Business Owner or JOB Owner?

Hey everybody, excited to have Steve Richards on the show today! Today, we are going to talk about something that we are both very passionate about and that is how to run and own a business, not a JOB. Some of the real estate investors end up in that J-O-B and they get stuck there and it’s not a good place to be.

[00:00:00] Mike: [00:00:00] Professional real estate investors are different.

We’re not afraid to go all in and take educated risks to build stronger businesses and help our families live better lives. This is the FlipNerd professional real estate investor show. And I’m your host Mike Hambright each week. I host a new episode live and bring you America’s top real estate investors as guests.

Let’s start today’s show. Everybody excited to be here with you today. Uh, today I am talking to Steve Richards and we’re talking about something that we’re both very passionate about, which is how to run and own a business, not a job. So many real estate investors end up in that job and they get stuck there.

And it’s not a good place to be. That’s what we’re going to talk about today. Steve, welcome to

Steve: [00:00:43] the show. Thanks, man. Thanks for having me. Yeah. Happy to see it. It’s

Mike: [00:00:47] funny. We were talking a head of time here. In fact, we, we can talk about like a half hour, so that’s honestly, I do all these podcasts. We’ve done over 1500 podcasts over this last, like almost seven years coming up on seven years.

For me, it’s just, it’s the ability to [00:01:00] just kind of hang out with you and network. And, you

Steve: [00:01:02] know, we usually talk for a

Mike: [00:01:03] half hour ahead of time. We’re talking afterwards and all this stuff. So it’s, it’s always fun, but you said some things and I even told you. What you just said could have just as easily come out of my mouth.

Right. Which is we, you know, we, we, we think the same in regards to actually running a business. And it took a long time for me to get there because I was just in the weeds so far and making more money than ever. So it was kind of like, well, I’m working harder than I want to, but I’m making a lot of money.

And then at some point you’re just like,

Steve: [00:01:29] ah, I just

Mike: [00:01:30] like, I don’t want to make less money, but I’m okay. I gotta get out of my own way. So I know you’ve felt the same way, right?

Steve: [00:01:36] Yeah, absolutely. It’s a trap. It’s like the curse of successful businesses. Now you’re now you find out that it actually does suck.

Mike: [00:01:46] Yeah. And the truth is isn’t, it, it hasn’t happened to me. I’m a knock on some wood here, but it happens to a lot of people when something bad happens. Right. They get sick. Family member gets sick, something happens

Steve: [00:01:58] where their

Mike: [00:01:59] time [00:02:00] has to go somewhere else. It has to is not an option. And then the business suffers and then they’re like, This, isn’t a business.

This is a job right now. So, uh, so I think what we want to talk about today is to tell folks

Steve: [00:02:12] that

Mike: [00:02:13] let’s be proactive about it. Let’s let’s get to that point. So before it becomes an issue for you and we all, nobody got in this business of real estate investing, you work 80 hours a week

Steve: [00:02:26] and be

Mike: [00:02:26] trapped where they are.

Right. So, uh, they did it to own a job to not to own a job, to own a business, but. That’s not how it usually works out. So, Hey, before we kinda jump into this, tell us your background. You’ve got a, a lot of great success, a lot of war wounds. I can see some scars on your knuckles there and stuff. So tell us a little bit about that.

Steve: [00:02:47] Yeah. So yeah, so much of the stuff, it’s funny, how it all it, to your point, a lot of the experience and you just learn and will tell people if you guys are watching this today and you’re newer to the business or [00:03:00] newer to business in general. A bunch of you guys are gonna be like, yeah, you’re, you’re probably 25 and making more money twice, as much as your parents ever made or three times as much together.

And it doesn’t really matter that you’re working all the time kind of, and you’re probably not going to listen to some of this. And then when your old guys like us, like I can, now you’re going to be like, Oh man, those guys were right. But, um, you know, I I’ve got, I know my kids are older, mine are teenagers now.

So I just have this different perspective on things, but, um, No. My quick story is I came out of business school in mid nineties, and then I

Mike: [00:03:36] started consulting

Steve: [00:03:37] in the tech world. And so my first clients were.com clients. And I was like, Oh, I just thought you had to like sneak it. So to a napkin with a business plan, and someone gives you five bucks.

I have to make a product to make a prototype, to go to a dog and pony to try to raise a hundred million dollars. And then everybody lies and just says how it’s going to be a a hundred million dollar company. And. In five years or whatever. And

Mike: [00:03:59] so

[00:04:00] Steve: [00:03:59] it was just really, it was an interesting time to come out.

There was also a lot of, uh, I worked for a big company called EDS. It was actually Ross Burroughs and being in Texas, you know,

Mike: [00:04:07] not, not too far from, uh, where I live actually. Yeah, five miles. I lived

Steve: [00:04:12] in Plano for three months when I started there, the pod, the, uh, Plano headquarters, you know, getting out was interesting during that time, because we had, we had clients that were crazy.com clients.

And then we had the defense department was one of our clients. Like literally, you know, the $10 million toilet seats that are probably paying for in other countries and stuff, there was all this like super, extra secret comply, uh, secret, uh, like trying to get compliance and everything to be in the building.

It was, it was kinda interesting, but, um, it was a cool time because I learned so much, but I had this business degree that I didn’t pay a lot of attention. You know, I was more into my fraternity and intermural sports and things like that. But. I had this business law classes, accounting and strategy classes, and I didn’t really pay a lot attention.

And that’s now all I really care about. Um, [00:05:00] and I had the foundation of business and then I went out and I was consulting for companies who really didn’t care. Like the government didn’t listen to anything. We said like, literally as a consultant for them, they just, it was so bureaucratic. It was crazy.

And then the startups would listen to everything we said, no matter how stupid it was, there was no oversight. It was like two totally weird. And I’m 25 and no, no one should have been listening to me anyway. But, um, but that was my entree into the business world. So it was interesting. And I had a front row seat in 98, 99, 2000 for the.com bust.

And, um, you know, everybody found out you can’t make money on the internet. At least that’s what they thought until you know, now Zuckerberg and everybody’s come around Amazon, you know, Bezos. Luckily they figured the internet out, but. Yeah, that was crazy. And then on the back end of that, there was a lot of Y2K projects in that tech business where they thought all the computers were going to shut down when it turned, you know, 2000 and January 1st, whatever.

And, um, you know, I, I went through all that. I didn’t even [00:06:00] realize it was a recession. Then I had no idea. And I just was getting kind of promoted up through the ranks and growing and doing different things. Um, you know, nine 11 kind of extended that recession a little longer. But when he came out of the back end of that, I continued to grow in my.

In the business world, but I had gotten bitten by the entrepreneurial bug, like pretty early. Um, and so I would say by 2003, two or three, I was getting out a startup that I got involved with and I really wanted to do something. Um, so for about a year, I was just kinda like try thinking of all these different ideas.

So I started reading a lot of different things that led me into stuff like. Think and grow rich and rich dad, poor dad. And I don’t have this story where rich dad, poor dad turned me on to real estate or whatever. Actually, I was just a guy that I played pickup basketball with at the gym was like my dad.

And I just got done. You might know some of these guys, Chris Kershner if you remember that guy. I know that name. Yeah. He was a sell houses on lightening. He was all subject to and, um, Ron Legrand and [00:07:00] then. We actually the first, anyway I met, so I met this guy and he’s telling me, I’m like, Hey man, I’ve got to start a business.

I’m sick of being in the corporate world. He’s like, well, my dad and I just dropped 30 grand going to all his real estate courses and we’re dropping mail, but now my dad was going to retire and do this and he’s not doing it. So now I’ve got 30 grand invested in bootcamps. We have three ring binders with CDs, by the way, back at that time.

And, um, he

Mike: [00:07:26] didn’t say eight tracks.

Steve: [00:07:28] No. I know. I’m sure that, you know, that was pretty bad.

Mike: [00:07:30] I definitely remember in my family, we had, uh, the, uh, cause it was like cassette tapes and it opened up this big, like plastic binder and I like six or eight cassette tapes.

Steve: [00:07:40] I had some of those too back in the day, but, um,

Mike: [00:07:43] Carlton sheets.

Steve: [00:07:44] Yup, absolutely. So anyway, kind of condensed that down, you know, he was sending out postcards then you know what to do. And I’m like, I don’t know. I mean, I. Worst cases, we’ll buy some rentals. He’s like we can get really good deals. I’m like, all right, I didn’t even want to flip a house. I was like, I’ll own some rentals.

That’s cool, but I’m going to start a [00:08:00] business. So my head was all around

Mike: [00:08:02] a business

Steve: [00:08:03] and what’s funny is I shifted. And then I saw real estate. I’m like, Oh, well, at the time, this was 2004. When I got in, um, when I started and within that first year, I quit my corporate gig, which was pretty good. And I went full time in it because you could just fog a mirror.

Like I didn’t made 15 grand every time I bought a house. Yeah, it would appraise for a hundred. I’d buy it for 80, you know, get a 90% loan on it. And I take, put 10 grand my pocket and it’d be on a three, one arm with Washington mutual. And my pain, you know, my payment would be like all in, it was like 400 bucks a month or something crazy stupid, but it was on an adjustable rate mortgage, but, and I was like, man, we could just, if I just to buy one house a month, I can make six figures and then I’ll flip a little on the side.

And so I kinda got into this and it just. Literally to what we were talking about a minute ago to kind of preface that as all I want to do is start their business. And I ended up like literally jumping into a hustle. And then when I got in, I literally committed to the hustle because I’m like, Oh, I can just hustle around and like [00:09:00] trade my time for, you know, dollars.

And I’ll just flip it up and chase money. And anyway, so, you know, I D I, we ramped up to doing up to five rehabs a month that after that first year, when I was full time and. Owning several rentals. Within a couple of years, we had 35 40 rentals. And, um, that was about the time when we saw things slow down with the market.

And so. I shifted to do rent to owns instead of flipping to from bank owns to selling to homeowners that were going to live in the property, a traditional flip, you shifted to doing rent to owns. And then within a year that subprime blew up and then it was rent rent. There was no, it wasn’t part of the deal anymore.

And so we had to too high basis and all these houses compared to the reds, you know, we had nice houses with fake 30 grand equity that we were going to get as a 30 grand pop on the back on all of them. But when we shifted her into, um, Oh, and we didn’t really care about cashflow. We just cared about the equity and I learned that rentals are a little different.

So, [00:10:00] um, during that time we started focusing differently. And once I learned that I started doing bus tours with some out-of-state RIAs and they started bringing people in and they’re like, well, find deals for me. Like you find them. And so we got into, I guess, kind of wholesale, but now I didn’t know what wholesaling was.

Mike: [00:10:16] Um,

Steve: [00:10:16] but I was just finding deals for them and they would buy them off me. And deals. I didn’t, I kinda would rather make quick money on. And then they’re like, well, if it was rehab, it’d be a lot nicer, you know, if I didn’t have to rehab it and when you’re already managing your rentals, can you manage mine?

And so like many turnkey operators, probably some people that are watching

Mike: [00:10:33] this,

Steve: [00:10:34] somehow it turned into, Oh, I can make money on the rehab. I can make money on a

Mike: [00:10:38] sale. I’ll

Steve: [00:10:39] make 10% arrests. It seems like all these revenue streams is what people talk themselves into, but it’s such a slippery slope. And I literally have watched over the last, you know, 16 years I’ve watched so many good people get destroyed on once, either as a client or the actual person in the turnkey business.

I’m sure you have too. Yeah, it is a tough, [00:11:00] tough business. Yeah. And, um, I got heavy into that. I did three, four, 500 of those, like. We do about 500 deals in a three or four year timeframe. Not all of them are turnkey, um, but they were all part of that. Um, but we really cut our teeth and we got a couple of clients out of it.

And then somehow I came up for air in 2013 and I’m like, man, we’re managing 350 houses. We’re doing 20 rehabs at a time. We’re not really wholesaling as much as we used to. Um, one reclaim, we made 600 offers for it. In that year and we got 110 houses, maybe on all those that all I’m a less offers. We had a whole team of agents.

