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HPR 100 | Turnkey Investments

Heartrepreneur® Radio | Episode 100 | Outstanding Monthly Cash Flow Returns On Turnkey Investments With Jeff Schechter

HPR 100 | Turnkey Investments

Looking to produce outstanding monthly cash flow returns on your turnkey investments? It’s not impossible! Jeff Schechter, CEO and Co-Founder of High Return Real Estate, LLC, shows you exactly how you can achieve this goal. Together with Jack Gibson, his co-founder and the company’s president, High Return Real Estate has over 80-plus turnkey properties that are producing outstanding monthly cash flow returns. Jeff shares a sneak peek into the world of turnkey investments, and gives strategies, tips, and practical advice for real estate investors looking for passive income. Jeff also owns a private consulting practice where he helps people realize their full potential in all aspects of life.

Jeff Schechter’s love for real estate investing began in the 1980’s, when he began flipping homes that he lived in. Since those early days of torn up kitchens and bathrooms, Jeff has bought and sold many properties, and remains an active investor to this day.

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Outstanding Monthly Cash Flow Returns On Turnkey Investments With Jeff Schechter

I have with me Jeff Schechter and he has a partner, Jack Gibson. Together, they founded a company called High Return Real Estate. They specialize in turnkey investments. They personally have over 80 plus turnkey properties that are producing outstanding monthly cash flow returns. They are also the host of the High Return Real Estate Show, a podcast that gives strategies, tips, and practical advice for real estate investors looking for passive income and consistently high returns. In addition to real estate investing, both Jeff and Jack have thriving multimillion dollar businesses. Jeff owns a private consulting practice. He helps people realize their full potential in all aspects of life. I wanted to invite Jeff here because I am certain that he must have incredible business experience and must have some great entrepreneurial stories. Welcome, Jeff, to Heartrepreneur Radio.

Thank you, Terri. I’m happy to be here.

I’m excited to have you. I was talking to clients about having passive income and they said, “What’s the number one thing to have passive income?” My answer was real estate. How did you get into real estate?

I started off a long time ago in the ‘80s, during house hacking of my own properties. That was before we knew the term house hacking. I was just interested in that stuff. I’m interested in finding ways to force appreciation in my own homes. That was originally what got me to bug and then later on did some flipping of properties that I didn’t do. It was just always something that was on my radar because I saw some huge potential there.

What advice do you have for someone who has never done this? How did they even get started? I flipped two houses, but I can’t say that I would really know how to advise someone to do this.

It’s just all in the numbers. Even if you didn’t know anything about rehabs or repairs or anything like that and even if you were paying big prices with contractor markups, in the world of flipping, for example, you know that a property’s got a market value, it’s just simple subtraction. If you were able to subtract out every possible expense in rehab and your buying price and there were still enough “meat” on the bone leftover, you’d probably have a profitable situation. That’s one way of doing things, but at the end of the day, it’s all about the math.

Are there special areas that you look in? You’ve got these 80 plus turnkey properties. Are they in special locations? Where do you find them?

That’s the key. Sometimes, that math does not work in many areas where it might work in other areas. For example, most of our properties are in Indianapolis. They are in what would be considered C-class neighborhoods. What that speaks to you really is just the price-to-rent ratio. Our goal is buy and hold; it’s not necessarily flipping. We want to make cash flow over a long period of time. We look at what it costs to get us into any given property, including the repairs and getting everything ready for it to be rented. Once we put a renter in there, we still look at other expenses for maintenance and upkeep and property management and all that. How much “meat” is leftover on the bone after all is said and done, can we create a very profitable situation? If the answer is yes, then it’s definitely a buy. If it’s no, it’s not a buy. In Indianapolis in particular and generally a lot of the places in the Midwest, a situation where we can do that kind of stuff.

On top of real estate, you have another business. How do you manage all of these things?

Lots of lists. We get some help too. For what we do, it’s all about systemizing, using software, and making sure we use checklists to stay on top of everything. My consulting business is part-time and mostly, I just do it because it’s a labor of love. I enjoy mixing it up with other entrepreneurs and finding out what makes them tick or helping them find what makes them tick. That’s one of those things that doesn’t matter what else I’m doing. One of my favorite things is being on the phone with a fellow entrepreneur or being on the phone with a fellow investor because those are my two passions.

HPR 100 | Turnkey Investments
Turnkey Investments: My consulting business is part-time and mostly, I just do it because it’s a labor of love.

What would you tell someone who maybe is wanting to start their own business or just started their own business? What advice do you have for them?

There’s a million great ideas out there. One of the things that people don’t recognize is they think they have a great idea or a great product, “We’re a great service. Why wouldn’t everybody want that?” They’re a little bit biased when they look at it. There’s a term in marketing land that we use called USP, Unique Selling Proposition. The question then becomes to these entrepreneurs is, “What is the biggest problem that is being solved by your product or service?” If it’s something that got some pretty wide reach, could solve a specific problem, and is definable, then you may have something. Otherwise, you probably just have a great idea that’s going to keep you up at night.

We talked a lot here about that biggest problem that people need to solved. We talked about the result or the outcome that we can give and whether or not people are looking for that and we want that. We then talked about creating a core unique positioning statement that shows you’re the only person that can do that in the market. What has been the most difficult thing that has happened for you in your entrepreneurial journey?

It wasn’t in real estate. During that 2008, 2009 crash, I was in a flipping business and pretty much got my ass handed to me. I was doing some things that I would never do now. Experience and that kind of stuff is always a fantastic teacher. I literally started all over, and certainly at that point, was not a young man. That was pretty devastating. There were some other things that were going on personally and I was having some health challenges all at the same time. I look back on that as a very dark period in my life, but out of that came the seeds of some great opportunity.

