Episode 17 – Bo Kim on The Military Millionaire Podcast

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Episode 17 – Bo Kim on The Military Millionaire Podcast

00:00 - 05:00

David:

What's up military millionaires. I'm your host David Pere.

Today we have an exciting episode about creative real estate investing with Creative Financing unique ways to find deals with Bo Kim, who runs Biggercashflow.com, and it's super exciting to hear him talk about how he bought 16 units in his first year. So check it out.

If this is your first time listening, thanks for joining the community. This podcast is produced every week for enjoyment and the show notes are found at militarytomillionaire.com/podcast.

Now relax and enjoy the show.

Intro:

You're listening to the military millionaire podcast, a show about real estate investing for the working class. Stay tuned as we explore ways to help you improve your finances, build wealth through real estate and become a person that is worth knowing.

David:

Hey, what's up everybody it’s Dave here with Military millionaire. I'm here with Bo Kim, who runs a Instagram site, a blog called bigger cash flow, which is kind of where we got connected.

So Bo is an accountant. He works for a CPA firm in California. He does most of his investing in the Midwest. He's got 16 units under his belt. And I mean, really, I just started talking, I really liked views on his Instagram. So I was like, yeah, definitely, let's talk. And so here we are.

Bo, tell us a little bit about yourself.

Bo Kim:

Yeah, thanks for having me on, David.

So as you mentioned, I work for a CPA firm here in Orange County. I've been doing that for about five years. And about a year ago, approximately, I attended the BiggerPockets webinar called 45 day challenge to your first rental property. And at the time, I had just read the book, Rich Dad Poor Dad. And I wanted to create some passive cash flow and some assets and not liabilities. So this was the perfect timing. And it kind of gave me the extra motivation and boost to go take massive action and see how we can pick up my first rental property.

So I did, I researched the markets of Kansas City, Indianapolis and Little Rock. And I ended up buying my first property in Kansas City. And ever since I've been just acquiring more properties through different methods such as the BRRRR method, using my 401k as a loan, using the HELOC on my primary residence, you name it, I got really creative just because I didn't have a ton of savings.

So you know, my story, hopefully to newer investors out there is that there's a lot of different areas where you can find capital to fund your deals and hopefully make better use of that money that's sitting there.

David:

Yeah, absolutely.

So I didn't even pick that up the first time, we were talking all 16. You bought all 16 in the last year?

Bo Kim:

Yeah, year and two months.

David:

That's super cool. I wish that I could say I had done that much in my first year. That's awesome.

So I know you mentioned earlier, you mentioned some seller financing the 401 k that HELOC. I'm actually kind of curious to pick your brain about the 401 k lending? Because I know we'll talk about it. But I've not ever done that. So I'd be curious to hear kind of what your thoughts were on how it worked. And if you do it again.

Bo Kim:

Yeah, so you have to check with your company's provider. But my company uses Vanguard, and they're super easy to work with.

Their plan allows you to take $50,000 or 50%, whichever is less of your balance. And all I had to do was go online and file an application. And you have your money wired to you in about two days. And yeah, so I was able to use that and I bought a property all cash from a wholesaler in Kansas City. And that one was actually one of my sweetest deals because I bought it for $30,000 from a wholesaler. And I put in about $1,000 worth of trim and paint things like that. And it appraised for $65,000. So, it rents for 850.

So it was a pretty sweet deal. Yeah, I'm really glad.

David:

Yeah, you like 50% equity stake on a property that's cash flowing?

Bo Kim:

Yeah.

David:

That's awesome. And then with Vanguard, when you pay that back, do you have to pay yourself an interest rate when you pay it back to yourself?

Bo Kim:

Yep, I pay myself through my monthly paycheck, it gets automatically deducted. And there is about a 5.25% interest, I believe it was at the time it was the market rate at the time prime plus one. And that interest rate is paying back to my account so I'm getting it it's not like Vanguard is taking the interest.

So all in all in the big picture. I'm getting a better cash flowing asset and I'm paying myself interest and the kicker here is that right after I took out the money back last April, the stock market took like a 10% dip.

So for me, I kind of took the loan at the top. So it's kind of like your buy low sell high strategy. I mean, I wasn't trying to time the market or anything, but naturally happened, though, looking back, it was awesome that I did that at that time.

05:00 - 10:00

David:

Yeah, let's reiterate for the world that's listening, that you should not try to take a loan out just because you think the market might go down.

However, that's a huge bonus. And I hadn't ever thought about it. So you can, you know, you can do the self directed IRAs, and then you know, it's retirement is real estate investing. And I know that, you know, I can take money out of my TSP, my 401 K. But I've never thought about using that money as the cash to purchase the BRRRR. And the idea there that is super cool is the fact that you're paying interest back, which is normal, but it's to use so it's almost like, okay, I'm gonna take this loan, and now I'm gonna force myself to pay it back at a higher interest rate, so I'm forcing myself to give me more money over here. And I got a house with it in the process.

