303: [Dr. Axel Meierhoefer] The King’s Path to Real Estate
In this episode of About That Wallet, I engaged with Dr. Axel, a former Air Force pilot turned real estate investor, as they explore the intersection of financial independence and real estate. Dr. Axel shares his journey from military service to discovering the potential of real estate investing, driven by a desire for time freedom and economic independence.
The discussion dives into the importance of due diligence in real estate, emphasizing the need for a strategic approach to investment. Dr. Axel highlights his unique 1% rule for evaluating properties, providing listeners with practical tools for assessing potential investments. He also shares valuable insights on the significance of mentorship in navigating the complexities of the real estate market.
Listeners will gain a deeper understanding of how to build a successful real estate portfolio, the mindset required for financial success, and the importance of surrounding oneself with the right team. Dr. Axel's experiences serve as a reminder that with the right knowledge and support, anyone can achieve financial independence through real estate.
💬 Question of the Day: What steps are you taking to build your financial independence? Share your thoughts in the comments!
🔗 Connect with Dr. Axel:
Website: https://idealwealthgrower.com
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=|| 📚 Chapters ||=
(00:00) Sample
(00:24) Dr. Axel Schumacher is the CEO of ideal wealth grower
(02:03) Why real estate?
(14:17) Which habits make people successful
(20:42) Teach your children good habits
(21:33) Your parents didn't teach you anything
(25:40) Location, location, location
(38:13) Starting point for becoming an investor
(41:45) King Weaver Real Estate
(47:52) Get into real estate investing
(50:16) Diamond formation leadership
(01:00:52) People don't have experience in renovating properties
(01:10:09) Helping clients build their future
(01:10:45) Understanding the big picture
(01:12:41) The final four questions
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⚠️ DISCLAIMER:
This content is for educational purposes only and is not financial advice. Always consult a licensed financial professional when needed.
#AboutThatWallet #RealEstateInvesting #FinancialIndependence #Mentorship #PassiveIncome
Episode 303
Transcript
>> Dr. Axel Meierhoefer: Was just different location. I'm never going to make
Speaker:$4900 rent. I may be lucky if
Speaker:I get 3500. Who is the winner? The
Speaker:tenant, obviously. Because the tenant lives in a
Speaker:$500,000 house for 3,500 bucks,
Speaker:right? Whereas equivalent the rent
Speaker:should be 5,000.
Speaker:>> Anthony Weaver: Welcome back everybody to another exciting show there about
Speaker:that water podcast where we help the sandwich generation build
Speaker:strong financial hab that they can spend
Speaker:money, talk about money and enjoy their money with
Speaker:confidence. So one of the people that I want to talk
Speaker:about today is a German born former
Speaker:air force pilot who soared
Speaker:for 22 years in the military service
Speaker:where he mastered the diamond formation
Speaker:leadership and honed a disciplined
Speaker:analytical approach to problem solving. After
Speaker:discussing mean after distinguished
Speaker:military career, uh, and a
Speaker:demanding executive role for what
Speaker:he made a pivotal shift into real estate
Speaker:investing driven by the desire of
Speaker:the time, freedom and economic
Speaker:independence so that he wouldn't have to work
Speaker:forever. And I'm sure you don't want to work forever either.
Speaker:So his early disappointing, uh,
Speaker:and expensive ventures had taught him the critical
Speaker:importance of learning about the first
Speaker:before I'm doing it, uh,
Speaker:leading him to develop his robust due diligence
Speaker:methods that he champions today. Uh,
Speaker:now as the CEO of the
Speaker:ideal wealth grower, he decided
Speaker:me he's really dedicated his mission to help a thousand people
Speaker:reach economic independence through the
Speaker:residential real estate investing by uh,
Speaker:2030. And I cannot
Speaker:hold him up any further because he has so much great information to share with
Speaker:you all. Welcome to the show, Dr.
Speaker:Axel.
Speaker:>> Dr. Axel Meierhoefer: Yeah, thank you for having me.
Speaker:>> Anthony Weaver: Uh, you're welcome.
Speaker:So why real estate?
Speaker:>> Dr. Axel Meierhoefer: Well, one of the things that has
Speaker:to do with why real estate is,
Speaker:um, I started to build my
Speaker:own business in 2005 and if you go a little
Speaker:bit back in history, you would find that
Speaker:2002, 2003 was the real big,
Speaker:uh, stock market crash, or dot
Speaker:com crash as a lot of people call it.
Speaker:And for me, when I started my own business and
Speaker:I started realizing, okay, so there will be no
Speaker:more Military Pension, 401k plan, any
Speaker:of that kind of stuff, what can I do on my own
Speaker:to build a portfolio that allows me at some
Speaker:point to, you know, to pick the time when I want
Speaker:to retire and become financially independent.
Speaker:And so I only really knew, kind of had
Speaker:experience to some extent, not, not much, but some
Speaker:in stock market investing and then obviously savings
Speaker:account, that normal stuff, but that had kind
Speaker:of burned a little bit with the whole crash. So I'm like,
Speaker:okay, what, what else could I
Speaker:do? And immediately following that was
Speaker:the question, okay, what do other people that I would look
Speaker:up to actually do with their money if they don't do the st.
Speaker:And one of the things, and you will probably chuckle about that, at
Speaker:the time, Terminator movies were like,
Speaker:huge, right? Like, so, uh, one of the people
Speaker:that I always kind of related to, you have to
Speaker:keep in mind I came from Germany. I was in the US Air
Speaker:Force, and I was living in California, working for the
Speaker:software company and then started my own business. So
Speaker:it's basically an immigration story, even if it didn't
Speaker:start that way. And Arnold
Speaker:was, in a way, similar. Right. It's also an
Speaker:immigration story that didn't really start that way.
Speaker:So I don't know exactly why. And I know this is sounding like there
Speaker:were any kind of relationship. It was more like, okay, this guy
Speaker:is in the news, in the media everywhere, makes
Speaker:tons of money. I wonder what he's doing with this money.
Speaker:Right? And so I dug into that a little bit, just what I could
Speaker:find. And there were several articles at the
Speaker:time that said Arnold had been building one of
Speaker:the largest privately owned residential
Speaker:real estate portfolios in California.
Speaker:I'm like, really? I thought, he's an actor, right? And a
Speaker:bodybuilder and stuff. And that kind of
Speaker:triggered me to say, okay, well, let me look around.
Speaker:We were living in the Santa Barbara area, and I'm like, okay,
Speaker:I guess you have to be a multimillion dollar making
Speaker:movie star to invest in California, because
Speaker:none of the numbers made any sense to me.
Speaker:But. And you know, like you said in your intro, as a
Speaker:German guy, military guy, I
Speaker:used to approach everything very logically with spreadsheets
Speaker:and formulas. And so I thought, well,
Speaker:okay, but he does real estate. Can you
Speaker:do real estate for normal people? And
Speaker:that's what got the whole thing started, basically.
Speaker:That's basically my answer to real estate. I'm not saying
Speaker:it was honored. Uh, it was just the fact that
Speaker:it got me to look at what is he doing with his money. And,
Speaker:you know, I found out and then I started
Speaker:basically researching and learning.
Speaker:>> Anthony Weaver: Yes.
Speaker:So, you know, now that you
Speaker:have done this research and going through that process,
Speaker:what was it that, like, what was the
Speaker:failing point inside the real estate
Speaker:market that was like, you know, what, Am I really doing this
Speaker:the right way or should I give up?
Speaker:>> Dr. Axel Meierhoefer: Um, well, I wouldn't say give up, but what
Speaker:I had known had been told. I'm sure
Speaker:pretty much anybody who ever really even heard about or
Speaker:considered about real estate was two things
Speaker:or three things. One was real estate
Speaker:is all. As far as success in real estate is all
Speaker:location, location, location. And supposedly
Speaker:not only when you're looking for your own residence, but even as
Speaker:an investor, it's all location. So
Speaker:I'm like, okay, I'm in the most beautiful, like,
Speaker:amazing locations that you could be being
Speaker:Santa Barbara. Okay, I have a great
Speaker:location, but when I run the numbers, it doesn't work.
Speaker:So that was the first, like, okay. Then the
Speaker:other thing that that basically triggered for me was.
Speaker:Well, let me say the second one first. The second one was
Speaker:I had always heard that if you are an owner of real
Speaker:estate, that you have to clean toilets and
Speaker:fix faucets and all that kind of stuff.
Speaker:>> Anthony Weaver: Yep.
Speaker:>> Dr. Axel Meierhoefer: So it needed to be in the right location and you
Speaker:needed to be a handyman. So
Speaker:I felt I was in the right location, but I couldn't
Speaker:make the numbers work. And even though I can fix a
Speaker:little bit of stuff, but I'm definite, definitely not a handyman.
Speaker:So what I then actually
Speaker:found by doing the research, getting books and stuff like
Speaker:that is what do you really want to see as an investor
Speaker:is really that you generate income
Speaker:from your investment. And in a way, I
Speaker:mean, I knew this from the stock market, right? I mean, if you
Speaker:invest in stocks, the income is basically the stock rising
Speaker:due at some point selling all or some of it, and you're making
Speaker:the profit between what you put in and what you got out.
Speaker:Well, in real estate, if you put money in and you
Speaker:rent the place and it makes rent income, that's a form of
Speaker:income. Now, it can also increase in value. So that's
Speaker:potentially another form of income if you were to ever sell the
Speaker:property. But the fundamental premise is
Speaker:you want to make income. So
Speaker:what I learned from that was, okay, if I want to
Speaker:make income, is it really
Speaker:the location close enough to me where I can be the
Speaker:handyman? Is that really the concept?
Speaker:M And it became very obvious to me that there's a
Speaker:huge difference between your own residence
Speaker:and investing in properties that you then
Speaker:rent out. Because obviously, if you can
Speaker:find a property in a good location and you're kind of handy and don't
Speaker:need to get a plumber, electrician, and so forth for everything.
Speaker:Yeah, you can live nicely if you can afford it.
Speaker:And we did. I mean, you know, we had a house in Santa Barbara and
Speaker:we were living nicely. And if there were minor things to fix, I fixed
Speaker:them Right. And most alone myself and all that stuff.
Speaker:But from an investing perspective, I learned, and this is
Speaker:really the true short answer to your question,
Speaker:what really counts is the performance of the
Speaker:investment M so
Speaker:you want to find an investment
Speaker:opportunity that when you run the numbers
Speaker:it has a high likelihood, close
Speaker:to 100% that it will perform
Speaker:and everything else comes after.
Speaker:>> Anthony Weaver: Okay. So if somebody thinking about getting into real estate, is there
Speaker:like a, like a paper napkin like type
Speaker:of way to kind of make sure that this works
Speaker:on like for the numbers?
