Growing Your Business And Moving To The Next Level of Real Estate Investing with Zack Boothe

Growing Your Business And Moving To The Next Level of Real Estate Investing with Zack Boothe

Zack Boothe was a window washer at 17. He has window cleaning tutorial videos on YouTube with millions of views. Although he achieved success with his window cleaning business, he always dreamt of being a real estate investor. Taking a leap of faith, he walked away from window cleaning, and within a handful of years, he was making over a million dollars per year from real estate investing. He and his team now spend much of the time giving back as much as they can to help others get started in their company in the competitive game of real estate.

Zack Boothe has done over 300 real estate deals and has generated millions. Over the years he made a lot of mistakes and has learned a lot of lessons (sometimes the hard way), and built a dream real estate business.

 

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Growing Your Business And Moving To The Next Level of Real Estate Investing with Zack Boothe

 

Brett:

I’m excited about our next guest. Just a few years ago, he was a window cleaner. You can even find his window cleaning tutorial videos on YouTube with millions of views. Although he achieved success with his window cleaning business, he always dreamt of being a real estate investor. Taking a leap of faith, he walked away from window cleaning, and within a handful of years, he was making over a million dollars per year from real estate investing. He and his team now spend much of the time giving back as much as they can to help others get started in their company in the competitive game of real estate. Please welcome to the show with me, from Utah, Zack Boothe. Zack, how are you doing?

Zack:

Good, man. Thanks for having me, Brett. 

Brett:

Excited to have you and to dive into some of this wisdom and the secrets that you figured out by the way is actually this really cool thing going on 40k in 40 days, he flew to Tampa folks, and he is looking at ways to help you build real estate, but he’s doing it in a brand new market. We’re gonna talk about that. A little plug for that. But in the meantime, Zack, let’s start out, first of all, getting to know you a little bit more. Would you tell us a little bit about your story and your current focus?

Zack:

Yeah, so like you said in the intro, I was a window washer, I started that actually when I was 17 ran that for nearly a decade. It was an awesome experience. I learned a lot about business. I made a lot of mistakes. I bought a duplex though clear back in about 2011. And living in one half renting the other half. And I was like, man, I need more of this. Like this is amazing. Just the one tenant was paying the mortgage, and then some. And it’s like, man, I need more rentals, I need to do more of this. And the problem is that I had at that point, the obstacle I found was my debt to income ratio was somewhat of a problem. Because I was trying to write off as much as I could in my business, right. And then the other issue was down payments, they wanted 25, 30% down for a second investment property. And so I was so I started like, strategizing like, we’ll buy this one, we’ll fix it up, we’ll refinance money out and we’ll move into another one. And I did that a couple of times. But it was hard on my wife and like, I was really struggling to have success and I tried flipping a house and that was a nightmare. I hate flipping I hate dealing with contractors I lost money. I was there Christmas Eve morning working on it. I mean, it was a nightmare. I hated flipping houses. I hated the business model I was so nervous of like, I have to have the equity of this house stay the same or go up. I can’t open up a wall and have a can of worms like there was just so many variables that make it so it was unsuccessful and so I wanted to get into it, but I didn’t necessarily know how other than borrowing money from people and I started looking at doing multifamily syndications and, and different ways that I could get into it. And then I learned about something called Real Estate Wholesaling, where you specialize in finding off-market discounted properties. So you find a seller that wants speed and convenience, the property’s a thorn in their side, and you negotiate directly with that seller. So you could get the properties under contract and assign that contract to the different investor and get an assignment fee. And that’s what I do. I do a lot of those. And I consistently make well over $20,000 a deal. And there are zero risks. It’s very fast. But my favorite part of Real Estate Wholesaling is I basically created a business that consistently provides investment opportunities for investors. So I have this machine that’s producing investment opportunity. So all I have to do is go, I don’t want that one. I don’t want that one. That’s an amazing deal. That’s a seller finance deal. That’s an amazing rental that cash flows, like that, is exactly what I want for my own portfolio. And I keep it right. And so I’ve been able to create wealth, long-term wealth, short-term wealth, cash flow, and have a team that does all of the negotiations. The acquisition manager in the office next to me is a negotiated close to $2 million in assignment fees and just a few years with me.