If done correctly, that's a brilliant strategy. But you've kind of done it all. It sounds like between the HELOC and the seller financing, and I'm a super big fan of creative financing. I don't think I've paid more than 6% down on a property yet through just finagling and negotiating and, and just moving on when someone tells me no, or, you know, whatever. And that's don't don't listen to this and say, oh, I shouldn't pay him. Well, you know, I'm over leveraged on some stuff. But if it's a good deal, it's all right.

But I guess my question would be having used all of that, do you have a favorite strategy? Or is it just kind of like, hey, whatever gets the I wrote a blog post called the only kind of financing that matters. And it's got like, all this different stuff. As far as creative financing. And basically the whole point of it is like, it doesn't matter what you do, as long as it buys the deal, and it cash flows.

But do you have a favorite method that you would probably revert back to?

Bo Kim:

So it's, it's actually, yeah, a hybrid method.

So in terms of financing, I used the delayed financing strategy, to refinance my rentals. In terms of the initial acquisition. I've used a HELOC or the 401k, or private lending. But what I really liked about the delayed refinance strategy was that it allowed me to, you know, extract my money back before the six months seasoning and pay back my initial lender, whoever it may be, it might be the HELOC, or the private lender, the 401k. But because it's actually capped at the purchase price, or 75% of the ARV, whichever is lower. It actually allowed me to have a lower loan balance, which made sic cash flow better.

So I'm not over leveraged either. So actually, those types of properties are my best ROI, because it's cash flowing nicely. And I'm not over leveraged as well.

David:

I've heard delayed financing. I've been trying to find a property to, you know, play around with it on but everyone I've talked to who's done it, has loved it. Especially I don't know if you know who Alex Felices is. But he mentioned it when he was on the podcast. And he mentioned so it's, it's, you know, you can pull back up to whatever amount you put in. And he was saying, yeah, I just instead of paying my contractor directly, I paid my contractor by putting the money in escrow, so that I can then pull that money back out, too.

I thought it was really cool to be able to say you said not to wait for the six months seasoning period. So you're doing the same thing. And you're still building the same equity, but just faster. Yeah, faster.

Bo Kim:

So I'm really glad you mentioned that because I hadn't listened to that episode, until recently. And once I heard that it was a game changer. I was like I had no idea you could put in an escrow. And then once you have to refi they look at what's on the HUD. And that I think is a total game changer.

So I'm looking to do that for my next one. But I think that's a really interesting twist on the whole delayed finance strategy.

David:

Yeah, super cool.

All right. Well, I like and I like the fact that you've been that creative. And that's like, my favorite thing about real estate is, but maybe not my favorite, like, everything's my favorite thing I can't. But the fact that you can be that creative, and it's like the more of an imagination you have as far as purchasing and exit strategies, the more successful you'll be in real estate. And I love that.

So, earlier, you're talking to us a little bit about a mistake you made. And I before we started recording, I'd be curious if you would share your quote, biggest mistake with the audience because I can totally relate. I do the same thing.

10:00 - 15:00

Bo Kim:

Yeah, one of my biggest mistakes was, you know, being in analysis paralysis and not being able to see a good deal when it comes around them being able to pull the trigger.

So there was this deal in Kansas City where I've been working with this broker, and it's a particular neighborhood. It's a B, B plus a minus even neighborhoods, good schools, high rents, high quality tenants. And, you know, he sent his deal over to me and he said, hey, I actually drove by this property, and it's undervalued on the MLS, it only needs about $8,000 worth of paint cosmetic work. It was listed for about $60,000. So all in would have been 78, plus any fees and costs. And he said ARV, it's going to easily ARV for $100,000, if not 110. And the rent is right around there as well, the 1% rule.

So I was like, okay, that's great. kind of got me excited. But at the time, I was underwriting like another duplex in Indianapolis. So I was like comparing, and I was asking my broker a ton of questions. And each time he would say, Bo, this is a great deal. I've been doing real estate for 25 years. And I was kind of lagging. And about a day later, I reached back out and I said, Hey, I think this is a great deal, please put in a full priced offer. He's like, it's already pending.

So I was so bummed at that point, because I would have had about you know, $40,000 worth of equity in it. And it would have a really nice cash flow really nicely. And it's in a really nice neighborhood.

So I was really bummed that I missed out on that opportunity. But it, you know, gave me lessons learned, right, I have to continue to underwrite enough deals so that when the right one comes along, that I'm going to jump right on it and not hesitate.

David:

Yeah, absolutely.

And that's not to say that you just jump on the first property that your agent says it's a good deal, but if you're familiar with your market, and like in my case, like in my head, I knew hey, this is the right deal. But in my mind, I know, but I was like, um, but let's just, let's just double check some stuff real quick. And, and I knew, you know, I was 100% confident, like, yeah, just pulled the trigger, but I just there was something that was like, wait a minute, let's do some math.