Speaker:>> Dr. Axel Meierhoefer: Yeah. Well what I use is ah, what's called the
Speaker:1% rule. So now
Speaker:obviously there's a whole long list of things that kind of
Speaker:also apply when you're looking for your own residence. Right.
Speaker:If you were to say, okay, I'm planning because of my job
Speaker:or whatever the circumstances, I'm planning to move
Speaker:to Cincinnati, Ohio or I am planning to move
Speaker:to Nashville, Tennessee or any place like that,
Speaker:you would also start looking at where do I want to live.
Speaker:Right. Ah, but from an investor perspective,
Speaker:same scenario, but you don't want to move there, you want to invest
Speaker:there. The very quick back of the
Speaker:napkin, so to speak calculation is to say how much
Speaker:is the price to buy the property that I'm kind of looking
Speaker:at and what is the rent that the
Speaker:seller or there are online tools like Rent
Speaker:o Meter, Deal Check, Bigger pockets. They
Speaker:have basically little
Speaker:plugins that you can go on the Internet, type in the address
Speaker:and it tells you what is to be expected for rent.
Speaker:So that ratio between how much you pay and how much the
Speaker:rent is, if you can get that to be
Speaker:1% or close to 1%, there are
Speaker:a few variations we can talk about. But if you get it to
Speaker:1% or close to it, that is basically
Speaker:assuring you that you're going to have cash flow. And here's an
Speaker:important little add on that always
Speaker:used to work beautifully and you really had like
Speaker:quite a bit of cash flow. But what's kind of
Speaker:interesting in our age time right now,
Speaker:you know, your listeners, everybody knows we
Speaker:live in a time of relatively high interest
Speaker:rates and the 1% rule works
Speaker:even with 7 and 8% interest. So
Speaker:if you have a property that let's say costs
Speaker:$180,000 in Cincinnati, Ohio or
Speaker:somewhere in the Nashville area and you can get eighteen hundred dollars
Speaker:rental, you can run the number through all those
Speaker:calculators I mentioned and you will see there will be some cash
Speaker:flow. Now is it
Speaker:500 bucks a month? Probably not, especially if you have
Speaker:high interest. But if you go through everything, you still
Speaker:should have like a few dollars, maybe 50,
Speaker:maybe 100, 150, depending, you know, what
Speaker:the costs are. Um, but that's basically the first
Speaker:thing to say If I have five, 10 different
Speaker:properties that I looked at and I like them and
Speaker:that I can afford one. And this is basically what
Speaker:we do in our mentoring program, right? We teach people how to
Speaker:actually find properties. Why? To find them in certain
Speaker:areas. And then we teach them how to do those
Speaker:calculations. But the quick thing,
Speaker:180k property, 1750 rent.
Speaker:Okay. Now it's worth looking deeper.
Speaker:>> Anthony Weaver: M. Okay, so that's the quick and dirty.
Speaker:>> Dr. Axel Meierhoefer: Is to make sure that's the quickest way to go about it. And
Speaker:there are many, many variations. Right? Like, that's basically,
Speaker:if you ask me, you know, what makes a
Speaker:bloom of a flower beautiful, you know, you
Speaker:can maybe say, yeah, the first thing you want to see is a really
Speaker:nice color. But then when you go, you know, there are 27
Speaker:levels deeper behind.
Speaker:>> Anthony Weaver: Right. So
Speaker:the. Because a lot of people are afraid to even get into real
Speaker:estate. Yes. We know we need to get to it just to live.
Speaker:So how do we actually come, uh, up with the.
Speaker:I guess you could say, like the seed money to start
Speaker:that investment?
Speaker:>> Dr. Axel Meierhoefer: Well, there's a bunch of different ways to do
Speaker:it. The first thing,
Speaker:and I know this is maybe taking a few extra minutes,
Speaker:but it's really a matter of how have you
Speaker:been raised? It's the number
Speaker:one thing. And I know that people,
Speaker:myself included, I'm assuming you as well, we
Speaker:cannot really influence how we're
Speaker:being raised. But why I'm starting with that, as the first thing is
Speaker:if your parents understood
Speaker:to instill a certain level of frugality
Speaker:in you, a certain, like letting
Speaker:giving you a better start into life by saying
Speaker:something like, okay, as soon as you start making any
Speaker:money, put 10% away or 20%,
Speaker:but something put it away before you start spending any
Speaker:of the rest, that helps you
Speaker:the most because one thing that
Speaker:people oftentimes don't realize unless we're talking
Speaker:about it, uh, like you and I are doing right now. And then you go back and
Speaker:remember, the younger you are,
Speaker:the lower the amount of money is that you
Speaker:really need to spend. But
Speaker:if you really go back to, like high school times,
Speaker:any money that you spent was basically
Speaker:for almost everybody, just for pleasure.
Speaker:Like, uh, you didn't have to pay for much of food, you didn't have
Speaker:to pay for rent, you didn't typically have to pay for
Speaker:transportation. You know, all the things that we
Speaker:nowadays pay you. Yeah, you had to pay maybe a little for the
Speaker:girlfriend,
Speaker:but you know, still within. So
Speaker:if you made, let's say you had like a paper route or some
Speaker:kind of job somewhere. I had a job in a nursery when I was
Speaker:14. I really just blew the money.
Speaker:Right. I later, my, um, my parents
Speaker:started to make it clear that it would be good to save some because
Speaker:there will be things that I would want in the future and it would be
Speaker:good to have money. But initially, the first six months in
Speaker:the job, I was like, oh, I have money. I can buy this stuff. I don't have
Speaker:to ask my parents anymore. Right? So that's
Speaker:why I'm saying that the sooner you get that instilled in you
Speaker:and you put something away, and let's just
Speaker:say you start at 16. By the,
Speaker:uh, time you're finished with school and college and everything,
Speaker:you're 25. If you really consistently did that
Speaker:for basically 10 years, you probably have enough
Speaker:money to buy your first house.
Speaker:M. Right. Now, that's one option.
Speaker:Now, let's say that didn't happen. Not your fault. You can't
Speaker:really pick your parents.
Speaker:The second thing is to basically
Speaker:start asking yourself which habits are
Speaker:helping and have helped for generations
Speaker:to make successful people successful,
Speaker:Especially when you're thinking about money. And
Speaker:one thing that I like to point to is a little book called
Speaker:the Richest man in Babylon.
Speaker:>> Anthony Weaver: Yes.
Speaker:>> Dr. Axel Meierhoefer: And what, what that basically says is the same thing like I
Speaker:just described, is for any money that comes in
Speaker:at the moment that it comes in, put 10% away.
Speaker:Now you can put more away. But if you really do this,
Speaker:think about it. Let's say you have a job that makes,
Speaker:um, $3,000 a
Speaker:month. Right? Now, in the beginning, when you're
Speaker:younger, uh, putting 10% or 300 bucks away is
Speaker:probably easy. You could probably even do 500 bucks.
Speaker:But if you think about that for a year, that's three to
Speaker:five thousand dollars a year. You do this for three or
Speaker:four years, you have enough for a down payment for a house.
Speaker:Right. And that's assuming your income doesn't
Speaker:increase. That's assuming that you're, um,
Speaker:not getting a raise, that you never put anything else away,
Speaker:which is kind of unrealistic by conservative. Right? So
Speaker:that's, that's one way or the second way to think
Speaker:about it. Um, the other way that
Speaker:I find interesting is not to
Speaker:only look at everything that happens in life
Speaker:on your own, but think
Speaker:about how do most
Speaker:organizations actually become successful? Yes,
Speaker:they have a founder, but the success
Speaker:comes as they grow.
Speaker:So one idea that I
Speaker:find beautiful and I don't know how many people in
Speaker:college age, university age you have, but just
Speaker:for a moment, imagine you're getting ready to
Speaker:go to college and you know that you're most likely
Speaker:going, uh, to be there anywhere
Speaker:between. That's at least the plan. Four to six years, depending on
Speaker:how far you want to take it. And you need to
Speaker:stay somewhere, right? So what's the most
Speaker:beautiful concept is
Speaker:to find a few people that go to college with
Speaker:you and decide that you're going to
Speaker:buy something like a four plex?
Speaker:>> Anthony Weaver: Mhm.
Speaker:>> Dr. Axel Meierhoefer: Right. The beauty of that is those four parents,
Speaker:you and the other three people's parents all
Speaker:can vouch for you on the down
Speaker:payment of their place. Right
Speaker:now you can decide if it's a fourplex, if the four people
Speaker:each have one unit,
Speaker:or if you maybe say, okay, we share, you
Speaker:know, two people share a unit, the other two people share a unit,
Speaker:and then the remaining two units are being rented.
Speaker:If you do that, you probably live for free,
Speaker:right? Because in most cases, uh,
Speaker:especially in any kind of college town or stuff like that,
Speaker:the income that you would make for either two
Speaker:or four people living in those two units that you don't
Speaker:use would be enough to pay for everything that are, uh,
Speaker:the costs of that 4 plex. But here
Speaker:comes the thing now. If you do this,
Speaker:you're building a foundation for everyone, not just
Speaker:yourself, but the other three people as well. Because
Speaker:sooner or later your college time will be
Speaker:done. You will have paid down a little
Speaker:bit for the first four years without
Speaker:having spent your own money. Which by the way, I would highly
Speaker:recommend to put aside so that you have a
Speaker:down payment for your next investment property. Right.
Speaker:M. But regardless, you
Speaker:now have one property owned by these
Speaker:four people. If you were, uh, my mentoring clients,
Speaker:we would create a little LLC partnership
Speaker:for people owning that fourplex. That thing
Speaker:is going to be there forever and ever and ever. And it's going
Speaker:to make you income from four units when you're done with your
Speaker:college time, right? And then if you say,
Speaker:okay, a four plex costs, let's say
Speaker:$1500 or $2000 a month in cost
Speaker:and brings in another 2000, right?
Speaker:Then you can either split it or not, or however you want
Speaker:to do it. But you have a starting point and interestingly enough,
Speaker:you also now own something. You own the business
Speaker:that owns the property, and the property has,
Speaker:probably depending on when you started, you gained
Speaker:value. Now if you were lucky enough, for example, and
Speaker:you started in, in let's say 19, uh, 20,
Speaker:uh, 2019 or 2018. And then you
Speaker:finished in 2021 from home because you
Speaker:couldn't go to college. Now Covid is over
Speaker:2022, you're basically done. The
Speaker:place is there, is rented out, right?
