The Benefits of Investing in Turn-Key Properties

The Myndful Investor Podcast

The Benefits of Investing in Turn-Key Properties

Rental Investor Starter Kit

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Turn-Key Investing Episode Description

You’ve heard before that investing in turn-key properties is a simple way to generate wealth without taking on a lot of headaches. But what is actually turn-key, how does it work, and what do you need to get started?

A seasoned real estate investor Bobby Sharma has been involved in multiple turn-key operations over the years, and he shares with us his passion for this property investment model. Find out all about the benefits and risks of investing in turn-key rental properties, the average prices, the returns, and why this is an increasingly viable way to reach your financial goals.

What's Covered

1:57 - Bobby Sharma’s background and how he got interested in real estate.
6:36 - How Bobby started investing in turn-key properties and his first deal.
9:50 - What is turn-key? A brief introduction.
11:25 - How to choose the areas to invest in.
16:58 - The advantages of hiring a professional property management company.
19:22 - The average price range and ROI on a turn-key property.
24:04 - Does turn-key help with limited vacancy?
27:50 - The pros and cons of investing in turn-key properties.
34:17 - Does it make sense to own just one or two rental properties?
37:49 - The long-term game of investing in rentals.
40:37 - How to get in touch with Bobby Sharma.

Watch the Podcast

Read the Transcript

Steve Rozenberg  0:06  
Ladies and gentlemen, welcome to another episode of The Myndful Investor podcast Show. I'm your host, Steve Rosenberg, head of investor. Education for Mynd Property Management. Mynd is a property management company that is in 19 markets nationwide. They help you manage your asset, they help you with everything from tip to tip; whether you want to help find a property, place a tenant, manage the asset, they've got a three tiered pricing program. Again, it's all investor based here to help you, and to help you become a better investor based on your strategy, based on your goal. The reason we have this show is I want to bring on people that are experts in the industry, people that know what they're doing, that are actually not just talking, but are in the heat of battle, sometimes good, sometimes bad, depending on what's going, on the cycles. And hear from the front lines of what's going on. I know I am someone who's definitely dealing with day to day pluses and day to day minuses. As we all know, if anyone's really in this industry, they know it's not a rainbow day every day, some days it can get dark and it can be a little scary, q lot of unknown, uncharted territory, I think we all are going through. And the guest I have today, a very good friend of mine, Bobby Sharma, who is, I will say in the belly of the beast right now in California, San Francisco. I mean, you're in it right now. Bobby, first of all, thank you for coming on today. Iappreciate you being here, buddy.

Bobby Sharma  1:46  
You bet. Thank you, Steve, always a pleasure. Always a pleasure to connect with you, and happy to share our war stories as well. Yeah, absolutely. Glad to be here.

Steve Rozenberg  1:57  
So Bobby, let's first start by telling everyone just a little bit about your background, who you are, where you came from, your humble beginnings and let's let's start with that, give everyone a baseline about Bobby.

Bobby Sharma  2:08  
Absolutely, absolutely. So I'm an immigrant born in India, grew up in Africa, and when I was in junior high, I studied American history, and I just got fascinated with George Washington, Jefferson, and a lot of my teachers were American, so I always dreamed of being in the United States. When I was 18, I begged my parents to let me come to college here. Luckily, they gave me enough money for the first year, so I ended up in Mobile, Alabama, University of South Alabama, and got my degree in computer science. Luckily, times were good, so I was able to get a job. My company sponsored me for my Green Card, but then, when I was in computer science, I always knew I had to be in Silicon Valley. I heard of this mythical place called Silicon Valley, and that's where all the tech companies were. So surely, from Mobile, to LA to the Bay Area. So 30 years in the Bay Area, this is home, very lucky to have been here and see some of the amazing growth, and you know, Mynd is a neighbor, they're based in Oakland, so about 12 miles from where I live.

Steve Rozenberg  3:35  
Great. So let me ask you this. Growing up in different worlds, in different cultures, was real estate ever on the horizon, coming to Silicon Valley? Was real estate at some point going to be in your world, or how did you transition from Silicon Valley to the real estate world?