I have a lot of clients that talk about should they do business with a co-founder, should they get a business partner, should they go at it alone. I’ve done it all different kinds of ways in all different kinds of businesses that I owned. How did you and Jack get together and what would you say to somebody who’s exploring those kinds of opportunities?

Having a partner, you’ve got to have the right one. We all have heard millions of horror stories about the wrong partner. To be truthful, I’ve had wrong partners too, including during that period in ‘08 and ‘09 that I was describing. Jack and I got together because we saw some similar things and we each had strengths that the other one didn’t have. There was a natural synergy there. I live in Indianapolis because this is where our business is based, but at the time that Jack and I met, I was living in Austin, Texas. I was doing some consulting and Jack was one of my consulting clients. I was helping him with another business. It had nothing to do with real estate, but he started describing to me some of the stuff that was going on with some purchases of real estate in Indianapolis.

Even though I had sworn it off because of my previous experiences, I admit I was rather intrigued. When I started looking at the kinds of things that I wanted to do in my next business, because I was already making notes about what I was putting out there to the universe, what he was talking about was firing on all eight cylinders as it were. As it turns out, he’s kind of a bull in a china shop. In other words, he’s that classic, just fire, don’t worry about ready and aim. He’s all about the action. I’m the guy that’s a little bit more like, “We got to put the systems in, we got to do this, we got to do it right, we got to market it right, we got to say it the right way, we got to have the USP,” and all that other kind of stuff. Together, we’re an amazing combination. I had some of those marketing and structure skills that he just didn’t really have; but he had a certain drive and energy that pulls me as well too. It’s extremely synergistic and works out really well.

People that I talk to very frequently are saying, “Maybe I should take on a business partner. Maybe somebody can make up for the things that I’m not strong in and I can use my strengths.” I’ve had some horror stories along my journey as well. I always tell people, if you find someone and there’s a balance and the two of you can come together, combined what you each have strengths, that one plus one doesn’t equal two exponentially. It equals more at eleven or a thousand. If someone is already in a business and they’re struggling and they’re working long hours and the business isn’t going as well as they want, do you have any advice for that person?

Our business is only a couple of years old. Just to put things into perspective, I dropped everything, left Austin, moved to Indianapolis, and didn’t know anybody. My business partner lives three hours away and it was probably a solid over a year until we started seeing any real revenue. We had some here and there, but it certainly wasn’t even remotely catching with our startup costs. I would say any advice I would give people is number one, you always have to continue to believe in yourself. If you have something really great, then you just have to believe. You have to tough it out. I knew we would make it, but there were periods where I was not necessarily the happiest scamper. No income, no revenue, not knowing too many people in the new town.

You have to believe, number one, and you have to keep pushing. I don’t know that there’s any secret sauce. You look at some of the most successful entrepreneurs that are out there and the great majority of them are not necessarily have this amazing genius or talent or anything like that. They just believe in themselves and they have this amazing amount of persistence. They’re willing to tough it out and grind it out until it happens. There are many other dead bodies out there in entrepreneur land that give up too soon. For whatever reason, they just do, and they may never reach the promised land as it were.

It breaks my heart sometimes when I hear how people have given up and how quickly they’ve given up. When somebody asks me about the success in the different businesses I’ve owned, my saying has always been, “I find a way or I make a way.” I’m very persistent. If I started something, I’m going to finish it. I’m going to see it to the end. Sometimes right around the corner, what I don’t see is right there; and if I just stayed a little bit longer on the course, it all shows up. Where can people listen to your podcast?

Our podcast is called the High Return Real Estate Show.  It’s just like our website and any of the major podcasts like iTunes and Stitcher and also available on our website, which is HighReturnRealEstate.com.

Thank you so much for being here. How can people best connect with you, Jeff?

Just go to the website. That’s reflective of everything we’re doing and the properties that we have available and all the processes that we get involved in. It’s HighReturnRealEstate.com.

It’s a great name. It does something great. On top of that, it’s a great long tail. Jeff, thanks so much for being here and sharing your wisdom at heart Heartrepreneur Radio.

Thank you so much for having me, Terri. I really appreciate it.

For the audience, don’t forget to subscribe to the show. If you weren’t a subscriber, you could have missed this interview with Jeff Schechter. It was really valuable and as a gift for you, you can go and get our brand-new, GetHotPayingClients.com, and if you’re not part of our community, go over to Facebook and look for Heartrepreneur with Terri Levine and join the conversation there. Thanks for tuning in here at Heartrepreneur Radio.

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About Jeff Schechter

HPR 100 | Turnkey InvestmentsMy name is Jeff Schechter, but my friends call me “Shecky” This started in the 3rd grade, where there were 3 other Jeff’s in my class…I guess I had to figure out a way to be different!  I’ve had the entrepreneurial bug my entire life, and love connecting with other entrepreneurs.  I started my first business right out of college, and over the years, I’ve developed my sales and marketing skills.  This has proven to be a pretty good skill set, as I’ve been involved in numerous businesses ventures.

My love for real estate investing began in the 1980’s, when I began flipping homes that I lived in.  Since those early days of torn up kitchens and bathrooms, I’ve bought and sold many properties, and I am an active investor to this day.

In addition to investing, I also operate a private consulting practice.  I’ve been blessed to have coached hundreds of business owners, and thrive on helping people realize their full potential…not just in business, but in all aspects of life!

Through an unusual chain of events and business relationships, I met Jack on a consulting call. Very quickly, we realized that we had the same interests and passions. Those initial conversations were the seeds of what is now my favorite business, High Return Real Estate, LLC.        I look forward to connecting with you!

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