Speaker:So you're good to go. You got super
Speaker:low interest in the mortgage and you're really making
Speaker:good, good income. And the starting
Speaker:point for anybody to say, hey, I have a
Speaker:property there that we bought, let's say for
Speaker:250,000, $300,000. Now it's worth
Speaker:500. So if $200,000 of equity
Speaker:sitting in it that you could use as a down payment if
Speaker:every single one of the original owners were uh, to do
Speaker:this, you can buy a
Speaker:$200,000 investment property.
Speaker:So that's your second property on your own, right. So you have
Speaker:four people now, you continuing from
Speaker:there on your own. And you know,
Speaker:now since you are so smart and you did your college really
Speaker:well and you got recruited into a good job
Speaker:and you probably have not started family yet, you can
Speaker:probably keep putting 20% aside. So
Speaker:you can see it's really a matter of
Speaker:where is my starting point. Is my starting point
Speaker:when I started my first little job, me in a
Speaker:nursery, people having paper routes, working at
Speaker:McDonald's or whatever, is it when you get
Speaker:into college, is it when you have your first job
Speaker:or is it sometime later? The
Speaker:only difference is, and that's really the
Speaker:answer to the question is how can I get my hands
Speaker:or safe to have somewhere
Speaker:around nowadays 30 to $40,000 to
Speaker:start with. Yeah, that's it. Used
Speaker:to, I used to say 20, but prices and
Speaker:everything has gone up so much that you really need to think about
Speaker:30 to 40,000 and fundamentally
Speaker:to kind of put a little wrapper on it.
Speaker:The sooner you start, the earlier you
Speaker:can become an investor.
Speaker:And I would um, really appeal, try
Speaker:to appeal to your audience, anybody who is a parent.
Speaker:I really meant that very, very seriously. One of your
Speaker:responsibilities, uh, besides
Speaker:providing food and shelter and security,
Speaker:is to teach them and help them to have the
Speaker:best possible start into life. And one
Speaker:of the things that I'm sure almost everybody will
Speaker:acknowledge, if you can start with an
Speaker:inflation protected asset as early as possible
Speaker:in your life, you have basically started
Speaker:on a successful journey through Life.
Speaker:I'm absolutely 100% sure about that.
Speaker:And it only gets better from there. So you know, if
Speaker:you're a parent, please, you know,
Speaker:start developing the habit and then teach those habits to your
Speaker:kids so that for them it's completely natural.
Speaker:>> Anthony Weaver: Mhm.
Speaker:So with that particular
Speaker:Understanding of, okay, now we got the seed money and stuff like
Speaker:that. Where did you, like, learn this from? Like,
Speaker:did, like, what type of, I guess you could say
Speaker:money lesson did your parents have on you when you're
Speaker:growing up?
Speaker:>> Dr. Axel Meierhoefer: Well, my parents basically
Speaker:didn't teach me anything about investing.
Speaker:Um, but what they did teach me
Speaker:is, and this is almost like a German thing,
Speaker:I am sometimes wondering if it's part of the DNA. But,
Speaker:um, what they did teach me is
Speaker:to make sure that when you go for any deal,
Speaker:and I explain in a second what I mean by deal,
Speaker:that you really get the best value for your money.
Speaker:Now, what does that mean for a German, right?
Speaker:Like, I don't know, uh, where, where's, uh, where are you
Speaker:located?
Speaker:>> Anthony Weaver: Oh, I'm located in Maryland.
Speaker:>> Dr. Axel Meierhoefer: Maryland. Okay. I don't. Maryland has Aldi's, right?
Speaker:>> Anthony Weaver: Yes.
Speaker:>> Dr. Axel Meierhoefer: Yeah. Okay, so the audience may know
Speaker:Aldis. It's kind of like a discount store, right?
Speaker:But it's very specific. So in Germany, they have
Speaker:Aldi, then they have Lidl,
Speaker:is another one of those. Uh,
Speaker:they have Neto, and they have
Speaker:one called Penny. Penny is a little bit like
Speaker:the dollar store. Okay. So they have those four.
Speaker:And what happens to a normal German family? At least
Speaker:once a week, each one of those four stores is
Speaker:sending a little flyer to say, what are their
Speaker:advertisements? Right? And what you
Speaker:see is they're competing with each other to get
Speaker:people into their stores. So they're picking
Speaker:something that most people need and discount
Speaker:the price to what they pay. They make no
Speaker:profit on it.
Speaker:>> Anthony Weaver: Right?
Speaker:>> Dr. Axel Meierhoefer: Ah, so what happens? And this is the
Speaker:explanation what I mean by getting the proper value for your
Speaker:money, you might get one from Neto and you look at it and
Speaker:say, oh, this, this week they're, um, having
Speaker:coffee on advertising. So the regular
Speaker:coffee in all the other three stores, let's say,
Speaker:is $7 a pound, but they
Speaker:sell it for 450. Now here
Speaker:comes the DNA thing. The Germans would say,
Speaker:okay, let me make a little less. I need coffee from
Speaker:Penny and, uh, butter from Penny. I
Speaker:need milk from Aldi. I need
Speaker:oranges from Ali. And so. And you make a list and
Speaker:then you go from one to the next and only buy the stuff that's on
Speaker:sale. If you do that, if that's
Speaker:your habit, not only are you getting
Speaker:the same quality, that. Because they all buy the same stuff
Speaker:from the same brands, by the way, it's no difference, right? It's
Speaker:literally brand name coffee, brand name butter and stuff. It's just
Speaker:to get people in this Trip. But if you build that,
Speaker:and this is what my parents did without really talking about
Speaker:it, my mom always looked at the thing circled,
Speaker:you know, and you might say, okay, well, that was maybe your
Speaker:mom. Okay. I went to Air
Speaker:Force Academy and they made me
Speaker:and all of us, they claimed that guys that wanted
Speaker:to be officers, like Top Gun, even though that's,
Speaker:you know, Navy and we have an Air Force. But if you wanted to do
Speaker:that, you needed to know how to ballroom dance.
Speaker:Right. So we were put
Speaker:in an Air Force bus, driven to a dance
Speaker:academy downtown Munich to go and
Speaker:learn ballroom dancing. I
Speaker:was from northern Germany. We actually have a
Speaker:genetic difference. We have basically swallowed a
Speaker:stick. That's about how stiff I was going there. Right.
Speaker:So, um, but
Speaker:there were lots of really pretty young women
Speaker:who were into ballroom dancing. And when
Speaker:they were volunteering to help these stiff Air
Speaker:Force guys, they got basically training for free.
Speaker:And I got to meet my wife there.
Speaker:Why am I telling you this? When we got closer
Speaker:together and we started basically living together and stuff, you know
Speaker:what she did, what she did mean. I never said a
Speaker:peep about it. Network leader
Speaker:circled it and then said, let's go shopping.
Speaker:>> Anthony Weaver: Wow.
Speaker:>> Dr. Axel Meierhoefer: That's why I'm saying, you know, that's.
Speaker:>> Anthony Weaver: How you knew she was the one.
Speaker:>> Dr. Axel Meierhoefer: So is it really DNA? Right. So,
Speaker:um, well, so in, in the
Speaker:context to your question, that actually means you,
Speaker:you want to figure out, and this is what I meant by the
Speaker:difference between everybody saying location,
Speaker:location, location versus performance,
Speaker:performance, performance.
Speaker:If I give you
Speaker:audience a quick example, uh, and you have
Speaker:probably in your mind seen or thought
Speaker:about this before. If
Speaker:you live in a relatively expensive
Speaker:area, like I lived in Santa Barbara, a
Speaker:normal modest house when we were living there was
Speaker:about $500,000. And you got a regular three
Speaker:bedroom, two bath house with a little small garden
Speaker:around it. And that wasn't downtown to
Speaker:Santa Barbara. That was like 20 miles out or something, right?
Speaker:>> Anthony Weaver: Yeah.
Speaker:>> Dr. Axel Meierhoefer: If. And, and through my work, I got to go
Speaker:places. I went to Alabama, I went to, to
Speaker:Ohio. I went to different places to do
Speaker:work. Uh, but when work was over in the afternoon
Speaker:and you went basically to a restaurant or just driving through the
Speaker:town with your rental car, you saw houses there
Speaker:and they didn't look much different. But every so often
Speaker:you saw a sign that said, uh,
Speaker:85,000, 92,000, I'm
Speaker:like, wow. That same house, if I
Speaker:had it in my location, would be 400 or
Speaker:500,000. So I'm sure we have all seen
Speaker:that. But that's an illustration of what I mean by performance.
Speaker:So you know, if you buy that $500,000 house
Speaker:in Santa Barbara, and today it would be probably a million house.
Speaker:But, uh, let's just stick with 500
Speaker:to apply our little napkin math
Speaker:would mean you have to get $5,000 rent or close
Speaker:to it to make the 1% rule. And on
Speaker:the other hand, the $92,000 house, same house
Speaker:basically just in a different location, needs
Speaker:to make only $920 rent.
Speaker:Now what is more likely? In
Speaker:my mentoring, I always say, who is the
Speaker:winner? If you look at it like a game,
Speaker:I see In a, in a 92,0003
Speaker:bedroom, two bath house paying
Speaker:$928 rent, I'm, as the owner,
Speaker:the winner. Because even out of those $920
Speaker:rent, I'm probably making $150 cash
Speaker:on the 500, 000 house. Same house, just
Speaker:different location. I'm never gonna make
Speaker:$4,900 rent. I may be lucky if
Speaker:I get 3,500. Who is the winner? The
Speaker:tenant, obviously, because the tenant lives in a
Speaker:$500,000 house for 3,500 bucks.
Speaker:Right. Whereas equivalent the rent
Speaker:should be 5,000. So the answer to
Speaker:your question is where do you look and how do you look and how do you
Speaker:find good properties? Is you have to find first
Speaker:areas in the country where that ratio of
Speaker:price to rent is still healthy.
Speaker:>> Anthony Weaver: Mhm.
Speaker:>> Dr. Axel Meierhoefer: And it obviously is not in San Francisco or Miami or
Speaker:New York or all these big places or even
Speaker:Chicago. Um, so from an
Speaker:investment perspective, you have to ask yourself, where
Speaker:is a healthy population that has
Speaker:normal jobs that likes
Speaker:to live in a house with their family and can
Speaker:afford the rent? And there's a
Speaker:great book for anybody who is kind of interested to just find out,
Speaker:well, so what are all the things that I need to know to
Speaker:make that determination? Chris Clozier, I think it
Speaker:was about 2006 or so, he wrote a book that's
Speaker:called Turnkey Revolution. And that's
Speaker:basically what helped me a lot. Because yes,
Speaker:it describes in the first half of the book how his
Speaker:family built basically a turnkey
Speaker:business in Memphis, Tennessee. But the second half
Speaker:of the book is almost like pages after pages of
Speaker:checklists. So if you don't want to, you know,
Speaker:become a mentoring client of mine or work with somebody,
Speaker:you want to do it all on your own, I would get that
Speaker:book and then read these checklists and
Speaker:say, okay, where can I find properties where the
Speaker:vast majority of what the checklists ask for
Speaker:is met? And it includes things like
Speaker:what's the ratio between price and rent.