Bobby Sharma  3:55  
Very interestingly, I was 24 and I was renting a room from a gentleman in Southern California, Riverside actually. I was single, and instead of renting an apartment, I ended up renting a room. Anyway, long story short, my immigration attorney said, listen, you are going to be working for this company for a long time, because it's gonna take four or five years for you to get your Green Card. So, behave yourself, don't get in any trouble, do whatever they tell you, but stay with the company. So I'm like, okay, I'm gonna be in Riverside for five years. Long story short, the gentleman that I was renting the room from, ended up crowding the house a little bit too much. He went a little bit too aggressive on the house hacking side. So one day, I was just driving and I saw for sale sign at a house. There was a Century 21 for sale sign, went inside, I was just curious. I had no idea that I could buy a house, but I had some time to kill. So I just walked around and talked to the realtor, and I said, I'm an immigrant. Can I get a loan? She goes, why not, I'm sure you can, apply here. So what I did was I house hacked. It wasn't something that my parents talked about. It wasn't something we talked about at the dinner table. I came from a very traditional conservative Indian family, so they never talked about money. As long as you got good grades, that's all that mattered to my parents. But I realized one thing, Steve, very early on, that I needed to supplement my income. I wasn't making a ton of money back then. So, what I did was I took a three bedroom house, got two roommates, and boom, my mortgage was paid for. So I was house hacking. This is 1989.

Steve Rozenberg  6:14  
So from that transition, you know, a lot of people get into real estate as a backwards way. There's this thing about real estate is there's no rules, you can come in any way you want. There's no on-ramp, you can jump fences, you can climb walls, you can come on-ramps, there's many different ways. You came in through a lot of standard ways of doing that. And then how did you progress all of a sudden? You became an investor, you got involved in turnkey, how did that happen?

Bobby Sharma  6:45  
I had a great job here in the Bay Area, from the dot com days. I worked for a very stable company for 11 years, and then I went to a startup, and that was the wake up call. I thought it was a well funded startup, but it was mismanaged and all that. One day, I found myself out of work, and it was a really horrible feeling. But being in Silicon Valley, it was around 2010,and the market had really dropped. So I said, look, I'm out of work, so I'm gonna spend my time learning something new. Maybe I need to broaden my mind a little bit. So I started going to real estate meetups, and that's when I started learning about real estate. I went to the auction, I was just curious. But long story short, I ended up buying a house at the auction. But where it got really interesting was you know, I'm not a big a gambler, so stock market was sort of a gamble for me, but I knew real estate wasn't going anywhere. People always needed a place to live, it was always considered a stable investment. So that's when I doubled down on real estate, when I was out of work, and I did my Excel forecast, and I said if it appreciates 3% a year, and I can increase rents maybe 2-3% a year, in a few years, I could really pay off or do well with this property. So I bought a house in San Jose. The only thing was I kicked myself for not buying more.

Steve Rozenberg  9:03  
Everyone normally does, right?

Bobby Sharma  9:07  
Everybody, but it was doom and gloom. You remember, Steve, when you turned on the TV it was all about strategic defaults, and people going bankrupt.

Steve Rozenberg  9:15  
It's hard to say I'm going into this and I'm going to be wealthy when you see everybody running away which, being a contrarian investor, that actually is, now that you and I have done this and we've seen these cycles, those are actually indicators now that that is where you want to go. It's hard to get over the mental negative self talk that we all have, when you go all these people are very smart, I'm watching the news, I'm watching these bankers, everybody's running to the hills. Why would I run in? But in hindsight, as we know as the founders have Mynd and other people have done, that is where wealth was actually created in massive amounts. If we fast forward now, you've done a lot of business, you got involved in a lot of turnkey operations and stuff like that. Can you explain to people what turnkey is so that they understand?

Bobby Sharma  10:07  
Literally, it's the simplest way to generate a lot of wealth without taking on a lot of headaches. I love turnkey models. As you know, we got a small turnkey company, and I'm a partner with Mynd, but I truly believe in it. Especially for the people on the coast, the challenge was how do you invest remotely? So a lot of people can't afford to buy in the Bay Area, or LA, or New York, but they got to get into the game, they got to get into investing. So just like Mynd, Mynd was extremely wise when they came in, they picked up a bunch of assets when they were highly discounted. So we started offering turnkey properties to our investors through my meetup, but we were buying in places like Kansas City, St. Louis, Huntsville, Alabama, where things were cash flowing.

Steve Rozenberg  11:15  
If you don't mind, I can interject a question. For people that are trying to understand turnkey, why would that make more sense to buy there, than another site? What was the indicator or the reason that you chose those cities, and why did it make sense as a turnkey operation?

