#159: Retirement Money with Turnkey Investments

Welcome to The Accelerated Investor Podcast with Josh Cantwell, if you love entrepreneurship and investing in real estate then you are in the right place. Josh is the CEO of Freeland Ventures Real Estate Private Equity and has personally invested in well over 500 properties all across the country. He’s also made hundreds of private lender loans and owns over 1,000 units of apartments. Josh is an expert at raising private money for deals and he prides himself on never having had a boss in his entire adult life. Josh and his team also mentor investors and entrepreneurs from all over the world. He doesn’t dream about doing deals, he actually does them and so do his listeners and students. Now sit back, listen, learn, and accelerate your business, your life, and your investing with The Accelerated Investor Podcast.

Josh: Hey, guys, welcome back to Accelerated Investor. Thanks so much for joining me today. I am always excited, honored, thrilled that you’re joining me. Whether you’re in the gym, whether you are out for a walk, whether you’re in the car listening to this, I really appreciate it and would just encourage you to share this all-over social media. Don’t forget to join our private Facebook group of all of our Accelerated Investor members. Go into Facebook and search Accelerated Investor and make sure you join the group. Listen, today I am interviewing Eric Martel. You might remember back in February, we released a podcast with Antoine Martel. Antoine is Eric’s son. They run a turnkey investment business. 

Josh: And one of the reasons why I wanted to interview him is he’s investing in my market in Cleveland, Ohio. He’s investing and buying approximately ten turnkey rental properties per month. So in this interview, you’re going to hear about Eric strategies for finding deals. You’re going to hear about his strategies for securing the financing to acquire these turnkey rental properties. We’re going to talk more about his return on investment and how he’s focused on return, on investment of buying these properties, doing the value add improvements, selling them off to turn key investors so that he can take the cash, basically what he calls a return on equity and take that equity, realize the equity and then put that back into his business so we can do the next deal. 

Josh: He will also talk a little bit more about his book, which you can find at MartelEric.com/book. And this is just really an exciting interview. You’ll hear all about the entire process for buying or renovating, selling, securing the insurance, securing the funding for turnkey investments. So whether you want to be a passive investor or whether you want to be an active cash flow investor focused on turnkey rentals, you’ll love this interview with Eric Martel. 

Josh: So, Eric, welcome to Accelerated Investor, we’re super excited to have you. How’s it going today? What are you up to? 

Eric: Very good. Well, thank you for inviting me. What are we up to? I mean, we’re looking we’re just expanding our business and trying to close down. We have a lot of business that’s closing down the next couple of months, finishing the year strong and then planning for next year. So we’re really planning to grow our business, our turnkey rental resale business next year, at least another 50 percent next year. That’s the growth we’re expected. So, yeah, so we’re working hard on that. 

Josh: Nice. So you have a book that’s come out where you teach a little bit more about you’re an author speaker, have a popular YouTube channel. You break away from the rat race with real estate. You’re in the turnkey business. So for those people who are a part of our audience that don’t understand or don’t know what turnkey investments are, tell us about that. Why are you excited about it in this market in particular? And help us understand what exactly are turnkey investments for both single family and multifamily properties? 

Eric: Yeah, so I think the key I mean, my goal is really to preach people that their number one goal should be to achieve financial freedom. I mean, this is something that’s inevitable. We are going to want to stop working at one point. We want to retire, want to spend more time with family, and you should start working on it. Now, that whole concept of saving a lot of money for 50 years and then retiring at sixty or sixty-five. This is not going to work out for most people when kids are going to be, especially with a pandemic, right the 401K is going to be, you know, it’s going to be affected. Even your corporate pension plans are going to be impacted by what’s going on. They were already in trouble before, but now with the pandemic is just going to make it worse. 