Speaker:But it's also asked the question, okay,
Speaker:what are the people that uh, live in the area
Speaker:and what kind of jobs do they have?
Speaker:If you want to buy a
Speaker:property where theoretically
Speaker:the ratio is good but nobody can
Speaker:afford to live in a house and they all live in apartments, that doesn't
Speaker:work either. So
Speaker:those are um, some of those criteria. But the
Speaker:first thing I would say is become aware uh,
Speaker:that you're really looking for performance.
Speaker:And nowadays with AI you can just go on
Speaker:ChatGPT or Grok or Anthropic or whatever
Speaker:one you use and you just go in and say okay, find me
Speaker:locations in the United States where
Speaker:the average ratio of rent and the average ratio
Speaker:of sales price is close to 1%
Speaker:and it's going to tell you which locations those are.
Speaker:>> Anthony Weaver: You know I never thought to use AI for that.
Speaker:Like I'll use it for everything else but never thought to.
Speaker:>> Dr. Axel Meierhoefer: But uh, for me what I'm finding is you could Google
Speaker:it but two things happen. Number one, Google
Speaker:first gives you almost all of the first page
Speaker:advertisements and
Speaker:then the thing is, you never know.
Speaker:This is for me actually the lesson I've learned with
Speaker:AI With Google I would
Speaker:still say after using it pretty much as long as
Speaker:it exists I have never really learned
Speaker:and nobody has ever really taught me how to
Speaker:write a proper prompt for Google M.
Speaker:And I don't know exactly why but I feel with the
Speaker:AI, with the large language model stuff that we have
Speaker:now it is somehow way more
Speaker:obvious. But if I say find
Speaker:me affordable properties in the United States and it
Speaker:gives me whatever answer I can quickly see, no, that's not quite
Speaker:it. Let me define what I mean by affordable.
Speaker:And the second or latest, the third time it's
Speaker:pretty much spot on. And Google doesn't do that.
Speaker:Right. Like it you, you don't really have the kind of
Speaker:feedback. That's why I use AI
Speaker:basically like my new search engine.
Speaker:Also I'm a little weird. I mine is called
Speaker:Roberto, you know because I feel like it's like
Speaker:almost like a person I can see right.
Speaker:>> Anthony Weaver: But it's really cool to see
Speaker:where you, the way how you utilize AI.
Speaker:Um because I had a person on as
Speaker:instructor at New ah York
Speaker:University on talking about AI and
Speaker:she was focusing on the non biased side of the house
Speaker:of AI. But it's good to see that you use
Speaker:it more so as a search more so to
Speaker:get down to what you actually want versus
Speaker:you know like he said With Google, it's a one shot, done
Speaker:and deal. It can't go back like, hey, I really meant this,
Speaker:or can you dive into this based on answers
Speaker:that you already have? Let's compile that a little further down.
Speaker:That's really. Yeah, uh, you do it that way.
Speaker:>> Dr. Axel Meierhoefer: But there's, there's one other thing and this is relatively
Speaker:recent and it will become much, much more prevalent.
Speaker:And, and I only know about it because I'm a little nerdy from my
Speaker:air first time, right? So
Speaker:AI, the, the most common AI
Speaker:tools in use right now
Speaker:allow you to ask the
Speaker:AI, like chat or grok or so forth
Speaker:when they, when you do what some of them call deep
Speaker:think or some of them call it reasoning
Speaker:is basically an option where it shows
Speaker:you. You, you put in your prompt, right? Like find me the
Speaker:locations with the best ratio of price to
Speaker:rent in the United States.
Speaker:Um, starting with above 1%
Speaker:to no lower than 0.8%.
Speaker:And then you say deep thing or you say reasoning and it
Speaker:literally shows you what it goes through step by step, what
Speaker:it does, what it thinks, what it looks at and then
Speaker:throws away and looks at something else and so forth.
Speaker:And that's another thing that you can never do.
Speaker:And by just watching it, I've done it a few times. I'm not
Speaker:doing it every time, but every once in a while I'm kind
Speaker:of curious, okay, how does it get to his uh, results
Speaker:Or I say his results because Roberto. Right. So,
Speaker:um, how does he get to
Speaker:his results? And when I'm looking at it, I can see
Speaker:by just watching. Okay, it's kind of,
Speaker:he's kind of doing what I would do if I had to open all
Speaker:these different links that Google presents to M me. It's just
Speaker:at a mind boggling speed. Like it goes in, it looks at it,
Speaker:it blinks off, you see a little boom, it's gone. And the next
Speaker:one, next one, next M1 next one, right? And so then it
Speaker:basically starts putting things together and every once in a
Speaker:while it seems to think, oh, that doesn't quite fit and it
Speaker:throws it away. But you can watch it doing that
Speaker:and the whole thing only takes like what, 20
Speaker:seconds, 30 seconds, something like that.
Speaker:But the point, what I'm saying, why is that so different?
Speaker:Is by doing that
Speaker:exercise of watching it reasoning for a little
Speaker:while, it really helps you understand how you
Speaker:need to do better prompts. M.
Speaker:Right. Because now after, let's say you watch
Speaker:that five times now, you know, okay, that's
Speaker:what it does When I'm asking it this way,
Speaker:next time you ask a little different. You have obviously different
Speaker:questions. Uh, but you start understanding
Speaker:how you can improve your question so
Speaker:that it's more likely to find the stuff that you're looking
Speaker:for. So that's a little excursion into the
Speaker:AI stuff. But that's, you know, in,
Speaker:I don't know, two years ago I would have said Google it.
Speaker:>> Anthony Weaver: Right.
Speaker:>> Dr. Axel Meierhoefer: But there's a better, uh, better bow strap now, you know.
Speaker:>> Anthony Weaver: Yeah, I'm thinking about it also for like interviews because
Speaker:that's one of the things that helped me get better at
Speaker:asking better questions.
Speaker:>> Dr. Axel Meierhoefer: Right.
Speaker:>> Anthony Weaver: And you know, sometimes I do hesitate on my
Speaker:questioning because it's like I do need to rethink it
Speaker:because it's too vague or I'm
Speaker:along the lines, but I just don't know how to ask that particular
Speaker:question even for, because like you and I, we have in
Speaker:this discussion.
Speaker:>> Dr. Axel Meierhoefer: It's just, you know, but that's a
Speaker:neat little trick. A friend of mine, I wasn't smart
Speaker:enough to come up with it, uh, myself, but a friend of mine
Speaker:said that to me. He knows that I do a lot of
Speaker:coaching and mentoring. So it kind of obvious this,
Speaker:the real strength of mentoring is
Speaker:to get really good at asking questions.
Speaker:Yeah. And so
Speaker:he said, if you're not sure about your question,
Speaker:why don't you ask AI what a good question would be.
Speaker:>> Anthony Weaver: That's a good one.
Speaker:>> Dr. Axel Meierhoefer: Literally. Right. Like if you say, okay, I want to ask
Speaker:somebody on what's the best way to paint
Speaker:this wall?
Speaker:>> Anthony Weaver: Mhm.
Speaker:>> Dr. Axel Meierhoefer: And you go and say, I tell me what's the best way?
Speaker:If I am looking really not just for paint the
Speaker:wall, but for these different things. The wall is really rough and
Speaker:it is, the stucco is falling apart
Speaker:and you know, like, you can describe it a little bit and it comes
Speaker:up with five different ways, 10 different ways of asking the
Speaker:question, then you pick the one that resonates most with
Speaker:you and then you say, okay, pretend to be the
Speaker:friend. Here's the question. So,
Speaker:um, so I mean it's, it's,
Speaker:you know, in my opinion, we are
Speaker:just barely, barely scratching a tiny little
Speaker:bit of the surface. Uh, this thing is going to be so,
Speaker:so much more in our lives in the future.
Speaker:But yeah, I think, I mean, for, from, if you
Speaker:start and you want to do everything on your own, you don't want to
Speaker:mentor, you don't want to sign up for a program m or stuff like that,
Speaker:having the, this kind of a tool set available to you,
Speaker:um, is Enormous. Right. Like, so I would still
Speaker:say, um, use Turnkey
Speaker:Revolution by Chris Clozier as a starting point just to get
Speaker:into it, because he's really describing very
Speaker:well, what is turnkey investing. And that was
Speaker:my starting point. To get back to, one of your questions
Speaker:is, I'm sitting on the west end of the country
Speaker:in Santa Barbara, no way to ever invest in anything,
Speaker:can barely afford my house,
Speaker:how can I be a real estate investor?
Speaker:>> Anthony Weaver: Right.
Speaker:>> Dr. Axel Meierhoefer: And the real first answer is, well,
Speaker:that only works when you invest in turnkey
Speaker:investor.
Speaker:>> Anthony Weaver: Okay.
Speaker:>> Dr. Axel Meierhoefer: And if you like, we can dive a little deeper into that
Speaker:for people to understand. What is that?
Speaker:>> Anthony Weaver: Yeah, explain that a little bit deeper. Um, for the people who
Speaker:haven't heard it before.
Speaker:>> Dr. Axel Meierhoefer: Okay.
Speaker:Again, going to start at a point where your audience is going to say, this guy
Speaker:is getting a little weird.
Speaker:So my, my
Speaker:starting point for becoming an
Speaker:investor for, well, performing properties in
Speaker:residential real estate is number one to
Speaker:say, in my mind, with my mindset, I need to
Speaker:separate my private life and my investing.
Speaker:Investing is kind of like a job. And I don't mean in the
Speaker:amount of time spent, but in what it is.
Speaker:So what we do when somebody joins our program, the first thing
Speaker:we do is to say, okay, let's start a business, an
Speaker:llc. Um, and
Speaker:what would you know if you had to come up with a name, what would you call
Speaker:it?
Speaker:>> Anthony Weaver: Weaver Real Estate.
Speaker:>> Dr. Axel Meierhoefer: Say that again.
Speaker:>> Anthony Weaver: Weaver Real Estate.
Speaker:>> Dr. Axel Meierhoefer: Weaver Real Estate. Okay. So I would say,
Speaker:okay, let's call it King Viva Real Estate.
Speaker:>> Anthony Weaver: Okay. King on there. Okay.
Speaker:>> Dr. Axel Meierhoefer: King Weaver Real Estate llc. That's what we're building.