Brett:

So amazing. We’re gonna dive into all of those secrets. But you know, I believe we’ve all been given certain unique gifts in this life, Zack. Some people call them superpowers. Some people call them strengths. I believe their God-given gifts and these gifts have been given to us to be a blessing and a help to others. So I’m curious, what are those one or two gifts that you believe you were given? And how do those help how you help people today?

Growing Your Business And Moving To The Next Level of Real Estate Investing with Zack Boothe

Zack:

I was just reading the book called Rocket Fuel. And it talks about the personality type of a visionary. As I was reading it, I was like, that’s my problem. That’s what’s wrong with me. Ever since I was a young man, I’ve had this fire and determination, and competitiveness in wanting to succeed. And it’s allowed me to think critically and look long term towards what I want, and be able to structure my life to what I want. I didn’t fall into the trap of living my life, living paycheck to paycheck. What I remember was the young man, I’d come home from school or my dad had come home from work a little later, and I say “Dad, how was work?” And he’d say, “Son, they don’t pay you because you enjoy your job”. That kind of stuck with me. I remember thinking at a very young age, I mean, very young I remember thinking, I will enjoy my job, I will enjoy working. I don’t want to live if I don’t enjoy day-to-day, and I’ve been able to structure a life that’s full of exactly what I want to do. I do what I want to do every single day.

 

Brett:

That is beautiful. By the way, you can learn more about Zack Boothe at dfdmastery.com. So Zack, let’s dive right into mastering the I guess the art and science of real estate wholesaling and kind of moving your business or growing your business to the next level with real estate investing. So, you define wholesaling as an opportunity to directly contact sellers or deal with sellers and then try to make a deal. folks that are looking to perhaps sell quickly, don’t want to list it, you want to go for the pain of all of that. But that can be and then you assign the contract to somebody and then they take the deal and they close the deal. Is that a fair summary?

Zack:

Fair summary. 100%. 

Brett:

Excellent. So, what’s the number one secret to contacting sellers directly and saying, don’t use a broker? Don’t get multiple offers, don’t drive up the price. What’s that number one secret to overcoming that objection?

Zack:

Yeah, so the first the number one thing is you don’t convince someone of that. The goal is to find the person that wants that. So you might be saying, in this market that doesn’t exist, though that cannot happen. Right? People don’t sell their house for 50 cents on the dollar, you may be a complete skeptic, that that’s even possible. I used to be I completely understand where you’re coming from. That’s why I did the 40 Day Challenge, which I’m sure we’ll talk about. But what happened in my life is I was washing windows. And I had heard about wholesaling. I’ve even paid for a coach and it didn’t work out very well. It was a lot of information, a lot of overwhelming. I don’t want to get too far into that. But I was a skeptic at some point, too, that you could find off-market discounted properties. And I was washing windows for a very, very wealthy real estate developer. He was a civil engineer, a young man, and retired in his early 30s or late 20s. I can’t remember at this point. But he was very successful. He had a couple of multimillion dollar development projects, and washing windows in his giant mansion, beautiful home, just the nicest most gentle human being too and I got talking to him. And so interested because I wanted to get into real estate. And I was asked him how he did it. What uh, you know what advice he had for me and what he had going on. And I, at the end of the conversation, I was like, man, if I could just pick up two rentals this year, I would be so excited. And he said, Oh, that’s very convenient. I’ve got these two properties I don’t want to deal with haven’t been over there and a couple of years. I’m sure they have deferred maintenance. The property manager bailed on me four months ago, I haven’t collected rents that need to be dealt with. I just don’t want to deal with them. I don’t have time to deal with them. I don’t really even care. Do you want them? I said, Sure. He said, I said how much he said a half a million, which was a fat discount, by the way, like, they’re probably worth $750,000. And so he’s going to give him to me seller finance, he only wanted a couple $1,000 down because that’s all I had to give him. So I mean, I got these properties at a very low interest rate, after renting them out, I was making about $850 a month extra. And that’s paying a property management company. It was just an incredible deal. And I ended up selling those properties a couple of years later to the tenants and making well over $100,000 profit on those deals. And so when I found that seller, I realized that you have to find someone that doesn’t want to deal with the properties. I didn’t convince him. I didn’t have the skill set to convince him I didn’t have the experience to convince him right. He had more experience, more money, more resources. He worked with me because he liked me and because it was convenient for him.