Oh, wow. I mean, we had an office full of people, like 30 subs that worked for me in the construction. I had two different project managers that made like 50 grand a year salaries on top of like, it, it was the most silly thing. And Mike, I’m a super deep visionary. If anybody watching this as a, you know, us kind of person, I’m not an integrator.

[00:12:00] And now I can pretend to be one in spurts because I understand what it means to my bottom line and my sanity. But

Mike: [00:12:06] you have to have that. Yeah.

Steve: [00:12:07] Yeah. I just, um, it’s crazy. I looked up one day, we had a construction company, a brokerage property management company and the investment company. I was running a Rhea.

You know, it was the first year we did seven figures of business. It was literally like the most miserable year of my life. And. EOS traction. I got introduced to that actually at, um, I was at an Infusionsoft, um, conference in 2013 and some girl there who was her and her mom owned a bunch of, um, Keller Williams franchises.

And she turned me onto the book and I started reading it and I couldn’t get back to the core values. I read the book like three times, and then I made every one of my management team read it. And then we kept sitting down and trying to do the first chapter of core values. And every time they’re like, no, we don’t like what you came up with.

Here’s what we think our clients would like. And I’m like, I hate all that stuff. And then one day at lunch, I was like, the only way I can see [00:13:00] this is going to work is if we quit doing construction, quit managing houses. It’s like the core tenant of what we did. And I set it out of frustration and they all looked at me like, Oh yeah, right.

And then I’m like, wait a minute. It’s like, like the light bulb went off, you know? And I’m like, maybe we need to quit doing all that. And. I had gone from being a strategic visionary guy that everybody wanted to come get information from. And they want to know about my strategy and what I think about the market and who I like and network with me and get to know me and all this stuff.

And it turned into the only time I talked to clients anymore was, Hey, why are the reports late this month? Or my maintenance I’m getting screwed on maintenance or this tenant left too early, or your leasing is taking too long. It’s like, Oh, this horrible toilets, tenants, contractor.

Mike: [00:13:44] Yup.

Steve: [00:13:44] It was junk and, um, it was really hard.

And so I hit a reset button in 2014 and that started, um, at the end of 2014, I started a whole like 2015 was a big transition. Your form is really hard. Um, in fact, in 20, the second half [00:14:00] of 2015 to the middle of 2016, during that year, I am positive. I spent more money than most people make on therapists, coaches, counseling, uh, psychological tests.

Like I had a trainer at the gym. I had a, uh, um, a nurse practitioner. I was taking guitar lessons with my kids golf lessons. I was like, I’m going to go do all this stuff. And I’m going to like re-engage. And I, it was just interesting. Um, and I really kind of just reinvented. I didn’t even reinvent. I finally came back out of who I thought I wanted to be, and I really got to really know myself.

And, um, you’re coming out of that. We got heavy into wholesaling. And we kind of screwed around with it. Um, this will resonate with some of you guys that are watching probably, but we paid Joe McCall and one of his buddies, Peter,

Mike: [00:14:50] um,

Steve: [00:14:51] it was some stupid, like 15 grand to just set up our Podio. I mean, it was literally remember my, my, the guy that I met that that’s now my [00:15:00] business partner, Brian who’s literally like my sole business mate integrator.

I remember trying to convince him why we were going to wire them 15 grand. He’s like for what? He’s like Podio it’s free. And I’m like, Yeah, but they said they set up your carrot website and he’s like, but that’s 99 bucks a month. Like why? It was just funny, but you know, that commitment we made to spending money with somebody like that much, like why we use you as a disclaimer, I’m a client of Mike’s everybody with investor machine is

Mike: [00:15:30] literally

Steve: [00:15:31] in spite of our own issues.

We paid Joe’s office a thousand bucks a month, uh, to, to just throw mail out for us. Plus plus the spend or whatever it was. And I think it was only like 750 postcards every, every two weeks. So it’s 1500 postcards a month that was always sent. And so literally after 10 months of that, we would forget we weren’t using Colorado back then.

We used a number of years. We used number. Remember I

[00:16:00] Mike: [00:15:59] haven’t used it, but I’m familiar with it. Yeah. Like

Steve: [00:16:01] every couple of weeks we’d be like, Hey, we better go look at that and we’d go look into leads and we’d be just like, no, no, hang up, hang up. Oh, here’s a voicemail. And that really motivated, hang up, hang up voicemail, not very motivated.

We get like 20 calls in and be like, Oh, here’s one where they said they got sell tomorrow. Let’s call him back.

Mike: [00:16:17] And so some of you

Steve: [00:16:18] guys are probably laughing watching this, but like, I know you do that in your business. And if you don’t, your lead manager does and your acquisition guy does, but you’re just totally seeing we were sandbagging.

But in, in that, in that year, um, actually it was 2016 was when we did this. We spent 10 grand on marketing that, that year basically, and we did 229,000 revenue, like screwing around, like I was selling off houses still. And then my business partner was flipping some houses and we were just kind of like loosely partnering on this wholesale thing.

And we were like, gosh, I mean, what if we did that full time? You know? And of course we thought that it would all just magnificently, like. Quadruple and all that kind of stuff. But, [00:17:00] um, that was the beginning of it, man, at that point. But I was bound to build things differently and also know who I am and then have the right people around me.

But, you know, we went on from there to, um, build a team, the neck. So we went into build it. Right. But then the next big learning lesson for me was that we built a team really, really poorly that next year. And we had to dismantle all that at the end of 2017. And. Um, well, middle of 2017, it start to rebuild using cognitive testing and personality testing.

And you know, we’ve talked about this. One of the businesses I own is it helps people do that kind of stuff, but, but, but literally hiring the right people makes all the difference in the world. No. We started using vendors in 2016. I got my head straight about what I really wanted in life, which is probably the number one thing.

Most people have wrong. We started using vendors to do the things we needed to support our business. Then we started hiring the right internal people and then like in 2017, it kind of, it’s not all been roses, but it started to click. And [00:18:00] so, um, we’ve been able to run this business now and we have, we flips and wholesales and Indianapolis market.

I spent a couple hours a week in it. Probably sometimes not even that much. I mean, one of the, our dispositions guy is the direct report of mine. And we do a weekly call at noon on Wednesdays. And like, sometimes that’s the only time it’s like an open live coaching call for people. Sometimes that’s the only time he gets to talk to me.

So he’ll be asking me, Hey, can you, uh, look at your email or something on that call in front of everybody else? Cause he, like, he just can’t even, I don’t even put time into it. So. Um, anyway, I got super long winded there, but I, but I wanted to take that chance, Mike, to start to talk about some of the pivot points too.

So it’s been a weird road for the last 20 years for me, but, um, but there’s some component I started just gonna say, there’s some components we’ve learned that aren’t even about real estate. It’s literally about business. And so my current heart is, is just helping people understand how to run a business instead of on a job, which is what you started out by saying.

Mike: [00:18:57] Yeah. Yeah. Let’s talk about that for a moment. [00:19:00] So now, like, you know, it’s, it’s easy. To look back over 10 years, 15 years, a long time and say, well,

Steve: [00:19:08] now with what I know, I could have

Mike: [00:19:10] figured that out in like six months. Right. But that’s hindsight. Right? So, but the key is, is what I hope people, some people that are listening probably have gone through this as

Steve: [00:19:19] well.

You get to a point where you,

Mike: [00:19:21] you either, you know,

Steve: [00:19:23] di like proverbially, like from,

Mike: [00:19:25] well, hopefully not literally, but

Steve: [00:19:27] proverbially from like.

Mike: [00:19:28] I, this isn’t for me, I just need to go get a job or work for somebody else or whatever, if your goal is to be an entrepreneur and, um, and have your own business, like, hopefully

Steve: [00:19:37] you get to a point where you learn

Mike: [00:19:38] how to do it better, just like you did.

I’ve I have a lot of experiences like that too. But for those that are

Steve: [00:19:46] earlier in their career, not kind of where you want to be at, and you feel like

Mike: [00:19:49] you’re at a job, like maybe it will take a couple minutes to talk about like how to jump that learning curve because. You can do that by surrounding yourself with people that have been through that before.

And basically [00:20:00] just it’s a quantum leap forward, right? It’s like, I don’t have to go through all those things. I don’t have to touch the hot stove to learn. I shouldn’t touch a hot stove. It’s like, no, let me just tell you don’t touch a hot stove. Right. And so, uh, But some people, some people are, and they just have to learn.

Like, my son is 13 and my wife talks about it all the time. He’s, you know, he like stuck his finger awhile back in, uh, you know, it was just it’s, they’re not like cigarette lighters in your car anymore. It was just like a power Jack, but apparently you can still get burned from sticking your finger in there.

Cause that’s when I saw it, it’s just like that he has to learn. He has to smell his own burning flesh before he. I told him not to do it and he did it anyway. And it’s like, that’s just how he is. He just has to experience it, to learn what not to be wished. Some people are like that. I’m probably like that in summer yards, but you know, if you surround yourself with the right people, if you listen to people that have been through this before, um, you can jump in.

Let’s talk about that a bit. How can folks, what are some of the kind of key lessons that you’ve learned about treating, do like a business, um, and not getting stuck in a [00:21:00] job cause so many, most. Get stuck in a job at best might be if they do well, maybe they’re a high paid, they have a high paid job, but it’s still a job, right?

Steve: [00:21:09] Yeah, for sure. Um, so I could talk on this for years, so I’ll try to keep it concise, but I do have to start with something funny that I have twin boys and they’re a 14, so about the same age as your son, but, um, I remember. Getting kind of annoyed at my wife being so diligent about one, all those plug covers in the plate.

You know what I mean? When a child proof things. Yeah. I remember telling her one time, like those are so stupid once the kids get a little older, but like when they’re toddlers and run around, I’m like, you ha you would have to have some small little metal object that could shove inside of it. At least like half an inch to actually get shocked.

I’m like, it’s so dumb. And then one day, somehow one of my boys found some metal thing and had to shut up, short it out. Uh, I mean, that’s incredible. I was like, it will never happen. But anyway, you have teenage boys, like when they’re young, anything will happen

Mike: [00:21:58] by the way.

Steve: [00:21:59] You know, [00:22:00] I think Mike, to answer your question.

Um, so yeah, there’s four, there’s four pieces. And so one of the businesses you are talking about, you know, one of the places where I spend. Um, the business I spend the most time in, which is maybe five to 10 hours a week is the CEO nation. And then we have a, this four pillar model in there. And so I’ll kind of answer it that way to keep myself on track or else I’ll talk for an hour again.

But, um, I’m going to go in reverse order because we teach them in a certain order because I think they’re easier to implement, but you’re going to go in order of importance, starting with the most important. Is the alignment in the business is personal alignment. Like having the business set up to give you what you want.

And here’s the problem. I don’t think setting the business up to give you what you want is the hard part. I think most people fail at it. Um, but it’s actually pretty easy. It’s not so it’s, I’m sorry. It’s pretty simple, but it’s not very easy, but actually the hard part of that is the other side of the equation of setting the business up to know what you want to give [00:23:00] you what you want.

It’s actually knowing what you want. I w if we do this thing, um, if you’re keeping score at home, you guys can do this exercise. We won’t have time to do it on here, but in our, when we do mastermind events or different live events, there’s a couple of things we do that are really cool. So one of them is the four questions and it’s more powerful if I took time, but I’ll just run through it.

So it’s, what do you want, what are you doing to get it? How’s that working for you and what are you going to do next? And when you ask them slowly and meticulously and be like, pick one area of your life, what do you want? Most people have don’t even know what they want. A lot of what they want is. And I’ll just share this with you guys, especially, um, if, if you’re young, it’s hard to have a lot of perspective.

I’m not slamming anybody. Who’s not married with kids yet, but you get a lot of world’s perspective. Once you have kids and you get married and then other people’s lives, like I’ve got two dogs, a cat, three teenage kids, and a wife. And literally they will all die. If I don’t do my part to take care of them, I guess I could probably [00:24:00] die.

They wouldn’t die, but you know what I mean?

