Real Estate Investing the Boring Way, with Dani Beit-or

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Dani Beit-Or  0:00  

really pick them we train them what is the influence of investing what to look for? What are the parameters we work in, how to work with investors, how to analyze properties, and so on. So when de realtor starts working with our investors, they're all been trained, and I shadow them for a while until they see that there they can

Dani Beit-Or  0:21  

take care of the transaction.

Taylor   0:24  

This is passive wealth strategies for busy professionals. Thank you for tuning in. I'm your host Taylor load. For those of you that are new to this show, I'm a multifamily real estate investor as indicator and a certified busy person. Today we're going to talk about boring ways to invest in real estate and big surprise, the boring ways are usually the most reliable ways to invest in anything, especially real estate. Our guest Dani bait or is going to tell you about how he invests in real estate and how he helps his clients. invest in real estate in the United States from all over the world. He has investors within the United States and outside of the United States who passively invest with him. we're going to talk about the systems processes and the criteria that he's set up to help identify properties, take him down, operate them, and just generally kill it in the boring real estate investing world. This is a fun interview. I hope you enjoy the show. Without further ado, here we go with Dani Bade war. Dani Bay tour. Thank you for joining us today.

Dani Beit-Or  1:34  

Thank you for having me. I appreciate it. I still do it from the coastlines.

Taylor   1:41  

Yeah. Yeah, we're crossing the country here for our conversation. So before we get into the topic, can you tell our listeners about your background and

Dani Beit-Or  1:51  

what you do? Absolutely. With leisure so my name is Dani big or I'm I'm based in California. If you have very good hearing you can probably detect this an accent in my in my voice probably many of you don't. I'm originally from Israel I was born in Israel raised in Israel you know spent the mandatory three years in the Israeli Special Forces. Then I started once I finished my my military, which is a Giga, which three years for boys for men. I did my I got my industrial management engineering degree also in Israel. 

after I graduated, I graduated from school I started working for these really high tech. very early on, I realized something was off with the rat race formula I didn't even know to call it a rat race at the time. you know, only after I when I moved here, I found the term, but I just couldn't agree with the fact that My parents my uncle's their friends, older cousins are working, you know, those long hours jobs. My dad was military and we already saw my mama two jobs, you know, middle class family, two jobs and very So then my question was, what's your what's called a latchkey latchkey kid, pretty much, six days out of the week. when I started my adult life, I felt that this is not what I want. This is not what I wish for myself. I didn't know what the answer is. I just acknowledge to myself that the default of going and doing this for the next 10 1520 years and they only had a girlfriend today she's my wife, you know, no family time beyond just the two of us. that formula didn't, didn't didn't agree with me. 

that kind of put me on a quest to start looking for something else. I can't even the time when David What it is eventually brought me to a real estate us real estate but the time in Israel I was mainly working on one in and then after working I was going in the end classes and reading and trying to both educate myself about real real life finances on one hand it also finding a way how some young guy engineer starting his adult life not a lot of money there to begin with can do something in order not to be on that path of just work work work, work, work work, maybe get a house with a mortgage and you know, because I could tell I could see my parents they the first time they got there, I don't want say financial freedom but got a relief probably was in their either their 50s or mid 50s even when one of the mortgages was paid off and, and their salaries kind of eventually over years with and that was the first time I could really see they're taking a breather at 50 and I'm like, No, no, no, no, something.

 I don't know what the answer is. that's not the Answer so I couldn't agree with it. I just put me on that kind of really motivated me to start this quest of finding something. I did realize one thing is that I don't know I couldn't find or I didn't know at the time. Any get rich quick kind of a formula or schemes I just couldn't find in a very early said, Okay, if I can find the I don't know how I can find the get rich quick kind of a task. I might as well not follow that and waste time and energy over it. I want to find the one that it's a get rich flow kind of a path. I started, you know, investing a little bit in stocks and options, which I didn't really relate to because I felt the risk is relatively high and the reward is relatively low for the risk. I was a young guy, I had no problem with it a good salary, but it's just didn't you know, didn't work. It didn't work well for me. risk reward kind of a relation there. while I was on this on this journey, I went to a lecture about someone who talked about us real estate investing in us real estate, in single family homes, in different suburbs, you know, the

Dani Beit-Or  6:18  

cording to a certain kind of way. that's where I kind of felt like, Okay, this is me, this is good for my risk tolerance. This is good for probably the budget, I need to scrap it probably for the budget with it with a mortgage. it's kind of told me this is simplistic enough for me to do and there's probably a very high potential. Little did I know, I think, you know, in retrospect, that's 15 years ago, is actually 17 years ago, that I started, how correct I am, but at the time, it just looks looked okay. It didn't really know. 

