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EP.1 How Investing in Real Estate Can Help You Leave Your W2, with Jacob Ayers

How Investing in Real Estate Can Help You Leave Your W2, with Jacob Ayers

 

Today’s guest is Jacob Ayres, a real estate investor. Jacob grew up in the city of Oklahoma, raised by his entrepreneur parents. His dad owned bars and convenience stores, while his mom had a small business. He studied Engineering in college and went to Houston, Texas. During his first paycheck, he became interested in personal finance, which brought him to the path of real estate investment. In this episode, Jacob shares his journey in real estate investing, the importance of goal setting, and his plans.

 

Overcoming Fears and Challenges

[4:09]

At the time of Jacob’s first year of work, he was thinking about managing his finances and he was thinking about how to prepare for retirement. The idea he has in mind is to have enough money that even after dying, he still has money, or his money runs out before he dies. Neither of the two is a great idea.

 

He tried to invest in the stock market using his own money. He didn’t find it exciting. Then he discovered real estate investing. His first purchase was a single-family house in Oklahoma. He experimented on that property for several years. He saw the power of real estate investing and decided to start his real estate journey.

 

[9:31]

Jacob kept in mind the worst thing that could happen during the journey and how he would overcome it. He was aware of the different challenges he could face. He is on the quest of just trying to figure things out as time passes.

 

How did Jacob get his first deal?

[12:07]

Jacob grew up around the area, which allowed him to understand the property through word of mouth. The deal wasn’t much, but it was a good start. Many investors want to hit the jackpot on their first deal, but it doesn’t need to be that way. You just need to get started and that will lead you to the next deals.

 

One of Jacob’s Deal that is Full of Challenges

[13:22]

In this deal, Jacob found an off-market, eight-unit property. He discovered this property while he was driving around the area. The property was in a terrible state at the time, and he wanted to buy the place and fix it. He started by reaching out to the owners through public records and made a deal through seller financing where he will be making monthly payments and no down payment. He got the property for $160,000. Upon purchasing, he renovated the area for about 18 months. Now, it is currently earning about $2,000 - $2,400 a month. Jacob mentioned that there are a lot of deals out there. Find ways and act. Don’t let fears and challenges stop you.

 

[17:30]

In that deal, he had to pay interest of about 4.75%. This was during the beginning of 2020 when COVID-19 was one of the risk factors he had to face. This didn’t stop him, and he still pushed through. Jacob mentioned that we must realize that some opportunities are hidden from plain sight.

 

Managing Properties

[19:11]

Jacob self-manages his properties. He also has a ground property manager or partner who is his dad. His dad helps in managing these properties. Jacob mentioned how his systems and processes improved throughout the years. He integrated screening measures or online rent payment tools, and it is now easy to manage from afar.

 

Jacob’s Investing Strategy

[20:15]

Jacob has submarkets in Oklahoma and some properties in Texas. These markets are strong and stable cash-flowing markets with the opportunity to have population and job growth. Jacob classifies himself as a cash flow investor with a preference for small multifamily property.

 

[21:21]

Jacob’s first property was sold at a loss. He believed that the person who leased the property would purchase the property. In the end, they said they weren’t going to buy it. Jacob thought that they were taking care of the property after all these years while it was on lease with them. Unfortunately, they didn’t. The property was in terrible condition when they left, and Jacob had to renovate it all over again and sell it at a loss.

 

[24:32]

Jacob likes to use seller financing. However, sometimes he doesn’t use it, especially if the owner has an existing mortgage on that property. In this case, he would use the master lease option. Jacob has personally done various strategies, including conventional financing, creative financing, seller financing, etc. His favorite is seller financing.

 

What is Jacob Currently Working on?

[26:52]

Jacob is currently trying to improve and grow, transacting with larger multifamily deals. His current focus is on purchasing 20 to 60 units apartment deals. He wants to be a legitimate business, and he is now trying to raise capital through family, friends, and investors. He wants to help people and have others join him in his journey in real estate investment.

 

Controlling Your Future

[30:05]

Jacob wants to control his financial future. There are so many ways to prepare and invest for your future. You just have to figure out what you want because you can’t have everything. Once you figure out what you want, take small steps to get there, and you’ll be surprised that you’ve already reached your goal.

 

Goal Setting

[32:05]

Jacob believes in the power of goal setting. He mentioned that it is possible to be anywhere in life, doing anything you want. However, without setting up your goals or having your vision in life, you wouldn’t be able to get there. If you have the intentions, goals, and visions, there is no doubt that you’ll achieve success.

 

[34:22]

There’s a difference between having your goals written down and simply dreaming them up. Jacob personally writes his goals down, which serves as a vision board. Write your goals down while simultaneously doing things to achieve that goal. Do something every day to achieve that goal, and eventually, you’ll be able to reach your goal.

 

Jacob’s End Game

[40:03]

Jacob wants to achieve financial freedom. He defines financial freedom as having a passive income that will be able to pay for your living expenses. This includes mortgage vehicles, insurance, travel trips, and more. If your passive income already covers those expenses without thinking much about it, you already have financial freedom. Jacob wants to be financially independent. He wants to retire, but he also wants extra money to support his family or give back to charity.

 

Jacob’s Books Recommendations

[43:27]

Jacob has recommended some books in different categories. These are the following:

  •         Rich Dad, Poor Dad by Robert Kiyosaki
  •         Vivid Vision by Cameron Herold
  •         Pitch Anything and Flip the Script by Oren Klaff
  •         Getting to Yes by Roger Fisher, William Ury, and Bruce Patton
  •         Never Split the Different by Christopher Voss and Tahl Raz
  •         Ken McElroy Books
  •         Tom Wheelwright Books
  •         Garrett Sutton Books

 

Check out http://jacobayers.com/ to learn more!

 

You can also follow Jacob on social media:

Facebook | Instagram| LinkedIn| YouTube

 

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