Mike: [00:24:02] They might thrive, you know, somebody

Steve: [00:24:05] like to

Mike: [00:24:05] believe that they would, uh,

Steve: [00:24:07] they might be like, pretty sure couldn’t get out, but, uh, but when they’re babies, right? Like you gotta take care of it. It’s so funny. You just get this different perspective. But my point is you get a lot, you get a lot of what, what.

You when you’re forced with these decisions about marriage and kids and life and owning the business for years and taxes and all, all of a sudden you start to really hear differently about life. And you’re like, Oh, I have an opinion on things I didn’t think I used to care about. So it’s hard when you’re young.

It’s also hard when you get stuck in a rut, which a lot of us have, which is like, go to school, get a job, put, pay your dues work, you know, Work hard, get promoted, you know, whatever, um, jumped jobs, but only do it every year and a half. Cause it doesn’t look as bad or whatever it is, but you get stuck in this rut and then it’s like, this is the best way I can explain it.

When you go to a [00:25:00] superhero movie, you don’t sit there the whole time and get pissed because well Superman’s flying and people can’t fly. So I don’t want to watch this movie cause that’s not real. Like you suspend reality when you’re watching a movie, but. We don’t do that when we dream anymore. When we get old, especially when you have kids and a family and a corporate job, you start thinking about what moves you could like.

Well mean, I make 150 grand a year salary plus benefits. So you start thinking how much I got to hit that exact number, right? Like if you just, or my wife, because of this, or my husband, like, I need to be here for this, or I couldn’t work weekends or whatever it is, but you, you get caught in like the expectations of the people around you.

Right. And what you think you’re good at what you don’t think you’re good at. And so you don’t dream openly anymore with being detached from reality. So

Mike: [00:25:51] one,

Steve: [00:25:52] one big segment of people in business that are younger, don’t have a lot of life perspective to really know what matters to them yet, because they just don’t know.

I mean, and it’s fine. [00:26:00] I don’t know what’s possible. Yeah. And they don’t know what they care about or they haven’t got to know themselves. Um, And another set of people that get older that find entrepreneurship later in life are kind of already stuck in it. Right. And so they, they start formulating they’re there, they have blinds, massive blind spots like, or got our blinders on.

Right. And, um, those two things suck for helping you dream to create a business that will give you what you want. And what it really sucks for is deciding what you want. And so that was the biggest epiphany for me and the other ones all fall into place. After that, I mean, Once you really know what you want.

When you’re honest with yourself about what you want, then you just have to know how much money and time do I need you do that stuff. And it’s not like I want to make a million bucks. If I want to make a million bucks, I’m going to use it for where my kids are going to go to school. Where do I vacation?

How many homes do I? What kind of car do I drive? How much do I give to my church? How much time do I work out? What do I eat? Like getting really clear about what you want out of [00:27:00] life is the number one thing. And then after that you said some key lessons and they fall into place where it’s like, okay, well, what business model can give me that?

And then after that there’s businesses business, like, like you said, I just pay cash. I mean, I don’t have to figure anything out anymore. I can pay somebody. I can pay a coach or I can hire an operator or I can pay for a training. Whatever, like the tech part of it is what so many people I’m sure in coaching, because you’re so much, you’ve done so much more coaching than me.

I can’t imagine how many times you’ve been asked all these technical questions. Like people think that they need to learn how to wrap a subject to deal and do a double closing and they want to know all that stuff and that’s not really their problem. Right. And so I just think that’s the big setup is knowing what you want.

And then after that, going out and finding a business model that can give that to you. I mean, those are the two big pieces. Then everybody misses. Cause they get inserted right in behind the business model and they just start doing deals. Right. [00:28:00] You really pick the model, you know, and they didn’t pick the model cause they knew what they wanted.

They just got inserted and they started making money, like you said, and they’re just like throwing money off and now they’re like stuck in the middle of something. Yeah.

Mike: [00:28:10] There’s a couple of things. I think people, especially if you left corporate America,

Steve: [00:28:14] you’re,

Mike: [00:28:14] you’re used to being this employee mindset.

Like I, I

Steve: [00:28:18] work right. And

Mike: [00:28:19] I don’t, so I don’t know how to not work. Cause I just that’s that’s I like to work. I’m a hard worker, you know, work ethic from my family that, um, has carried me a long way, but it’s hard for me to do nothing, but which I don’t ever do. Cause I can’t do it. Can’t do it. Um, but uh, I think when you have that employee mindset, like sometimes people are like, well, I can hire somebody to do my first off.

We either think, well, nobody else could do my job, which is. Not true for anybody, like literally not

Steve: [00:28:50] in real estate. Um,

Mike: [00:28:52] cause you’re not as good as you think you are. Uh, and by the way, you don’t want, you don’t want that to be the case. Like you want to be able [00:29:00] to hire somebody to replace you and take you out.

Right. And so, or people say, well, when I, when I’m, when my business starts to do better, I can afford it. Right. And it’s like, well, what if you can’t afford not to do it? Right. So one of the things that’s interesting about, um, Ben David Richter is in our investor people group and been spending some time with him talking about the profit first model.

Cause he’s, he’s actually kind of licensed profit first

Steve: [00:29:23] for,

Mike: [00:29:26] and you know, it’s just this idea of, well, how much are you worth? Like what should you pay yourself? And start to think about what that seed is worth, not you, what is the seat worth? What’s the role worth? Because once you develop that role, it’s like, okay, well that’s that job pays 60,000 a year or whatever.

It’s like, okay, But then you’re going to find out that you’re sitting in a seat half the time. That’s like a $10 an hour job. It’s like, okay, I need to replace myself there because I’m worth more than that. And even the $60,000 job or 80 that whatever, whatever it is, like find a way to do enough business to offset that because that’s, that’s what you do as a business owner.

You’re [00:30:00] not, that’s how you get out of the employee kind of rut, right. Start to think of. I kind of advise people there. Here start to think about every job in your company, every seat, whether it’s an admin or acquisitions manager, disposition manager, lead generator, whatever it is, lead manager, like what, what does that job pay and what job, what seats are you sitting in and how do you get yourself out of those seats?

Cause you know, you should believe in your mind that you’re way too expensive for any of those seats. No,

Steve: [00:30:27] absolutely. Yeah. Working on your business versus ENA is no joke. I mean, there’s a reason to work in it. Hustling grind is not a business model or a strategy, but if it’s done correctly, it’s, it’s part of mastering your business and innovating and creating best practices.

And then you do that to study it and master it and be able to hand it off and know how long it takes and knowing what to do. The leading activity metrics are. And you understand as you, but you don’t do it just to get done and make money, but you do it so that you’re making money while you’re learning as they can train somebody.

Right. There’s a means [00:31:00] to an end there. Yeah. Right?

Mike: [00:31:01] Yup. Well, let’s talk real fast about, um, you know, sometimes we build a team to do stuff. Sometimes we

Steve: [00:31:06] bring

Mike: [00:31:07] in vendors or we outsource stuff to somebody that’s virtual assistants on it’s call centers, lead generation stuff. There’s a number of ways that you can.

You know, if it’s, this is how I kind of, how I think about it. If it’s not a full time job for somebody in your business, or even if it is like, I know for a lot of people that I hire, I’m

Steve: [00:31:24] like, we could figure

Mike: [00:31:25] that out, but we’re going to be playing catch up with somebody that does that professionally forever.

Like if that’s all they do, we’re never going to be as good as them. So why not just hire them? And so, but just talk about, you know, how you think about what parts to outsource versus what parts to kind of build internally.

Steve: [00:31:40] Yeah, absolutely. Um, I put some notes here too. I want to. I’ll answer your question, but I want to start, cause I know we don’t have a ton of time.

I want to circle back to something on, on employees I think will tie in really well. Um, but here’s the key like, think of it this way. I like to think of an analogy is I think this will help people. So when we w w well, this, this is what [00:32:00] predicates it. So when we did the turnkey business, all the time, guys would be like, well, I just want to buy the house off you, and then I’m going to manage it.

And I’d be like, okay, why do you want to manage it? I already know it’s cause they think they’re going to save 10%. Right? Think they’re going to say money. And they were like, Oh, it’s cause I want to learn. I want to kind of get my feet well that I want to understand. And I’m like, all right, if that’s really your philosophy, like literally the only reason you would ever do that because you want to become a property management company.

Like that’s literally like going to back to school for five years to get an accounting degree and then sitting for the CPA exam and passing it. Just so that you know, what the account is going to do when he did it as your taxes like that is no. Nobody could do that. Your point. I mean, one of the reasons we hire several vendors in, I mean, just like for instance, you guys were the investor machine.

I, I can buy list source stuff, dirt cheap. I can skip trace probably in a very similar way, dirt cheap. We have spent years accumulating all this access to do things, and it is a fricking nightmare to deal with it. And then one of the things I said about John [00:33:00] McCall, when they were doing our mail and what, what, what did I love about you guys now?

All these years later, we look at it as a, um, we plugged you guys into a need. When I did it with Joe, all those years later, I didn’t know what I was doing. But like, we would get busy with our lives and no matter what, all of a sudden we’d be like thinking team, Oh, nail hit. Because like all of a sudden we’re getting all these notifications.

So in spite of our busy schedule, it was like, we still had leads. And that’s a big key you guys with, with these vendor relationships and things, whether it’s like building a website or, or like with investor machine with you guys, that’s the way we use you guys for that. Or. Um, just, we do several things with title and there’s other pieces of components where just to do all that, just like that property management example, people think I’m saving 10%, but there’s two real costs.

One of them is a physical cost of spending your time doing stuff.

Mike: [00:33:56] Yeah. And secondly,

Steve: [00:33:58] there’s a huge opportunity cost, [00:34:00] not only of spending your time, not doing something else, but there’s an opportunity cost of sucking management. That’s right here to property manager and your vacancies are twice as long.

And your maintenance projects go out of hand and you don’t know how to proactively look around the corners cause you haven’t done it. Right. And you don’t get economies of scale. Like with printing with PR with, with mailers or whether it’s your property manager, that’s doing mow and yards. Cause there they’re more than 400 of them.

It’s, you know, it’s just crazy that people are constantly tripping over dollars to pick up pennies in the business. And we’re kind of wired that way as real estate investors. We think we’re getting a deal, but just because something the cheapest or we’re in control of it, it absolutely doesn’t. It’s not part of owning a business.

If you’re a street hustler and you want to get the best deal. Cool. But my dad used to like drive halfway across the city to fill his gas tank up because it was like 3 cents cheaper. And I’m like, right. Yeah. I’m like quite positive. That’s not worth your spot. [00:35:00] Yeah. But

Mike: [00:35:00] you know, what’s funny is, uh, and I’m still, you know, when you’re a real estate, you’re always kind of frugal, right.

I I’ve always been a cheap ass, so, but, uh, I’m getting better. What I’ll say now is I appreciate like services and stuff. That’s like gonna save my time. I used to, like for many, many years, I w if I was going to buy something online, I always like sort, and. Usually it’s sorted by like price lowest to highest or whatever.

And so now there’s a whole bunch of stuff that I, the first thing I do is filter. What’s the highest price thing. It’s weird, but it’s like, I’m trying to buy my time back. Like I

Steve: [00:35:31] don’t, if it’s time-related or I don’t,

Mike: [00:35:34] I don’t really buy a lot of like junk. I mean, I buy some junk. My wife says every day is Christmas for me.

Cause I get an Amazon package when it’s usually like mosquito spray. I’m just like buying stuff on it. It’s not like I’m like. Buying myself gifts every day. I’m buying stuff that we think we need and I saved my time going to the store, but I often look at like, what’s the highest price thing. It’s not that I always buy that, but I’m

Steve: [00:35:54] like,

Mike: [00:35:54] I want, what’s the best.

I don’t want it to break. If it’s a service, like tell me what the best is [00:36:00] because I’m trying to buy my time back,

Steve: [00:36:01] you know?

Mike: [00:36:01] So not everybody’s in that position and I’m not saying that to brag because I’m not talking about, you know, I’m not looking at like the most expensive cars, like necessarily, right.

But.