You know, and we double check some stuff. And by that I meant, like having some other people verify my numbers, and in that time, it was gone.

Bo Kim:

Yeah,

David:

And so I can totally relate.

Bo Kim:

And to your point, David, it's, it's, you definitely don't want to jump on the first deal. However, there are contingencies in place such as you know, if you're getting financing appraisal contingency for one. And if you're, you gotta get an inspection. So you have like a 10 day inspection.

So during that time, if there's anything else that you discover that you weren't aware of, let's just say those find foundation issues, plumbing issues, or whatever, you can actually renegotiate or back out of the deal, although you would have spent some money on the inspection or some of your time. It's part of the process. And it actually puts in lines of defense to protect your interests. But it also allows you to kind of lock it in, and then figure out your numbers if you have that gut feeling that this might be a winner.

David:

Absolutely, yeah. And that's that's it, the contingencies are there to save you. So as long as you're being smart, then you can use that safety net, and you'll be good.

So what, what has been your favorite deals? so far? I like to ask that question.

Bo Kim:

Yeah, my favorite deal has definitely been the four seller financed units. It's two duplexes. And I am a huge fan of podcasts. And I was listening to this one podcast, and the host was talking about seller financing. And he was saying, in real estate, you only need to win one of the two, which is the pricing or the terms.

So if you win both, that's awesome. But if a seller is fixated on a certain pricing, because either he wants to retire on this exact amount, or maybe he needs to buy a boat, or he needs something to pay off a debt, then you can negotiate the terms and still try to make it a good deal. And vice versa.

So I had that kind of ingrained in my head for a couple months. And then I flew out to one of my markets in Kansas City. And I was checking out the rental properties with another agent. And he's saying, hey, there is an investor who has about 20 to 30 properties in this area. He's been investing for 20-30 years, and he's starting to slowly liquidate his portfolio because he wants to move to Florida.

So that kind of gave me a green light to kind of check some of my boxes for seller financing is that, you know, he's an investor, so it's not owner occupied, and he's been investing for 20-30 years. So he's been kind of using up as depreciation. So if he sells there's gonna be that depreciation recapture. And if he's invested for that long or owned it for that long, that will probably mean that there's no financing on it so that I could purchase it and an LLC.

15:00 - 20:00

Bo Kim:

So I was like, this is perfect, he's retiring, he's gonna want some cash flow. So let me talk to him. And I looked at the property, it was in pretty good structural shape, but the interior cosmetics needed to be updated.

And when I talked to him, he was kind of asking for about, I would say, 20-30%, above what the market would have paid. And it was just sitting on the MLS for hundreds of days. And I was like, this is perfect again, because it's sitting there for so long. I'm sure he wants to sell it. So let me see if I can, you know, build some reports with him and see if we can make it a win win deal. So I talked to him, after a couple rounds of negotiations, we were able to come up with a seller financing terms that worked for both of us. So he was fixated on some price. So he went down a little bit for me, but he only went halfway down from what I initially wanted. So I was like, okay, we've locked in the price. I don't think he's gonna budge any further. But I wanted to negotiate on the terms.

So I was able to negotiate a 5.25% interest 10%, down 10 year balloon, and 30 year amortization. And by doing that, I was able to maximize my cash flow, because the terms were similar to a conventional Fannie Mae loan. Other than that, there was a 10 year balloon, but I was comfortable with a 10 year balloon, because in my head, I was thinking, even if the market dips immediately, tomorrow, in 10 years, we should have been, you know, out of the worst of the worst.

So I was comfortable with those terms. And with a 10% down, it's much better than a typical 25% down for two to four units. So when I look back at that deal, it's cash flowing nicely, and it's an area that I invest in, and I got to use those seller finance muscles. So that to me, was the best deal that I've done so far.

David:

Yeah, I absolutely love the fact that with seller financing, like you can do anything. I mean, there's no limit to I've heard some crazy things that people have done in terms, and mine hasn't been anything crazy. But you know, it's whatever you guys come up with. And so you can say, no, no, no, no, I can't afford x. So we're gonna do it this way. And then they're like, Man, you know, and you go back and forth. But as long as you understand the what, you know, like the basics of lending terms, you can get a pretty solid deal. You don't have to deal with private mortgage insurance, you don't have to deal with a lot of that, you know, some of those headaches, you don't have a credit score, credit check, you don't you can't go bankruptcy or well, like for you know, like, there's, there's no bank report on it.

So it, I don't know, I'm a huge fan, for a lot of reasons. Plus, my, you know, guy sent me a Christmas card for paying him. So that was cool.

Bo Kim:

Yeah, and, I mean, I, I kind of simplified a lot of things for the sake of time, but I have detailed it more on my blog. But in terms of negotiation, one thing that I did want to kind of share with our listeners was that when I was negotiating the terms, I was reducing the interest to 5.25 from what he requested to be 6.5% amortization, I increased it from what he requested it from 20 to 30 years, things like that balloon from seven to 10 years.