Bobby Sharma  11:34  
It's a very good question. I actually flew out to Kansas City, so I looked at the neighborhoods, I studied the demographics. Is there a stable population? Are people moving in? What's the unemployment? What's the crime rate? hat is the rent versus price ratio? That was very important. We call it the 1% rule now, but back then nobody said the 1% rule, it was just what's your ROI, what's your cash ROI at the end of the day, but one of the big advantages of turnkey property is somebody has already rehabbed it, somebody has put a tenant in it, it's passed inspection, it's going to appraise you're going to get a loan on it. So it's literally you could be sitting in the Bay Area and buying anywhere in the country, or you could be sitting in New York, Boston, doesn't matter, you can be buying in the cities where Mynd operates, so Mynd has done a lot of the homework for you. So you're not out there trying to find a fixer, or a contractor or whatever. They've done all of the heavy lifting for you, so Mynd has gone in, they've identified the properties, fixed those up, it's gonna pass inspection, it's going to get appraised, it's in a B, or whatever neighborhood that you want to be in, because you offer so many options. You provide property management, so I always say that buying and selling a house is the easiest thing you can do. As a real estate investor buying and selling is easy. It's the 10, 15, 20 years that you're going to own that property, that's the the most important part. And your property management company is the most important relationship you're going to have. Because without a good property management company, you're going to have a lot of unpleasant surprises. I have text messages from yesterday, somebody's having a problem in Wichita, Kansas, with their property manager, but when you have a professional company like Mynd, that has property management in its DNA, so it's not some guy out of a garage running a property management company on the side. Plus you've got technology, you've got so many processes that people can check off, you got pictures, videos, whatever, contracts, so I think, a professional property management company, from a turnkey operator, and you're a busy professional in the Bay Area, you're a director or a VP at a medical tech company, whatever company, or in finance on Wall Street doesn't matter. You can put a small down payment and then get cash flow out of it.

Steve Rozenberg  14:55  
I think what's important for people to realize, if you're thinking of turnkey, it's doing a couple of things. Number one, it's giving you back your time, because your time, as you just said, as you alluded to, your time is worth something. Now let's just say that someone who's a high level VP, or they're just working every day, they live in the Bay Area or Los Angeles or somewhere, and they say you know what, I've got a nine to five, I have a career, but I'm going to take some time qnd I'm going to block off a week, and I'm going to go to Kansas City, and I'm just going to do it myself. Well, my question back to them is, what makes you experienced enough to even know what you're doing? Just because you create the time, it doesn't mean that you actually should be the one doing it. If you don't know, local ordinance laws, you don't know fair housing, discrimination, we won't even talk about the whole COVID rules that have just come into play, that are now moratoriums and this and that. So do you really want to get tangled up and one of the highest sued industries in real estate, in being a landlord when you could sub that out to someone and you can buy it and, again, I think that you had said a couple things in there that is important for people to realize is that, buying real estate is mathematics, it's ROI, so return on your time and a return on your money. So you have to ask yourself, could you get a higher return going and doing it yourself? Well, you could. You could also make it a lot worse. I think what you're buying when you're buying turnkey, my perception, and you and I know many people that have been very successful doing it as well selling them, it's like buying a franchise. Maybe your returns are not as high, but you're getting a consistent product. I think what's the most valuable thing about a turnkey is, you're not going to swing for the fences and hit this home run that you're going to get a $500,000 house for $50,000, but you know what you're getting and you're working with a reputable company like yours, obviously. And because of that you're getting a known entity. That's my perception of turnkey.

Bobby Sharma  16:58  
Absolutely, hundred percent. It's how you value your time. Are you an expert at rehabbing? For example, if I had to do surgery, would I go and learn how to do surgery on myself? Or if I needed to repair my car, if there was a problem in the engine or in the transmission, I'm not going to suddenly go and become a mechanic to fix my car. That's not the point. There are professionals like Mynd, where you have identified the properties, you know all the legal complexities that you have already figured out. And it's city by city, county by county. For example, England, I didn't know there was something called a point of sale. Well, it's important and discrimination laws, and when you're dealing with Section Eight, it's a whole different ballgame county by county. So you have companies like Mynd, that have boots on the ground, they know the local laws, so why have gray hair, like us. For a lot of people, if your full time job is fixing home and you're a professional contractor, that's different. But if you're a professional, like a white color, you're a nurse, you're a dental assistant, you are a teacher, you're a firefighter, whatever, and you have a good paying job and you have a family, and you you want to spend time, then a turnkey is the best way to go. Look at all the help you're providing, help with the loan, help with the appraisal, help with the inspections, you don't have to travel. You can travel out there if you want to go look at it. By the way, all the turnkey properties that I own, I've never set foot in any of them.