Steve: [00:36:12] I just value

Mike: [00:36:13] quality, like the product and time, uh, over anything else right now,

Steve: [00:36:19] you know, young that way too. I mean, I just, I overlap the user ratings or consumer ratings out high price. So I do the highest price funds and the consumer ratings. I look for the highest rated. Highest price one. I like the balances there, you know, but it’s funny.

I don’t, I don’t have fences. She watches like now I’m sure I have a more, I don’t want to watch him

Mike: [00:36:44] 15 years. I mean, I don’t, I don’t it’s it’s right here on my phone. Like, why do I

Steve: [00:36:48] need that? Exactly. But I’m the same way as you, like, if I go anywhere VIP or upgrade or like, I mean, when I go the airport, I just, I always valet park [00:37:00] because.

It’s an extra hundred bucks. If I’m gone for three or four days to like literally have my car dropped off at the door that I walk in and it’s running for me, either warm or cool, what I need to do it. But like, you know, that’s convenience is a big deal and that’s, but, but, but getting back to something that we were talking about to drive this point home, I think is that when you really understand what you want and you and I have decided that.

Having crap that breaks that’s cheap. Like I’m going to exactly the same way you are. Like, I get pissed when my wife will buy stuff and it’s always like, she’s like I was trying to save money and I’m like, but now we don’t have whatever it is. Cause it broke or it wore out or I would’ve much rather got something that was nicer.

But, um, Hey, I want to say, I know I’m probably breaking a flow a little bit. We’re probably short on time, but I think this would be super helpful for your people. If I can, can I throw three things in really quick?

Mike: [00:37:46] Let’s

Steve: [00:37:46] do it. Okay. So we recovered something that I wrote notes down. Like while you were talking, I was like feverishly.

Cause you really reminded me of something important when people are hiring somebody, there should be a return on investment that’s with a [00:38:00] vendor or a person. And so when you’re bringing a vendor on, you would look at, don’t look at it as an expense. This is, I wrote it down when we were talking. I appreciate it too.

Right. But I want you guys to think about this. Um, Because it goes for vendors or employees. And I think this is there’s three reasons that what we found with the CEO nation, you know, the research and stuff we’ve done is what people get limited, why they don’t outsource stuff and why they don’t hire people.

Um, number one is they don’t, they think it’s an expense, but it’s really an investment. And the typically you’re going to get a three to five X return on a good employee or a good vendor. Hmm. I don’t have time to break that down to. I know we’re trying to stay on time. Just realize. The money you put in should have a three to five X bottom line effect into your business over the coming months, or it could take a year.

Sometimes it just depends on what it is. Um, but, but even if you hire a $30,000 a year admin, I mean, That person should be freeing up. Somebody who frees up somebody who frees up your sales guy [00:39:00] that goes out and does a hundred grand more business. You know, it should, that three X is legit and we’ve seen it time and end time out is what you should be looking for.

Um, another thing is just think about it this way. If you don’t think someone’s as good as you, like, you can, you can do your magic. They’ll do better than anyone in the world or whatever. You have a screws, first of all, but, um, or you can do acquisitions better than anybody. So even if you’re 120% good, like you’re a hundred percent is great.

You’re 120% of that activity, but you’re doing five things at any given time, right?

Mike: [00:39:30] Let’s call it six things

Steve: [00:39:31] for easy math. You’re 120% good, but you only do it 20% of your time. That’s effectively. If I make up my Steve math, that’s 24% effectiveness cause I did. It’s 20% of time, 120%. Good. But if I found someone who an employer and a vendor is even only 80% good, but they do it a hundred percent of their time.

I mean, I’ve literally got like a triple that’s that three times X, like literally they’re 80% effective. Cause their 80% is good, but they’re 100% of their time. Right. And so [00:40:00] that’s how that comes into play. So they don’t have to be as good as you. Right. And the second and the third thing, um, people don’t think they can afford somebody else.

But if you bring someone on, especially like an employee, like hiring a 2000 or $36,000 a year, employee, girl, or gal to work in your office is three grand a month. It’s not $36,000 check. Right. And just like, when you hire a vendor, if you’re going to pay five, 10 grand, or 20 grand a month for a vendor, some of our marketing vendors are expensive.

Um, our VA’s are people. We look at like that, right. But they have an immediate return on the bottom line. And so all we have to do is affordable. We call it runway. So like when you hire someone, you just have to know when the break, even point of that person, that circus usually going to take about a month to find out about a month, you get them in trained in about a month or ramp up.

So about nine 90 days, they should be paying for themselves by effect on your bottom line. Same with the vendor. It’s not overnight. So you can’t bring someone on for a month and quit or hire someone to fire them two months later. But I know I want to, I [00:41:00] know we’re running on time and I wanted to, I say those Mike, because I just think if, if we wanted to leave people with really important stuff on how to own a business, instead of a job.

I think thinking that things are expenses thinking nobody’s as good as me and thinking I can’t afford things are literally three of the worst, like cancerous thoughts that you can have in your head. And it’s, they’re so normal for people to have, especially when you’re entrepreneurial and you’re smart.

Yeah, I know. And nobody works as hard as me and they’re just all lies that we tell themselves and not even lies. It’s just, we don’t have the right perspective. So anyway, go box.

Mike: [00:41:34] No, you’re good. You’re good. Hey buddy. Yeah, I know. You’re, you’ve got to run here shortly and we’ve been going at this for a while, so we could probably talk all day about this stuff, but I’m real fast that folks wanted to connect with you.

You’ve got a number of things going on. You’ve got your own podcast now, where do they go to kind of connect? I want to be able to share some links. Yeah,

Steve: [00:41:49] appreciate that. Um, so just. Steve Richards on Facebook. That’s a great way to go.  DMA if you want to chat, but I’m the CEO nation. So our podcast is iTunes or [00:42:00] Stitcher.

Wherever you listen. The CEO nation, we have a Facebook group, thus CDO nation. And I’m the CEO nation.com. It’s okay. Anywhere around there is where I’m my heart. Is there the team architect? Yeah, we have that helps people, teams kind of filter through their real estate business. We do some coaching. We do all kinds of different things, but everything.

For me filters through trying to create impact for entrepreneurs. And it all starts with the CEO nation. So you have me on it’s been

Mike: [00:42:27] cool. Absolutely. And I was on your show here for the reason. I think he just publish that one. So, uh, um,

Steve: [00:42:33] you and your twin. Yeah.

Mike: [00:42:36] Does it Dave?

Steve: [00:42:37] Yeah.

Mike: [00:42:42] yeah.

Steve: [00:42:43] Yeah. So I’ve

Mike: [00:42:44] been called, I always say I’ve been called worse.

Steve: [00:42:47] Yeah.

Mike: [00:42:48] Cool, man. Well, Hey, appreciate you spending some time with us. We’ll have links for a bunch of these things down below in the show notes here. For those of you, uh, by the way, were,

Steve: [00:42:55] I could say we were

Mike: [00:42:56] recording the show live. Of course we record every show live.

We’re actually broadcasting [00:43:00] live when we recorded this and, uh, our Facebook group, which is called the professional real estate investor network long name. But if you go to flipnerd.com/professional, we’ll redirect you there. So we’re shooting about one show a week, the professional real estate investor show on average about one show a week, live in the group.

And if you joined the group, we’ll notify you when the shows are coming up and. You can join live. We can do a little Q and a when we have time. So go to flipper.com/professional to join our group and, uh, and learn more. And it’s, it’s, it’s not a huge group. It’s whenever going to be a group of tens of thousands of people, because, uh, again, professional as the name sounds is not a new beast.

We love newbies. If you’re new, that’s great. We were all new ones too, but there’s a lot of other groups that service you guys, and not a lot that really focus on professional folks that are doing a lot of volume and have a lot of questions. So, um, Steve, thanks again for joining us today. Great to see you, my friend.

Steve: [00:43:49] Yeah, I just want to enclose it and say it, the reason why I’m here for any show you do or asked you to be on my podcast or connect with, you know, this Facebook group, I’m excited for it to grow [00:44:00] because everything you do is top notch, brother. I appreciate everything you do. And anyone

Mike: [00:44:03] less than 10

Steve: [00:44:04] words should be check out anything Mike’s dealing because, um, I think very highly of you and what you’ve done.

So I appreciate it. I appreciate that, man. I appreciate

Mike: [00:44:11] that. It means a lot. Sometimes you wonder, what were you doing? Podcasts? I’d be like, is anybody listening? Right. Well, that’s a,

Steve: [00:44:17] anyway, I appreciate those kinds of words. And everybody

Mike: [00:44:19] we’ve been at this for a long time. This jazzes me up just to get, to spend time with friends and bring you folks that can share some, some great insights and knowledge and wisdom.

And some it says for sure. So you can check out all of our podcasts on flipnerd.com and again, go to  dot com slash professional to join our professional real estate investor group. So everybody have a great day. We’ll see you on the next show. Thanks for joining me on today’s episode, there are three ways I help successful real estate investors take their businesses and their lives to the next level.

First, if you’re in search of a community of successful real estate investors that help one another, take their businesses to the next level and a life changing [00:45:00] community of lifelong friends. Please learn more about my investor fuel real estate mastermind. By visiting investor fuel.

Steve: [00:45:11] If

Mike: [00:45:12] you’d like a cutting edge solution for the very best done for youth lead generation on the planet

Steve: [00:45:18] where we’re handling the lead generation

Mike: [00:45:20] for many of America’s top real estate investors, please learn [email protected]

And lastly, if you’re interested in them, Free online community of professional real estate investors that isn’t full of spam solicitations and newbie questions. Please

Steve: [00:45:39] join my free

Mike: [00:45:41] professional real estate investor Facebook group by visiting flipnerd.com/professional. [00:46:00]

Source: flipnerd.com

Podcast: Insurance For Homeowners and Real Estate Investors

Insurance For Homeowners and Real Estate Investors

For this podcast about insurance I chatted with Matt Kincaid of Meridian Captone.  In the podcast we discussed insurance for homeowners and real estate investors.  Topics included first time homebuyer tips for arranging insurance, insurance for real estate investors with long term tenants and insurance for investors working in the short term rental space.

I hope you enjoy the podcast and find it informative.  Please consider sharing with those who also may benefit.

Listen via YouTube:

[embedded content]

You can connect with Matt at LinkedIn,  You can reach out to Matt for more information on their insurance products by emailing him at mkincaid@meridiancapstone.com.

You can connect with me on Facebook, Pinterest, Twitter, LinkedIn, YouTube and Instagram.

About the author: The above article “Podcast: Insurance For Homeowners and Real Estate Investors” was provided by Luxury Real Estate Specialist Paul Sian. Paul can be reached at paul@CinciNKYRealEstate.com or by phone at 513-560-8002. If you’re thinking of selling or buying your investment or commercial business property I would love to share my marketing knowledge and expertise to help you.  Contact me today!

I work in the following Greater Cincinnati, OH and Northern KY areas: Alexandria, Amberly, Amelia, Anderson Township, Cincinnati, Batavia, Blue Ash, Covington, Edgewood, Florence, Fort Mitchell, Fort Thomas, Hebron, Hyde Park, Indian Hill, Kenwood, Madeira, Mariemont, Milford, Montgomery, Mt. Washington, Newport, Newtown, Norwood, Taylor Mill, Terrace Park, Union Township, and Villa Hills.

Transcript

[RealCincy.com Insurance Podcast]

[Beginning of Recorded Material]

Paul S.:             Hello everybody, this is Paul Sian with United real estate home connections. Real estate agent licensed in the state of Ohio and Kentucky. And with me today is Matt Kincaid with Meridian. Hi Matt, how are you doing today?

Matt K.:            I’m doing great, Paul, thanks for having me.

Paul S.:             Great to have you on here, and looking forward to our podcast today. Where we’re going to discuss insurance for homeowners, for investors as well as looking in-depth into the insurance policies and how that’ll help out buyers and investors, so why don’t you tell us a little bit about your background? When did you get started in insurance?