So I knew I was making quite the tweak that was going to impact the amount of mortgage and interest that he was going to be receiving monthly. So I decided to increase my down payment from 10% to 12.5%, to show him some goodwill, and show him that I'm also willing to move and not just take take take. And at first I was wondering, you know, I was talking to my investor, buddy, I was like, do you think he's gonna go with it? I'm only giving him a couple thousand dollars more in downpayment, but I'm saving $150 a month in cash flow, because I've increased amortization and lowered the interest. And you know, like you should try and you know, lo and behold, he accepted it.

So, you know, you never know so you want to make sure that you are kind of giving them some as well and you're making a good deal for yourself and see what pans out.

David:

Yeah, yeah, definitely gotta throw some giving back in there. You can't just take and also offer a little bit less the first like the first go around in negotiations always asked for less there's a really solid book, I love the book. Never split the difference. And then he talks about setting an anchor.

So like if you want to buy a place for 10 grand or 100 grand, the guy wants 120 you would anchor by saying like, whoo, how about 75 you know, and then now he's like, oh, holy hell so then if you guys meet 100 it's sounds a lot better than if you just come out and say yeah, buy it for 100. And then now you're not gonna make 100 you're gonna get stuck at a higher number.

20:00 - 25:00

David:

But he also talks about giving yeah. Oh, that book saved me. I mean, legitimately saved me. Like, the first month I read it, I saved like, I think it was like 40 $500 in negotiating, repaired, repaired dollars on someone.

Bo Kim:

Awesome.

David:

I was like, huh, the book paid for itself for like the next decade. Yeah. It's good. And that's why I know, real estate's people business and people forget that. And then, you know, that's an important piece of it is being able to talk and negotiate and figure out what's best for both parties as long as everyone's happy. So..

Bo Kim:

Yep.

David:

Awesome.

Well, hey, Bo, let's roll into one of these first questions, I always ask you, if a 18 year old or a youngster, you know, walked up to you asking you for advice on real estate or whatever, you only had a few minutes to talk to them, what would you say?

Bo Kim:

I would say education is key, and financial education.

So I feel like a lot of you know, my interns or staff who just, you know, start at our firm, kind of like they understand how their wages work and expenses and things like that. But in terms of the fundamental teachings of Rich Dad, Poor Dad assets and liabilities, I don't think they have a firm grasp on that.

So I actually buy a lot of copies of rich dad poor dad to hand out to some of my co-workers, because I think it's just so important to learn about those concepts. And also, for me, and I don't want to go off on a tangent here, but I think it's very different. I'm a millennial, and it's different. The rules are different from from our parents generation, where typically the advice may have been, you know, go to college, get a good job and work for 35-40 years, you know, accumulate, accumulate, accumulate, and hopefully your 401k IRA or pension will provide you the lifestyle that you want in retirement these days with, you know, YouTube stars, Instagram influencers, people who are making money on Amazon, and e commerce or real estate, the rules are not the same anymore, the game has changed, and you don't have to pay your dues for 40 years. And that actually is a more risky way, in my opinion, then creating streams of income and cash flow for you to seek out early independence.

So I think that's what I would tell that youngster is that don't necessarily follow, you know, old age advice, but look, to understand and seek knowledge, educate yourself and finances, although you have to rely on experts, like lawyers and CPAs are great. But you have to be knowledgeable enough to be dangerous, and to be able to direct the ship. Because you're the captain. If you rely on everybody else, you know, you don't know where the ship is going.

David:

Absolutely.

And I don't necessarily buy copies of the book, but my Rich Dad Poor Dad book has spent more time being handed out to Marines to read than it has in my house over the last two years. For things gonna fall apart one of these days because of us. But yeah, I agree. I mean, that mentality of understanding assets and finances is huge. Because you're right, the rules of the rules are changing. And you don't need to sit at a desk for 40 years to be successful, which is pretty cool. If you're smart about it. It's also very bad if you're not smart about it, because I think it just increases the opportunity for that, that gap. Because if you're not out there trying to get it. I don't know. You know, you see a lot of people struggling and I always tell them, it's not your income. That's your problem.

It's your expenses that stop trying to keep up with the Joneses. But anyway, that's fine. That's my rant that I could go off on. But when someone walks up, and they're saying, oh, I don't make enough money, and I'm like, Jordans, iPhone, Garmin watch, Oakleys. Um, no, I don't know if your income is your problem, man, like you're wearing $1,000 probably could have been spent elsewhere.

Bo Kim:

Yeah.

David:

Anyway, I digress.