I didn't know it will be okay. It is okay, but it takes time to release build the confidence that it works. At the time it just seems to be on paper like that. That's what got me started with buying my first house in 2002 in a suburb of a you know, facility you probably never heard the name is called Phoenix, Arizona. I'm sure you're right, you know, hollywood desert. 6 million people call this whole home but you know, only the desert, you know, suburb of Phoenix and nice community. Very much cookie cutter. nothing spectacular. I mean, no, nothing flashy. The nice house probably about 1600 square feet. 

Oh, so it was 422 car garage. When I drove the street for the first time I actually had the picture and the address, but all the houses look the same. I probably drove by the house went to limit too far drove you know, a little bit back and say okay, this is the one because you can Can can tell they all have very much the same, but I love it. 

I mean, I think that's that I call it the most boring real estate you could probably buy. I love the you know doing it and I bought it sight unseen from Israel completely remotely, you know, 2002 Google was a startup, no Zillow, no bigger pockets, no Facebook, no Google Maps at the time as all timers were using MapQuest, by the way, you know, all those tools that are available in our disposable online today, I'm jealous when people start, we can get so much done online today.

 Back then it was just a piece of paper and an address and the price. that's how we got started. That's how we got started. Yeah.

Taylor   8:48  

Great. So that leads you to today. What are you doing in your business? How many units do you have, you know, where are your investments now? What are you up to?

Dani Beit-Or  9:00  

Today?

Dani Beit-Or  9:04  

You know, I, my core business is actually everything I have done myself as an investor is I've done it myself but also laid out tracks for other investors to follow exactly the same tracks by working with others, helping them to accomplish exactly what I'm doing myself.

 So I'm doing personally as an investor, but I also work with others to help them you know, run the same tracks. that means we have I set up, you know, operations in different parts of the country. Operation usually means primarily real tours and property managers on the ground in all those cities. For example, the metro of Dallas, the metro Houston, Metro, Nashville, Metro Kansas City, Tampa, Orlando, those are the Indianapolis or the active ones. Over the years, that change we started several months ago in Kansas City. Nashville three years back, you know that Houston many years ago Phoenix in Orlando I've been in and out already twice I'm actually waiting for my my my third I call it my third tour. 

it's all about numbers yeah when you go to an area like Phoenix, you know in 2004 it was in keeping and the rates are high and that's the basic here and then you know with it with it with a boom that we had, it went through through the roof than the number stop working. We pulled out after the crash we came in really again even cheaper than before. Number numbers worked for a while that the number stopped working in Phoenix and we pulled out and when Orlando Tampa, things changed over the years I've been in multiple multiple metros, when I say to mention the name of the city, I don't mean necessarily Phoenix, it's usually the suburbs it's usually the good schools the lower middle class, middle middle class, upper middle class type of areas. where you can find what I like to call

Dani Beit-Or  11:04  

the most boring real estate you can probably buy.

Taylor   11:07  

So that's, you know, what we're going to talk about today is making money by investing in the most boring real estate and how that can impact your life. that's an interesting way of putting it investing in the most boring real estate that can you drill down for us? What does boring real estate mean? The opposite. Okay, absolutely. So, for me, the way I see it is this.

Dani Beit-Or  11:37  

Real estate is a great tool. I believe that real estate rental properties, if if bought correctly, is a great vehicle for slow growth, financial growth, like like it's like I said, you know at the beginning, it loves time it loves you know, you gotta be patient. It's especially powerful when you do it with a mortgage. If you have those qualities if you are willing to wait. buying rental property. 

These is a great way to impact your future financial future not tomorrow, not next year, you know, you may be lacking along the way and some some boom happens. I don't I don't build on that. that's just a bonus when when when we actually own something at the same time, we can find those in a crash. So I don't want to be able to death I just want to build a very steady, easy, long term growth of real estate, especially done by you know, by with a with a mortgage that really helps accelerate that. A lot of the people you know, everybody's busy, right. I know a guy who lives in Richmond, who is a certified busy person that yourself I love that term. I love it. I think I'm going to steal it from you from now on, hopefully, with it.