Speaker:And then we basically get a bank account. We set up
Speaker:the company in Wyoming. We're good to go. King William,
Speaker:uh, King Weaver Real Estate exists now. That's the
Speaker:first step. And then we're basically
Speaker:going to say, okay,
Speaker:what is turnkey investing? Is
Speaker:basically finding, not really in the
Speaker:traditional sense, but in some sense, people
Speaker:that want to work for King Weaver Real Estate.
Speaker:So who are those people that we need to find? We need to find
Speaker:somebody who is finding properties
Speaker:and make them really nice and renovate them.
Speaker:That's one employee or group of employees we need.
Speaker:We now need somebody who is willing to give
Speaker:us the 80% of the money that we need together
Speaker:with our 20% to invest into the property.
Speaker:So that's a lender, a bank or so forth? Yes, they're not really,
Speaker:in the normal sense, employees, but we are employing them
Speaker:as King Weaver Real Estate llc
Speaker:to work for us, to give us money, work for us,
Speaker:manage the Mortgage. Right. In a way,
Speaker:it's actually. People forget when you got a
Speaker:mortgage, regardless whether it's for your residence or for an investment
Speaker:property, when you get the paperwork, uh, it
Speaker:actually is called a mortgage servicer.
Speaker:That's who you pay your money to every month to a mortgage
Speaker:servicer. Well, how much closer is that
Speaker:to calling it? They're servicing my mortgage.
Speaker:>> Anthony Weaver: Very close.
Speaker:>> Dr. Axel Meierhoefer: And who has the mortgage? King Weaver
Speaker:llc. Right. So, okay,
Speaker:so you need lender. You need someone to renovate the property.
Speaker:Obviously, it's like a thousand miles away. They need
Speaker:somebody to manage it and to find you the
Speaker:tenants and to collect the rent. Right. Now, obviously,
Speaker:the, uh, King Miva Real Estate LLC also has a bank
Speaker:account, so they can send the money there.
Speaker:Then you might probably say, okay, if you work with
Speaker:me, I would say, well, let's decide to build a cluster. Not
Speaker:have one here, one here, one here, one there. We want to start
Speaker:somewhere. Whether we used AI or not, to figure
Speaker:out where do we want to build our first cluster?
Speaker:Let's just stick with the example. We built our first cluster, uh,
Speaker:in Cincinnati. Cluster
Speaker:means 4, 5, 6 properties, kind of
Speaker:close together. And why close together? Well,
Speaker:because then you can use one property manager,
Speaker:and they take care of all the properties. What's the benefit to
Speaker:King Weaver is you only have to have one call
Speaker:a month for five properties, maybe half
Speaker:an hour, 45 minutes to tell this employee
Speaker:what's been happening with your properties
Speaker:last month. Right. Tenants and repairs
Speaker:and rent collective, blah, blah, blah.
Speaker:So your job as the CEO or king of King
Speaker:Weaver Real Estate LLC is to talk to these
Speaker:guys once a month. Right. So we
Speaker:have that. And then there are a couple other things. If you build a cluster,
Speaker:you would also hire an inspection company.
Speaker:So, yes, obviously, for the first property. And then when you
Speaker:keep adding more to the cluster, that's the same ones that
Speaker:you send out there to inspect the properties.
Speaker:So that's basically what I mean by you're building
Speaker:organizations, companies, and people who work for
Speaker:King Weaver Real Estate llc.
Speaker:And the reason why I call it King Weaver Real Estate
Speaker:LLC is because it has to do with your mindset.
Speaker:If you don't like the word king, you can
Speaker:say founder or you can say CEO or president. Whatever
Speaker:you try, you want to give yourself, but from a mindset
Speaker:is it's your company, it's your
Speaker:property. These people are working for you,
Speaker:and they get paid for it. They get paid the mortgage, they
Speaker:get paid insurance, if insurance is another one of those
Speaker:employees. Right. They get paid for
Speaker:managing it and stuff. Which also, by the way means
Speaker:what do you do if in your team or in your company, if
Speaker:you're having a normal job, somebody doesn't perform, what
Speaker:happens?
Speaker:>> Anthony Weaver: You gotta fire them.
Speaker:>> Dr. Axel Meierhoefer: Right. So if you're the king of King
Speaker:Weaver Real Estate llc, the king can fire people,
Speaker:right? Yeah, yeah. So
Speaker:you're obviously not just checking in, for example,
Speaker:with property management to see what happened,
Speaker:but each time you check in with them, you also
Speaker:evaluate their performance.
Speaker:Right. And so that's, by the way, some people forget
Speaker:this is also true with mortgage. Right. Let's say right
Speaker:now you bought the property last month and you have to pay
Speaker:7% mortgage. And let's say Trump
Speaker:convinces, uh, Jerome Powell that finally to
Speaker:lower interest rates and next year it's down to 5%.
Speaker:By what do you do? The king is going to call the mortgage company and
Speaker:say, okay, I see everywhere I can get mortgages for
Speaker:5%. I'm paying you 7. Make me an offer.
Speaker:They say, I'm so sorry, Mr. M, we can't. Okay, thank
Speaker:you. I find somebody. Yeah,
Speaker:but it's a mindset thing. It's, it's, you know,
Speaker:you are, uh, and I use the term in our mentoring,
Speaker:you are the creator of your own future. And it starts in your
Speaker:mind, in your head. If you want a different
Speaker:future where you may not have to work because you have
Speaker:financial independence, your property portfolio
Speaker:pays you money every month, enough to live off
Speaker:while you got to be the boss. You
Speaker:are the person in charge. And
Speaker:if you find good people from the get go, they might be
Speaker:with you for 20 or 30 years or forever.
Speaker:But most of the time I can say this from my own
Speaker:portfolio. Yes, I was lucky
Speaker:maybe, uh, to pick a few good ones that I'm
Speaker:still with, but I also had to let some
Speaker:go. But that's just, that's just the way
Speaker:it is. And it's also a matter of. There's a
Speaker:really interesting book, kind of a little bit on the side
Speaker:called Good to Great. I don't know if you've ever heard that Good to Great
Speaker:by Jim Collins.
Speaker:>> Anthony Weaver: I've heard of it. I haven't.
Speaker:>> Dr. Axel Meierhoefer: He uses this analogy. If your business
Speaker:starts with you having a used
Speaker:vehicle, that's what you need to
Speaker:do your business. And the business starts growing and
Speaker:you can change that used vehicle into a
Speaker:newer vehicle and keeps growing. And you can change it
Speaker:for a minibus because you need a minibus now, since you
Speaker:need an accountant and a marketing person and so
Speaker:forth. And then it keeps growing and be
Speaker:Successful and you need a little bit bigger bus,
Speaker:one of those 15 seaters, then it
Speaker:keeps going and you basically, to stay within that
Speaker:analogy, you need a Greyhound bus. The
Speaker:person that you hired when you got a minibus might not
Speaker:be the right person for the Greyhound bus. That
Speaker:doesn't mean that they don't know their job, but they knew their job
Speaker:for a business that needed a minibus.
Speaker:They may not know how to do the job for a business that
Speaker:has a Greyhound bus. So that's another
Speaker:thing. But that's kind of the second thing. First you want to have all good
Speaker:people. Most likely that's best. And as
Speaker:you grow, you kind of also want to check, okay,
Speaker:why does this apply? If somebody listens to us
Speaker:and says, okay, I'm not quite sure, how does that apply?
Speaker:Let's just say over time, over like a 10
Speaker:year period, you bought seven properties
Speaker:and got mortgages for each every time you bought one.
Speaker:So now your whole portfolio, let's say, is one and a half
Speaker:million dollars worth in assets. And
Speaker:out of that you have maybe a million in
Speaker:mortgage, but you have seven mortgages.
Speaker:The minibus was each house got
Speaker:its own mortgage. The Greyhound bus is getting
Speaker:somebody who gives you one mortgage for everything.
Speaker:>> Anthony Weaver: Mhm.
Speaker:>> Dr. Axel Meierhoefer: Called a portfolio loan or portfolio.
Speaker:>> Anthony Weaver: I like that. Okay. I didn't know that you can do a portfolio loan
Speaker:like that though.
Speaker:>> Dr. Axel Meierhoefer: Yeah, you can. The only point is this is a little bit like,
Speaker:you know, that's a little bit, uh, extra.
Speaker:Most of the time those portfolio loans
Speaker:require 50% equity.
Speaker:Right. So if your portfolio is 1.5 million, but
Speaker:you still have a million in mortgages, it wouldn't quite work.
Speaker:But if you wait a year or two and now your
Speaker:portfolio is 2 million and you have like
Speaker:900,000, it works. And now you have one mortgage instead
Speaker:of seven.
Speaker:>> Anthony Weaver: Oh, that's nice.
Speaker:>> Dr. Axel Meierhoefer: Okay, but that's to illustrate a little bit.
Speaker:What does it mean a minibus and a Greyhound bus? Well,
Speaker:minibus, you have seven individual mortgages in a Greyhound
Speaker:bus. You have now reached a size
Speaker:where companies are saying, okay,
Speaker:$900,000 mortgage to cover seven properties.
Speaker:We are in, we're doing that right,
Speaker:so, so that's the growth of your business.
Speaker:But you, the king of King
Speaker:Weaver Real Estate llc, have to grow with this. And
Speaker:it starts from day one to know
Speaker:it's my business, I'm in charge. You may have a
Speaker:job where you have to dance for somebody else's tune,
Speaker:but in your thing, you're the king or the queen and
Speaker:it's your you're in charge, you're the boss and you
Speaker:determine what you want to do, where you want to do
Speaker:it and how you want to do it.
Speaker:Now what I find, and that's why I'm kind of adamant about
Speaker:it, is a lot of people, especially when they have a good job and they
Speaker:want to now take some of the money to get into real estate
Speaker:investing. Nobody ever taught them
Speaker:how to be the king or how to be the queen and how
Speaker:to really be the creator of your own future. And I find this
Speaker:is probably slightly more important
Speaker:in our mentoring that I do for people.
Speaker:Then finding the properties and applying everything and
Speaker:doing it right and making sure that we're actually
Speaker:growing from m like the shitty little car to a nice car,
Speaker:minibus, Greyhound bus. Right. That's the
Speaker:journey as you grow your portfolio.
Speaker:But that's almost like writing a software in a sense.
Speaker:Right. If you put all the pieces and the software runs property,
Speaker:it's just rinse and repeat. But the thing uh,
Speaker:that happens for you as a person, what happens
Speaker:with your mindset, what happens with how you approach stuff,
Speaker:that's something that a lot of
Speaker:people never got taught anywhere.