Ah. So I guess. And this is just not even. So I apologize if I catch you off guard, because this is not one of my normal questions. But I'm curious. So you work at a CPA firm? And you're an accountant? How, do you think that has given you a significant edge because I feel like that as a career would give you a bit of an edge. But I guess my question is, like, how has that helped you out with getting into real estate investing? I'm always curious about someone who gets in that's in a trade that actually deals with real estate and taxes and stuff.

25:00 - 30:00

Bo Kim:

Yeah, no, I think that's a great question. And I'm glad you asked because I get that a lot, actually, some of my friends are like, oh, because you're an accountant, you, you know, work with numbers, you're able to do this quicker. Because once I found our real estate, I kind of started sharing, you know, the message with my friends. And a lot of people will just say, no, it's because you're an accountant, you're able to pick this up, it's not gonna be as easy for us. But I'd like to challenge them by saying that, although definitely it has its advantages for me, because I work with public companies a lot. I'm not a tax guy by any means. Excuse me, my dad, he still thinks I'm a tax guy. After five years, I'm an auditor, but he would still ask me to do his taxes. But his taxes are so easy. I still don't for some tax expert.

But I am an auditor by day and I work with public companies. And I read their financial statements, and I help them be compliant with rules and regulations. I'm not sure if you know of the Enron scandal, if you remember, and the Sarbanes Sarbanes Oxley act. So I work with companies in compliance with that. And what that allows me to do is look at a company from A to Z from their, you know, customer revenue cycle to their vendors, payment cycles, inventory, you know, payroll, HR, all of that. And because I work with companies in revamping and making sure they have control over these processes, I naturally just move that into my own business and think, okay, I have a real estate business, this is not a side hustle. So if I'm making this business, what do I need to do on the customer side? What do I need to do on the vendor side dealing with contractors, property managers, what systems and controls do I need in place?

So I started, you know, creating my own underwriting policies and procedures, I love spreadsheets. So I have a bunch of those. So I made it really easy to recreate it each time so that when I'm going from one unit to 16 units, it's just plugging go plugging go plugging though.

So that's a huge advantage for me personally, and also just underwriting the deals and understanding the risk involved. So the team that I'm in is called risk management. So can we leave my mind and go to risk? And how can I mitigate risk, whether it be inside liability from the tenants or outside liability for me, or some of the other factors involved in real estate?

When I'm looking at my business, I'm trying to reduce the risk as much as possible. And in my spreadsheets, I do different stress tests, say this is the best scenario, this is the worst scenario, this is probably the most likely scenario. And do I still feel comfortable with these three outcomes?

So I mean, it's a slippery slope in terms of getting to analysis paralysis. So which is interesting for me, because my personality, it's the easiest to fall into analysis prolapse, lysis, because I like to go into the details, which is probably why I bought so many deals so quickly, because I knew that if I would have kind of hesitated case in point, after I bought my first rental within four months, I had to deal with an eviction.

So if I would have just spotted that one and just sat back, I would have probably been turned off by real estate dealing with the eviction and loss of rents and all this stuff. Because that's not what I was promised, right? But that's, you know, what real estate is when you deal with evictions. Now, I know that.

So, but going back to my point about an advantage that my job has provided me, I like to challenge my friends and you know, ask them, hey, whether you're an engineer, or whether you're a server at a restaurant, there's different advantages that you're going to have over what I have. Because I would imagine if you're a server at a restaurant, your customer service and the ability to talk to people is probably going to be much higher than my ability.

So you're going to be able to network much better. Maybe you're going to be more of a person who raises private capital, or finds the better deals and then you work with somebody like me to underwrite deals and do the analysis or I don't know.

So I think each job has their merit. So although mine was focused on risk mitigation and underwriting deals and creating systems, I feel like every job will have their pros and cons.

David:

I like that you said that yeah, cuz people. You're right. People think that oh, well, you know, because I'm lucky because I am a truck driver in the Marine Corps. So my skill there's not really any way that someone can tell me my skill is what transferred to my ability to buy real estate because I'm like, look, dude, my ASVAB score requirement for like, Intelligence Center. The military is like the lowest you can have my score might not be but the requirement is like the lowest, it's basically like, breathe, don't be over six foot seven. And you know, that's really it. I mean, you can be colorblind, you can be, oh, you have to have depth perception.

30:00 - 35:00

David:

So if you have depth perception, you breathe, and you're not too tall to sit in the truck, you're qualified. And as long as you have a driver's license, nothing. But the reality is, though, that I went on recruiting duty, and I got a lot of people skills and negotiation skills and sales skills through that. And could I have transferred that or did I transfer that over to real estate, sure, and networking, but you know, a lot of people don't.

So it's not your job that gives you access to the key to the kingdom, it's your ability to find a way to use that skill to help you out. And it all goes back to creativity, right? Like if the end and the end, at the end of the day, you would not be an accountant by going and reading a book. But you could learn enough about accounting, to at least help you out a little bit by reading books, and taking an online class or whatever. Like that's the new way the world, that's what I've been trying to get through to people is like, you don't have to go and get a four year degree to learn how to do you know, if you want to learn property manager, property management, pick up a book, watch some YouTube videos from people who've done it, right, like that's enough to get you started. And then you'll learn the hard way.