Eric: So that’s the number one thing, is that people should really focus on financial freedom. And to do that, the best way to do that is passive income with rental properties. When you get started, you don’t have that much time. So turnkey is good. We sell these single-family rentals. We buy distressed property, we renovate them, make sure they’re good, clean that the you know, they have good mechanics like the water heater and stuff like that. So we really do a good job of renovating them. We rent them out and then we sell them to turnkey investors who are trying to build this passive income portfolio. So it’s already rented, you know what the rent is, you know everything about it. And basically it’s cash flowing from day one. Very easy. 

Josh:So when most of your buyers are buying, I imagine a lot of these people probably have a day job. They probably make an income. It could be as a teacher, could be as a nurse, could be as a doctor or an attorney. And they’re looking at real estate to diversify their portfolio, but they don’t necessarily want to do all the steps that go into it, finding deals, hiring contractors, renovating the deal. They just kind of want to do the last step, which is deploy their money and get a return. So describe sort of a typical deal. Give us some numbers. Typical kind of purchase price, renovation after repair value. What are people buying them from, from you guys? What kind of returns are they getting with from the rents and the net income that comes from that? 

Eric: Yeah, so and you’re exactly right. I mean, that’s one of the reasons why I’m saying that people that if they want to achieve financial freedom, they should go and start with turnkey get because you’re busy with your job. You don’t have time to find contractors and get multiple quotes from contractors and all of that. So get turnkey get your passive income portfolio going. Then after that, then you can once you achieve financial freedom, then you can do whatever you want. And then invest in all kinds of other real estate strategy. For us that the markets that we selected, I mean, we wanted to have cash flowing markets. So we looked at market states that were landlord friendly, and cities that had good growth, sustainable growth, low unemployment and all of that. And Memphis and Cleveland were the two cities that we yeah, we found it particularly appealing to us. Good business diversification as well. As, you know, I mean, you invest in Cleveland, so it’s a great market. Amazon is investing in their Cleveland clinics. That’s in there. That whole health tech corridor. 

Eric:So these are two very strong kind of industry kind of moving forward. The health tech. Everything that relates to the online retail is these are strong markets moving forward. So we’re pretty excited about Cleveland. Memphis is the same thing with St. Jude’s Hospital. With, you know, with. Also, FedEx is there and, you know, so these are the good markets and then so the typical point, the purchase price for our real estate investor is about eighty to one hundred thousand dollars. So that’s pretty much where. 

Josh: That’s the end price what the turnkey buyer pays. When the price of the product is all done? 

Eric: That’s right. OK, and then the rent is around eight hundred to nine hundred and fifty around there. We connect our real estate investor into with the lender, with the property management company. So we handle all of that. We do all the introduction to the insurance company. So you know, we understand that they don’t have time to do this. So that’s why the they’re buying from us. And then when it’s all said and done, they normally end up with around two hundred and fifty-three hundred dollars. Net cash flow at the end gives them about 15, 16 percent cash on cash return after they do after financing after they put their 20 percent down. 

Josh: Got it. So when you say cash and cash don’t need the audience to understand. So Eric and his team come in. They buy a property, let’s say, for 60, 70 thousand dollars. They renovate it. It’s in great condition. Sell the property, let’s say, for one hundred grand. And Eric, just jump in here. If I get any of these numbers wrong, somebody buys it. A turnkey investor buys it for one hundred grand. 

Josh: It’s been fully renovated, fully tenanted, took care of the mechanicals, updated all the plumbing, electrical flooring, kitchen, bathrooms, paint, carpet and roof windows, et cetera, et cetera, whatever it needed. Somebody comes in, buys it for a hundred grand. Typically, what they’re doing is probably getting a rental loan from one of the rental lenders or local banks for 80 percent of that purchase price. 