Steve Rozenberg  19:05  
All it is, is a mathematical equation, it's an inanimate object. If you look at it that way, it's a business, it runs on its own. It's got its own p&l statement, it's got its own laws, regulations, and that's how it should be. You are the CEO of the company, the property management and everything else is the operating system. Let me ask you this, just so people understand turnkey: what would you say, and I'll blanket this by saying, obviously results may vary, but what is the average price range of an average turnkey, and what kind of returns should somebody in general, if you were to arrange it, that they should plan to expect for one?

Bobby Sharma  19:47  
The ones that I've had the most luck with are between 100,000 and 180,000. Depends on the area, depends on where, but these are typically B- properties. I love B- properties. I do own some Section Eight, but we won't go there, that's a whole different ballgame, a different business model. But I like white collar, nad middle income families , people that have two or three kids. The tenants just want to raise the kids in a good place. So B-, $100,000 to $180,000 maybe in some places it could be $200,000. But that's my sweet spot.

Steve Rozenberg  20:43  
Okay, and what kind of ROI, what kind of return should somebody expect?

Bobby Sharma  20:49  
I think double digits, but keep in mind, people measure that in a lot of different ways.

Steve Rozenberg  20:58  
Yeah, I guess that's a very tough thing, because it depends on what you put down and all that. I have some friends here that have a turnkey operation in Houston. They normally project about an 8% return, but they build the houses brand new as they normally do. They build duplexes that are completely brand new, so they say your maintenance costs are less, you've got warranties on the property. So they say yeah, so your return is going to be less, but you're not gonna have any problems with the property. Again, it's all subjective, what you want to buy, you can get a great deal for $50,000 and on paper have a great ROI, but have a very high tenant turnover, high maintenance costs. You can slice those numbers any way you want to.

Bobby Sharma  21:43  
For new construction, you're gonna pay a premium, but your maintenance costs will be lower, and it's going to be a more desirable property for tenants. You're going to attract tenants a lot easier. I would say, yes, there's a premium on new construction, but usually the properties that I'm invested in, and I think I've seen some other Mynd properties, they're between 20 to 30 years old, but they're completely fixed up. All the major mechanics are taken care of. The advantages, you go to an inspection, you go through a proper appraisal, so there's no surprises. As far as ROI calculations, you look at maybe some projected appreciation, you look at your principal pay down, you look at the depreciation benefits, so tax benefits, you'd look at some write offs, so when you factor all that in, I think it's very easy to achieve, the teens or low teens, or 10-12%, returns on your money, which is so much better than your checking account.

Steve Rozenberg  23:01  
On top of that, what I think people need to realize is, if you do that for stock, you're buying stock, you're getting an asset that someone is paying the debt down for you, you can loan against that asset, you can do all these things, but you still actually own the asset. That's what I think people don't understanding, they say 10% is not that good. Well, you have someone actually paying the mortgage down for you, you own the property that's going up in value and appreciating in time, which is not even factored into this conversation of the equation, but you're getting appreciation of the asset. You're getting all these things, you're getting a tax depreciation of the asset, which you don't get when you buy stock. When you really factor in, it's not just 10%, when you factor in all the benefits you get. I don't even know how you factor in all these variables. I'm sure there's a math computation for that. But it's huge. I have a question for you, though. You mentioned something that I think is important. When it comes to vacancy time, would you say a turnkey actually helps with limited vacancy, or does it not matter?