 I'm a certified, self certified I'm actually flying for certification with you, busy person as well. A lot. We all between jobs, and our job, our family, our lifestyle. We all want a busy lifestyle and to find ourselves dealing with real estate, it's something that it's hard to do. then many people live in parts of the country that real estate is expensive. 

So either it's unaffordable, or even if it's affordable to cash flow just, you know is really poor, you know if to say cash flow it all to the point that the whole point is how do I, the busy guy from Silicon Valley, the busy guy from New York or Boston on that, you know, especially in areas where real estate is expensive, can buy real estate and not deal with it? 

Right the day to day? And the simple answer is, I don't think there is a completely 100% by and forget, but I'm aspiring for you know, the concept that I go after for my investors and myself I'm no different is that let's aspire for buying forget for me buying forget, let's buy the type of real estate that will create as little noise as possible in our lives. So we can continue with our lifestyle jobs, kids family, property, whatever, without much interference. I'm saying emphasizing it's not zero interference to just minimize not minimizing, minimizing noise and finding that boring type of real estate usually is the American dream. The American Dream is the nice single family home. many times with the white picket fence, not always in a nice community, usually in good school districts that are usually located in the suburbs.

Dani Beit-Or  14:30  

And they typically attract in good schools in good areas, attract the renters that can afford to pay the rent and you know, not you know, not not necessarily live paycheck to paycheck to paycheck, and afford to pay the rent, usually the type of people that would even have a pride of rent or shape so they tend to take reasonably good care of the house. 

I'm not saying it's perfect, and we use a local property manager, you know, we've spent a Lot of time findings is really good property managers on the ground that can take 95% of the ongoing noise from the invest or whether if that person is busy or spoiled, you know the invest or someone else on the ground takes care of most of the noise. that gives you the investor release in an expensive area, say New York or San Francisco or LA the ability to purchase a piece of real estate with a nice tenant in the suburb of Nashville. 

Okay for 150 $200,000 give or take right and you only need to come up with 20 to 25% down, you know in order to buy so you don't even need to have you know, $200,000 you can have 40 $50,000 in order to buy with a mortgage. that piece of property in that type of area with schools and community and and the type of tenants for the most part will generate them a little noise. You will have some vacancies, you will have repairs, you will once in you know maybe seven years on average, you will have an even even and even good tenants run into bad times. When you use property manager, you're dealing with people there's going to be miscommunications along the way or misunderstanding it will happen. 

when that happens, relatively 95% of the ongoing noise is dealt, you know, the property manager is dealing with you, the owner, even if you live in Europe, I have investors that I work with who live in Europe and they own real estate, but they get to know that there are a few repair and they're just being informed or the house is sitting vacant between tenants and sometimes it takes a month, sometimes it's two weeks, sometimes every month and a half, and then there's a turnover, people on the ground taking care of everything. you can actually benefit from that. You gotta be patient. 

Usually when people buy a piece of real estate like this, a year later, if they check the numbers, maybe they go on Zillow, and do the estimates look a little bit better. It's not really, you know, something you can measure a year or two later, usually three years later that calm, something interesting is happening here. It's generating a little bit of a cash flow maybe $200 or so every month after everything, and appreciate it a little bit didn't even go crazy but just went up in value. All of a sudden, you see that you gaining financial even if you're not really feel it in the day to day, after three years, usually when like it clicks, like ah, nothing is happening. 

then you ask yourself, how much of a noise how much am I dealing with it on an ongoing basis? Typically with us, the answer would be very little, not zero, but little. we provide a lot of support to those people. So even when they get to the point that there's some challenges, the misunderstanding some miscommunication. 

They always can call us and say hey, I purchased this house with you three years ago, and their property manager is not responding and can you talk to them or they told me this they told me that or House is sitting vacant and we just make sure on the top of everything we provide additional layers of support, because we know those you know, we know it will have noise, we know everybody has a different you know, patience level or tolerance for issues some can deal with things very quickly give up, we step in, we solve those problems. We come from a buying power position. So the property managers really love us because we give them a lot of work. realtors, they love us because we give them a lot of work. 