Josh: They’re putting down twenty thousand dollars plus or minus with some closing costs. Right. So that twenty thousand dollars down, it could be eighteen thousand dollars down, could be twenty-two thousand down, whatever the number is. And then, as Eric described, they’re getting 250 to 300 hours per month. So somewhere between, let’s say, twenty-five hundred to four grand of net free spendable cash flow. That’s after expenses and after debt service. That’s what he’s describing. And they’re getting maybe a 15 to 20 percent cash on cash return because they put up twenty thousand of cash. They’re getting back maybe two to four grand of cash. That’s what we call a cash on cash return and oh, by the way, which Eric probably will get into, they get the benefits of real estate, which means appreciation, principal pay down through the mortgage being paid and write offs on their tax returns, the depreciation. 

Josh:So if you get a net spendable cash on cash return, which most people, when they look at mutual funds, they look at stocks. Right, Eric? They’re looking at I’m going to get a nine percent return. Well, that’s a nine percent cash on cash return. You’re looking at basically 50 percent better or a hundred percent better than that. And all those extra benefits, which is appreciation, depreciation, principal pay down. So just describe that. So if somebody wanted to invest in one of your turnkey deals, I mean, I sort of just described it, but in your words, what else did I miss? What other benefits are there? And again, this is why people work with you.

Eric: I mean, so for me, I mean, you’re exactly right. Obviously appreciation. And, you know, I live in California and I was in the San Francisco Bay Area and now I live in L.A. And here they all they love the appreciation aspect of it. They are always thinking this is, you know, they forget about the cash flow. So they actually go negative on the cash flow in order to get the appreciation. But the appreciation here is about eight or nine percent some time. And actually right now we’re seeing kind of like a slow down on that. But I mean, you invest in Cleveland and the markets that we’re investing in. I mean, the houseis the same house that we sold last year? We sold that like we’re selling them now the same kind of houses, like ten percent more in the markets that we’re in. So we’re seeing a very strong appreciation in the markets, in markets like Cleveland. And that is very comparable to what we’re seeing in California. So that’s one aspect of it. 

Josh: But you’re also getting the cash flow in Cleveland. 

Eric: Exactly. In Cleveland on top of that, you’re getting the cash flow. So that’s just fantastic. I mean, you just get cash coming back and then that cash is instead of flowing directly into your normal ten forty your normal income tax form, you can also deduct the depreciation from that. So on one hundred thousand dollars you divide by twenty seven and a half and that’s, that’s almost offset your entire net cash flow from, from the property. So you know. You basically are getting the cash in your bank, but you’re not paying taxes on that cash for the most part. So that’s phenomenal. And for me, I’m looking at I’m looking at a very long, very long-term horizon. So I’m building that this company for me to retire. I’m building this company for my children and my grandchildren. And that’s what I’m doing. My investment horizon isis really just like one hundred years. That’s what I’m thinking about. 

Eric: I want to have these single-family houses to be positioned in a very good market that I think is going to they’re going to grow and that, you know, 50 or 75 years from now, that’s not going to be a single house anymore. That’s going to be, you know, a major, you know, like maybe a bigger suburb or an extension of Cleveland or, you know, more in the downtown core in Memphis and stuff like that. So the value is really going to significantly appreciate over time even more than the regular eight or nine percent that we’re seeing right now. 

Josh: And even if you don’t get any appreciation right, you still have the cash on cash return, which is going to be north of 10 percent, potentially 15, 20 percent, and you have the principal pay down. So if you took out a 30 year loan or a 15 year loan, that property’s eventually paid off. It’s a real asset that you can sell and you have the write offs in your tax return. 

Josh:So most of that profit and income is sheltered from taxes, which using all of those stocks, bonds, mutual funds, just cannot compete. The only benefit to owning stocks, bonds, mutual funds is liquidity. Right. So there is we do have to recognize that stocks, bonds, mutual funds, you could sell in a heartbeat. You could sell them overnight, turn that into cash in the next five minutes versus real estate is a less liquid investment that takes you takes a minute to find a buyer, let’s say 30 days to find a buyer, and then it takes that buyer. Forty-five days to close. That might take three months to create liquidity. So that’s the offset. But a lot of people are looking to put this money in play, right, Eric? And they’re looking at just kind of set it and forget it. So they’re not looking to get liquid anyway. 