But just you know, there's so much information out there because of the new age that you can find anything and I mean, I literally learned by like, I don't know what this is. Let me Google it. Oh, hey, look, a YouTube video. Oh, this guy's boring. Next one click oh, hey, I understand this. Let me see, you know, which opens a whole swarm of questions. But I guess my point there is just being get don't don't don't use a job or a lack of a job as an excuse, just find something and find out what you need to know. And go learn it from someone who knows it.

Bo Kim:

Man, I just heard like three or four, like quotes that I thought would be perfect to share. Yeah, that's awesome.

Um, one thing that I was just reminded of when I was first starting, so I had a kind of informal mentor. And you know, this is somebody that I just hit up on Facebook, because I knew he was active on bigger pockets. But he stopped becoming active in bigger pockets. So he was active like three years ago.

And I really resonated with a lot of his thought process and his way that he invests, so I hit him up on Facebook. And to my surprise, he responded to be on like Christmas Day or something 2017.

And I asked him a bunch of questions. And he was very nice. And he answered a lot of them. And then, you know, he was like, hit me up anytime you have questions. So I started to build a relationship with him. He's super nice. He had about 20 units across the Midwest, very humble dude. And he's also a W two worker, so he kind of was in the same boat that I was in. And one thing that I really appreciate from him is that he also shared his knowledge. But he also asked, challenged me to go seek the answer myself.

So I didn't know this. But I had a habit of kind of reaching out to him and asking the question, whenever I hit a roadblock, and not doing my research myself, but he kind of challenged me to do that. So I, hey, check out YouTube, go to the BiggerPockets forums, there's probably like, 30 posts on that. And I started to enhance my research skills.

So he kind of, you know, the age old, say, you know, teach a man to fish and not just give them the fish. So he kind of helped me do it. So I really appreciate that. And I like to share that with your listeners that, you know, if you learn how to fish, you won't need to, you know, get a fish from somebody every time. And it's going to be invaluable in your real estate journey.

David:

I can't stop smiling when you're saying that I'm Yes. So far along in that mentality. I love that. My recruiters used to hate me, because they'd answer they would ask me a question. And it would be a very simple question, right? Like, I know the answer off the top of my head. And I'd be like, I bet Google most like just angrily like that would be all I'd say. Whether I knew or not that, like they just got to the point where they would the other guys in the office would all chastise and be like, no, don't ask him Google knows. All of them to no end. But I mean, I still do it. In fact, it's funny. podcast I filmed last week, I was telling the story. And I'll like long story short, my Marines are supposed to go play basketball one morning, and I was not gonna be able to make it and I normally PT with them, but I just had an appointment or I was filming a podcast actually or something.

And, and they had texted me like 10 or 11 at night, and this is about before the morning. I'm already asleep. And they were like, hey, where is such and such gym? Well, there's only two two gyms on base. So whatever. There's only two basketball gyms on base. So if you ask me which one I like, by the time I woke up, I'm like, and they probably figured it out. Right? And I go into work. And they're like, yeah, we didn't go because we didn't know where it was. And I'm like, really, I picked up my phone. I was like, Google where the kunia gym, and it's like, yeah, five seconds later pops up on the map. I'm like, there you go guys like seriously like that was it? It was funny because I'm telling the story. And Google answered the question while I'm telling the story on the podcast, and I was like, oh, oops, I didn't know my phone was in here.

But yeah, like, what? What's the quote? I can't think of who said it. But information is of two kinds. You either know the answer, or you know where to find it. And that second piece in today's age, someone was saying the other day that the world has changed to where it's not, you're not successful by answering questions, you're successful by asking the right questions now.

35:00 - 40:00

Bo Kim:

I love that.

David:

I love it, so what were you saying about being able to fish? Like, yes, yes, you're not always going to have someone there to get you the fish figured out. That will make you so successful. I could talk about that all day.

I will stop hijacking my own podcast. Okay, so what makes the Bo Kim method of real estate investing unique and or successful?

Bo Kim:

I think the anti analysis paralysis, so now I've kind of gone against my personal grain, so to say, and I've started to just jump in. But that said, It's not that I jumped in without doing the research. So of course, if you kind of look at the results, I've scaled to 16 properties within
a little over a year. But behind the scenes, I'm listening to podcasts and audiobooks every time I'm driving to work and coming back, right?

I think I saw this infographic either on your Instagram or somebody else's, you know, you can be listening to music, which is fine. Sometimes you just have to just unwind and listen to music, or whatever. But you can also listen to podcasts. You could do this or that.