Speaker:I had to learn it myself as well and I'm very
Speaker:grateful to some of the people and some of the boards books I
Speaker:read. Um, a lot about it has to
Speaker:do with leadership. That's where my degrees are in.
Speaker:Because that's really what if you think about it,
Speaker:when we go back to the analogy of these employees that you have
Speaker:in the King Weaver Real Estate llc,
Speaker:they're looking for guidance.
Speaker:I m always ask people, you know, in my audience,
Speaker:I'm, I'm happily asking your
Speaker:audience. When you look at your normal job where you
Speaker:go to work W2, you're making your income,
Speaker:what do you really want from your manager, from your
Speaker:boss, from the founder or leader of the, of the company.
Speaker:>> Anthony Weaver: Mhm.
Speaker:>> Dr. Axel Meierhoefer: And what we want is guidance. We want direction, we want
Speaker:inspiration, we want motivation, we want to know
Speaker:why we're doing it and where it's going to go.
Speaker:>> Anthony Weaver: Right.
Speaker:>> Dr. Axel Meierhoefer: Yes. In the background we also want security. We want to know
Speaker:that the guys up there at the top make the right decision
Speaker:so the business can thrive. But on the day
Speaker:to day basis we're looking for those fundamental things.
Speaker:Well, what you need to learn and want to learn and
Speaker:should want to learn is to be that person that provides the
Speaker:guidance. And by providing the
Speaker:guidance that creates your best future,
Speaker:you're growing into this role of the boss, the
Speaker:CEO, king, queen,
Speaker:whatever you want to call it.
Speaker:>> Anthony Weaver: Um, so it brings up to. Because I mentioned earlier in
Speaker:the intro, which is your diamond for formation leadership. Can
Speaker:you kind of explain that a little bit? Because it kind of goes along the lines
Speaker:of where you're, you're, you're going
Speaker:a little bit.
Speaker:>> Dr. Axel Meierhoefer: Um, now there are some things that people probably
Speaker:not necessarily aware of, but I always like to start
Speaker:out with anybody, and I highly recommend it just
Speaker:for, um, having the experience. If you go to an air show
Speaker:and you see, you know, like the Blue Angels or
Speaker:any one of those air show jet
Speaker:teams, one thing that is that you see
Speaker:is that they make different shapes with
Speaker:multiple airplanes, right? Like four planes or six planes
Speaker:or eight planes. And they make diamonds or they make like
Speaker:triangles and stuff like that flying really close to
Speaker:each other. So
Speaker:now where does diamond formation leadership come is
Speaker:basically four planes shaped
Speaker:in a shape like a diamond. That's where the
Speaker:name comes from. But what does it really mean? And what does it mean in
Speaker:our context? How is it even possible
Speaker:to do this? And I use
Speaker:the analogy of, uh, if you have like a big
Speaker:interstate highway kind of thing with like, three
Speaker:lanes. Imagine something with three lanes
Speaker:and you have identified another
Speaker:car in the middle lane that you pretend to be the lead
Speaker:car. And you're driving in a position
Speaker:so that where you are on the interstate is in
Speaker:line with some point on the other car. You can, for
Speaker:example, say I look at my mirror and the mirror
Speaker:in the other car and I want them to always be in the same spot.
Speaker:So you're moving your car just to stay
Speaker:in line. Now imagine on the other side, in the
Speaker:third lane, there's somebody who's doing the same thing,
Speaker:keeping the same position, and then
Speaker:somebody behind you is always keeping the distance to the
Speaker:cars in the left and the right lane and the one in front. So now
Speaker:you basically have that diamond. But if you
Speaker:ever try this, you will see it's not so easy because the guy in
Speaker:the lead is not just steady like cruise control
Speaker:and never moving.
Speaker:>> Anthony Weaver: Right?
Speaker:>> Dr. Axel Meierhoefer: So we have that in our mind, right? Like we have position. The others
Speaker:are our position. Now imagine I take the
Speaker:road away, and this is all in three dimensions.
Speaker:>> Anthony Weaver: Nice.
Speaker:>> Dr. Axel Meierhoefer: So what determines ultimately where
Speaker:everybody is?
Speaker:>> Anthony Weaver: Gps, I hope.
Speaker:>> Dr. Axel Meierhoefer: No, everybody is lining up to
Speaker:the one in the front.
Speaker:>> Anthony Weaver: Oh, I see what you're going to.
Speaker:>> Dr. Axel Meierhoefer: Okay. Right, you are lining up if the guy in the front,
Speaker:you're lining your mirror with their mirror. The one
Speaker:on the right side, Same thing. And the one behind you. Same
Speaker:thing. Right. Everybody is lining up
Speaker:to where the person in the front is or the car
Speaker:in the front is. And if the car in the front is going
Speaker:a little faster, you have to go a little faster. If the front
Speaker:is slowing down, you have to slow down. If you go in
Speaker:three dimensional and the one is going up on uh, the
Speaker:down, you have to go up and down for the people
Speaker:on the ground to make that look like it's all
Speaker:one thing. Everybody has to be
Speaker:in perfect position at all times.
Speaker:Now to do this. I can tell you from personal experience, it
Speaker:takes years and years and years to really make it look
Speaker:like it's not moving while everything is moving.
Speaker:M. It sounds fine that it, I
Speaker:mean think about it. If you ever, and I encourage anybody, make it
Speaker:safe. You know, I'm not trying to ask you to do crazy
Speaker:stuff, but just try this. You don't even need to imagine the other
Speaker:cars. Take one car when you're driving on a, on a
Speaker:interstate and try to stay in the same position
Speaker:with that car for more m than like a few
Speaker:minutes. And you will get exhausted
Speaker:paying attention looking at it while also keeping your own
Speaker:thing safe. Right. You still have to look at where you're going. Don't
Speaker:want to run into somebody in front of you. But then
Speaker:also staying in the perfect position that you picked
Speaker:for just a little while. It's hard work.
Speaker:Not even talking about three dimensions.
Speaker:So now that you know how that
Speaker:diamond formation works, what do you think
Speaker:might makes that hard work a little easier?
Speaker:>> Anthony Weaver: If the leader knows what they're going.
Speaker:>> Dr. Axel Meierhoefer: Yes. Great. Number one, what else?
Speaker:>> Anthony Weaver: Uh, I would say is uh, discipline. Well,
Speaker:training really knowing that leader first. It's like, you know, you
Speaker:get to know them.
Speaker:>> Dr. Axel Meierhoefer: Um, you need to know that you can depend on that person
Speaker:not doing crazy stuff.
Speaker:>> Anthony Weaver: Right? That's true.
Speaker:>> Dr. Axel Meierhoefer: Absolutely.
Speaker:>> Anthony Weaver: And then it's obviously trust comes
Speaker:with all of that. Yes.
Speaker:>> Dr. Axel Meierhoefer: Yeah, exactly. So yeah. What does
Speaker:the leader have to do? What does the leader have to
Speaker:do is not only flying safe and
Speaker:basically looking ahead for everybody. That is information.
Speaker:>> Anthony Weaver: Mhm.
Speaker:>> Dr. Axel Meierhoefer: But the leader also have to think what can
Speaker:I reasonably do that will
Speaker:not screw up the rest of the formation?
Speaker:The other people that are depending on me.
Speaker:>> Anthony Weaver: Right.
Speaker:>> Dr. Axel Meierhoefer: So sudden up, sudden ah, down,
Speaker:sudden acceleration, sudden deceleration.
Speaker:Not good. So what is
Speaker:the real solution is you want to be as
Speaker:stable as you possibly can.
Speaker:If you're not moving much, it makes it so much
Speaker:easier for everybody else to align.
Speaker:Right now if the people that
Speaker:are in your formation don't know how to fly very
Speaker:well, it's still Gonna suck. That's what I said earlier
Speaker:about how to pick good people. They have to have the
Speaker:skills for which you pick up. And somebody might
Speaker:be great looking out the window to the right
Speaker:at the leader, and you put them on the other side and it doesn't
Speaker:work anymore. And that's basically to say somebody
Speaker:is great at property management, but they suck at renovations.
Speaker:Right? So this idea of the.
Speaker:Of the diamond formation leadership, or this idea
Speaker:is basically to say, what is
Speaker:my role, uh, as King Weaver?
Speaker:That's your role as the leader of that formation.
Speaker:Be stable, be dependable, uh, be
Speaker:trustworthy. But also,
Speaker:you have every right. When you come back on the ground
Speaker:and you review and there's somebody who took pictures
Speaker:or video of the formation when you were flying, and you
Speaker:see one or two constantly being out of shape,
Speaker:you're gonna give them some homework, you know, and
Speaker:maybe one second chance to do it better next
Speaker:time. But not forever, right?
Speaker:Uh, because you don't want to embarrass yourself with the audience on the ground
Speaker:who wants to see a perfect diamond.
Speaker:>> Anthony Weaver: Right?
Speaker:>> Dr. Axel Meierhoefer: And by the way, most of the time, to make this analogy a
Speaker:little bit more cheeky, is the audience is your wife or your
Speaker:spouse. If
Speaker:you promise that you're Gonna bring in
Speaker:$220 per house every month
Speaker:and it rarely ever happens, your
Speaker:audience is not going to be happy, I can tell you that.
Speaker:>> Anthony Weaver: So my, um, I guess you'd say
Speaker:rough experience with, uh, investments, uh,
Speaker:when it comes to real estate, is that everybody gets
Speaker:paid first before you do.
Speaker:And that's one of the things
Speaker:that I've learned the hard way, but
Speaker:also is that if you don't have the right people in
Speaker:place before you even do the investment,
Speaker:time is also of the essence as well,
Speaker:because you could be sitting on a property, found a great deal, but if you
Speaker:don't have the contractor to come in immediately
Speaker:or within that first month to try to start
Speaker:working on it now, you're wasting. It's
Speaker:almost like you're wasting money. You're just sitting there throwing money away
Speaker:because you can't really do anything unless you're going to, like you
Speaker:said, be the handyman to go fix the toilets, fix
Speaker:the walls, and do the renovations yourself,
Speaker:um, and have the time to do that
Speaker:before you even get somebody in there. So everybody's getting
Speaker:paid before you do. If,
Speaker:if I'm not mistaken on that.
Speaker:>> Dr. Axel Meierhoefer: Um, that is a mindset,
Speaker:you know, and it's understandable, but that's a
Speaker:mindset that doesn't
Speaker:put you in the position of king. And
Speaker:when you ask yourself, how do I switch this, how do I put
Speaker:myself in the position of king?
Speaker:>> Anthony Weaver: Yeah.
