able to disperse funds to are you pretty much that in that area?
Gary Boomershine 42:24
You know, I, I’m mostly in my local market. I want to be in a market where I can actually see in touch so probably not as much if somebody is in the Bay Area. Yes. But right now, I’m not funding outside. That’s one of I’ve been lending for a long, long time. And so it’s like one of my little pieces of the footprint is I want to be, I want to be driving distance from whatever I’m funding.
Brian Charlesworth 42:48
Yeah. Okay, it makes sense. Something else we can learn from. So Gary, thank you so much for your time. Great spending time with you today and hope to hope to see you around at some of these events here in the near future. I know my wife and I, again as we started talking about just started buying properties about four months ago, so,
Gary Boomershine 43:07
I appreciate it. Brian, I’m definitely going to be Jeff wanted me to get in contact with you on getting your software component A part of real estate investor.com too. So.
Brian Charlesworth 43:18
Yeah. So just reach out to me on email. I think it’s just [email protected] Let’s get together on that right away.
Gary Boomershine 43:24
Excellent. All right. Thank you, everybody.