We handpick those people, we don't work work randomly with people, real source we work with, really pick them, we train them, what is the influence of investing, what to look for? What are the parameters that we work in, how to work with investors, how to analyze properties, and so on. So when de realtor starts working with our investors, they're already been trained, and I shot to them for a while until they see that there. 

They can you know, take care of their of the transaction. I'm still I'm always involved, I speak with them on it on a bi monthly basis, always helping them to better improve and so on. So it's always an ongoing kind of assist them. the basic core of it is someone who lives in an expensive area with a busy lifestyle. We help them facilitate the purchase of a rental property and nice rental property in another part of the country 85% of my investors, they buy sight unseen, they don't even travel. Well.

Dani Beit-Or  19:32  

I mean, in this

Taylor   19:33  

year, I was gonna ask you about the cash flows in this but in the end, you mentioned that but in this process, how do you pick the good markets are the good sub markets from the bad sub markets and then the good deals from the bad deals, you know, whether or not something overpriced you know, what are your How are you setting criteria

Dani Beit-Or  20:02  

Yeah, for picking up markets, I have a very clear formula that I use. I can tell you what it is it's not a not a secret. for me, it's the it's the following. It's got to be a metro, it's got to be at least 1.5 million people population wise, that's the number. That's the first threshold, that Metro needs to have multiple big employers representing multiple industries. 

So I checked for that, right. For example, Vegas can meet the population criteria, but it's not really meeting the diversification, the business diversification criteria. So for me, Vegas doesn't really work. For that reason, there's nothing wrong with it. This is my formula. Right? So markets that are in a big thing like to be in a 2 million around the 2 million population in half and not even 1.5. that's my threshold. I gotta check the population. 

I gotta check the the what are the major employers and the industry to represent to see the devastation and a good economical basis? We're an example. Austin, really good market and all, all in all in a good market Metro. it's only maybe coming close to the 2 million people population wise. the, for example, a few years back, if you remember, there was going through some challenges before they merged, they merged with EMC. it's like, Dell is the north of Austin and the area really sense that it was like the Austin market was going through a cold. it sounds like there was uncertainty. In my opinion, if there was the same deal was located in Dallas, and the same thing would have happened in Dallas. 

It wouldn't you know, it wasn't the cold. Nobody would even bother to notice it that much. Right. Maybe they'll people talked about it a little bit more, but probably not as much. Why? Because Dallas is three times bigger than Austin as a as a metro many big Employers, multiple industries, okay, then we'll just merge kind of, you know, emerging into everything there. So for me, Austin as much as I like today, Austin, you know, as a California and Austin is great as an investor. Yeah, it's okay. I rather go to Dallas and Houston because the numbers, the con, the local economies of each is three times bigger. it for me just means safer investment, you know, economically very, so that's important to, you know, I talked about the size of the population, the employment base, very important.

Dani Beit-Or  22:38  

Then I like to go to see them the migration patterns in the US every year. multiple companies measure migration patterns, if someone wants to look it up, the key can look on you how they advertise it, Atlas Van Lines, almost every big, you know, moving company, you know, the ones that do nationwide. 

They post something about it and they track it. they measure per state, how many people in a certain year how many trucks moved out and how many trucks moved in? And they say, okay, Ohio, there is an out migration of out of Ohio for example, California is balanced about the same number of people moved in or just making it up right. That's not necessarily true. the same number of people move in and out of California. Florida, more trucks are moving to Florida. Do you see there's a migration patterns in the US and you can actually follow that if you look a few years back, which I do every year, because those you know, I follow those, those articles.

 You can see that most of the Midwest in most of the Northwest are shrinking. Mostly the South and the West are increasing in population in demographic changes. Now I'm looking at it like I said earlier, I'm looking at the long term buy and hold 510 years, maybe 15, I want to make sure I'm going to areas that are growing populations in jobs in order for it to have a, you know, a constant flow of buyers and renters or future buyers and future growth that will sustain that long term hold, and will sustain that the property the price appreciation, if you follow that trend that support that long term trend, that's why I follow that trend as well. 

So for that reason, I don't really like the markets that the Midwest because a lot of them are shrinking, and they're not growing and that's a problem long term. We know some of the names for sure. that's just not just you know, just those are the, mostly the names who made the headlines. my father is important. 