Bobby Sharma  24:15  
Oh, no, it definitely helps. So when you have a professional property management company that already has tenants lined up, they have a database. They're always building their database of prospective tenants. You don't like this property? Well, I got another one for you. They're already marketing there, they've already got it figured it out. So a good property management company, in case you have a vacancy, they've got somebody lined up to fill in that, that vacancy very quickly versus you yourself, where you've got a vacancy. well, now do you go find a new property manager, do you fly yourself out there, do you do your own turnover? If you just lose two months, because you try to do it yourself, you've lost your whole years, maybe a big portion of your cash flow. But you had a professional and the tenant gave notice, the professional property management companies go okay, no problem, they start marketing that property already. They've got somebody lined up, they know it's gonna take them 15 days to do a turnover, whatever, touch up, clean up the carpet, etc. But they've got somebody lined up for you very quickly. Look, Steve, the most important thing is screening the tenants. if you're a nurse, you're a teacher, you're a programmer, you don't know how to screen tenants.

Steve Rozenberg  25:58  
It's not your world. Yeah, I agree.

Bobby Sharma  26:00  
But a professional property management companies know - hey, give me your credit, work history, criminal record, whatever it is, but whatever is allowed. They know what questions to ask. I think in that sense, again, it's a huge advantage.

Steve Rozenberg  26:16  
Yeah, I think it's funny, because, when I owned my property management company, and we'd have a lot of owners that wanted to be involved in the selection process, which, believe it or not, it's actually not allowed, it's not legal. What people don't realize is, if someone is a resident, and Bobby, you own the property, the resident is authorizing me per their Fair Credit Act to see their credit. They're not authorizing Bobby. If Bobby makes a decision saying, oh, I don't like, this person had a smudge on their credit five years ago, well, that could be discriminatory. And it could be a Fair Housing violation. So when we get owners that would want to be involved, I would say, well, have you taken a fair housing class? You know the seven protected classes? They don't know that. I said, why do you feel that you're educated? And they say, well, I own the house. You own the structure. We own the business that's running inside of it. This is what we do. It's not only what you can ask, but what you cannot ask, the questions. And you and I know both, Oakland, California, they've got rules now that you do a criminal background check on them. You maybe never have owned in Oakland, California, and you start asking them questions that is a violation of their rights. You just opened up a lot bigger problem of not having a application process, a screening process. Again, like you said, why would you want to operate on your own appendix? Hire the doctor? So that's where this comes in. Let me ask you, Bobby, if I was thinking of turnkey or not turnkey how would I weigh the pros and cons of whether I should or shouldn't? What would that be? Let's say you're not a CEO. Let's say you're someone who works, you've got a job, you have a family. Why should I? Why shouldn't I?

Bobby Sharma  28:14  
I think a lot of people, because of so many websites promoting real estate, they're just curious to experiment on their own. They've attended some meetup, or they've attended some seminar, and they're like, I'm going to go do a burst strategy because somebody wrote an amazing book about it. And I'm like, yeah, but if you look at all the steps that you have to go through, unless you're a full time professional, that's all you do, you're gonna run into some really, look, in the real estate business, especially some of the people you're buying from, some of the wholesalers, they don't have the ethical standards.

Steve Rozenberg  29:10  
They're not licensed. There's no state requirement they have to abide by nothing. It's buyer beware.

Bobby Sharma  29:16  
Buyer beware. So a lot of people go, I'm gonna go find a wholesaler, and I'm gonna go find a deal. Well, it may work, it may not work. And I'm a professional real estate investor, and I've been burned. They're transactional, they're in it for a very quick sale. But when you have a company like Mynd, or you're working with a professional real estate broker agent, they have a license, they have a code of ethics that they have to abide by. So you get disclosures, you get all kinds of information that some of these unlicensed folks may not provide. In my opinion, back to your question, I think a lot of people, because they've seen HGTV, they're just curious. In fact, I'm one of them, I've tried it, and I'm like, you know what, it was ok, but the stress level of it, I was doing rehabs in Huntsville, Alabama, abd St. Louis and It was very painful. In hindsight, I should have just gone to Mynd, putting literally like Amazon Checkout, and I would have done more deals, I would have had a bit more streams of cash flow. But back to the question, I think a lot of people, they try it, then they realize the challenges, then they go, you know,what, I'm just gonna do turnkey properties. And I'm one of them, and I'm a big believer in turnkey properties.