Eric: That’s right. Yeah, exactly. And I think if you’re getting this is the advantage between the single family and multifamily as well. I mean, if you’re just getting into real estate, you get a single-family home and you can really slowly ease your way into a real estate investor. And then if you feel like you want to kind of like reposition or change something or you want to go into some other types of investment, you can you can sell one house. You don’t have to sell. If you have an apartment building, you have to sell the whole thing. But with single family, I mean, you need some money for some things, some other investments you want to do or whatever you want to. I don’t recommend it. But you want to buy a boat. Sure. You know, then you can you can sell a house and buy a boat and do something like that with multifamily or commercial. Obviously, it’s a lot harder to do. You have to get a bigger boat then if you sell. 

Josh: Yeah, but you also got to sell the whole portfolio at the same time. Right? I mean, we’re in that middle of that now. 

Eric: We’ve got exactly that. And you can you can still do the 1031 exchange. You have all the same benefits that that you would have with an apartment building. But you would while most of them. And then but you can still do a 1031 exchange to move these the portfolio into something bigger. And if you decide to do that in the future. Yeah. 

Josh: So, Eric, let me ask you some questions about your model. So some questions around how do you find deals, how to manage properties, how do you find investors? So you live in California. How are you finding deals in Memphis, Cleveland, St. Louis, some of the markets that you operate in, how are you finding deals to acquire in order to turn them into turnkey? 

Eric: Yeah, so we you know, we’re buying about 10 houses a month and about selling the same. So we currently have like we’re rolling. We have like about 50 houses in our portfolio right now that we’re turning in, turning. Sell 10, buy 10 basically every month. And then we have the our typical turnaround is about three months. 

Josh:So you’ve got some products in the middle that’s being rehabbed. 

Eric: Yep, exactly. Exactly. So we have to when we have this kind of volume, you and you would know this, but you have to kind of like you hit everything. We obviously look at the MLS. We also look at pocket listing. We have some good the realtors that are, you know, that they’re very knowledgeable and didn’t know which market to look at. They knock on doors and said, you know, you want to sell your property. And actually, in January, we also started a wholesaling company, a whole selling operation called Rocket offer. And then so they’re also doing all kinds of calling and all kinds of reaching out to the owners in in the markets that we’re interested in. And we’re also buying from wholesalers. So wholesalers that have a deal that that works for us. I mean, we are we’re always interested in looking at deals. And if they work for us, then we would definitely buy from wholesalers as well. Got it. So, yeah. Yeah. You hit on all cylinders. You have to do it. You have to do everything. And yeah. 

Josh: Eric, what kind of markets are you looking at. Are they A class markets with white collar? Are they B class markets? A little mixture of white collar, blue collar. C class markets where it’s more blue collar and you and you’re adding in, you know, not high crime and not you’re not the hood, but it’s there’s a little bit more crime. There’s a little bit lower income or the D class markets where the cash flows can be super high. But you’re dealing with some more lower income and higher. A crime type of markets, which market would you describe your business operates the best in?

Eric: We like to the C and B class. Typically in any kind of downturn the A Class and luxury kind of level, they tend not to cash flow and then they tend to also have a harder time. And we’re seeing this right now like a harder time renting, finding tenants in the end luxury kind of category. But the B and C, these are very solid kind of market. We and the people that we, the tenants and all of that, I mean, they are typically pretty solid tenants. So you have a little bit more potentially some issues here and there. You do have some Blue-Collar Worker that, you know, they lose their job and all of that. They’re a little bit more impacted. But in general, I mean, these are good, hardworking people. They maintained the properties pretty well in general. And we don’t have too many problems. I mean, we still do a good background check and all of that. We don’t do currently like Section eight. So we just focused on hard working people, which sometimes they’re called like workforce housing. So that’s kind of what we’re looking at. 