The other thing that I'm looking for is I like to go to states that are, I'm sure they say red states, maybe the best way to say usually means the laws are favoring the landlord and if you have to regret if you get to the point of innovation action. Usually it's quicker and cheaper. Now, for me that point alone is important. I always thought that enough, actually, maybe two years ago, I realized it's not just the eviction process is cheaper and quicker. It also sets that they know the environment for those things. 

So I think tenants renters in those states, they know they live in a state that the laws are favoring the landlord. So it's mostly already setting the you know, setting the scene for them not to go into that problem to avoid it to begin with, right? If you live in a state like California, or or or other blue state, and you know, the law is on your side, right? Then you have a lot of encouragement to you know, to to play dirty tricks in order to stay as long as much as you can in a house.

 I mean, you've been kind I'm not saying that people will do that, but you might be more inclined to not rush out was there soon as you can pay the The red or so bad, but actually fight it with it with the owner. you can actually wipe in California, maybe one or two years of cash flow with one eviction. So that's not good because it takes to take a month, a month to three months to get someone out. it's more expensive in California as an example, in Texas, in Oklahoma, Florida usually takes anywhere from 10 days to a month, depending on how busy the courts are at that time, and it costs anywhere from 250 bucks to maybe six 700 800 bucks, depending how far you have to take it. 

I know the full sometimes very tough to go to the sheriff and the locksmith is going to cost you a little bit extra not a lot more till relatively cheap. that's another item in the formula going after those states that are lender friendly. Then it's still about the numbers right I want to be able to buy $150,000 home a good nice, you know, middle middle class, you know, community 150 ish, maybe 100,000, maybe 10,000. home. we're rented around the 1% rule, what we call a month. the 1% rule is, if you buy a house for 150, you want to rent it for 1500 a month. 

That's the 1% rule. The problem with this rule is that age was an erosion because of the appreciation of values of properties as erosion of friends. So we don't really see the 1% playing out anymore, because prices went up 0.9 0.8 close to that, it probably eventually is going to be correction, the rate will keep up or something will change. right now, the 1% rule is a little bit tricky. the second thing that some people don't don't know maybe do but don't realize some markets don't play in the 1% never played in the 1% rule. even if they are 0.75% instead of 1% They could still perform very well Nashville is one of them. So Nashville never had the 1% but even at 0.75% I hope I'm not being too

Dani Beit-Or  28:09  

throwing numbers and confusing wise confusing you or wherever listening but not always the 1% rule works in a certain markets you have to really look carefully. lastly, the one thing that I added, I would say about a year and a half ago, is I'm trying to stay away from markets with harsh winters. 

That wasn't always the case but harsh winters for me, means Murphy's Law will play into my vacant house in the middle of December 1 thing and that's not not fun, right? Even if you can have insurance you can, but that means more costly insurance and who hustle and are sitting vacant, and usually, you know, usually water damage is the worst damage you can have, you know with repairs, so I'm trying to stay with the harsh winter. Even if the market follows every that I've mentioned, it will be in a cold weather, that's usually something I will probably avoid as well. For example, by the way, most of the harsh cold winter markets are also blue state. So it's actually not a problem.

Dani Beit-Or  29:15  

Everybody follow the blue ready? Or, you know,

Taylor   29:20  

yeah, we're we got your you mean being more direct about it, you mean landlord friendly laws where, you know, some areas tenants can get away with effectively not paying the rent or paying a token amount and some laws are very make it very difficult to make a profit as a property owner so can definitely appreciate that.

Dani Beit-Or  29:46  

Yeah, I call it the extended state. Right.

Taylor   29:54  

And then, okay, so the 1% rule is, you know, a lot of folks know about the 1% rule, but if you Spend some time looking at deals in the market either on the MLS or from wholesalers and such. These days, the vast majority of deals that I've looked at, at least, are not going to hit that 1% rule. So you're saying you can go lower than that maybe down to point seven 5% something like that in certain markets and still make money.

Dani Beit-Or  30:28  

And I think the second part of your question was how do we so that was how do I decide on an on an area on the metro? That's my formula. The way we decide for property is after the crash I've been you know, I've been through the boom I've really written the you know, the crash that came after the boom of you know, 2000 789 I was there you know, in the eye of the storm, big time, maybe not even in the eye of the storm, but you know, in the storm itself, so, you know, definitely taught me a lot. I came in Experienced not beginner. I think I came out, you know, truly a much more of a professional. 