Steve Rozenberg  31:04  
You know it's funny, because I'm a big believer, as you had said, when you get involved in real estate, and you want that as a passive income, you're not doing it to have a second or third job. And for some reason, when we think about real estate or money, investing our money, that's something that all of a sudden our ego and our pride jump in and we don't want to look dumb, we don't want to look foolish, we don't want to seem like we're beginners, so we think that we should do it ourselves. And we don't understand that real estate is not a solo sport, it is a team concept. The two biggest challenges I think everyone in real estate or any venture is going to come up against, is knowledge and time. You only have so many hours in the day, and you only know what you currently know, and what got you here in life, or investing or whatever, is not going to get you here. So I think that when you're dealing with turnkey and you're dealing with people, you said it best, when you when you're dealing with a wholesaler, and I bought properties from wholesalers and I've had great experiences, and I've had some that were not so great. At the end of the day, it's on me, because as you said, they're transactional. When you're dealing with a turnkey, to me that's relationship, because they only work off of you coming back and buying more. It doesn't work by you buying one and going away, and reality is, you and I both know, you are not going to build your wealth or your net worth on one piece of real estate. Real Estate only works in volume, which means you have to buy multiple properties to achieve the goals and the dreams that you and I both know what it takes to achieve that, and in a nutshell, I would say that's what turnkey does. They're giving you the vehicle to build your wealth by multiples, without having to hunt and peck, and have all these weird anomalies that happen where there's a tile issue, or this wall, who put this wall here, as you and I both know, are very common. And with turnkey, it's turnkey. I mean it's chip where you are getting everything you need. That my explanation of it.

Bobby Sharma  33:16  
Yeah, hundred percent. It is all done for you. Ultimately what is our goal in life? Our goal in life is to have financial security, and to build a stream of income to supplement for maybe, like in my case, I had a layoff, so I have to figure out ways of saying okay, in future I never want to be surprised. I don't want a single source income. I need, like Robert Kiyosaki, multiple streams of income. If you're a professional, you have your day job, but you start stair stepping into rental properties, so save up some money, when you have enough saved up and you like a certain area, whether it's Houston, whatever Kansas City, doesn't matter, then you go buy another one. Like you said, and I'm a firm believer in this, you cannot just buy one or two rental properties, it doesn't have that much of an impact. But when you're up to 20-30 properties, I'm so proud I just got a text message from a friend of mine, and he's like, hey between me and the wife we have 20 rental properties, we need a portfolio loan, but I knew him, he used to come to my meetups four or five years ago, and he was just starting out, but he and the wife have great jobs, but they bought and now they're up to 20 properties. That's serious money, right? So that's what you should be striving for, your stair step into increasing your cash flow.

Steve Rozenberg  35:08  
Yeah, that's great. And again, one of the things I think people need to realize is, again I go back to nobody wants to look dumb, so they want to get hit this home run right out of the gate. And the problem is, it just doesn't work that way. What ends up happening is nothing happens. You don't accomplish anything, and then you're like, oh, I can't find a deal. Look, you and I both know, Bobby, there's deals out there every single day that cross our plate, whether we notice them, deal with them, and accept that it's another story. But the deals are there. How we approach them and what we do I think is a bigger thing. I think it's great, I think turnkey is awesome, and I think what you do and how you help so many people, I think it's fantastic. And more people need to understand a lot of things, sometimes these things get tainted like wholesalers, you get some bad people and it's tainted, but I know many, many people who've been very successful with turnkey because it just works for them. You as well, you provide a great service for people that I really think they need to understand that, you trust but verify. You look at the numbers and you verify the numbers. When people say they were taken advantage of, I think what they're really saying is they were lazy, they didn't verify numbers and information, and now they're upset about it, and they want someone to blame instead of taking ownership and accountability for the fact that they should have known better and done the right steps, but they chose not to.

Bobby Sharma  36:34  
Absolutely. That's hundred percent correct. You nailed it. Look, we give you all the tools, at Mynd, you're doing so many webinars, there's all these meetups, you can go get the education, it doesn't cost that much to become better educated. You shouldn't just blindly go buy something. But yes, it's like you said, trust but verify. And if you do that, you know the numbers, they're published, they're online, they're standing behind those numbers, then you can go in and and make that purchase. And again, this is not like day trading stocks. This is your building your wealth for your retirement. It's a 20 year game. Somebody asked me recently, when do you plan to sell your properties? And I'm like never, because that's what I bought them for, whether my return on investment is this much or that much, I don't care. Each one generates a certain amount of cash flow. And my goal is to build more streams of income. That's it.