Brett:

Yeah, go from washing windows, you must wash a heck of a window man, you must seem to build a good relationship right and at the same time, you’re solving his problem right at the heart of it. He was ready to be done. So you build up some trust, some rapport, and then made a deal. And Is that a fair summary? 

Zack:

Yes. 

Brett:

That’s awesome. Okay, cool. So, in other words, you must like attract, you don’t necessarily go get it. In the sense of, you’re going to find somebody who’s already motivated and who has a need, and perhaps that’s with direct marketing, perhaps that’s with cold calling, perhaps that’s with networking. What’s the next best step to getting started today in wholesaling?

Zack:

Yeah, so my company, my coaching business is DFD Mastery stands for Driving For Dollars Mastery. So when I first heard about this, and I had that first success, I got another coach. And I started reaching out to people that had deferred taxes or laid on their mortgage payments, or had code violations on their property, or had an eviction they were dealing with. Basically, I was trying to find people that have the property’s a thorn in their side. And that’s usually like tired landlords. People that have deferred maintenance. People that just don’t want to work with a real estate agent, right. And my battery’s about to die, I apologize. I didn’t plug this in. Just give me two seconds here.

Brett:

It’s okay. He’s gonna take two seconds there to change his headset. But in the meantime, you are talking with Zack Boothe, talking about growing your business and moving to the next level of real estate, you can find him at dfdmastery.com. Then we’re going to dive into this 40k and 40 Day Challenge, which is going to be really cool as well, about how Zack went to Tampa, jumped on a plane. And he spent 40 days there trying to make some big profit. So Zack, where were you? Go ahead.

Zack:

I apologize that when I first got into doing this, I was getting a few deals here and there. But I was really struggling to find consistency. Because of my marketing channel, the list of people that I was reaching out to, that’s what everyone’s doing. And so I started realizing like, okay, when someone wants to get rid of property for speed and convenience, there’s always deferred maintenance, because they don’t want to mow the lawn, the property is a thorn in their side, they don’t want to fix the windows, and they put sheets up instead of curtains and like, there are obvious signs of neglect. So I was like, I’m going to the only market to properties that have deferred maintenance. So I started driving around writing down the addresses, looking them up on county records, and that’s who I was reaching out to. And when I finally started doing that and started really pushing it, I went from about $115,000 in assignment fees to just shy of a half a million the next year. I mean, I 5x my business. And you know, it was a game-changer. And so that is like the main strategy. That’s how I find people. I proactively go out and find those rundown houses or houses with deferred maintenance. And then I cold call them, text them and postcard them.

Brett:

Got it. So yeah, you’re just driving down the street, you see something a little beat up, or you’re looking at a tax roll, or you’re looking at something that has distressed or some challenges. And before, you know before this, let’s say this, this deal goes to fruition, you’re going to contact the seller as early as possible. Is that a fair summary? Fair?

Zack:

Yes. And, you know, it sounds so simple. It shouldn’t work, right? It works amazing, though.

Brett:

Yeah, no, absolutely. Sometimes it’s you know, the squeaky wheel gets the oil, right. And sometimes it’s someone has a pain, and you’re there to solve that pain today and can close on it tomorrow or the next week or you know, sooner rather than later. That’s value and the value is closing that without the hassle. So make sense, right? So cool. All right. So then you went from doing very well to now coaching others who do well and let’s dive right into the 40K’s in 40 days because this is pretty cool. Because you have a lot of skeptics, right even in my business, deferred sales trust every single day. You know, people it’s too good to be true. Never heard of it. My CPA would have told me about it if everyone be doing it if it was that good. And then we just keep closing multimillion-dollar deals and helping people defer hundreds of 1000s of million dollars of tax-saving 1031 exchanges. Even just yesterday, we got another group saying, You can’t do that in California like, well, you have to follow some guidelines and there are some withholding things. But yeah, we can actually save a failed 1031 exchange with the deferred sales trust. But you went from doing yourself to coaching to helping others and now you’re doing this 40-day challenge to help with overcoming false beliefs. So start what’s first, why the 40 Day Challenge? What was it? What was the premise? And then tell us about how it’s going so far?