Josh: And Eric, let me ask you, how are you finding your investors? You really probably have two types of investors. You probably are paying cash for a lot of these properties. You’re buying ten properties a month. So you may have a line of credit from a bank or you may have private investors that are giving your company the money to acquire and rehab the property. That’s one type of investor or one type of financing. The second type of investor is the investor who’s buying the end product, who’s putting it into their portfolio and it’s turnkey. So let me understand those two buckets, how you’re financing your purchase. 

Eric: And then secondly, how you’re finding the end buyer for most of the purchases are financed with our own money or we have private money lenders. So these are private individuals that are lending us money at and then we’re paying them interest only on every month. And then we have a little bit less of that. We have more like some joint venture investors. So people that are going to share in the risk with us. So and then they provide most of the fund. Typically we do like 90 percent of the fund, 90 percent of the purchase price and rehab. And then we provide the rest and then we split the profit. Fifty fifty. Basically. So if people have an appetite for that, the returns are a bit higher. But also there’s share a little bit more in the risk. The PML this is like, you know, if you want passive income with no worries. So this is another one where you basically get a check every month and you don’t have to worry about it. It’s consistent and pretty low risk. And so that’s on the investor, on the on the turnkey investor, the buyers. 

Eric:So these are, we do a lot of marketing and our strategy is really for it to position myself and my son also Antoine Martel is also kind of like going out there. We want to position ourselves as experts in in real estate. And I’m really going after the demographics of the baby boomers and earlier the Gen X and all of that. Who are, they have a family and all of that. And then they want to, they have to think about retirement. They have to think about building a legacy for their children. And so that’s the audience that I’m kind of going after and help them prepare to make sure that they reach their goal of achieving financial freedom and retire early. 

Eric: My son is reaching out more towards the millennials. Millennials are a little bit different challenges they have high student debt, they have all of that. If they live in California, they can’t buy a house. They’re constantly, it doesn’t matter how fast they’re saving money for a down payment for a house. The house goes in price faster than they can accumulate the down payment. So but they want to invest in real estate, so they invest with us on that. So we talk about these things and basically our marketing and the books and all of that that helps bring people that want to do this. They want to build a passive income portfolio. You see the value in what we’re doing. And then they want to buy these. They want to get started, basically. 

Josh: Yeah. So we had Antoine on this podcast back in February. This is pre-covid. We talked a lot about his strategy of using social media, specifically Instagram, Facebook and Twitter and things like that, for him to build up his YouTube channel and those kind of things in order to appeal to the millennial investor who wants to do turnkey rentals and own apartment buildings and those kinds of things. You were working probably with a different audience that maybe looks a little bit more like you act a little bit more like, you know, he’s appealing to his audience. Younger generation questions. Yeah. Yeah. 

Josh: And so your audience, there’s a it’s a very different marketing approach, whereas the younger crowd is probably on social media. They’re probably on the Internet, they’re probably on their mobile device. You’re appealing to maybe a little bit more older, mature crowd. What types of marketing? Obviously, podcasts will work, ebooks will work. What other types of strategies are you guys using to, again, acquire eyeballs and marketing to those? Because there are two very different audiences. So I guess my question is, is how does your marketing differ from his marketing? 

Eric: Yeah so my marketing is more like on LinkedIn, so I do a lot of it on LinkedIn. I also am a contributor. I’m a contributor on Forbes magazine, on the part of the Real Estate Council there. Also writes for entrepreneur and Business Dotcom and a bunch of other online magazine as well, like Disrupt magazine. So I have quite a few articles there. And so that’s one of the ideas. That’s how I reach them. Facebook is also pretty big on my side as well. So I have a Facebook group in there and a page that I market on that. Market on Twitter, and I do a little bit on Instagram. But yeah, I mean Antoine is the king of Instagram, that’s for sure. And finally YouTube. So I do a lot of YouTube and try to do a lot of YouTube videos and all of that, because I think there’s a lot of a the people, my followers actually go and they listen to a lot of YouTube and podcasts as well, so that’s the other thing. 