Matt K.:            Yes. It really started in junior/senior year of college. I went to NKU, graduated in 2015. My best friend actually dropped out of school and started selling commercial trucking insurance to long-distance truckers. So he thought it might be a good part-time job for me to do, do some customer service work.

So that’s what I did my senior year mostly. And picked up on it pretty quickly, and after I graduated, I started selling full-time, and it just happened to be when I stuck with. Ended up transitioning to more personal lines. So I still do a lot of commercials, but our main focus is personal. So we’re typical home auto landlord insurance that sort of thing, so that’s kind of how I got started.

Paul S.:             Great. And you’ve been with Meridian ever since?

Matt K.:            Yes. I’ve been with Meridian. It’ll be four years in September; I’ve been in the industry for about six years now.

Paul S.:             Nice. So I understand a lot of people don’t know that you’ve got your insurance brokers, which I believe Meridian is an insurance broker, and then you got your insurance agents. Can you explain a little bit the difference between an insurance broker and an insurance agent?

Matt K.:            Yes. So in the insurance world, there’s independence and captives; captives are just what it sounds are captive to one product, one company. Whereas with independence Meridian particular, we have about 15 different companies that we’re able to shop around through. So one of our companies is, for example, is Allstate. A lot of captives also have Allstate, but we have the same exact product.

But we also have 12 other companies that we can shop around through, to make sure that you’re getting the best. So it’ll really benefit to the customer and me as an agent, or I’m not if I was just one company, I know I have to stand behind that product 100% no matter what. Whereas being a Meridian, I can just do whatever is best for the customer.

Paul S.:             Yes. So the ideal then I guess is that you can shop around from multiple policies. Just like going into the store, you can compare different types of bread, and whatever price works best for you, whatever flavor works best for you. That’s similar to what you’re able to provide.

Matt K.:            Yes, that’ll be a good example. For like your typical, this may not be what we’re talking about but, but for like your home and auto, most of time, it’s best to be with one company, but not all the time. So I’m able to mix and match if need be, whatever is going to save the customer most money, whatever they’re company is having.

Paul S.:             Great. So let’s move on to first-time homebuyers. Insurance is a, especially for homeowners, insurance is the new thing for first-time homebuyers if they don’t really know what they’re looking for. When’s a good time for them to start having that conversation with their insurance person?

Matt K.:            So I think whenever you get in contract is a good time to start looking. Getting a quote is never going to hurt, you’re not bound to any coverage, or you’re not going to be paying. 90% of time, you’re not going to be paying the full 12 months up front.

So it’s good to start getting your quotes shops around, getting some final numbers to give to your lender if you have one. So they can finalize numbers and give you a good picture of what you might be looking at going forward. So it’s never too early in my opinion, but once you get into contract, I think is an ideal time.

Paul S.:             Yes. That’s something I agree with too. And it should be pointed out for those first-time homebuyers who don’t know, I mean insurance is required if they’re financing the purchase, and the lender is going to require homeowners insurance.

Matt K.:            Yes. A lot of people know that it’s not a law that have home insurance, but the lender can make that stipulation that you have to have it upon closing.

Paul S.:             Great. And when a homebuyer first time, whether homebuyer existing or first-time homebuyer. What exactly is the insurance company looking at when they’re pricing out policies?

Matt K.:            So a big one is, you’ll hear this term going out a lot, insurance score. It’s a credit-based score; you don’t need a social to run it. But they’re able to calculate a similar score based on the amount of claims you’re turning in, your payments.

Are you making your payments on time? That sort of thing. So they’re able to get a good a good picture of the type of risk that the insurance company is taking on so that I mean if you’re looking at the property itself, the construction of the property, how old it is, the exterior that sort of thing.

Paul S.:             So does that involve a hard credit pool or a soft credit pool?

Matt K.:            It’s soft; you won’t see it on your credit at all.

Paul S.:             Okay, great. So that’s something that doesn’t have, even though during the home shopping process there’s going to be a bunch of credit pools, whether from a couple of lenders. But insurance it’s not one of those things that the buyers have to look at.

Matt K.:            No, absolutely not. Especially, that would be a big pain. Especially if I’m shopping through 15, and I’m running NVR and insurance score. But no, it won’t even show up on your score.

Paul S.:             Okay. So what are some of the best ways that homebuyers can improve their chance of getting a better insurance rate?

Matt K.:            Right. So prior insurance history is a big one, making your insurance payments on time. The area that you are in is going to be a big factor. The zip code, there’s different what’s called protection classes based on where the home is. So that’s based on how far you are from the fire hydrant, and also how far you are from the fire department.

So the highest protection class you can have is ten, that’s a maximum risk. You’re over five miles away from the nearest fire department, and your insurance rate is going to be higher. Simply do the fact if there was a fire or total catastrophe, it’s going to take longer for them to reach you.

Paul S.:             Okay. Let’s talk about the risk; you mentioned risk in there. How does risk play into it? Let’s say whether of the buyer themselves and if they’ve had past history of claims or the house even if they’ve never been in the house before what about the risk associated with that.

Paul S.:             Yes. So like I said before pass to insurance, history is big. With these landlord policies, it’s hard to tell what the price is exactly going to be. Because obviously, they’re going to rate it based off the buyer’s insurance score.

But they don’t know who’s going to be living in there. They don’t know the type of risk for who’s going to occupy that home. So it’s very limited; there’s more of a baseline price just based off the buyer’s insurance score and the protection class and the age and the property itself.

Paul S.:             Okay. In terms of the property itself, there’s a CLUE report which a lot of buyers probably have not heard about. Can you explain what the clue report is, what does it stand for, and what does that exactly provide?

Matt K.:            Yes. So I kind of describe it as a moto vehicle report for your home.  So it stands for the comprehensive loss underwriting exchange. So a lot of times, LexisNexis, you’ll get your reports from there. It’s just a big aggregate of claims that are turned in by insurers, and obviously, when I’m running your clue report, it’s going to pull up based off your name, your date of birth and the address if there are any claims that correspond to you, the insurance company can grade it importantly.

Paul S.:             Okay, great. Is there any cost for you pulling a clue report for a buyer?

Matt K.:            No, absolutely not. So for a personal policy, so if we’re talking landlord, that’s four units, four family and under. Most of the times, the company can run that itself. If it’s a commercial policy, it’s a little bit more different.

For example, if this is not a new purchase, maybe you’ve had this property for a few years, and you’re shopping right around, you may have to order that from your prior insurance company. But if it’s a new purchase, a lot of times it’s not going to be necessary, if it’s a commercial risk.

Paul S.:             Okay. Let’s talk about a homeowner who’s been in their house for a few years now, and they had a policy in place with an insurer. Do you have any recommendations or suggestions for them? I mean, do the rates get better? Do the rates get higher if they get another quote?

Matt K.:            So it’s kind of a cache one to it. It’s almost impossible to know what the insurance company is going to do. Obviously, you want to find a company that is A-rated or higher, that means they have a good financial stability, so they’re not just going to raise your rates for no reason.

But insurance is kind of like the stock market in some ways. If a company is taking big losses a certain year, they may try to recoup by raising rates, and that’s just going to be across the board based on your zip code. But I always just say just keep track of your rates. I know Meridian we have somebody who’s dedicated to be shopping if your policy goes up a certain percentage. So I think that’s great to have. But just pay attention to it, and re-shop it every couple of years if need be.

Paul S.:             Okay. By the fact of them, somebody re-shopping it, that’s not necessarily going to increase their rates, will it?

Matt K.:            No, absolutely not. Companies like to see that you’ve been insured, they don’t want to see you bounce around all the time, because that means they’re probably going to lose that risk in a year. But to answer your question, there’s no harm in re-shopping. I have customers that will call me each and every year to make sure that we have the best rate, that’s totally fine by me.

Paul S.:             Okay, that’s great and helpful information. To move on to investment real estate, can you talk about the differences in commercial versus residential investment real estate insurance?

Matt K.:            Yes, so kind of hard to describe the four. Commercial is going to be the five units and above, personal is going to be four and under. Coverages on that, the only differences that you’re going to see with commercial, instead of having a one hundred thousand or three hundred thousand liability limit, most of the time they’re going to include a general liability policy, which is going to include one million in liability.

A bunch of different other things that fall under that, so that might look different. Other than that, the forms are fairly similar. You just want to make sure that you have replacement cost, or if you want actual cash value, deductible, loss of rent. So those things are going to be similar, it’s just a matter of how many years you have, that sort of thing.

Paul S.:             Okay. In terms of investors who are owner occupying, they’re buying a duplex or four-unit, and they want to live in one unit. Are the insurance rates generally better for that type of situation?

Matt K.:            There’s not a clear answer for that, I mean it’s still going to be written on the same type of form. There might be some discounts being that the insurance company is able to calculate their risk, maybe a little bit more accurately. I mean, that could be a good thing or a bad thing for the customer.

But really, you just want to make sure that you’re asking those questions, make sure the agent is writing the policy correctly. So down the road, if there are any changes or let’s say the insurance company audits you and that information is inaccurate, that could then raise your rate.

Paul S.:             Okay. So I guess the answer is it depends?

Matt K.:            Yes. With a lot of insurance, it just depends, unfortunately.

Paul S.:             That’s still good to know. So let’s talk a little bit about insurance riders, I guess insurance riders applies both to regular homeowners as well as investors. What can you tell me? I guess first, let’s explain what’s an insurance rider, and why would somebody want one or need one.

Matt K.:            Yes. So with any insurance policy, there’s going to be a lot of things that are automatically included. Like if we’re talking landlord policy wind, hail, fire, that sort of thing. And then if you want to have personal property protection, let’s say you’re furnishing some of the items may be the appliances in the home can have that. Otherwise, the writers are going to look fairly similar to what you’re going to see on a typical homeowner’s insurance policy.

Or do you want water and sewage backup? Do you want replacement cost on your belongings or the roof? So those are going to look fairly similar. If the agent is asking the right questions and going over it thoroughly, there should be no question on how you want it covered. Some other things that might be on there is earthquake that’s not included; flood insurance it’s a totally separate policy, so there’s always that misconception that flood is included in the homeowners; it’s never included.

Whether it’s a landlord policy or homeowner’s policy, the way to differentiate that with water coverage is where the water is originating from. If the water originated from outside the house, that is flood. If the water is originating from inside, let’s say you have a pipe that burst, or a toilet that overflows or some pump that’s water inside the house and that’s something that could be covered either automatically or with a rider.

Paul S.:             Okay. And just look a little further into flood insurance that applies to both regular buyers and investors, but that’s also like you said this based on external factors close to a river, close to the lake. Where would somebody find out if their property falls under that, or requires flood insurance?

Matt K.:            So a lot of the times, the lender may have an idea if it’s required or not. Otherwise, just asking your insurance agent. There’s not like an automatic identification that is going to tell you. In the loan process, it will probably come up that flood insurance is required, and then at that point, the insurance agent can find out what flood zone you’re in, what kind of rate impact that’s going to have on you, and that sort of thing.

Paul S.:             And then flood insurance too is not something you provide directly, I believe that’s provided from the government, correct?

Matt K.:            Yes. So it’s a FEMA based product, but we do also have a private flood company if your loan accepts that, which can be up to 40% off of a FEMA back product, and it’s the same exact coverage.

Paul S.:             Okay. So let’s talk a little bit more about the private insurance coverage you said for flood insurance, as opposed to FEMA. That’s something you said the lender would have to allow it. Otherwise, they have to go through the government program?

Matt K.:            Yes. So I mean the laws are changing for this all the time, most of the time if it’s a Government loan, they’re not going to allow private flood insurance. But that could depend on a bunch of different factors.

So the best thing to do is just ask your lender if private flood is acceptable because if it is, that’s going to save you a ton of money. I just did one a couple of weeks ago, where FEMA wanted 1,500 bucks, and my private flood carrier came back at like 700. So that could be a big difference, especially if you have a certain down payment you need to make for the home, and just cut cost in general.

Paul S.:             That’s 1500 versus 700 is that a yearly cost?

Matt K.:            Yes, flood is always going to be a 12-month policy, just like your homeowners.