Zack:

Yeah, so as you said, I started coaching. And I started coaching right after I did that half a million. I’ve had a ton of success with my students from the very beginning, they’re having a lot of success. But I started noticing that, like, one of the reasons that some of my students wouldn’t succeed, is they were kind of skeptics when they joined. And since they were kind of skeptics, they didn’t give that 100% effort, they didn’t follow through all the way. And because they didn’t follow through all the way, they didn’t have the kind of success that others were having. And so they gave up, they know, they lost the little bit of confidence that they had. And I’m like, how do I get people to believe, how do I make my students more successful? How do I give them that confidence, that belief in that fire, that they can do it? And so they give that massive action, they give that massive action, they have massive results, and it breeds even more confidence and excitement for the business and, and that they can have financial freedom and the success that I have? And so it was 100% about like helping people? And I was like, I used to be a skeptic, what changed in my life? Well, I told you to read, I found that very wealthy developer that gave me those properties at a massive discount, and you knew it when I was watching those windows, it’s like, how do I let someone else have that experience? How do I let someone look over my shoulder and see those experiences in real life and see how it’s done? And I’m like, why don’t I just show it? Why don’t I just do it? And so I did this 40-day challenge to allow people to get an over-the-shoulder look of exactly what it takes, or what I doing to be able to do this business and to be able to work with the sellers and how I’m negotiating. And then I’m actually serving and helping people in what a conversation sounds like when I call someone out of the blue. And they say they want to work with an investor and not an agent. And is that even possible in this market? You know, within a couple of weeks, I had five contracts. And you know, I now a total of seven contracts from that challenge. And with like a quarter-million dollars in projected income. It’s absolutely insane.

Brett:

Incredible. So tell me about the first one, so you’re flying to Tampa, right? It’s like you parachuted in there. Right? And you got the wholesaling cape on. And what’s the first thing you do to get that first spark of fire to get this thing going?

Zack:

Well, there was definitely some stress, grab a drill. There were a couple of years of planning. Like I did not know if I would succeed. And I had been promoting this and telling people about this before, then I was gonna present and promote this, whether I was successful or not. So there was a massive amount of pressure. But I had my plan and I had my structure. So I was having to do a couple of things. At the same time, I had to have a cash buyers list. So once I found a deal, I had someone to sell the deal to, right. So during the time of starting the marketing, I was also networking with other investors and trying to get cash buyers. And I started working with some of the local wholesalers and started trading investor lists. Within a couple of weeks, I had 11,000 cash buyers. So that was one of the first things on my agenda. Another thing that was on my agenda was a title company, I had to have a title company that understood the process of assigning a contract and paying me my assignment fee. Right. So I had to do that. The one thing that I had done before I landed was my purchase contract. And my attorney wanted to make sure legally I was good, right. So that was one thing you would have to do if you’re starting the next thing that I started, which really started on day one was the marketing, I got to find a seller, right, and it’s gonna take some time to find a seller because thinking about I have 40 days to do 40 grand. So I’ve not only I have to go and start my marketing, but I have to find the seller, I have to meet with the seller, I have to sign the contracts, find the buyer. I mean, it’s 40 days, right? I mean, I had to hustle. And so I started immediately. I’m doing my marketing. So I downloaded the Deal Machine App, which is the app that I use for Driving For Dollars. I have no association, I don’t own it or anything. It’s the app that I use in my company, it’s a deal machine, you can get it on the App Store, I can get you a discount if you use my discount code: PIN. But that app allows me to add 30 to 150 properties every single hour I’m driving around. So as I’m driving around, there’s like a Google Street image on the app. And I’m just tagging these houses, I’m just pushing the button touching the house on the Google Maps image. And it’s uploading all their information on an Excel spreadsheet for who owns it mailing address, property address. And just like just fast right? So in the first couple of days, I mean, I had 1000s of people on my list and then immediately start cold calling. So by day three, as I said, or sorry, day four like I said I had multiple appointments and leads and I got my first appointment where I got a contract. I got three contracts from the first seller by day four doing that.

Brett:

Okay, so you ready? We’re gonna roleplay thing.

Zack:

Let’s do it.

Brett:

Okay, so I am the Tampa Random House that you flew in and put in a three-day three. So ring me. 

Zack:

Hey, how’s it going? Can you hear me?

Brett:

Yes. Hello? Hello? I am. Yes. Who is this?

Zack:

Yeah, this is Zack. I know it’s a little out of the blue. And I may even have the wrong number. Do you own the property XYZ?

