All right, welcome to the People Already Podcast. I'm on today with Zach Beach, a smart real estate coach. He is a partner and coach inside that business, and I'm going to let him introduce himself and do more justice than I can. So, welcome, Zach.
So, Anthony, thank you for having me on. I'm very grateful for allowing me to speak with your audience and hopefully I can bring them some great value to make sure that they are battle-ready for their business. Yeah, so I buy and sell property with my family members. I know Chris, my father-in-law, was on this podcast at one point as well.
I buy and sell property with him and my brother-in-law, Nick, and then we have a fantastic support staff. So, we have a family business that buys and sells property without using their own cash or credit or investors' money. We primarily do that in Southern New England, but we also have a coaching business where we teach people around the country and lock arms with them and teach them how to buy and sell just like we do locally and help them build and scale their real estate business. So, a couple moving parts.
That's awesome. I mean, you know, I'm really excited for today's show because there's two things that I know that are really amazing. I'm familiar with real estate, the real estate space education and all that stuff, but you actually helping go along, going down the path and helping people through a deal. Let's talk about that really quick because that's unique.
There's not too many people doing that, and you feel like there's a huge gap there. Yeah. Yeah. There's an absolutely huge gap in the coaching and mentoring industry, but definitely in our niche, which is real estate, there's just a lot of people out there selling products and, unfortunately, selling products that worked probably 10 years ago.
So, what we did was we always make sure that we're in the trenches constantly doing deals. That way, we can constantly update our community, our students, our associates. As we come across, you know, hiccups and make adjustments, we then teach them. So, we're always in the trenches, but we notice a huge gap between people selling products and people actually getting deals done.
So, that's why we created our associate programs where we partner around the country with people and lock arms with them because the only thing that really gets people from point A to point Z and accomplishing deals is full implementation. So, we really want to make sure that we're in the trenches with them, and we're definitely seeing a huge difference in results where all of our people are actually getting deals done. Trust me, I know. I mean, we were talking pre-show about, you know, I have history as far as with real estate.
I bought a few deals as far as for a business in the past, and we've, and that, but getting down and breaking down numbers on paper and analyzing a deal is one thing. When it comes to actually, you know, putting the rubbers on the road, it gets pretty hairy because, you know, everything you have to that point is all theory. So, tell me about it, you know. Yeah, no, I agree.
There's always moving parts when you're dealing with a transaction, and a majority of it is really dealing with people or working with people. The real estate, yes, we buy and sell real estate, but really, you work with people. That's, your medium just happens to be real estate. So, a lot of the front end of the business is, you know, learning your scripts and talking with sellers and buyers and knowing how to negotiate and how to really structure these deals.
So, there's definitely moving steps and moving parts. So, if you can have somebody on your, you know, by your side that's done hundreds of deals before, it's easy for us to kind of look over your shoulder and say, well, this is where you make your adjustment. This is where you make your adjustment and make deals go nice and smooth and not leave a ton of profit on the table compared to being out on your own, which, don't get me wrong. We have many students out there that just use our products or just come to our events, and they're killing it.
It's just a certain type of person that can do that. Yeah, I mean, I know there's a couple of deals. I'm like, oh, man, I wish somebody was over my shoulder in the trenches with me looking at that and be like, yeah, let's do this. So, well, awesome.
Let's, you know, I think the biggest part and the biggest value for today is the conversation around the benefit of owning, you know, and the way you guys see owning property and acquiring property through your business. Because, honestly, that's one of my goals long-term is whatever I'm doing is to acquire more and more property. Because, you know, I took a hiatus of entrepreneurship, you know, from about 2016, 2018. But one thing I did is I structured a deal that provided me a good amount of cash flow, you know, and then I was actually let go from the job that I took.
But if it wasn't for that deal, I would have had to scramble even faster. We could have made some of the moves that we could have made. And, you know, I'm a complete believer in, you know, you're buying real estate as your safety net, as your long-term asset. And, you know, to eventually build that, you know, that life that, you know, everybody looks to try to go after, right?
For a lot of people, let's not say everybody. Yes, you brought a couple of cool things in there. First and foremost, isn't it funny how people think that when they have a job or a job or a job that that's a security and you're the one that gets let go after you left entrepreneurship? It's just crazy.
It's definitely a switch of mindset. I just caught that as we're going through. But, yeah, I think it's super important that you buy real estate, whether you're involved in any type of business, either for your own personal cash flow and personal assets, as most of the students we work with are in a corporate position or are entrepreneurs and have another business and now they're building and scaling this real estate business on the side. And we teach you to be able to do that without using your own cash credit or asking investors for money.
So you're really getting large return on investments for little to no liability. But also we were talking about how if you're a business owner, especially if you have no physical assets, buying real estate for your business and now hold a physical asset, especially if you plan on selling it in the future, is a really good strategy. And you can use our techniques in order to do that. We recently – so this business that we're talking about here, Smart Real Estate Coach, is a consulting and mentoring business.