Speaker:>> Dr. Axel Meierhoefer: My answer would be just look
Speaker:at the other end of the month. M
Speaker:the reality is
Speaker:if you say everybody gets paid first and then I
Speaker:get paid, that means
Speaker:you get what's left over of the rent payment.
Speaker:If you switch your mindset to say
Speaker:sometime in the first six days of the month,
Speaker:somebody is giving me the money for the privilege of
Speaker:being allowed to live in my house. M
Speaker:Then you get paid first and then
Speaker:out of that money the mortgage company
Speaker:gets paid and the um, property
Speaker:manager gets paid and whoever else gets paid
Speaker:first. You providing at
Speaker:day one of the month, somebody with the
Speaker:privilege to live in your house, they give you the
Speaker:money typically in the first five to eight days of the month
Speaker:and everything else follows.
Speaker:And theoretically, I mean I know this doesn't really
Speaker:exist anymore more in this day and age, but it used
Speaker:to be if you ask people who were in real estate
Speaker:investing 40, 50 years ago,
Speaker:they will tell you that they collected the money. Oftentimes
Speaker:it came in cash or check, they went to the bank,
Speaker:cashed it in and then they went around because everything was
Speaker:local. But it's not like today where everything and you never
Speaker:really see your insurance people and stuff. They literally went
Speaker:and brought the money that they had collected
Speaker:to the people that were providing the services to the
Speaker:property management, to the bank, to the
Speaker:um, to the insurance people and so
Speaker:forth and so forth. Nowadays it's all electronic, but the process
Speaker:is am I looking at
Speaker:everybody gets paid and then I keep the rest or
Speaker:am I looking at I'm providing
Speaker:shelter for fifteen hundred dollars
Speaker:per month and that's what I get for providing the
Speaker:shelter. And then since I don't want to do
Speaker:all the work, I am paying out of that money
Speaker:for the services, basically the salaries
Speaker:for what the people did. M.
Speaker:It's literally as simple as that to say, am I looking
Speaker:at the end of the month from last month or am I looking at
Speaker:what starts the whole thing? I own a
Speaker:property, I make it available, I collect
Speaker:up front. You mhm. Get
Speaker:paid first, then they can live off it for a month.
Speaker:>> Anthony Weaver: Yeah.
Speaker:So how did you get through some of these like early
Speaker:on rejections? Like you know,
Speaker:what was your, your mindset around your early
Speaker:rejections? Like the lessons that you learned from those?
Speaker:>> Dr. Axel Meierhoefer: Um,
Speaker:I was too weak. M is one
Speaker:thing that I realized and I'm very grateful to
Speaker:basically be part of some groups, you know, that
Speaker:I joined, uh, with People that had more experience.
Speaker:And the first thing they told me is, you need a mentor. And,
Speaker:uh, that's basically my mantra these days. When people
Speaker:say, okay, how do you help people investing in
Speaker:real estate? I say, yes. For
Speaker:seriously experienced investors who can
Speaker:show me that they have all the experience, I help them
Speaker:with making my network available to them. But
Speaker:90 plus percent of people don't have that.
Speaker:And for them, the first step is to join the mentoring program.
Speaker:And that is basically like somebody
Speaker:taking you under your wings and say, hey,
Speaker:I have a portfolio of 10 properties. I have
Speaker:$3 million in asset value. I have this huge network
Speaker:of connections. Sure. Can you build all of that on your
Speaker:own? But it's going to take you years. It took me
Speaker:basically 15 years to build it. Why would you do this
Speaker:on your own? Go through the pain and the
Speaker:rejections, and on top of that, sometimes it's not even
Speaker:the rejections, just you make a decision, it's the wrong one,
Speaker:and then you feel the pain.
Speaker:>> Anthony Weaver: Right?
Speaker:>> Dr. Axel Meierhoefer: You didn't get rejected. They did what you asked them to do. It was just
Speaker:the wrong thing. Right? So, like
Speaker:one example, as you want to be the manager of the
Speaker:renovation and you're putting all the nice stuff in that you want, would
Speaker:want to have for your own house.
Speaker:So now you invested into the property
Speaker:in relation to what the market is able to pay you and
Speaker:rent. Now, you were, uh, expecting
Speaker:two, $300 in positive cash flow, and in
Speaker:reality, you have two, $300 in negative cash flow.
Speaker:>> Anthony Weaver: Right?
Speaker:>> Dr. Axel Meierhoefer: And the audience, you know who that is, is gonna, uh, you
Speaker:know, say, what the hell, Mr. Weaver, King Weaver, uh,
Speaker:what did you do? Right? If you
Speaker:were enrolled in a mentoring program, you say, hey, I want to do this,
Speaker:this, and this. I would say to you,
Speaker:hey, King, we will ask you say, are you doing this
Speaker:for yourself because you like it? Do you need granite
Speaker:countertops and fancy faucets and stuff?
Speaker:Or do you want to provide a good product,
Speaker:a good quality product that
Speaker:functions? Uh, you might love it
Speaker:when you get up in the morning out of bed, and you'd like to go
Speaker:bare feet and you want to have a nice fluffy
Speaker:carpet.
Speaker:>> Anthony Weaver: Right?
Speaker:>> Dr. Axel Meierhoefer: Totally understandable. And in your own house, go for
Speaker:it. In a rental property,
Speaker:you have to replace these carpets every two or three years. So
Speaker:what do we do? We put laminate floors.
Speaker:Yes. They're kind of cold when you get barefoot out of bed,
Speaker:but they function properly so that you only do it
Speaker:every 20 years. Right. So that
Speaker:kind of stuff is what a mentor can help you when you say,
Speaker:okay, if you really want to get into
Speaker:renovation, one thing, if anybody, by the way, has
Speaker:ever watched hgtv, any of these renovation
Speaker:shows, if you're honest and turn off your
Speaker:emotional brain and just look at your logical brain, you
Speaker:see that this they basically show you.
Speaker:You find a property you renovated for way
Speaker:more than you originally estimated, and then you're the lucky
Speaker:ass. Every single episode that finds somebody who's
Speaker:paying that increased price, not the one you originally
Speaker:wanted, but the one you need to make because you
Speaker:over renovated it. Yeah, that's what
Speaker:HGTV does. And I like to watch it. You know, I like what
Speaker:they're doing, but the message is wrong.
Speaker:M. So here comes the solution.
Speaker:We're back to turnkey investing. Turnkey
Speaker:investor finds the ugly duckling in a good neighborhood. Since
Speaker:their renovation team and they renovated,
Speaker:they monitor, uh, what goes into the renovation.
Speaker:Why? Because the sales team of that
Speaker:same company ultimately has to put a price on it.
Speaker:That when you and I, King Weaver and King Axel, go
Speaker:and say, we want to see if we can buy this property.
Speaker:Our, uh, employee bank
Speaker:abc, hey, we want to buy this thing.
Speaker:They say, cool. We sent one of our employees called
Speaker:appraiser to this thing. Oh, what do they
Speaker:want for it? What are they asking? Are they asking 185?
Speaker:Appraiser goes in and says, 170 is all I can get.
Speaker:What do you. And I say, hey, Mr. Seller of the
Speaker:turnkey company, your thing is $15,000 too much. And
Speaker:I have it in writing. Mr. Appraiser said so.
Speaker:So if you give it to 170, we have a deal. If you don't, we
Speaker:don't. Right,
Speaker:That's.
Speaker:>> Anthony Weaver: Oh, yeah, the hand raises.
Speaker:>> Dr. Axel Meierhoefer: Yeah, I showed the hand. Sorry.
Speaker:Um, right. So that's how. That's how
Speaker:that goes. So you might
Speaker:make emotional decisions on how to renovate the property.
Speaker:Property. The
Speaker:turnkey provider renovation team goes
Speaker:strictly by a list of what makes this property
Speaker:functional for a tenant and
Speaker:stays within the price so that when they want to sell it, it
Speaker:appraises. That's part of the
Speaker:reason why I like to work with turnkey providers,
Speaker:because you never buy a property that is over
Speaker:renovated.
Speaker:>> Anthony Weaver: That's smart, right?
Speaker:>> Dr. Axel Meierhoefer: So now you have that. And then obviously the other thing
Speaker:is, what's the quality of the renovation?
Speaker:Well, it has to be good enough so that the property management
Speaker:part of the turnkey provider is not constantly complaining about
Speaker:the renovation team. Why? Because when you
Speaker:and I, when I'm your mentor, King Weaver Real estate is
Speaker:going to buy that property from the turnkey provider, I
Speaker:will teach you to insist that you get a one year
Speaker:warranty on everything they touch during the renovation.
Speaker:They might initially bark against it and say, well, we normally
Speaker:don't do this. My first thing you and I on the call with
Speaker:these guys is hold it.
Speaker:You are not trusting your renovation team to do good
Speaker:enough work so that our tenant can live in the property
Speaker:you're just selling to us at least for one year
Speaker:without repairs. Really? Wow. Um,
Speaker:that's what you're saying?
Speaker:No, no, no, no, no. I never said that. I know. That's not.
Speaker:We do really good. Yeah, okay. But if you do
Speaker:such good work, then you give us a one year
Speaker:warranty. And if anything breaks and the tenant says, hey, the faucet
Speaker:is dripping or this and so forth, you go in and fix it.
Speaker:And I always say that if that is not your
Speaker:common thing, you should make it the common thing. Because
Speaker:one thing it's going to do is your renovation
Speaker:team will be chewed out so much every week that they will do a
Speaker:better job if they really need it. If they're
Speaker:good, you never need to chew them out. You never need to use the
Speaker:warranty. Nothing lost. But
Speaker:you and I, as the investors know.
Speaker:When does stuff break? When it's just been freshly
Speaker:installed? Usually.
Speaker:>> Anthony Weaver: Um, if it's freshly. It depends. I
Speaker:would say it depends because sometimes it could be immediately soon as somebody
Speaker:go to use it. But if it's properly installed, it's
Speaker:usually about five years.
Speaker:>> Dr. Axel Meierhoefer: Right, exactly. But if it's not properly installed, it
Speaker:breaks in the first month.
Speaker:>> Anthony Weaver: Yep.
Speaker:>> Dr. Axel Meierhoefer: Or pretty much immediately the first time you use it. And I mean
Speaker:I've seen this, like sometimes it's three months
Speaker:because there's like a shower and a bathtub and
Speaker:other stuff. Three bedroom, two bath house. And like
Speaker:for whatever circumstance, they use the bathtub the first time, three
Speaker:months in and it
Speaker:doesn't work properly or it doesn't get warm or it doesn't,
Speaker:you know, whatever drain properly. Well, right.
Speaker:That's why you want a year. Because most of the
Speaker:things in a house you will use within the first year.
Speaker:>> Anthony Weaver: That's true.