I had to deal with all of a sudden with issues that I never thought I, you know, I would get, you know, get to know about no one says that it's crazy. one of the things that I came out of the one thing I decided to change is, I think I see I tell myself, I feel that I was analyzing properties before they know before the crash. I'm like an amateur, not like a professional. after the and it worked, I mean, everything went up so who cares, right but it didn't work right. It didn't really work. So one of the first thing I did was I created an Excel, I would say somewhat of an extensive side. That really helps me make a decision not just me today. All the investors I work with you is it all realtors, it's part of the training, know how to use it. It's not just an Analysis Excel it's more I call it the business plan for the property for the next 30 years. There's definitely assumptions there. one of the challenges was as investors sometimes we go from we obviously don't want to do best case scenario right? 

That's nobody wants to do that. Really obviously. If we don't yes case scenario, right worst case scenario what happens is for me is I kill every deal right? So I have a cemetery full of great deals that they didn't do because obviously this me This is me, you know, before the crash, and after the crash itself. This is this this one doesn't work. This one doesn't work, I need something. I said, Okay, how about I just use what I call I call it for myself realistic a scenario right? I don't know why it took me so long to get to that but I just use a realistic scenario to analyze a property may be realistic with a touch of conservatism. 

So I'm not totally on the optimistic side. So just but not overly worst case. In that Excel blockchains and numbers and the assumptions and analyze a specific property with you know, for the next 30 years and then he does reality of just performance, nothing the first year rental property if you measure like we talked earlier the first year, it's not gonna say much, right? If I'm going to hold it for at least five, maybe even 10 years, why am I analyzing on first year or two years, which doesn't really give you the, the real performance here. So I'm so what I decided to do, I'm going to do periodic averages and whether the first five years, first 10 years 15 and 20. then I take I do an average how the property is performing based on a five year performance per year. that's where I'm shooting, you know, kind of focusing on that tells me the story of the property for the financial story, not a quality, but the financial story of the of the property and that helps me make a decision to financial decision. 

Of course, we want to check on other things like the area inside the age and all of that, no doubt in schools. by the police on making a decision financially, that Excel is the one thing that I have, I can make a decision without today. It's like, it's like another arm here, though, if you asked me, What do you think about this property, I was like, wait, I gotta put it the numbers, I don't trust myself, without going through the exercise of putting the numbers in. 

It takes me three minutes, five minutes, maybe 15 minutes if you have to collect more data online to put it and get it get it out very quickly. it's been used for so many years close to 10 years now by so many investors and so many

Dani Beit-Or  34:36  

you know, situations that I also i'm also trusting the accelerator now because it's been telling a story for many years. when I check with my investors, what happened in reality a year later so versus the XL almost always a Tell me actually the house is performing better, not tremendously better. you know, instead of $200 in cash flow, we get to 50 we get 300. Not a lot more, it's a lot of money per month, right, just per month, but 100 bucks more on the $200 cash flow to begin with, it's 50% more on the cash flow. 

That's quite a lot when you talk about those small numbers. So that's really something that pleases me. Sometimes these people say, even, you know, I was planning for 200 and it's actually doing 500 that's fine. That's really the better ones. the fact that Excel is able to give us a more accurate, realistic financial picture that really is a good thing and it plugs in vacancies and repairs and property management and listing fee and Hoa we have in property management and insurance and property taxes everything that we know realistically and the rent and then it drives the number it gives us I know the ROI etc.

 So the decision after house always done with this to at least the financial decision.

Taylor   36:03  

Um, yeah, so you're saying staying disciplined with the numbers, and you're also learning from past experience and not being overly optimistic or overly pessimistic, really, because you can, you know, if you spend all your time just disqualifying every possible deal, you'll never do anything. So we can't be too afraid of taking a risk at the end of the day.

Dani Beit-Or  36:31  

We may need to look at things even today, you know, I may need to plug, look at 10 properties in order to get one that makes sense. if it doesn't make sense, we have the discipline. This is what I trend, the people I work with, we have the discipline to move, either to lower the offer, which sometimes you know, doesn't work or move on to the next or that's fine. real estate has been here for such a long time.