Josh: So still, you’re just still using a lot of the technology platforms. I was wondering if you would say something like we’re using direct mail or we’re using more of an offline strategy like physical newsletters or doing any kind of like live events where some people will come for dinner and or drinks or some sort of social hour and do some of those types of things. But it still sounds like even though your audience and Antoine’s audience are very different, you’re still using a lot of the technology platforms like podcasting, YouTube, LinkedIn, to still create the audience that’s helping you doing your private lending and ultimately buying your own product as well. 

Eric: That’s right. So, yeah. So that’s exactly why people are still there, like even the boomers. I mean, of course, there’s some boomers are not really on Facebook, but boomers still have a strong presence on Facebook. The Gen Xers, they’re definitely there. And yeah. So I can definitely reach out to them through Facebook and LinkedIn. They’re very focused on their professional profile and all of that. So I do a lot of post on LinkedIn and it kind of like drive them to the other platforms that that I have as well. 

Josh: And do you ultimately have how are you capturing the lead, Eric? Antoine probably answered this, by the way. Antoine’s episode was episode number ninety seven was released back in February, February twenty first of 2020 right before covid hit. But you can check that out as well. So you can kind of compare what dad and son are doing differently and how they compare. So check that out. Episode number ninety-seven. But is there a platform that you’re using or some sort of opt in page or software that you’re using to have your investor sort of opt in for information? Is there a website that you’re using or how does it work for you to capture the information? First name, last name, email, phone numbers. You can follow up with them and show them some deal flow. 

Eric: Yeah, I think it is critical to have a CRM like a customer relationship management software. So we’re using Zoho and we’ve customized that and automated a lot of the processes inthat CRM software. So as soon as they get in to get in as a lead, we have a couple of people, salespeople that are kind of connecting with them and engaging with them to see what they’re looking for. Our first step really for that whole process is about education. It’s about educating. And this is what Antoine and myself are doing. We’re really out there to educate people, make them aware of what is going on and what we think they should be focusing on. And then once they get into the lead, as a lead in our system, then they get every week. We send an email campaign on Tuesday with an article, a topic, and on Thursday we send another one about a property that we have for sale to kind of be familiar also with the numbers. And all of that is in the CRM. We also have even on our website, we even have as soon as somebody goes on our website, we get notified and we can actually go and chat with them on our website automatically creates a lead to have any questions and stuff that we can answer them as well. 

Josh: So, Eric, last question is, is now that you’ve seen this kind of success in building this, you’ve done it virtually. There’s probably some mistakes you’ve made along the way. There’s probably some things you do different. What kind of advice would you give? You’re maybe less experienced self or what kind of advice would you give your son if he was starting over? Or what kind of advice would you give our audience? And some lessons you’ve learned along the way that’s provided you a lot of success that you’ve had? 

Eric: Well, I think the number one is about the mindset is about but a more flexible mindset and kind of step away from that nine to five job. I mean, we’re driving more and more towards the gig economy. It sounds interesting and exciting, but in fact, that means an economy where you get paid a certain amount of money, but you have to pay for everything else. You have to pay for your benefit. You have to pay for your health care. You have to pay for your equipment and all of that. So and then when that’s turned off, when the salary or your income turns off or you have the ebbs and flows of your income, you’re it’s a difficult situation. So my first one is about the mindset. It’s really about realizing that, yeah, you may have a nine to five job right now, it may sounds like it’s a secure job. We’ve all had the secure job where, you know, you go in your manager’s office and you say we don’t need you anymore. 

Eric: So, you know, nothing is secure. So you think about that and prepare for that time when you want to be in control of your income. And this is why, you know, as I mentioned earlier, it’s like your number one goal should be financial freedom. You need to start working on this as soon as you can. And so that’s what I would have I would have said. And my first apartment building I bought that when I was 18 years old. And at that time, my mindset was like it was just like something that I was I had this mentor and I said, OK, this is something that I can do. I’m going to learn something great. And I never thought, oh, this is going to be like I’m going to build a passive income portfolio and I’m going to be I won’t have to work or anything like that. That’s not my thinking at the time. 