Brett:

I do. Yes. That’s my property. I’m here right now. Looking at the grateful bay. It’s Tampa Bay. It’s just gorgeous out here today.

Zack:

Yeah, I’m definitely not driving along the bay. But yeah, okay. Well, fantastic. I know, as I said, it’s a little out of the blue. I was just wondering if you’ve thought of selling or if you consider an offer on your property?

 

Growing Your Business And Moving To The Next Level of Real Estate Investing with Zack Boothe

Growing Your Business And Moving To The Next Level of Real Estate Investing: “In the real estate business you learn more about people, and you learn more about community issues, you learn more about life, you learn more about the impact of government, probably than any other profession that I know of.” – Johnny Isakson

 

Brett:

You know, I’ve sort of kinda I mean, this marketplace is red hot. And like everyone’s moving in from New York, and I’m just getting these calls. You know, everyone wants to list my property. So yeah, I thought about it. If the Price Is Right.

Zack:

Maybe I’m actually not the best fit. I am actually a local investor. So I’m trying to buy something that I could add some value, maybe fix up and potentially make a profit. You might be better off if you did the rehab and fix it up and listed with an agent went through that hassle, but I couldn’t buy it as is if that’s something that interests you, or would you rather just fix it up and sell it with an agent?

Brett:

You know, this fix-up sell thing is just kind of daunting to me. I really don’t want to fix it up and sell it myself. But I mean, what did you have in mind?

Zack:

Well, it depends largely on the condition. So can you tell me what I’m seeing here online? Just a little side note. When I’m using my dialer, I can pull up the Zillow thing. I have all the information right there. I’m seeing online here that it’s got three bedrooms and two bathrooms, correct? 

Brett:

Yes, exactly. Right.

Zack:

Okay. Awesome. Are the bathrooms been updated in the last five years? What kind of condition it is?

Brett:

They are an average? No upgrades. I think good condition.

Zack:

Then the kitchen? Have you updated the kitchen by chance? 

Brett:

No upgrades there.

Zack:

What are some of the maintenance issues or anything that needs to be fixed to get it?

Brett:

I have a leak in the roof? My AC, I feel like she’s been going for about 12 years, and maybe she has a year left on her. But she’s still doing pretty good. The house itself, the windows are kind of old. I feel I can get some new dual pane windows.

Zack:

So it sounds like it’s not in that terrible condition. Sounds decent. Is there a timeframe that you would like to have it sold by?

Brett:

Um, I mean, I guess if the right price is right I, I could sell you know, I mean, I haven’t set a time. But I guess if the deal made sense. Yeah. I’d be open to that. 

Zack:

Okay. So when you say if the price is right, do you have a price in mind that’s right.? 

Brett:

You know, I’d go on Zillow and they always give me this Z estimate that looks pretty good. You know, so I don’t know, 200,000 to 225,000.

Zack:

So I mean, I may be able to get somewhere close to that, I would definitely need to do a little bit more research. I’ve only really driven by the house. That’s pretty much the only research from what I’m seeing here on Zillow. But I may actually be less than the Zillow estimate, because like I said, I do need to be able to make a profit on the deal. But you know, if my offer was under the Zillow estimate, would you at least like to meet with me and talk to me about what I could offer?

Brett:

I’d be open to that. I mean, I guess compared to hiring a broker, right? Those guys are so expensive. They own like 6%. Right?

Zack:

Ultimately, as I said, that might be your best fit. So why don’t we set up an appointment, I’ll come to meet with you, take a look at the house and kind of give you a price range of what I think I could offer and, and maybe that’s something you want to do, maybe it’s not. So you said if the price is right, you have like a place lined up like why I’ve even thought of selling in the first place.

Brett:

You know, I like to get closer to the grandkids. You know, they’re there. They’re living in Orlando. Now. I’m in Tampa, and I want to go to Disneyland with them and spend some time with Disney World that is, so yeah, that’s it. Just relocate to the grandkids. 

Zack:

Gotcha. Okay, All right. Then we’ll set schedule. 

Brett:

That was a little roleplay for you guys, we don’t do that too often here on the Capital Gains Tax Solutions Podcast, but we want to show and also test a little bit, Zack. That was awesome. You simply just pretty direct, right? And you’re pretty straightforward. And you’re just saying look, I’m in the business of doing and I’m just curious if you’d be open to it. If there’s any and trying to dig for some real motivation, try to get some general facts of the property itself. And then just closing for an opportunity to meet. Is that a fair summary?