Paul S.:             Okay. Is it worth it? Let’s say somebody’s not listed as a; the property is not listed in flood zone, so they don’t require flood insurance. Is it worth it for them to maybe they happen to live behind a, there’s a small lake behind them? Is it worth it to get flood insurance for them?

Matt K.:            I think it’s at least worth having that conversation, you know everybody’s different. You know there are some customers they’re going to want all the bells and whistles, they are going to want earthquake even if you’re not even close to a fault, that sort of thing.

So it’s just having that conversation, I mean you can never be too covered. It’s never a bad idea to cover all your paces, but it’s just a matter of what the insured is willing to spend, and if they think it’s worth taking that risk or not.

Paul S.:             Okay. Most of the insurance policies we’re talking about, and I shouldn’t say most, I should say all the policies we’re talking about right now are generally applied to like long term whether you as a long term owner-occupant or as a long term investment property, where you have a one continuous tenant may be staying a year after a year or long-term leases basically.

Let’s talk a little bit about short term tenants like your Airbnb, your VRBO, I mean, are there different insurance requirements for that, different insurance policies? What would you recommend? And what have you seen for other people who are looking for that type of insurance?

Matt K.:            Yes. So honestly, I’ve ran across it a few times. The one thing you want to make sure of is most companies will either not write it, or they’ll have an endorsement done for a short-term rental. So that’s going to be a surcharge for you. Other than that, it’s going to be fairly similar. You just want to make sure if you’re going through air Airbnb or VRBO make sure what they are going to cover.

They’re going to include an insurance policy, so you don’t want to have any overlaps, we also don’t want to have any gaps in the insurance. I know Airbnb will, for example, not cover bodily injury or property damage, so that’s something that’s going to fall under your insurance policy. So it’s just making sure that you understand the verbiage. So if you do have an Airbnb home that you want to get insured, take a look at that policy, send it to your insurance agent. Have them write over it, and make sure that you’re fully covered.

Paul S.:             Okay. That’s something that you’d provide if somebody’s coming to look for a policy through you for a short term rental that you would be able to assist them with too?

Matt K.:            Yes, absolutely. I did one last week; the customer was very concerned about the pricing. He was coming from USAA; they wanted like 2,500 bucks on the year for a single-family Airbnb.

I have a great company called Berkshire Hathaway; they have a product specifically for Airbnb or VRBO. I was able to cut his price almost in half. So we definitely have products for it; off the top of my head I probably have three or four that I can quote through.

Paul S.:             Okay, great. And just to go back to your company’s footprint, Meridian, basically, are you able to offer insurance all 50 states? Are you limited anywhere?

Matt K.:            So yes, we’re not available in all 50 states, but we are available in the Tri-State as well as Tennessee, Illinois, a lot of the southeast. So if you have any questions about that, please give me a call.

That being said, I have a lot of property investors that are coming from either across the country or overseas. That is totally fine, as long as the property that they’re buying is within our scope, we can definitely accommodate.

Paul S.:             Okay, great. And what’s the best way for somebody to reach out to you if they want to get some more information?

Matt K.:            So you can reach me either by phone or email. I’m also very active on Facebook. My phone number is 513-503-1817. Or you can reach me by email that is MKincaid@Meridiancapstone.com.

Paul S.:             Okay, great. That’s all the questions I have for you today, Matt, thanks for being on.

Matt K.:            Yes, thanks for having me.

[End of Recorded Material]

Source: cincinkyrealestate.com

How I Travel Full-Time By RV And Boat With My 2 Dogs

Traveling with a dog is a lot of fun, but there are some important things to consider so you and your pet are prepared. 

How I Travel Full-Time By RV And Boat With My 2 Dogs

How I Travel Full-Time By RV And Boat With My 2 DogsSometimes people think we are crazy for bringing our dogs on our adventures, but I wouldn’t have it any other way. For us, it’s like bringing your kids along, haha! 

Since we’ve been doing this for several years and in so many different ways, I figured I would be a good person to share what it’s like traveling with a dog for anyone who is interested in learning how it’s done.

You might be interested in going on a roadtrip with a dog. Maybe you want to sail or RV full-time with them, or perhaps you just want to take your furry companion on your next week long vacation. 

Whether you want to travel full-time with your pets, or if you want to just go on the occasional trip, hopefully my experiences will help you.

Traveling with a dog has been a huge learning process for me.

We’ve had to go slow and learn what works for our dogs. I say this because there is no single right way to travel with pets. So, you may have to adjust a little for your specific animal, as all animals are different and have different needs. We even see differences between our two dogs in how they travel.

Before I go on, let me backup a little bit. If you follow me on Instagram, then you already know this – I travel full-time with my two dogs. We’ve been traveling with them for years now, and they are pretty used to it whether we are in a tent, Jeep, RV, campervan, or sailboat.

Our dogs have been to several new countries, many new states, national and state parks, hiked some of the tallest mountains in the U.S., swam in beautiful Caribbean waters, and more.

We absolutely love our dogs, and we go to the extreme to make sure they are happy and comfortable with what we are doing.

While we love bringing our dogs everywhere with us, that does not mean it’s easy. Traveling with a dog takes some serious planning, and it is not something to take lightly.

Everything takes a little bit longer due to bathroom breaks, walks, and all the planning, so it definitely takes more effort.

I have received a ton of questions over the years on how we keep everyone happy, us and the dogs, while we travel. Of course, my experiences won’t apply to all dogs, as all dogs are different. But, hopefully you will find some ideas or tips that will make traveling with pets a little easier on everyone.

Content related to traveling with a dog:

 

traveling with dogs by boat

The four of us on SV Paradise (our boat)

About our dogs, Sailor and Mr. French.

Our bigger dog is Sailor, and she is about 85 pounds and is over 13 years old. Our smaller dog is Mr. French, and he is a 15-pound French Bulldog who is over 11 years old. We’ve had them since they were puppies (we adopted both of them) and love them so much!

Mr. French is happy to be wherever we are, and he doesn’t care much for being outside so he makes the perfect pet for an RV or boat. He enjoys sailing and likes to be right at the helm with us.

Sailor enjoys all of the smells when we travel to new places as well as the attention and petting from being a big dog at a campground, marina, or anchorage. Due to her bigger size, we have to do more to make sure she is comfortable and happy, but it is all worth it. She is a great hiking buddy and is very friendly and social with new people.

Honestly, while traveling with a dog is more work, I can’t imagine what it would be like to travel without them. They bring us so much happiness and love, so it is well worth it to us.

When traveling with a dog, here are my tips so that both the humans and animals are happy and healthy.

Here’s how to start traveling with a dog.

 

1. Take it slow when introducing your pets to travel.

If you want to start traveling with a dog, then I recommend taking it slow.

Whether you are going to live in a boat or an RV full time, or are just going on a weeklong road trip, I recommend slowly introducing your dog to travel.

This is the top tip we’ve heard from others who travel with their dogs, and it’s very true.

So, instead of throwing your pets into a long trip, you may want to start with something much smaller, so that they can get used to the process. You will be completely changing their routine, and many pets are used to following routines each day.

I also recommend trying to keep some of their routines as close to normal as possible, such as feeding times and when you let them out for exercise and bathroom breaks.

For example, when we started sailing, numerous people suggested starting the dogs out at a marina, then doing day sails, then an anchorage, and go from there. So, that’s exactly what we did. We didn’t want them to be afraid of sailing or make them afraid to get on the boat, so we took it as slow as possible. That’s worked out well for us, and we recently did a 9-day sail with them, and they acted like it was no big deal at all.

We got them very comfortable with being on the boat, and we haven’t had to quit just yet, so I would say it was a huge success.

If you are not planning on traveling full-time, but want to go on a road trip with your dog, I recommend not traveling too far at first, especially if they’re not used to being in the car. Slowly introducing them to travel is good so that they don’t get scared or stressed out. So, you may want to start by bringing them to a park nearby to help them with their nerves, as some dogs can be quite anxious!

 

traveling with dogs internationally

This is what a normal day on the water looks like.

2. Know the rules and customs of where you are going.

Not every place you go to will be pet friendly.

When traveling with a dog, you will quickly learn that not every park or trail is open to dogs. Most national parks are this way and don’t allow dogs on the trails.

However, there are some national parks that do. This is why I recommend doing some research ahead of time so that you are not surprised or frustrated when you get to your destination.

No matter where you are traveling with a dog, respect the land and the people there. You should always pick up after your dog, even if that means that you will have to hike for hours with a dog waste bag. You should not let your pets trample over delicate areas, and don’t let them approach people who don’t want to be bothered.

The same also applies to campgrounds and hotels. You will want to make sure that you find dog friendly camping, dog friendly hotels, and more. You’ll want to call in advance to make sure the weight and breed are acceptable.

 

3. How to do veterinarian visits.

Going to the vet is an important part of being a pet owner, and you still need to do it when you’re traveling with a dog.

I receive a lot of questions about how we handle this.

Our dogs still see the vet each year, and sometimes more often if there are any issues. They just usually see a new vet each year. If we’re in the same place for longer than a year, then they might see the same vet more than once.

Our dogs have never had an issue going to a new vet, and they go each time with no problem. We simply make sure to bring all of their paperwork with us so that there is no confusion as to what was done at a previous appointment.

When it comes to medications, we try to stock up on what we need for the whole year. 

If you’re going to start traveling with a dog, especially full-time here are some thing you’ll want to bring up with your vet to prepare:

  • Getting your dog microchipped. This is a great thing to have, and if you are going to a new country then it is usually mandatory.
  • Rabies vaccination – this is normal.
  • Seeing what vaccinations and medications are recommended or required in the area you will be traveling to in the next year. This can vary even state by state!

 

4. How to visit new countries with dogs.

When visiting new countries with our dogs, there have been a lot of steps and hurdles to go through.

Here are some of the preparations you may need to make when traveling with a dog to a foreign country:

  1. Contact the government veterinarian agency of the country you are seeking to visit and ask for an up-to-date list of requirements for bringing a pet.
  2. Bring your dog to a veterinarian where you are currently located and get all of the required shots, tests, paperwork, etc.
  3. Visit the USDA or the equivalent in the country you are in to get your paperwork certified and stamped.
  4. Send all of the required paperwork back to the government veterinarian in the country you are desiring to go to and have them approve it. You will also need to get a permit from them for your pet to enter the country.
  5. Then, once you get to the new country, you may have to bring your pet to the government vet so that they can make sure it is the same pet on the paperwork, as well as to make sure the pet is healthy.

Now, these aren’t the exact steps for every single country, as every country has its own process.

The process can take several months from beginning to end, so you will want to make sure that you budget for plenty of time to get everything ready. When you’re boating with dogs, especially around the Caribbean, you can spend a lot of time researching this kind of stuff.

You’ll want to make sure you follow the steps exactly as detailed by the country you are going to, because doing them out of order (such as getting the vaccinations in the wrong timeline) will invalidate the process. This can be a costly and timely mistake, but it’s avoidable.

When you’re traveling with a dog or another pet, I also recommend:

  • Try to bring as much food for your pet as you can. We usually bring several months of dog food with us, as there may not be as many choices where you are going.
  • Keep your dog on a leash when it is required, if there are people near, and so on. And, always follow the leash rules of the area you’re visiting. Not everyone in other countries and areas like dogs, so you will want to keep that in mind.
  • When you go to the vet, try to get any standard medications that you may need. For example, our bigger dog can sometimes have an ear issue that requires a liquid steroid that you insert in her ears. We always try to have at least one backup on us so we don’t have to try to find a vet, as it can be quite difficult in foreign countries to get your dog to a vet if you don’t have a car, and not all islands have a vet either.
  • In some countries and/or areas, you may have to keep your pet documents on you at all times as you may be asked to show it at random times.

While it is a lot of work to bring your dog to a new country, it is possible and most government vets are super nice and helpful.

Some helpful resources for more information on each specific country include:

 

Traveling with a dog in a van

Can you spot Mr. French?

5. How to keep a tiny area clean when traveling with pets.

We keep our home as clean as it can be, which usually means vacuuming every single day. Our bigger dog sheds a ton, and we would be choking on hair all day if we didn’t vacuum as much.