So I've chosen to do the other right. I listen to audiobooks, podcasts, and educate myself by reading a ton of books, I probably have, like 90% of the BiggerPockets books. And I wasn't afraid to spend my money on education on the weekends and nights, I would go to REI meetups and conferences. And, you know, and the result is this, right?

So one of my favorite quotes is action without knowledge is dangerous. But knowledge without action is useless. So it's great that you're educating yourself and doing all this. But if you're not taking action, it's just sitting there. It's like dead equity, right? So you want to do something with it. And I think that's what makes my type of real estate different. And also with a lot of other real estate investors. It's not that we're super smart, or that this is really complex. And we figured out the trick, it's that it's consistent and persistent action, a lot of us are just putting ourselves out there. And underwriting deals, meeting people, finding new ways to market and generate new leads, and then take down these deals, because we have that burning desire to succeed in real estate.

So I think that's it.

David:

I really like that quote, you know who said that?

Bo Kim:

I don't know, I kind of check back with you on that one. But yeah, that one's also I think I got it from a podcast, as well.

David:

Well if Google doesn't know that it's going up there as a bokkeum quote, because I think that's, that's pretty cool. So yeah, big fan of that. And, and definitely podcasts audiobooks, I do the same thing. In fact, I need to figure out what I'm going to do this year.

So right now I have like a five minute commute to work, which is really kind of a damper on how many audiobooks I'm listening to because I don't have much of a drive. But I'm about to move to San Diego here in six months, and I'll have like a 20-30 minute commute again. Well, even with the five minute commute, I'm maxing out like the biggest audible membership, the three books a month that you can do. And so I need to figure out like, okay, I don't want to buy extra books every month, is there a super pro level where it's like five books a month on the monthly plan. Because I'm going to end up you know, just I listen to books like two and a half speed. And also I'll listen to a book really, really, really fast and then if it's something that I got a ton out of by the hardcopy, and I'll go through and highlight it.

And then I'll read just the highlights the third time, but if it's something that I just you know, like a couple tidbits then I'll just one time listening was and I you know, and man books is de facto Yeah, like one thing. I just started listening to audiobooks on your computer or podcasts. It's amazing.

Bo Kim:

Yeah.

David:

Not just this podcast, you know, I mean, it's great, but I'm just kidding.

Alright, so I know we kind of touched on some resources there but like if you had to recommend one resource or two, whatever, you know, book, podcast, website, whatever. You could give you a chance to plug yours here soon. So not yet. But uh, you know, what's one resource you would recommend anyone looking to get started in real estate investing?

Bo Kim:

Can I give three?

David:

Of course.

40:00 - 45:00

Bo Kim:

Okay.

Yeah, the three main that I find a ton of value on is number one BiggerPockets. It's like the number one networking site for real estate investors with tons of value on the forums. Sometimes as a new investor, though, you have to be careful because there's so much information out there. And you might want to be looking for something that's more curated. So be careful not to get lost in the weeds. But with good searches, you're going to be able to find the answer that you're looking for.

So what I recommend is, write down a list of questions, don't just go in there, oh, let's see what I can find today and just go through all the forums, and you might just get lost, right? So you want to kind of write down what information you want to start with. If you're starting out new, maybe it has to do with market research in the Midwest, or how to underwrite a deal, and things like that, be specific. And like David said, ask good questions, and you'll find the answers.

And number two, surprisingly, is Facebook. Facebook has a ton of these mastermind groups, whether they be private or public, you can request the admins to join in these groups, there's very specific ones that might apply to you. As an investor. For me, a lot of the beneficial groups were out of state investors investing in certain Midwest markets. So surprisingly, there's like 500 of us investing in Indianapolis, and I'm part of that group. And we're sharing tips and resources. And it's very specific to our needs. Because we're all out of state. We're all investing in this one market. And we have similar questions and needs. So that's another great resource.

And also, the last thing is podcasts. So you know, listen to David's podcast, listen to bigger pockets, a bunch of other ones that provide a ton of value. And I personally love listening to other investor stories. Now, in the beginning, I love to listen to the fundamentals of real estate, how to, you know, understand the market and all those metrics and things like that. But now, I just love listening to other investors, how they look at deals, how they perceive things, it's been very beneficial to me.

So those three are a great starting point.

David:

I like it. Yeah, definitely. Investors should write that one down. You said all three. And I, like, forgot to write the last one down.

I like the Facebook one. Nobody's nobody's ever plugged that before. But you're right. There's very specific niches I mean, there's a real estate investing for the W two employee, there's, you know, mine is the From military to millionaire, there's reluctant landlords, there's, like, there's a whole slew of I mean, essentially, any niche that you think you're in, I would guarantee you could probably go in and find like, you know, white coat, got doctor, real estate investor or whatever. I mean, it's probably in there. And if not, you can always start it and people will find you.

And that's, I think that's really cool. And that kind of I always say that about meetups too, if you can't find a meetup in your area, start one. But yeah, Facebook is a good one, and it's free. And all of those are free resources that you can use to just go and learn.