Steve Rozenberg  37:49  
It's simple, don't overcomplicate. Many people want to overcomplicate this. You don't need to. lt's the Monopoly game, like Robert Kiyosaki. A lot of people, they try to overcomplicate it, because they just say it can't be that simple. You can't just own these properties for 30 years. It really is. You can call it something else and put a fancy acronym on it, like you said, house hacking, or the 1% rule. But at the end of the day, you provide housing for people to live, people pay for that, that's pretty much how it works at the end of the day.

Bobby Sharma  38:24  
You could have bought anything off the MLS or anything off of Mynd.com and held it for the past 5, 6, 7, 8 years, you would have been fine. You could have thrown a dart at any city that there was a turnkey property in. And if you had just hung on to it for 5, 6, 7 years, you would have done just fine.

Steve Rozenberg  38:51  
And I think that, with everything going on right now, I don't know your thoughts, but I'm a firm believer that in the next 12 to 18 months, just like in 2008-2010, there will be more wealth created in that time frame than in the last decade. I think that there's going to be some serious wealth created by the people. Somebody said it best, they said I feel like right now there's a frenzy going on, and it's almost like the grand finale of the firework show. Everybody's just going crazy, and it's gonna go dark. And then I added to that, I said you know what happens when it goes dark? I said, people like myself, people like Bobby, put on our night vision goggles, and then we go hunting for the deals that we want because we know what we want, we're taking action, and we're just waiting, just back waiting. There's no race, this happened before, it'll happen again, and I'm just doing what I do. Non-emotional.

Bobby Sharma  39:50  
I love that analogy, Steve. I love it because it is the grand finale of the fireworks and I can feel it. I'm looking at all the posts and people going crazy, but it's coming. We know it's coming. And yes, I love your analogy, that's exactly how I feel. So get some dry powder ready and start planning, start getting educated, but start getting ready to pull the trigger because it's going to be a buying opportunity.

Steve Rozenberg  40:21  
Absolutely. Well, Bobby, man, I love talking to you always. You're such an inspiration for me and other people. If somebody wants to get a hold of you, they want to talk to you about turnkey, qnd I know you've got so many things that you're doing, it's not just in the Bay Area, you're all over. How do they find you and learn more about you?

Bobby Sharma  40:40  
I've just launched a new real estate startup website. It allows you to track your assets and how the assets are performing. It's like an Excel spreadsheet on steroids, if you bought a property, you can track it, but it's real quick, it's called bettercapital.us. So bettercapital.us and my email is very simple, bobby@bettercapital.us.

Steve Rozenberg  41:14  
Awesome. And if they are social media, I know you're on big on Facebook and Instagram. Do you have any handles for people if they want to follow you there?

Bobby Sharma  41:22  
Just look for Bobby Sharma on Facebook. I don't remember my handles now.

Steve Rozenberg  41:29  
I know, I don't know them either. They'll just find you, I'm sure if they go to your website. So bettercapital.us, Bobby Sharma and I know you can find him on Facebook because you and I are friends on Facebook. Bobby again, man, thank you so much for your time today, I really appreciate it. You're always such a wealth of information, especially right now. I think people learning more about turnkey is definitely something they need to understand and consider, because it is a very, very viable option and going to be more viable as time goes on. For those of you again, Mynd Property Management, I want to thank them for allowing us to even do this show. Mynd is in 19 investable markets across the country. So whether you're looking in Seattle, Washington, San Diego, Houston, Texas, Las Vegas, Tampa, Atlanta, Mynd is there. They've got boots on the ground, they have offices, so if you want a partner that has proprietary software, state of the art technology, Mynd is the property management company you want to talk to. You can go to the website, it's www.mynd.co, you go there and talk to them, whether it's helping you find a property to buy, have assets or just have a conversation, that's where you want to go. Everybody on behalf of Bobby, myself and Mynd Property Management, thank you for watching The Myndful Investor and we will see you next week. Bye bye.

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Meet Bobby Sharma

A seasoned real estate investor, Bobby Sharma has been investing actively in various real estate ventures for the past 10+ years. Bobby was a former technology professional that was a member of some very successful startups such as WebEx (acquired by Cisco), Marketo (Acquired by Adobe) and TIBCO. He has been investing in real estate as a passive income generator for more than 9 years. He is currently a private money lender, rehabber and has built one of the largest communities of real estate investors in the Bay Area with over 4,000 members.

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