We use a Dyson vacuum (this is the one that we love) and it works great. It’s small, rechargeable, and super portable.

We bring this with us whether we’re on the van or in the boat. Highly, highly recommend.

 

6. How to keep the temperature comfortable in an RV or boat for a pet.

For us, we try to follow good weather as much as we can. However, I know that is not always possible.

There are devices where you can track the temperature over a cell signal back to wherever your dog is (you can find a whole bunch of them on Amazon), which can be a great option. However, you might not always have a signal.

If we are unable to make the temperature comfortable for our dogs or if the electrical power isn’t stable, we simply do not leave our dogs alone.

But, it usually isn’t hard to make it comfortable for them. By opening windows, turning on fans, or the AC, you can make it pretty comfortable for both humans and pets.

 

What do I need to travel with my dog?

Walking in Utah

7. Full-time travel with dogs – how they use the bathroom on the boat.

This is one of the most common questions we’re asked about traveling with a dog. People are fascinated with how our dogs go to the bathroom on our boat.

We always try to make regular and frequent bathroom breaks for our dogs.

Whether we are traveling by boat or car, we like to keep bathroom breaks as similar as possible.

We were nervous training our older dogs to use the bathroom on the boat, but it has been just fine. They only have to do this when we’re on an overnight sail, so it’s not very often. Keep in mind that 90% of the time you’re living on a boat is either at anchor or in a marina, so there is almost always land access.

When we look for a marina or an anchorage, we are always looking to see if there is a good area to let out the dogs. That may mean a beach, a grassy area, a dinghy dock so that we can walk to town with the dogs, and so on.

A lot of people falsely assume that when you’re sailing full-time, neither you or your pets touch land for years at a time, and that assumption just makes me laugh. Our dogs go to shore multiple times a day, except for when we are doing a long passage (which isn’t often).

Depending on where we are, we may have to take them for a short dinghy ride to shore or we’re at dock and can simply walk them off the boat to use the bathroom.

If we are doing a longer passage on our sailboat and there is no land for them to step their paws on, we do have fake grass on our boat that they are able to use. It doesn’t happen often though, and most of the time they still get walked 3-5 times a day even when we are on our sailboat.

 

8. How to keep dogs safe on a boat.

The longest sail that we have done with our dogs was 9 days, and they did extremely well on that sail.

Some of the things we do to make sure they are happy and safe include:

  • One of us is pretty much always keeping an eye on them. If we can’t pay close attention to them, then we put a leash on them or close off the inside area so they cannot fall overboard. (If you decide to leash your dog, please make sure they cannot fall off the boat and choke themselves. This applies to being on the boat, dock, land, etc. Sadly we know someone who had this happen to their dog and it had a very sad ending.)
  • We have life jackets for each dog, and we’ve tested them before bringing them out for sails.
  • At night, we keep everything closed off so that there are absolutely no worries with the dogs.
  • We make sure there is plenty of water, food, snacks, and snuggles.

We are lucky that our dogs are quite comfortable on the boat.

They don’t panic or bark.

They simply fall asleep and are relaxed when on the boat.

I think this ties back into #1 of this blog post – we slowly introduce them to new things. This has allowed them to be quite adaptable to any environment that they are put in, whether we are tent camping, roadtripping, in an RV, or on an overnight sail.

 

Traveling with dog tips

Testing out their new dog life jackets 

9. The items that make it easy for traveling with a dog.

We have a lot of items on the boat that are specifically for our dogs, and many of them come with us when we move to our camper van. Here are the most helpful items we have:

  • Dog ramp – This is for when we are at a fixed dock, where it’s a long hop from our transom to the dock. We had a plastic one for a little bit but we found that it would bend in the heat so we had to switch to something better. We are much happier with an aluminum ramp now.
  • Dog toys – To keep our dogs busy and happy, I like to put peanut butter in a Kong and give it to them as a nice treat.
  • Dog waste bags – We keep a plethora of these onboard our boat and van. We usually bulk buy a big box of around 1,000 bags. We also make sure they are biodegradable and compostable.
  • Help ‘Em Up Harness – This is the harness we have for our bigger dog, and I highly recommend it. We put it on her so that she can easily get in and out of steeper places. It’s a little pricey, but well worth it to make sure your dog is safe.
  • K9 SportSack – We use this for our smaller dog so that we can easily just carry him around. He’s not a huge fan of walking everywhere so putting him in the backpack makes it easier on everyone.
  • Collapsible bowl – We always keep one of these in our hiking bag so that the dogs always have something easy to drink out of.
  • Life jacket – If your dog is going to be on a boat, you’ll want a life jacket for them.

 

10. Getting exercise is still important.

Some people think that having a dog on a boat or in an RV is bad for the dog. I don’t think that could be further from the truth, though.

Our dogs get 3-5 walks (sometimes more) each and every single day.

Exercise is so important whether you’re camping with a dog, sailing with them, etc. Don’t assume you’ll fit in walks – you have to plan them in advance.

We always make sure to give our dogs a long walk at the start of the day if we know we’re going to have a long drive or sail. This way, we can try to tire them out and get rid of a lot of energy.

Taking them for a walk is one of the first things we do when we stop, and then we always fit in another long walk before bedtime. You may feel exhausted after a long day of sailing or traveling, but don’t forget how important exercise and routines are to your pets.

 

11. Have a traveling checklist.

Before you leave for wherever you’re going, I recommend bringing anything you think you’ll need, even if you don’t end up using it. This may include:

  • Pet food
  • Water and food bowls
  • Collars, leashes, harnesses
  • Dog waste bags
  • Treats
  • Blankets and beds
  • Medication
  • Paperwork

Specific pets may need different items, and go over your list before you leave. 

12. What about traveling with a dog on a plane?

I would be careful if you are wanting to fly places with your pets where they have to go in the cargo area, as it can be traumatizing to put them in the cargo area of a plane. It can be extremely hot, scary, and they will be away from you for quite some time.

I know several people who have moved to a new country and flew their dogs in cargo in order to make it possible to bring their pets. But, nearly all of these people have told me that they would never do it again, unless absolutely necessary.

If you are going on short trips by plane, I would not recommend putting your pets in cargo for that. Instead, if you have to bring your pet, I would simply find another way to travel. Or, you can find someone to watch your pet.

If your pet can sit with you on the plane, then that’s a whole different story. They may be just fine on the plane, but you should consult with a veterinarian if you have any questions. We’ve avoided flying with our dogs, so I’m just not as familiar with it.

 

Traveling with a dog

We rented a pontoon in Nevada several years ago with the dogs

Traveling with a dog – in summary

I hope you found today’s article helpful.

Please remember that I am not a pet expert, nor a veterinarian. I do have a lot of experience traveling with a dog, but all pets are different. They have different needs and personalities, and what works for my dogs may not work for yours.

So if you have any concerns about traveling with your pet, please contact your veterinarian.

Traveling with a dog can be extremely enjoyable, but there are a few more things you’ll have to think about.

If you’re anything like me, though, it will be well worth it and your pet will enjoy it as well!

Do you like to travel with your dogs? What other questions do you have for me about traveling with pets?

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How Interest Rate Hikes Affect Personal Loan Investors – SmartAsset

How Interest Rate Hikes Affect Personal Loan Investors – SmartAsset

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In December 2015, the Federal Reserve raised the federal funds rate by a quarter of a percentage point. That was the first time the Fed had raised rates in nearly a decade. While federal funds rate changes don’t directly impact peer-to-peer (P2P) loan interest rates, lending platforms may begin increasing their rates. If you’re investing in peer-to-peer loans, it’s important to understand how that may impact your portfolio.

Rising Rates May Mean Better Returns

Personal loan investors make money by claiming a share of the interest that’s paid on the loans, in proportion to the amount that’s invested. If the platform you’re using raises rates for their borrowers, that means you’ll likely see higher returns.

That’s especially true if you’re open to funding high-risk loans. Peer-to-peer platforms assign each of their borrowers a credit risk rating, based on their credit scores and credit history. The loans that get the lowest ratings are assigned the highest rates. For example, Lending Club’s “G” grade loans (the loans that go to the riskiest borrowers) have interest rates of 25.72%.

Assuming borrowers don’t default on their payments, these investments can be more lucrative than lower-risk loans. Using Lending Club as an example again, F and G grade loans historically have had annual returns of 9.05%, which is nearly double the 5.22% return that investors earn from low-risk “A” grade loans.

The Downsides of a Rate Increase

While rising interest rates may put more money in investors’ pockets, there are some drawbacks to keep in mind. For one thing, it’s possible that as rates rise, borrowers could decide to explore other lending options. If that happens, there would be a smaller pool of loans for investors to choose from.

To compensate, peer-to-peer lenders may resort to issuing lower-quality loans as rates rise, but that could be problematic for investors who prefer to steer away from riskier borrowers. If the platform you use no longer offers the kinds of loan products you want to invest in, you’ll have to reallocate those assets elsewhere to keep your portfolio from becoming unbalanced.

Finally, rising interest rates could result in a higher default rate. Increased rates mean that borrowers have to pay a lot of money for taking out personal loans. If the personal loan payments become unmanageable, a borrower may end up defaulting on their loan altogether. Some platforms refund the fees that investors have paid, but they usually don’t refund their initial investments after borrowers default.

What Investors Ought to Consider

If you’re an active P2P investor or you’re thinking of adding P2P loans to your portfolio, you can’t afford to overlook the risk that’s involved. Financing the riskiest loans is a gamble, so it’s important to consider the consequences of putting money into those kinds of investments.

A good way to hedge your bets is to spread out your investments over a variety of loan grades. That way, if a high-risk borrower defaults you still have other loans to fall back on.

If you want more help with this decision and others relating to your financial health, you might want to consider hiring a financial advisor. Finding the right financial advisor that fits your needs doesn’t have to be hard. SmartAsset’s free tool matches you with top financial advisors in your area in 5 minutes. If you’re ready to be matched with local advisors that will help you achieve your financial goals, get started now.

Photo credit: ©iStock.com/Ondine32, ©iStock.com/Tomwang112, ©iStock.com/xijian

Rebecca Lake Rebecca Lake is a retirement, investing and estate planning expert who has been writing about personal finance for a decade. Her expertise in the finance niche also extends to home buying, credit cards, banking and small business. She’s worked directly with several major financial and insurance brands, including Citibank, Discover and AIG and her writing has appeared online at U.S. News and World Report, CreditCards.com and Investopedia. Rebecca is a graduate of the University of South Carolina and she also attended Charleston Southern University as a graduate student. Originally from central Virginia, she now lives on the North Carolina coast along with her two children.
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5 Things to Consider Before Getting a Personal Loan

Consider This Before Getting a Personal Loan – SmartAsset

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It’s a new year and if one of your resolutions is to get out of debt, you might be thinking about consolidating your bills into a personal loan. With this kind of loan, you can streamline your payments and potentially get rid of your debt more quickly. If you plan on getting a personal loan in 2016, here are some key things to keep in mind before you start searching for a lender.

Check out our personal loan calculator.

1. Interest Rates Are Going Up

At the end of 2015, the Federal Reserve initiated a much anticipated hike in the federal funds rate. What this means for borrowers is that taking on debt is going to be more expensive going forward. That means that the personal loan rates you’re seeing now could be a lot higher six or nine months from now. If you’re planning on borrowing, it might be a good idea to scope out loan offers sooner rather than later.

2. Online Lenders Likely Have the Best Deals

The online lending marketplace has exploded in recent years. With an online lender, there are fewer overhead costs involved, which translates to fewer fees and lower rates for borrowers.

With a lower interest rate, more money will stay in your pocket in the long run. Lending Club, for example, claims that their customers have interest rates that are 33% lower, on average, after consolidating their debt or paying off credit cards using a personal loan.

Related Article: How to Get a Personal Loan

3. Your Credit Matters

Regardless of whether you go through a brick-and-mortar bank or an online lender, you  likely won’t have access to the best rates if you don’t have a great credit score. In the worst case scenario, you could be denied a personal loan altogether.