Zack:

100%. And you’ll see on the challenge, like some of the people I go and meet with like, his name was Juan. He’s a truck driver and he was gonna retire and I didn’t get a lot of details on the condition and stuff because he was in a hurry, but he wanted to meet with me is like 100% I’m going to sell my house. So I went and met with him. I took him some coronas built a relationship with them. And I was late on the weekend when he was home. He wasn’t home very much and ultimately, he’s like, I was talking to his houses in perfect condition. He’s like, never there. And I’m like, why don’t we just list it, you’re gonna get way more. And that’s what we ultimately ended up doing. And I referred the listing over to my agent, like, it’s not a deal for me, you don’t convince someone to sell it to an investor. That’s the number one mistake you make. If you do that, you’re going to get burnt out, you’re going to sign contracts where people get pissed off and try and sue you or cancel the contracts. Like, you got to go at this business where you’re actually serving people and helping people. You know, my neighbor across the street is a perfect example. She came to me wanting to sell the house going through a divorce, and I talked to her about her potential options. She ended up, I referred her to my mortgage broker, she ended up refinancing, cashing out her ex-husband was able to keep the house and we’re best friends. You know, it’s what was best for her. And instead of selling me the house. 

Brett:

I think that’s so important, right? And so by the way, I’m a commercial real estate broker myself to started Marcus and Millichap some multifamily properties here in Sacramento. Now with Exp commercial. So what if we found the best way to go and really miss motivation, but also to be to try to really put yourself in their shoes and or it’s your family member, like, if it’s your parents that are selling the property, you almost want to talk people out of selling the deal, right? Like, I have a client, for example, and he’s got about a $5 million property. And I’m like, he owns it free and clear. It’s in like, the best school district, there’s no vacancy, and he managed himself. And I’m like, and I’m like, hey, just hire a manager, like, you don’t need to sell this thing, or, or just refinance, if you want to go buy another property, like we don’t have to sell and, and 1031 and be faced with this or even go to the deferred sales trust if you don’t want to do that. So in other words, my goal a lot of times just to talk them out of it, right. And when you do that or help them do that, you’re not trying to sell somebody, you’re just trying to explore the options. And as you’re asking questions in that way, and let me know what you think, Zack, they actually start to uncover things that they go, Whoa, actually, here’s why I think you might be a good fit. And here’s why that doesn’t this is why I want to sell that doesn’t work. So is that a fair summary or any thoughts on that?

Zack:

100% I mean, that because when you give them there because they know their options, people are stupid, right? They know the majority of their options. So a lot of times when investors are new, or people are doing this, they’re like, Oh, my, I might lose out on a deal. If I talk about these other options I don’t want them. I don’t want them to take these other options. But it’s like, if that’s in their best interest, that’s what they’re going to do anyway. But what it does, is it helps build trust, when they trust you. They’ll work with you. And it’s funny when you said like you want to talk to him like it’s your family member and how you negotiate with your family member. I love that you said that because that I say that all the time. I’m a big, big advocate of that. I remember one day my cousin called me and about his house and wanted me to buy the house. And I was I had these warm fuzzies because I had the exact exact same negotiation strategy with him as anyone else. Why don’t you just list it dude, you’re gonna probably make more money. You know, I buy houses at a discount, right? Yeah, I know that. Zack, I see what you do online all the time. Okay, well, fantastic. Well, how much you trying to make? Well, Bro, I got a move because I got a new job. Just buy it for what I owe on it. Could you do that? Sure, man. Let’s do it.

Brett:

Yep, awesome. Love that, Zack. Well, we can find more about Zack Boothe at dfdmastery.com and you can go to YouTube right now. And look up Zack with his name and the 40k and 40 Day Challenge is his real-life proof of parachuting into Tampa Bay, Florida. And they want $250,000. Now Zack, what are you up to now with the profits? 

Zack:

Man, we’ve still got some deals closing because I just most recently got here. And I actually had family emergencies that I landed ended up in Brazil with father in law in the hospital and some major issues. So we’re close. I think we’ve closed down on a couple of the deals and we’ve closed out on about 140,000. But we’ve still got, I think three more deals to close here from.