So there's no real physical assets. So we thought to ourselves, well, we need some physical assets. So we bought a commercial building, which we housed all of our support staff and us, and we also rent units below us to increase that cash flow and it actually takes over our mortgage payments. But we were able to do so in just a very large 10,000-foot view.
So we're able to do so and buy this commercial property with pretty close to only 5% down, which if you were buying a property traditionally, you would have to at least put 20% down for a bank to finance you. And we're able to craft up high principal payments with smaller interest because what we did was we crafted up a deal with a seller, and we had to sell to finance the property. So he was an older gentleman. He's selling off a lot of his assets.
He owns a lot of land, owns a lot of commercial business, and he's just setting up his children for success in the future. So we crafted up a 20-year amortization so the property will cash out in about 20 years if we don't pay it out before then. But in the meantime, we actually shrunk basically our payments that we had to make before when we were renting the property, when we were renting a property, and now we actually have a heck of a lot less of a mortgage payment, and now we have cash flow, and we have an asset now. So all by doing that without going to a bank and getting finance, and we structured it all right with a seller.
And then you get the fast advantage of the depreciation, right? Yeah, absolutely. There's a reason why most millionaires were created by real estate. It's a cash flow asset.
So now we actually are renting out the office space below us. We're paying our mortgage without coming out of pocket, so we're getting nice cash flow there. We're getting depreciation. We're getting principal pay down, and now we're creating a large amount of equity in this property, and now our business has a physical asset.
So now it becomes way more valuable if we decide to sell in the future. That's awesome. Yeah, and I think a lot of business owners think about just generating this cash, right? We never think about what to do with the cash, you know what I mean?
I think one of the smartest things I've heard ever is when you do, if you're going to buy anything, buy a car, buy a cash flowing asset to actually pay for that because you don't have to actually work for it. I think in the right real estate asset, it's probably the most, what do they call that? You don't have that stream of income where you don't have to work for it, right? Passive income.
It's really, once you have the right real estate assets, it's a true passive income. Oh, I 100% agree. If you guys follow T. Harbecker, he said that millionaire mindset, he's famous for that.
It's creating a passive income to take over your necessities, and then you're true financially free, and that doesn't mean you have to make millions of dollars a year. It just means that you have to cover all your overhead, and that way you can make decisions without having a steamroller behind you, which is extremely, extremely important. So that's a great, great way to definitely create wealth, but also to get your business to be more profitable as well. Yeah, and how do you see this, like, with the moves that business owners can make?
I mean, if you have that extra asset, extra cash flow like you guys, I mean, you know, whatever move. I mean, you can be more aggressive in what you can do, you know? Yeah, absolutely. Well, so when we originally started this business, we were renting, office space.
We lived in Rhode Island. We were in downtown Newport, Rhode Island, which the office space is definitely higher priced because it's a tourist-driven area, and it was heavy overhead because we started expanding. That's really what happened. We had, like, two offices, and then we took over the floor.
We were starting to expand, so it only made sense to, if you have the ability to buy a property that's going to be less monthly and you'll be able to actually purchase it, then it makes sense because now you don't have to worry about that overhead in your business. And then also, if you can create cash flow from that asset, then why not? I mean, this is both for business and personally. If you have the ability to make money, especially passive income in your business, then it's an absolute no-brainer, especially if you can find a seller that is willing to finance the deal.
You don't have to go to a bank, and you don't have to worry about hitting those minimums, which are typically 20% in a commercial space, so we only have to put down roughly 5%, which all we did was we pulled it from other deals that we had going on. We rolled the cash flow in, and now we actually have improved the building, so now the improvements that we've made, we're just people in general that improve the buildings. When we were renting, we were improving the space because when we brought in clients, we brought in people we wanted to be a nice space. So now every improvement that we make is going into our pocket for the long run.
Yeah, and you have the security. I mean, I remember when I first started at the gym, we were renting. We had an option, lease option to buy. It still makes sense.
We ended up leasing more space and beveling our size, but then they're like, well, we really want to sell them because now we've completed the condo conversion of these buildings, and then they'd start selling them off one by one. And at that point, we were basically forced to move because they sold the building from us. What you just imagine, too, is if you had the ability to and have done many different structures and kind of knew the ability to structure the deal back in the day, that you could have potentially bought that building on a lease option on good terms and condo conversion it yourself, and then you would have made some nice profit on that building. Yeah, for sure.
Absolutely. Even as a bonus, too, because I don't think this is not just for business. I actually bought my own house on a lease option, which is a very nice house. The only reason I'm saying this, I'm not trying to gloat or anything like that.
And buying a house personally, they're thinking, well, it's probably not that nice of a house, but the majority of the houses we buy are very nice. So I bought a house down over here in Southern Rhode Island on the water, tied up the property on a three-year lease option with a – actually, it was a good price. It wasn't an overpriced or anything like that. It wasn't like I was paying a premium on it.
And what we do is we – on our typical lease options, we're agreeing upon a price with a seller. We'll then lock in their equity, so that way we get the benefit of principal pay down over the timeframe. We're locking in their equity, and then I just started making the payments for the seller. Now, the seller had a 15-year mortgage, and he only had six years left.