What's gonna take another month or two or three or six to violence, okay, that's okay. So it's an awfully long play when you buy quiet thing, areas quality properties, you know, we don't buy old properties we buy maybe 30 years is like the oldest, so to speak, we usually buy, you know, even 20 year old or younger houses, and we hold it. we have the patience, you need a lot of unique patients here. You'll be okay. It'll be fine.

 just you know, so no rush. Why are you rushing? You know, why would someone rushing to win so, you know, I've invested like mid to late, late what, you know, you want to make a quick buck by by next year, maybe you're late, I don't know, I have no idea. if you have the, if you want something that it's more of a working in the background, then this is a really great tool. if you know how to follow this formula, and get to that boring, you know, type of real estate for me that just, you know, great and I'm always aspiring to be myself more and more, get closer and closer and I always feel that I make very small increment. still, to bind, forget my ideal situation is like, you come to me say, Dani, I have the money, I can qualify, but I don't want to hear anything about this property wants to buy it. that's for me the ideal scenario that I want to enable someone like you or someone who listens, but honestly, it's just not there yet. 

Hopefully, I'm sure that there are ways to go about it. I'm just not, you know, you know, you can go into a group in syndication and do stuff. I'm just not doing that anymore. buying by yourself. I'm still always looking for ways to improve that noise level. Always want to turn it even more down if I can. That's

Dani Beit-Or  38:36  

a constant challenge. Let's just put it this way. My.

Taylor   38:42  

Nice. So we're going to take a quick break for our sponsors. Okay, Dani, I've got three questions. I ask every guest at the end of the show. Are you ready to go? Oh, yes.

Dani Beit-Or  38:55  

I hope so. too.

Taylor   39:01  

First one, what is the best investment in real estate that you've ever made?

Dani Beit-Or  39:06  

The house? Again, I'll answer with two quick ones, because I did two types of investors rental wise I think the house is. Well the house in Phoenix really did that the first one really did well really did well because it doubles very quickly. actually, when I'm answering you, I bought a house in Orlando 95. 

So it's 13-14 years, this house in the 13-14 years that have owned it, I think sat vacant, combined for maybe two and a half months, maybe three, not maybe four because I was caring for the you know, before the last and only three tenants so I've always had it was always occupied. never had anyone late with tenants usually have to take care of the house. he did very well. I mean, just unbelievable. Just 1314 years. I think my average cost of repairs. You Maybe 15 bucks a month over all those years, which is practically nothing. 

So yeah, well, that's a good story. It's not always like this, but it's definitely a good stories after 13 years, a second property, you know, we did a flip my first flip, bought at the auction in Atlanta for $36,000. I'm just running by by a bit. We sold it 30 days to the date for $90,000 without even lifting a single hammer. I was just a coincidence, you know, with someone who wanted to buy it who was already living there, long story, but those are the two amazing stories that I have. When you do stuff like this. Those things do happen. I have other good stories, but those like, I would say pop up, you know, as the great ones.

Taylor   40:46  

Yeah. So that first one you said you bought in 9495. So that would be 2524 25.

Dani Beit-Or  40:53  

No, no, I'm sorry. I'm sorry. 2005 my fault. Okay. Okay. Thank you know, 2005 September. 2005 and we're, you know, just getting through the 14 years 1314 years mark, and returns, you know what I talk about, but if I forget this house is almost that in my portfolio. Yeah.

Taylor   41:17  

Nice, nice. On the other side of that, what is the worst investment that you've made?

Dani Beit-Or  41:22  

Well, the worst investment I made is actually I've done several flips in Indianapolis, that after about 80, I would say about 80 flips, which probably 70 of them were anywhere from. Okay, good to excellent. When they got to Indianapolis, I was in for a treat, that completely threw everything off the main, so a lot of mistakes done in Indianapolis with the primarily the local team, so that means we lost money on right on flips that we've done. We're still I'm still dealing with it, actually. flew in from Indianapolis, which I go to about every two to three months. This morning I flew in at 9am 9:30am I landed from Indianapolis by the way the sun is exactly your window for recording I don't have a problem with that. That's okay.

Dani Beit-Or  42:19  

So it's not just a single a single

Dani Beit-Or  42:24  

properties, multiple flips, all went terribly wrong primarily because of for local team selection, the project manager on the ground and the main main GC. So it's not just one it's multiple. I'm you know, if it sounds like I'm, you know, doing deals and 15 years and I had my fair share of issues when the crash happened. I had my fair share. 