Speaker:>> Dr. Axel Meierhoefer: Right. But that's, that's also something if you
Speaker:ask yourself what's the difference for buying a property
Speaker:from a flipper versus buying a property from a
Speaker:turnkey provider? When you buy a property
Speaker:from, ah, somebody who flips properties or does the burr
Speaker:method or whatever, um, they
Speaker:don't do property management. So you can
Speaker:look at the property, you can have inspectors go
Speaker:through the property. All good. The inspectors, they can
Speaker:turn on the force and then stuff. They're not going to take a bath or anything
Speaker:like that. Right. So
Speaker:what happens is now you finished, you bought the
Speaker:property, you find property management because it's
Speaker:1500 miles away from where you live. And property management
Speaker:starts, tenants go in, in the first
Speaker:three months, they find all kinds of stuff that doesn't really work quite
Speaker:right. Flipper is gone. You said
Speaker:you bought it as seen. Property management says
Speaker:this stuff needs to be fixed. Well, you
Speaker:have a basically freshly renovated house where
Speaker:you're just starting to get rent and most of your rent is
Speaker:going into these repairs that should have been taken care of if
Speaker:the flipper would have done a good job. That's
Speaker:one of the big differences when people tell me, yeah, but when I buy
Speaker:it from a flipper, I get it a bit cheaper than from turnkey.
Speaker:Yes, maybe true at the beginning, but you
Speaker:might pay it back. I'm not saying this is true for every,
Speaker:everyone, but you might pay it back in
Speaker:repairs because you can never get back to that flipper after the
Speaker:deal is done. But when you're buying from a turnkey
Speaker:provider, uh, that's the same company that you bought it from that's
Speaker:also managing it for you.
Speaker:Yeah.
Speaker:>> Anthony Weaver: The things that we tend not to,
Speaker:the things that we tend to look over and that's very
Speaker:important to remind people, love,
Speaker:um, especially the listener that's listening right now about it.
Speaker:>> Dr. Axel Meierhoefer: Uh, let me ask you one thing. How many kings do you
Speaker:think there are, uh, that overlook the stuff that's.
Speaker:>> Anthony Weaver: Important to them, that's important to them?
Speaker:None.
Speaker:>> Dr. Axel Meierhoefer: None. Right. So if you really see your role as
Speaker:King Weaver Real Estate llc, and you are the king, or
Speaker:for that matter, queen, if you have female audience members,
Speaker:that's the thing that you're building as the creator
Speaker:of your own future so that at some point you don't have to work
Speaker:anymore. I have a hard time thinking of a whole lot
Speaker:of other things, maybe your kids and your spouse. But then
Speaker:after that, that's probably the most important thing or should
Speaker:be.
Speaker:>> Anthony Weaver: Yeah. Um, because you mentioned the future.
Speaker:So let's go down and go to the third segment of the show, which is the
Speaker:futures. Um, so what areas are you focusing
Speaker:on for your self improvement?
Speaker:>> Dr. Axel Meierhoefer: You mean in investing or in general?
Speaker:>> Anthony Weaver: Oh, in general. Um.
Speaker:>> Dr. Axel Meierhoefer: Well, one thing that I'm doing for
Speaker:my own self improvement is getting better and better,
Speaker:I hope at least of understanding the big
Speaker:picture. Like it's one thing
Speaker:when the media is telling us we just had Liberation
Speaker:Day on April 2nd. I think it's a very
Speaker:different thing to know. What does that mean in the big
Speaker:picture? Right. Because one of
Speaker:the things, and I like to keep using
Speaker:the same terms. What is one of the big
Speaker:roles that I have discovered for being a king or a
Speaker:queen is you kind of have to have a pretty good
Speaker:idea what could happen in the future.
Speaker:The people working for you are basically
Speaker:assuming that you're not just living in the here and
Speaker:now, but that you have a plan for, for where we're going to go.
Speaker:And as soon as you make any kind
Speaker:of plan, any kind of vision for where you
Speaker:want to go, you're being impacted by all the other
Speaker:stuff. Right? If we, in two years, if you
Speaker:anticipate we have 10 or 15% inflation, you will
Speaker:do different things than if you say inflation will
Speaker:stay at 2%. If you think in two or three
Speaker:years interest rates will be 3% or will be
Speaker:12%, you will do different things. Right.
Speaker:And so forth. So what I do for myself
Speaker:is constantly learning more and more about the bigger and
Speaker:bigger picture. Because I believe by
Speaker:now it took me like a long, many,
Speaker:many, many, many decades, but I believe by
Speaker:now, the more you understand the big picture, the
Speaker:more you can anticipate and position yourself
Speaker:properly.
Speaker:>> Anthony Weaver: M. I like that.
Speaker:Okay. Um.
Speaker:All right. So you have anything left that you want to say?
Speaker:Before we dive into the final four.
Speaker:>> Dr. Axel Meierhoefer: Questions,
Speaker:I would basically like to ask your audience to, if
Speaker:you haven't already, really ask yourself
Speaker:how much better
Speaker:your future is most likely be going to be
Speaker:if you have somebody who is helping you along who's already
Speaker:done it.
Speaker:>> Anthony Weaver: I like that, man. You have a lot
Speaker:of gems today.
Speaker:>> Dr. Axel Meierhoefer: Yeah, Right?
Speaker:>> Anthony Weaver: Yeah. Ah. All right. So you ready for final four?
Speaker:>> Dr. Axel Meierhoefer: Yeah.
Speaker:>> Anthony Weaver: All righty.
Speaker:Number one, what does wealth mean
Speaker:to you?
Speaker:>> Dr. Axel Meierhoefer: Wealth means to me to have enough
Speaker:passive money coming in so I can do with
Speaker:my time whatever I want. Okay.
Speaker:>> Anthony Weaver: Number two, what was your worst money
Speaker:mistake?
Speaker:>> Dr. Axel Meierhoefer: Investing in the stocks during the dot com time,
Speaker:like doc.com and frying
Speaker:pan.com and stuff like that.
Speaker:>> Anthony Weaver: I remember those days.
Speaker:Number three, is there a book that
Speaker:inspired your journey or changed your perspective?
Speaker:>> Dr. Axel Meierhoefer: Oh, there's, there's many one that I like
Speaker:to suggest for people who are, um, kind of
Speaker:contemplating becoming an investor or becoming King
Speaker:weaver Real Estate LLC's king,
Speaker:um, is the Wealthy
Speaker:Gardener by John Safari.
Speaker:>> Anthony Weaver: Such great things. I have yet to read that one. I'll definitely need
Speaker:to read that.
Speaker:>> Dr. Axel Meierhoefer: But the nice thing about that one, just so the audience knows it's one
Speaker:thing to read a book, but if the author and John has done that,
Speaker:in this case, kind of made, uh,
Speaker:additional little things, little snippets that are easy
Speaker:to remember, and they're kind of woven through the
Speaker:whole book. Kind of like a little bit like lessons
Speaker:learned or like affirmations that you want to be
Speaker:aware of or something like that. And so if you
Speaker:go on The WealthyGardener, uh, dot com, I think it
Speaker:is on the website. It literally has all of those
Speaker:listed, and it even tells you in which chapter of the
Speaker:book they are. My recommendation is
Speaker:to read the book first, and then if you want to say, hey,
Speaker:I remember this one thing that really resonated, you can
Speaker:go on the website and find it there. But
Speaker:that's a nice little add on that most books
Speaker:don't have.
Speaker:>> Anthony Weaver: Okay, well, thank you for that.
Speaker:Um, number four, what
Speaker:is your favorite dish to make?
Speaker:>> Dr. Axel Meierhoefer: Favorite dish to make?
Speaker:I would say chicken wings.
Speaker:>> Anthony Weaver: Interesting. What do you put on your wings?
Speaker:>> Dr. Axel Meierhoefer: Um, um,
Speaker:well, I'm. Without trying. Right. We're doing them on the
Speaker:barbecue, you know, so, um. Yeah, so we put,
Speaker:uh, a little salt, little pepper, little paprika, and
Speaker:little curry.
Speaker:>> Anthony Weaver: Okay, this sounds pretty nice right now.
Speaker:>> Dr. Axel Meierhoefer: Many, many, many years ago, we had, like, in a neighborhood where we
Speaker:moved into, you know, like, a new development, Everybody was
Speaker:new, and they had a barbecue, um, contest,
Speaker:and I got a little third place
Speaker:trophy for the best. I got the
Speaker:best chicken wings. But the guys who won were basically making the
Speaker:better steaks.
Speaker:>> Anthony Weaver: Well, congrats on that. I mean, local
Speaker:celebrity over here.
Speaker:>> Dr. Axel Meierhoefer: Very local.
Speaker:>> Anthony Weaver: Uh, the last question of the show, which is where
Speaker:could people find out more about you?
Speaker:>> Dr. Axel Meierhoefer: Well, we mentioned it a bunch of times. If you go on idea
Speaker:wealthgrower.com there's a button to book a
Speaker:complimentary call and talk and see if I can
Speaker:help. Um, but, uh, in general, if you just
Speaker:put Idea Wealth Grower into Google, or you can put it into
Speaker:AI and it gives you all the links, we're pretty much everywhere
Speaker:as far as finding us. And then from there you can get in
Speaker:touch.
Speaker:>> Anthony Weaver: Yep. And if you can say I can never get your last
Speaker:name. That's why I haven't said it yet. Uh, can you
Speaker:just say it your last.
Speaker:>> Dr. Axel Meierhoefer: Yeah. Uh, if you
Speaker:want to be elaborate.
Speaker:>> Anthony Weaver: Okay, thanks.
Speaker:Uh, but thank you so much for coming on the show.
Speaker:This has been great information, especially, uh,
Speaker:insight into the real estate realm from
Speaker:just the mindset and also understanding the
Speaker:numbers behind it, but also understanding the why
Speaker:and really utilizing the mentorship
Speaker:process, because it's a lot of failures
Speaker:out here. Um, failing in real estate. And that's why
Speaker:I have a feeling that the stock markets. I mean, not the stock
Speaker:market, but the real estate market is going to be
Speaker:trashy come soon. Very soon.
Speaker:>> Dr. Axel Meierhoefer: Yeah, I. I have to disagree. I think it's a matter of
Speaker:how you're doing it. But it was a great pleasure to talk. Talk to King
Speaker:Weaver today.
Speaker:>> Anthony Weaver: Okay. We'll definitely have to probably come back
Speaker:and see how things go.
Speaker:>> Dr. Axel Meierhoefer: Ah, yeah, for sure.
Speaker:>> Anthony Weaver: Thank you, everybody. You all be safe. We out.
Speaker:Peace.