So there's $1,000 principal coming up each and every month on that house. So for 36 months – so on before the 36 months, I'll cash them out, but that $36,000 will actually count towards my down payment. So on that house, I'll have to make little to no down payment, especially because I'm a first-time homebuyer. And I could probably get an FAC loan if I so choose to, or I could just put down some more money and get a house without even putting down any down payment, and it's a nice half a million dollar property.
Yeah, absolutely. And then you can actually pick up more property. I mean, if you're going to buy property personally, traditionally, you're not going to be limited about the amount of property you're going to buy. Oh, yeah, absolutely.
I just throw that out there because can you just imagine if you just went through and understood our techniques and just bought your own house? Because, honestly, I probably wouldn't be able to buy that property itself for an extra year or so because I'm self-employed, and I would have to at least show 12 to 24 months of seasoning where now I could just hide it now, live in the property, better it up, and then close on it in 36 months. So you just imagine, hey, you business owner, you probably need seasoning if you don't own your house already. So now you can type a nice house and get the benefit of the principal pay down on it and the appreciation because now all the houses around me are selling for higher and higher.
And now if you ever so choose to, I can honestly just go sell it without closing on it and then just go buy another house the exact same way and never have to go to the bank finance. Yeah, and you keep going back with you. That's it. That's it.
So a really cool technique there for it. I just want to throw that out to you guys. That's awesome. So, yeah, let's talk a little bit more about your coaching business, and you actually have a book coming out, right?
Yep. So, yeah, it's coming out May 14th. I don't know what time this podcast will be released, but May 14th will be officially on Amazon. It's at 12 p.m.
Eastern time, and it's called The New Rules of Real Estate. It's co-authored by myself, my father-in-law, my brother-in-law, and it's 24 experts, and we talk about just the new techniques that are happening in real estate nowadays and how to stay up to date with them and also how to profit in real estate in 2019. Oh, awesome. What can someone expect to be able to do with this book?
I think someone can really take a 10,000-foot view on a lot of different subjects in real estate. We did this, and we paired up with a lot of the top thought leaders in the industry. So that way, if people decide to come into real estate as a good way to create either a business or to create some passive income or build a business on the side, they really get to dip their toes into multiple niches, and that way, once you find a niche that's appropriate for you, then you have some of the top people in the industry in that book. Because my first two steps, if you're going to dive into any business, are, number one, find out which niche you want to be involved in, and then secondly, find a mentor that's doing it, and then, you know, don't look left, don't look right, and throw your blinders on and fall off.
Yeah, absolutely. Fantastic book. I highly recommend it. And if you guys don't already, I'd be more than happy to give away our first book that was actually an Amazon bestseller.
We can certainly give that away to your audience as well. Do you mind if I just throw our website here? Yeah, sure. And I will drop it in the show notes and go from there with it, too.
Yeah, you can find the book. It's Real Estate on Your Terms. You'll see my father-in-law's name on it. He authored the book.
It'll give you a really good in-depth on how we, number one, run our family business, but number two, how we work in the niche and how we're able to help people around the country, both buyers and sellers and our students. And you can get that at freesrecbook.com. That's www.freesrecsmartrealestatecoachbook.com. Awesome.
And a nice little funnel there that will give you tons of bonuses, and that way you guys can really get a good grip on our business and us. And then as you do that, you'll actually get a free strategy call with either myself or Chris. That way we can answer any questions that you guys have. Okay.
And then the magic ball or whatever question. So how much longer is this bull market in the real estate going to last? Do you think there's any correction coming, or if so, how big? Yeah, that's an absolutely fantastic question.
And if I knew the answer, I would definitely just be sitting on a beach somewhere enjoying myself. I don't know. Typically, the market's going to go through cycles every seven years. Do I expect it to be like an 08 crash?
No, but I've been wrong many times before as well. So it's important that you protect yourself, and that's why we've actually crafted these techniques, and we follow this niche is because it puts us in a very good position, whether it's a down market or an up market. So definitely protect yourself. So what I'm hearing, it's a lot like riding a wave, right?
You just got to know how to ride the wave on the way up and the way down, right? Sure, yeah. I mean, just like any industry, you really got to know exactly what you're doing, have your techniques locked in, and then protect yourself. We certainly do.
Our techniques do. We're not personally signing anything. We're not using our own credit and we don't have a bunch of money out there that we owe to investors. So if you don't have those three things out there, then you don't have a steamroller running behind you.
And if you look at our deals without putting any of that money down on average throughout the country, our deals are about $72,000 per three paydays. And we get paid three different ways when we collect a non-funnel deposit, monthly passive income, and when the property cashes out. So we're great. Nice paydays with pretty much infinite returns without the big steamroller behind us.
Awesome. Well, cool. I appreciate being on and we'll put all your links in the show notes and how to get that book and all that stuff. And we'll go from there.
And, you know, it's an honor talking to you and educating you a little bit and go from there. Yeah. Thank you very much, Anthony. I appreciate you giving me some time and I hope I brought you on in some great value and hope everybody has a wonderful, wonderful day.
All right.