You can check your credit score for free. And each year, you have a chance to get a free credit report from Experian, Equifax and TransUnion. If you haven’t pulled yours in a while, now might be a good time to take a look.

As you review your report, it’s important to make sure that all of your account information is being reported properly. If you see a paid account that’s still showing a balance, for example, or a collection account you don’t recognize, you’ll need to dispute those items with the credit bureau that’s reporting the information.

4. Personal Loan Scams Are Common

As more and more lenders enter the personal loan arena, the opportunity for scammers to cash in on unsuspecting victims also increases. If you’re applying for a loan online, it’s best to be careful about who you give your personal information to.

Some of the signs that may indicate that a personal loan agreement is actually a scam include lenders who use overly pushy sales tactics to get you to commit or ask you to put up a deposit as a guarantee against the loan. If you come across a lender who doesn’t seem concerned about checking your credit or tells you they can give you a loan without doing any paperwork, those are big red flags that the lender may not be legit.

Related Article: How to Avoid Personal Loan Scams

5. Not Reading the Fine Print Could Cost You

Before you sign off on a personal loan, it’s best to take time to read over the details of the loan agreement. Something as simple as paying one date late could trigger a fee or cause a higher penalty rate to kick in, which would make the loan more expensive in the long run.

Photo credit: ©iStock.com/DragonImages, ©iStock.com/Vikram Raghuvanshi, ©iStock.com/MachineHeadz

Rebecca Lake Rebecca Lake is a retirement, investing and estate planning expert who has been writing about personal finance for a decade. Her expertise in the finance niche also extends to home buying, credit cards, banking and small business. She’s worked directly with several major financial and insurance brands, including Citibank, Discover and AIG and her writing has appeared online at U.S. News and World Report, CreditCards.com and Investopedia. Rebecca is a graduate of the University of South Carolina and she also attended Charleston Southern University as a graduate student. Originally from central Virginia, she now lives on the North Carolina coast along with her two children.
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What Is Quantitative Tightening?

What Is Quantitative Tightening? | SmartAsset.com

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In the past two years, investors have taken an unusual interest in the Federal Reserve Bank. That’s mostly due to a Fed policy known as ‘quantitative tightening’, or QT. Effectively, QT was the Fed’s attempt to reduce its holdings after it bought huge amounts of debt during the 2008 Great Recession. While some details will interest only economists, QT  may have implications for financial markets and regular investors. It’s useful to explore the backstory, but a financial advisor can be helpful if you’re concerned about how Fed activity can impact your investments,.

What is Quantitative Tightening?

To understand quantitative tightening, it’s helpful to define another term, which is quantitative easing. To do that, we need to go back to the bad days of 2008.

When the Great Recession hit, the Fed slashed interest rates to stimulate the economy. But it was evident that wasn’t nearly enough to stave off crisis. So the Fed provided another jolt of stimulus by buying Treasury bonds, mortgage-backed securities and other assets in huge volume. This combination of slashing interests rates massive government spending was qualitative easing, or QE, and fortunately it worked. Banks had more cash and could continue to lend, and more lending led to more spending. Slowly, the economy recovered.

But in the meantime, QE exploded the Fed’s balance sheet, which is a tally of the bank’s liabilities and assets. Prior to the crisis, the balance sheet totaled about $925 billion. With all the purchased debt, which the Fed categorized as assets, the balance sheet ballooned to $4.5 trillion by 2017. Years past the financial crisis and with a strong economy, the Fed decided to shrink its balance sheet by shedding some of its accumulated assets, effectively reversing QE.

That reversal is quantitative tightening. QE had poured money into the economy, and through quantitative tightening, the Fed planned to take some of that money out again. First it raised interest rates, which it had plummeted to zero during the financial crisis. Then, it began retiring some of the debt it held by paying off maturing bonds. Instead of  replacing these bonds with new debt purchases, the Fed stood pat and let its stockpile shrink. This effectively reduced the quantity of money under bank control, thus quantitative tightening.

Did Qualitative Tightening Officially End?

There was no official beginning or end to quantitative tightening. The Fed began to ‘normalize’ its balance sheet by raising interest rates in December 2015, the first hike in nearly a decade. In October 2017, it began to reduce its hoard of bonds by as much as $50 billion per month. But after four 2018 interest rate cuts and some stock market downturns, many observers worried the Fed aggressive normalization was too much of a shock to the economy.

In response, the Fed ended the interest rate hikes and slowed down on debt retirement. By March 2019, the cap on reductions reduced from $30 billion a month to $15 billion. By October 2019, the Fed announced it would once again start expanding its balance sheet by buying up to $60 billion in Treasury bills a month.

However, the Fed insisted this was not another round of quantitative easing. Some market observers reacted to that announcement with skepticism. But whether this was or wasn’t a new round of QE, the Fed’s action effectively stopped quantitative tightening.

How Quantitative Tightening Impacts Markets

Many investors worry that quantitative tightening would negatively impact markets. During the past decade, returns have shown a relatively high correlation with the Fed’s purchases. Conversely, the Fed’s selloff of assets was a contributing factor to the market dip in late 2018, which left the S&P 500 about 20% below its top price.

Quantitative tightening definitely made some investors nervous. That said, there are a few things to consider if the Fed shrinks the balance sheet in the future. First, it’s unlikely the balance sheet will contract to its pre-2008 level. The Fed hasn’t indicated where a ‘happy medium’ might be, but the balance sheet remained well about the pre-2008 figures when expansion began again in October 2019.

Additionally, it’s unlikely that quantitative tightening will reverse quantitative easing’s impact on long-term interest rates. In part, the Fed purchased long-term bonds and mortgage-backed securities to move money into other areas, like corporate bonds, and lower borrowing costs. Also, the Fed hoped this activity would encourage the productive use of capital. According to the Fed’s research, the use of quantitative easing reduced yields on 10-year treasury bonds by 50, to 100 basis points (bps).

While quantitative tightening may have reversed some of this impact, experts believe it will not undo long-term interest rates by 100 bps. Ultimately, it comes down to the comparative impact of the expansion and contraction of the balance sheet. In October 2019, the contraction was not nearly sufficient to reverse the expansion.

Other Considerations of Quantitative Tightening

Many investors worry that quantitative tightening will have a big impact on inflation and liquidity. This is because changes in inflation and liquidity may occur when there is a discrepancy concerning supply and demand. During the financial crisis, the Fed increased the money supply since the economic system desperately needed liquidity. A decade and strong recovery later, there’s less liquidly preference. In response, the Fed has decreased  cash reserves. In a strong market, this should have no real impact on liquidity and inflation.

The Takeaway

Quantitative tightening is a monetary policy that increased interest rates and reduced the money supply in circulation by retiring some of the Fed’s debt holdings. After qualitative easing expanded the money supply for several years to bring the economy back on track, the Fed used qualitative tightening as a means to normalize its balance sheet.

While quantitative tightening did not completely reverse quantitative easing, it did shrink the Fed’s balance sheet. This strategy left many investors uneasy about future returns and interest rates. That said, balance sheet normalization did not prove to be as disruptive as many investors feared.

Tips for Investors

  • The Fed’s monetary policy quickly becomes complex, but it’s still useful for investors to keep an eye on the bank’s actions. Since interest rate changes can have direct impact on major purchases and investment plans, understanding the Fed’s reasoning for these decisions can be helpful.
  • Financial advisors can help their clients cut through the noise and translate technical analysis of market observers into plain language. Finding the right financial advisor that fits your needs doesn’t have to be hard. SmartAsset’s free tool matches you with financial advisors in your area in five minutes. If you’re ready to be matched with local advisors that will help you achieve your financial goals, get started now.

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Ashley Chorpenning Ashley Chorpenning is an experienced financial writer currently serving as an investment and insurance expert at SmartAsset. In addition to being a contributing writer at SmartAsset, she writes for solo entrepreneurs as well as for Fortune 500 companies. Ashley is a finance graduate of the University of Cincinnati. When she isn’t helping people understand their finances, you may find Ashley cage diving with great whites or on safari in South Africa.
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8 Easy Ways to Make a Great Impression in Seconds

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The poet Maya Angelou once said, “People will forget what you said, people will forget what you did, but people will never forget how you made them feel.”

You want people — employers, new acquaintances, possible mates — to like you. And experts say this can be done in as little as 90 seconds by employing several simple tactics. So, let’s begin to make you amiable, quickly.

1. Eyebrow flash

Portrait of a woman against black background
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We all know the importance of first impressions, and body language leads the way. Some experts believe the first impression people get of whether someone is a friend or foe is made by something called the eyebrow flash.

Jack Schafer, a professor at Western Illinois University and former behavioral analyst for the FBI, writes in Psychology Today:

“The eyebrow flash is a quick up and down movement of the eyebrows. As people approach one another they eyebrow flash each other to send the message that they do not pose a threat. Since eyebrow flashes can be seen at a distance, people typically eyebrow flash as they approach others.”

2. Head tilt

Young African American man with head tilted, smiling.
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Another subtle gesture that makes you more approachable is the head tilt, according to Schafer. The motion is another signal that you don’t pose a threat, and don’t perceive the other person as a threat, possibly because it exposes the carotid artery in the neck. He writes:

“The carotid artery is the primary source for blood to reach the brain and if disrupted, causes severe brain damage or death within minutes.”

3. Smile

Older woman smiling, brick wall in background.
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It may be obvious that it’s important to smile. But hold back for a second and look someone you are meeting straight in the eye first. After an initial acknowledgment, then you can smile.

This shows that you are not walking around with a constant silly grin but are actually smiling at the person you are meeting, communication expert and author Leil Lowndes tells Business Insider. It makes your smile seem more personal and sincere.

4. Eye contact

Woman looking through a frame created by her hands.
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Money Talks News founder Stacy Johnson has learned the importance of eye contact. “Keep your eyes glued to the person who’s talking to you,” he says. “It shows them they’re important.”

Conversely, a lack of eye contact can indicate you’re untrustworthy or uninterested in the conversation — something you obviously want to avoid.

If you feel slightly uncomfortable — or even creepy — doing this, career expert Kara Ronin has a tip for making eye contact that doesn’t feel forced:

“Draw an imaginary inverted triangle on the other person’s face around their eyes and mouth. During the conversation, change your gaze every five to 10 seconds from one point on the triangle to another. This will make you look interested and engrossed in the conversation.”

5. Posture

Woman sitting at desk
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Your mom’s advice holds true when you are meeting a person for the first time: Slouching does not project well.

Ronin writes at The Muse:

“[A]s you’re walking into an event, hold your head high, push your shoulders back and keep your rib cage up. This posture makes you look fearless — and taller, which helps you project a sense of authority.”

6. Don’t fidget

Mans hands twiddling thumbs.
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Another thing you probably learned from Mom: Don’t fidget.

Mentalizer Education, the website of mentalist and author Ehud Segev, notes that fidgeting is interpreted as nervousness or anxiety. The site advises:

“When engaged with a conversation, regardless if it is with one person or a group of people, refrain from making any unnecessary movements.”

Experts also say fidgeting can indicate you are lying or bored — which probably is not what you want to convey to a prospective employer.

7. Listen

Young man concentrating on conversation.
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There are several other ways to raise a new acquaintance’s comfort level. One is to listen.

There is a difference between listening and pretending you are listening — and most people can tell. The key to showing you are really listening is to not interrupt the speaker, according to Forbes. Wait for a pause to say what you have to say.

Forbes also suggests you give the speaker regular feedback and occasionally paraphrase what they are saying. Both these techniques are signs that you are truly listening, not faking it.

Flattery is OK, but don’t overdo it. Otherwise, it becomes obvious that you are trying to be a lapdog.

8. Respect all around

Two people shaking hands.
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When I walk into an office, I show each person the same amount of respect, whether it’s the receptionist or the boss. This technique will serve you well both when you are going for a job and after you get it.

As the old saying goes, “Be nice to people on your way up because you’ll meet them on your way down.”

Disclosure: The information you read here is always objective. However, we sometimes receive compensation when you click links within our stories.

Source: moneytalksnews.com