Two weeks ago I attended a workshop in San Diego called “Just Be The Bank”. My nephew, Justin joined me and we spent three days learning from Dave Stech about private lending. If you’ve read the blog, you know I like owning because of the tax advantages and control. But, I really aligned with what Dave was teaching.

Private Lending: Do We Really Own Anything?

Lending also comes with a lot of benefits. For the lender, things are simpler and you still have control but without the responsibilities of ownership.

The concept of “owning” is funny to me. In the U.S., you don’t really “own” anything. If you have a mortgage, in a way the bank owns your house. Oh, and you know those property taxes you pay? Yeah, just try not paying the government and see who really owns your property.

Owning something in our society doesn’t mean you can control it.

Dave Stech and Playing the Markets

Anyways, back to the conference. Dave has been involved in finance for many years. He is an equity investor and has spent decades going in and out of markets based on where the market is going. Dave uses enormous amounts of data to track and analyze real estate markets.

Back in 2005, Dave had a lot of properties and started selling them once he saw cracks in the institutional lending markets. Things were starting to unravel and then came the crash of 2007-2008. Suddenly, Dave looks like a genius to all those people questioning why he was selling.

In 2010, he started buying up properties again in markets like Las Vegas. Dave bought well over 400 homes in Vegas up until 2014. He was able to use census tracts to narrow down to the exact areas of town and zip codes he wanted to be in. When the market hit a rapid increase, Dave started selling again and pulling his equity out of the market.

Dave’s main play was getting in and getting out when the market was good. He earned good appreciation on his properties without being greedy. He still had some cash flow investments, rentals and such, but his primary focus is equity.

What I Learned at the Just Be The Bank Conference

I’ve always been taught to be a cash flow investor (and, I still believe in that), but Dave’s an equity investor and uses cash flow as the glue that holds everything together. I see a lot of value in what Dave is doing. If he tells me it’s time to get back into a market, I will probably tag along.

At “Just Be The Bank”, we learned a lot about how to time the market and use data tracking. In his presentations Dave talked about ‘heat maps”. Heat maps show how rental rates have changed over time. In the early 2000s there was a rapid increase in rental rates. As we approached the 2008 crash, the maps started to show change. Values came down and rent rates followed.

Dave uses data to look ahead and be strategic. Remember, there is no singular real estate market. There are 404 Metropolitan Statistical Areas (MSA) in the U.S. It pays to do your due diligence not only in the macro market, but in the micro markets of where you are investing.

The data shows that the next recession is upon the horizon. Dave is continuing to alternate cycles of buying and being a private lender, and is now sharing his knowledge with others. “Just Be The Bank” is a program for busy doctors and folks like myself (having retired from medical practice) to lend money to people who flip and buy properties wholesale for a living.

And why we like private lending

Last year we posted an article about the advantages of lending (instead of owning). Private lending suits investors who can’t wait for institutional lending. They are willing to pay higher interest rates because they need cash quickly.

At “Just Be The Bank”, Dave is putting us in touch with hot markets around the market (approx. 22). Specifically so current doctors and people like myself can put our money to work on a more consistent basis. We’re working with “tier 1” flippers who do 100 flips or more in their market.

The next “Just Be The Bank” is May 15-17, 2020. The weekend training is designed specifically for busy doctors and other professionals who want 3 things:

1. A full or part-time plan from just active practice income to the best passive, recurring income vehicle on the planet.
2. Consistent and reliable double-digit returns with an effort-to-return ratio FIVE TIMES BETTER than real estate investing. The average flipper that we owe money to earns about $300/hour. As a private lender, I earn around $1500/hr — you can do the math!
3. 3. A safer, more secure option to real estate and other alternative investing opportunities at this point in the market cycle (we’re at or near the TOP).

To learn more about the “Just Be The Bank” workshop, you can register for their FREE webinar at www.JustBeTheBank.com. Click “Send Me More Info” or call Kathy at 702-521-6092 or email her at Kathy@PurposeBuiltInvestments.com for the registration link to the webinar.

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