Now with the flips going awfully wrong. It's not all dandy, sweet and easy. No problem. Absolutely. I have scars Mental scars, and maybe even some physical scars from watching house in financial scars, absolutely. you know, got to you know, I think it builds the stamina in order to persevere and solve those problems. by the way, Indianapolis I'm still dealing with it, it's not done. We're in a much better off position where I was a year ago, but it's still, you know, still being done, you know, kind of

Dani Beit-Or  43:26  

fighting to get it to the finish line.

Taylor   43:29  

So you said the main issue there was related to the team selection and it wasn't a sudden shift in the market or anything like that, that change things for you.

Dani Beit-Or  43:41  

Yeah, it all comes down to two people.

Dani Beit-Or  43:44  

You want primarily one, but the secondary as well. Those are if I really strip everything, that's you know, that's what it comes down to him.

Taylor   43:56  

teams. We've never heard that one before on this show. I kid we hear that one all the time that

Dani Beit-Or  44:03  

I'm sure I'm sure.

Taylor   44:05  

Good one to point out. Your my, my favorite question here at the end of the show, I could just pare it down to this one. If I really wanted to, what is the most important lesson that you've learned in real estate investing?

Dani Beit-Or  44:19  

You know, I think exactly comes to the where we're just talking about is just take the time to have to qualify to vet the teams. I probably I can't I can't express it, you know, enough. Every time I did that. I did it many times in the past, it is proven to be okay, because the teams performed. the one time I guess I didn't do it well enough. It blew up in my face, so to speak. So I think, you know, you can have a mediocre house with a great team.

 You know that that will work but you know, an excellent house with a With a with a with a bad game doesn't matter, but comes down to really spend the time to bet to check you know to maybe not take people for the word before you decide on on who to work with. It's a team effort. How can I do everything that I'm doing from here from California with people in Nashville, Dallas Houston, in Orlando Tampa, because I didn't say Chicago Indianapolis. 

Without You know, what am I a superstar? I'm not I'm just a regular Joe. great teams in Nashville, great teams in Dallas, great teams, you know, in all those places now good people in the Indianapolis area where most of these years now finally, absolutely, but it takes time. It takes time. It really comes down to this. 

I think this is you know, be patient I be patient to find the right team qualified and vet them before you use executing that will pay off big time or or kill you so to speak.

Taylor   46:07  

Nice nice so, Dani Thank you for everything today where can our listeners get in touch with you if they want to learn more about your deals? Maybe if they ask real nice I don't know whether or not you'll give them that Excel sheet that you you mentioned I don't know where can they reach out to you?

Dani Beit-Or  46:25  

Well, my our main blog website is Simplydoit.net. I put a lot of content like tons of content I have a YouTube channel with hundreds of videos, a podcast with many you know many sessions all teaching if you hear me until now I think I hopefully I come across not as a sales person but someone who put out content and quality I tried to do it. I don't think I'm you know, I'm a good salesperson anyway. 

So top have content to teach people to educate because those who learn, if they can relate, they will find a way to work with us if they want to, there's no point of convincing or selling or doing all of that. The podcast. Facebook, I do a weekly session, a live session of Facebook every Friday. So find me on Facebook, it's Dani Beit-Or. If you just feed us that you'll get to my YouTube, you'll get to the podcast and get to the Facebook. I don't know if you put links from your website to help people and just content tons of free content you just just you know invest in yourself. you know, individual and that will lead for for everything else along the way. Yeah,

Taylor   47:58  

yeah. Yeah. Thanks. Well, you All the links will be in the show notes for sure. The folks want to just click something in the show, they can click through there. I think your your URL is definitely very appropriate for what we're talking about investing in real estate. It's just simply do it. Maybe you don't know all the steps right now, but it's one step one foot in front of another, and you'll figure it out.

Dani Beit-Or  48:27  

Exactly.

Taylor   48:28  

Yeah. Great. Well, thanks once again for joining us today and sharing all your having me, I appreciate it. thank you for loving me through this. My pleasure. Everybody out there. Thank you for tuning in. If you're enjoying the show, please leave us a rating review on iTunes be a very big help and much appreciated. somebody who could use a little bit more passive wealth in their lives, please share the show with them and get them involved. Get them into our little tribe here. Once again, thank you for tuning In. I'm your host Taylor looked and we will talk to you on the next one. Bye bye

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