Brett:

I absolutely love it. So, Zack, we are running out of time. So it’s gonna be one question, then we’re gonna have the lightning round. These are the questions centered around part of what we talked about here at Capital Gains Tax Solutions, and also the Expert CRE Secrets podcast. This is the question, what’s the biggest frustration when it comes to capital gains tax deferral for your friends, family, clients, or partners?

Zack:

The biggest issue with tax deferrals?

Brett:

Yeah, what’s your big especially with Capital Gains Tax Pro, you can talk about the 1031 exchange, it could be talking about short term versus long term. It could be talking about anything that’s kind of a pain. What’s the biggest frustration that comes to mind when it comes to capital gains tax deferral options?

Zack:

Right, that you have to pay taxes? No, I’m just kidding. I’ve done a couple of 1031 tax exchanges. My biggest issue is and one of the reasons I don’t do a ton of them in the frustration is the timeframe and then the structure of putting them together. I think having someone to help you through that process would make it a lot easier to do it. We have a timeframe, the time crunches are one of the hardest parts of it. You know, if you’re not careful, you’ll end up buying something just to not pay taxes, which will end up costing you more than just paying the taxes. Right? So those timeframes are kind of a pain.

Brett:

Yeah, we call that the shotgun wedding, right? Where you’re getting engaged in 45 days you have any of those friends from college who got engaged really fast, and then they got married really fast, like whoa, slow down like that. That could be okay. Right? And you can just be it can be happily ever after. But sometimes if you do these shuras decisions, you get engaged in 45 days, and you get married in 180. You close and yet even worse right now and I’m always very cautious with my clients who say don’t overpay right, selling such a high market don’t overpay and double down with more debt. 180 days later, right? Sell high and buy higher. Our parents taught us to sell high and buy low right? So making sure that you have a solution and alternative and looking at all your options. This is what we’re here at capital gains tax solutions to help you do you go to capital gains taxes calm, check out the deferred sales trust, and learn why it’s like that Netflix to capital gains tax deferral and exiting highly appreciated assets versus the old blockbuster way of doing things like the 1031 exchange. That being said, Zack, are you ready for the lightning round?

Zack:

I’m ready. 

Brett:

Alright, so knowing what you know now if you could go back to your 25-year-old self, what’s the one Golden Nugget that you would make sure you would tell yourself to do read?

Zack:

I would read. I didn’t start reading until my late 20s. It just changed my life so much.

Growing Your Business And Moving To The Next Level of Real Estate Investing with Zack Boothe

Brett:

Excellent. What’s the one book that you recommended to give it the most in the past year?

Zack:

Probably, the most impactful book that I’ve read as far as self-improvement in my life is the Seven Habits of Highly Effective People. The number one habit that really changed what I do with my day what I focus on what my tasks are, is starting with the end in mind. And Stephen Covey really does a good job of explaining that and what I do with my day where my business is going, the whole strategy and mission of my coaching business, and having set up my wholesaling business passively to have my focus on giving back and coaching and helping other people become successful. 100% is because of that book. Love it.

Brett:

Great answer. Question number three, best real estate deal ever?

Zack:

I’ve had some good ones. I’ve had a handful of six-figure deals and those are always fun. You know, they’re they move the needle fast. I’m going to say my most favorite deal. I’m going to say my most favorite deals the first deal I did the duplex because it gave me this hope and understanding of the power and potential of holding an asset of holding a cash-flowing asset, something that you control that has multiple strategies of revenue, you can refinance money out, you can sell it you can rent it out. I mean, it grows in value with time I mean it just that first one because it gave me this understanding of the potential I’m gonna say the first

Brett:

Beautiful. Worst real estate deal you ever did?

Zack:

The house I flipped. Remember I said when I started asking all my wealthy window cleaning clients for money to flip a house after I was trying to get into you know, the investing space after that first duplex and talk to this guy named Steve Young, wonderful gentleman love the guy and his son Dave, they’re good people. And I’m still friends with them today. No, not not the Steve Young quarterback that would have been cool right now different Steve. But anyway, they gave me some money to flip a house and after paying them for the money and the stuff it was it was a lot of work and I ended up losing money. But it was also a great deal because it taught me what I don’t want to do, which is managing construction sites. But it was painful.

Brett:

Perfect. Number one biggest obstacle your company’s currently facing?