Josh: If I had to tell myself, talk to myself in the in the past and say, you know, you need to kind of focus on that, this is the thing that you need to focus on and build on that portfolio and all of that. So there was a lot more learning that I could have done at that point to. You know, learn about using other people’s money and build the portfolio and all of that. 

Josh: I mean, imagine, Eric, if out of all the deals that you’ve done, all the deals that I’ve done, if you started from the beginning and sort of sacrifice, sacrificed a little bit of the immediate gratification of flipping a house, wholesaling a property, and kept every single one of those deals and manage them and babysat them and kind of put all your eggs in that basket. And then, as Henry Ford said, put all your eggs in one basket and then watch that basket, make sure that you watch that basket. Imagine if we did that from the beginning. Many people get into real estate thinking of I want to make a lot of income, I want to get out of debt, which is great. 

Josh: But the best way to do that to satisfy today’s needs and the long-term needs is to buy and hold, buy and hold, buy and hold, invest for the long term because that piles up and you make this equity, this profit in perpetuity and also pay very little tax. So that would be the advice I’d give to my former self is just hold everything you can. Don’t sell a single property, keep them all forever. And you know, we have a huge portfolio of three thousand units of apartments, but we would have a much bigger portfolio and been financially independent, much younger. 

Eric: Yeah. I mean, that’s a good advice for me. Like, I, I really focus on a couple of things. I focused on the returns. That’s very important. And also a return on equity. As you own a property and the property increase in value, you end up with equity. And I want to make sure that I leverage that equity as much as I can. So that’s something that’s very important. And, you know, this is one of the reasons why I sold my primary residence a couple of years ago because I had a massive amount of equity in there. And I said, well, I want to leverage it. I want to do something with it. I had maxed out the line of credit. I had maxed the mortgage was I could have extracted maybe an extra one hundred thousand dollars or something like that, but that was not enough. So we decided to sell it. And that really jump-started Martel turnkey at that point, because then we were able to, you know, triple what the amount of the volume that we were doing, the rehabs and do a lot more with our cash. And that’s also when we got started into the apartment buildings in Memphis. So that’s kind of what I’m focused on. 

Eric: I’m kind of I like the buy and hold, but I also focus on the return on investment and the return on equity. This is why right now when we’re looking at our apartment buildings and in Memphis, we’re looking at the return and then we’re thinking, well, we had this equity. So we’re trying to we want to extract the equity out of that. But we’re saying, like, if we can get the max equity out, if we sell the property and we invest it back into Martel turnkey, the returns is going to be significantly more than owning that apartment building. So that’s why we have a couple of apartment buildings that we’re selling right now in midtown Memphis. But that’s because we have this opportunity with running a turnkey business. Right. So we have a different thing. If you’re just looking at building a passive income portfolio, of course, we wouldn’t be selling that. We would just be holding on to it then. 

Josh: Fantastic stuff. Eric, listen, I understand your book is out. People can get access to your book. Where would they be able to find that and working already and connect with you. 

Eric: So obviously it is. I think I have a copy here, you know, Stop Trading Your Time for Money. You can find it on Amazon, obviously. So, but if you want, you can also do go to MartelEric.com/book. If you can’t find it on Amazon, then there’s a button at the bottom. You can just click on that and it’s going to bring you right to the book on Amazon. 

Josh: Fantastic stuff. Well, Eric, listen, thanks so much for joining us today on Accelerated Investor. I had a blast. I had a blast with your son getting to know him. It’s great to meet you on the other side of this thing here at the end of the year. Don’t forget my audience to check out episode number ninety-seven with Antoine. And don’t forget to leave us an amazing review. If you enjoyed this interview, share this all over social media. Eric, thanks so much for joining us today on Accelerating Investor. 

Eric: Thank you. 

Josh:So there you have it. I hope you enjoyed that interview with Eric Martel. Don’t forget to check out the interview I did with his son Antoine. It’s episode number ninety-seven. If you enjoyed this interview, please go in wherever you check out your podcasts, leave us a rating and a review. Also, let me know how we did leave us a comment. If you leave us a rating in review, also take a screenshot of that. Into my office, we’ll send you a free accelerated investor T-shirt. Guys, listen, there’s a lot of places you can go to get your information. I’m always so honored, so excited, so humbled that you would take the time to learn this content and information from me and the guests that we have in the solo cast that we do. 

Josh:So don’t forget to check out again episode number nine seven with Antoine. We’ll put it in the show notes. Also grab Eric’s book, grab Eric’s book at MartelEric.com/book. Finally, don’t forget to go into our private Facebook group only for our Accelerated Investor members. Also, if you need more coaching to build your income portfolio, recruit private investors, go visit JoshCantwellcoaching.com. Thanks for being here today on Accelerated Investor and we’ll see you on the next episode together. 

Hey, Josh here. And do you want to win a free Accelerated Investor T-shirt? All you have to do is give Accelerated Investor our podcasta rating and a review on iTunes. OK. Do that now then send us a screenshot on Facebook, Instagram or Twitter. What we’re going to do then is every week we’re gonna pick our favorite rating in review and we’re going to send that person a free T-shirt and maybe again, some other cool fun stuff as well from Accelerated Investor. So, again, don’t forget to take a screenshot, leave a rating review, take a screenshot, send it to us so we know exactly who you are. And then once a week, every week on the podcast, we will announce a new winner. Don’t forget to take a screenshot and send it to us so we know exactly who you are. We’ll announce a new winner every week.

You’ve been listening to Josh Cantwell and the Accelerated Investor Podcast. Leave a comment on our iTunes channel and let us know what you want to learn next, or who you’d like Josh to interview. While you’re there, give us some five-star rating and make sure to subscribe so you can be the first to hear new episodes. Follow Josh Cantwell and his companies, the Strategic Real Estate Coach and Freeland Ventures on all social media platforms now and stay up to date on new training and investment opportunities to start your journey toward the lifestyle you’ve always dreamed of. Apply for coaching at JoshCantwellCoaching.com.

You might recognize the name Martel Turnkey because I interviewed Antoine Martel back in February. Today I’m talking with his dad Eric about his newest book Stop Trading Your Time for Money, and we discuss how he leverages turnkey properties into better retirement income for investors who want steady cash flow into their senior years.

As a company, Martel Turnkey focuses on buying, renovating, selling, securing the insurance and securing the funding for turnkey investments. They literally do everything for their investors so that investors can pay a down payment and walk away with a property that’s cash flowing from day one.

From California, Eric runs his business with his son Antoine, and they scout out markets that meet their criteria for a stable market. They look for:

  • States that are landlord friendly
  • Cities with sustainable growth
  • Areas with low unemployment
  • Cities with good business diversification

For his investors, Eric provides a few different options. The usual turnkey operation offers a 16% cash on cash return, but for some investors who have a bigger appetite for risk, Eric can structure a deal with nearly a 50% return on investment.

Eric has some great points about the flexibility of single family investing that just aren’t there in multifamily. And turnkey rentals also provide a great entry point for the beginning investor who still has a daytime job and is just beginning to explore real estate investing. We talk numbers as Eric shares what a common deal structure looks like on the investor side.

Unlike the stock market, turnkey rentals give you cash flow and all of that real estate depreciation that helps you at tax time. Check out Eric’s YouTube channel for more tips on this investment strategy.

What’s Inside:

  • The different strategies that Eric uses to reach out to his investors.
  • The cash on cash return rate for Eric’s turnkey rentals.
  • Why Eric’s investment horizon is one hundred years long.
  • How they’re financing their purchases or finding their buyers.

Mentioned in this episode​

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