Zack:

Probably the number one struggle that I’m having with my wholesaling business right now is helping my acquisition managers understand the potential of the long-term wealth created by doing more seller finance structure negotiations. And so learning how to it’s not even that it’s just being more invested into the success of my employees and my staff, and teaching them about long-term wealth. So they’re structuring things and cherry-picking some of the deals because that’s what I want my team to do is cherry pick and build wealth. Just as I do out of the company. I want my investment company to make my team and my inner circle, very wealthy. So like teaching them to do that so we can really take things to the next level with time and they, a lot of times we’re settling with big assignment fees instead of holding and negotiating seller finance.

Brett:

So yeah, very well said. And by the way, that’s exactly the deferred sales trust is just an installment sale, which is seller finance allows the seller to defer capital gains tax, right, and then you get time on your side. And then they can get cash flow, right, they can get to preach and they can go into other deals, get new depreciation schedules, and then what’s cool is, then all of a sudden, you can negotiate a better deal. So we found is you’re not and correct me if I’m wrong, as a real estate professional, even a deferred sales trust expert, I’m not in the business of selling the DST or selling real estate, I’m in the business of solving problems for my clients, right. And so as a wholesaler, perhaps when you’re going in, you’re in the business of solving their problems. So what is the tool that is going to best help solve their problem? And if you can give somebody a long-term deferred sales trust, go for 10, 20, 30, 40 years and pass to your kids, they can keep it going to you can perhaps get a better deal. So all that being said, it’s kind of like DST 2.0. The last question is this, after all, your success helping everybody that you helped and doing the deals you’re doing? How do you stay centered in your values, Zack, and how do you stay encouraged to charge forward to reach new goals?

Zack:

Yeah, one of my core values is I’ll never do any type of partnership, sign up anyone does a deal, unless I’m 100% confident that it’s a win-win, especially in the long term. Right? It’s and doing that it’s a lot harder. I think when you don’t have money and you’re trying to like force a deal that’s not really there. But by doing that, I’ve kept my relationships alive. I’ve built trust. I’ve helped people. You know, I have people all the time that apply for my coaching program, and they have sticky situations, and I’ll get on the phone with them after they’ve talked to an onboarding coach and, and I give them a different option because it’s, it’s not in their best interest. And so I think that’s, that’s been one of the big game-changers for sure.

Brett:

Amazing, Zack, for our listeners who want to get in touch with you. Can you remind them one last time or where they can find you?

Zack:

Go to my website, dfdmastery.com stands for Driving For Dollars. On that website, you can actually apply or book a call to speak with us about our coaching program. It’s in there. But also there’s a link for social media. If you want to follow me anywhere you can do that.

Brett:

Amazing. dfdmastery.com, Zack Boothe. Zack, I want to thank you for being on the show sharing a bit about your story. Sharing has given us tons of wisdom. Being a great sport with the roleplay there. I want to encourage you to keep using your gifts and talents of working hard or persevering, have really proactively taken the side of each client or each person who’s selling the right to be able to make a difference in their life as you’re doing wholesaling and business and coaching everything else. So thank you so much for being on the show. And I want to thank our listeners for listening to another episode of the Capital Gains Tax Solutions Podcast. As always, we believe most high net worth individuals and those who help them they struggle with clarifying their capital gains tax deferral options, not having a clear plan is the enemy, and using a proven tax deferral strategy, such as the deferred sales trust or getting with someone like Zack Boothe and getting your wholesale business on is the best way to grow your wealth. We’re also streaming on expertcresecrets.com. Don’t forget about that and go to capitalgainstaxsolutions.com if we can help you at all with the deferred sales trust. Thanks so much for listening to the episode. We appreciate you bye

 

 

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About Zack Boothe

Growing Your Business And Moving To The Next Level of Real Estate Investing with Zack Boothe

Zack Boothe was a window washer at 17. He has window cleaning tutorial videos on YouTube with millions of views. Although he achieved success with his window cleaning business, he always dreamt of being a real estate investor. Taking a leap of faith, he walked away from window cleaning, and within a handful of years, he was making over a million dollars per year from real estate investing. He and his team now spend much of the time giving back as much as they can to help others get started in their company in the competitive game of real estate.

Zack Boothe has done over 300 real estate deals and has generated millions. Over the years he made a lot of mistakes and has learned a lot of lessons (sometimes the hard way), and built a dream real estate business.

 

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