Bo Kim:

Yeah, and I've actually bought two deals from Facebook from another investor. So yep.

David:

That's cool. I have not yet. That's really cool. I almost did. That was the deal that I missed out on. But super cool.

All right. Hey, before we wrap anything, or wrap this thing up, is there anything you'd like to add parting advice, big ideas?

Bo Kim:

Um, my main thing is for anybody who asks me to just take massive action, it's kind of like the 10 x rule with Grant Cardone, right? You got to set your aim higher and just shoot at it, you know, 10 extra times.

So if you're going for a million dollars, go for $10 million, and take 10 times the action, because that's going to get you closer to that target. And, you know, I tell other investors this because there was a lot of investors who started when I started, right, when I go to these RIA meetings, they're the same guys who come every month, and I continue to come and I talk with him because there's similar age to me, and it's like, hey, how's it going? Like, what are we done, and we try to keep each other accountable. And there was this one person, when I was about five, six months in and I had about four properties. I was like, hey, how's everything going? And he was, you know, just still looking around kicking the tires and trying to figure things out, which isn't bad, right? It could take you half a year or two years, or whatever.

But I feel like if you, the longer you wait, the more excuses that you will have more than any because I was asking him some more probing questions. Not to just, you know, poke at him, but just to really help him out. It's like, hey, I've learned this much so far. Investing in rental properties. Maybe I can share that knowledge with you so you can get started. But he would say I have no time. And you know, I have no money, kind of like the basic excuses that you would hear from people not starting out.

45:00 - 48:44

Bo Kim:

And you know, although I tried to explain to him, hey, you actually don't need money, you can get private lenders, or you can be the dealmaker or deal finder or things like that. But at that point, I feel like the knowledge gap between me and him was kind of becoming too wide. And he wasn't able to see him at, you know, step five, when I was like, yeah, private lending is awesome. Because at that time, I was already so confident in the deals that I was finding at 70% all in ARV, this is a great deal. But he would think no, that's a ugly property. You know, I can't see how it would look like if it's renovated, things like that. So I went off on a little tangent here.

But my point is to take massive action, if this is something that you really want, because either you'll find a way to do it, or you'll find an excuse to not do it. It's one or the other.

David:

Yeah, absolutely.

And if you're making all the excuses, you know, it's not going to help you out. So there's, there's always the solution. You just have to either find it yourself or ask the right person.

Absolutely. And yeah, you're right. It doesn't take, it doesn't take money to find a good deal. And once you find a good deal, somebody will help you with it. Get a good deal. And also, the uglier the house, the better. I love it, like there is nothing better than walking in a house and smelling a capisce.

It's like, Oh, perfect paint, carpet fixed. But that just dropped the price a ton. Because you're like, oh, nobody else is gonna buy this thing. Perfect. Yeah, love it.

Alright, so here's where you get to plug yourself all day long. Bo, tell us where people can find you.

Bo Kim:

Yes, so I created a blog. It's called www.biggercashflow.com. And I created this blog, because a lot of I was getting the same questions on the BiggerPockets forums. And I just wanted to kind of push them in an area where they can kind of follow my journey, and have a step by step on what I did to buy my rental properties and keep up with what I'm doing.

So you can check out my blog posts. I have a lot of content on real estate, and I love to read books like David. So I haven't yet documented all of my summaries, because I probably read about 20-30 books a year. But I have about eight there right now, which I thought were fundamental in my real estate and personal finance business.

So I have that and yeah, so you can also reach me on Instagram, bigger cash flow, so I try to put meaningful content out there as well. So yeah, follow me on Instagram.

David:

Yeah, definitely follow him on Instagram. We were talking before we started recording. He kind of came out of nowhere, like I think how long have you had your Instagram?

Bo Kim:

So I have actually had it as soon as I started but I didn't post for like, another year I started in like December I stopped and then I restarted this past December.

David:

I would say I only just noticed your Instagram. And yet I find myself enjoying the content he reposts on podcasts and his story and he's got quotes and stuff on the page, but it's a good page. Definitely go check it out. And I will definitely link to all of that in the show notes as always.

Bo I really had a lot of fun doing this. When I moved out to San Diego. We're gonna have to grab coffee sometime halfway between San Diego and Orange County. Come up there to Hollywood and we'll meet up somewhere.

Bo Kim:

Oh, yeah, for sure.

David:

It's been a blast having you on the podcast. I'm gonna thank you.

Bo Kim:

Thanks, David.

Bo Kim on The Military Millionaire Podcast

Episode 17 – Bo Kim

Bo Kim is an accountant, real estate investor, and blogger!

Bo has been investing in real estate for a little over a year and has already purchased 16 rental units! Bo has used all sorts of creative financing method, to include seller financing, home equity line of credit (HELOC), and loans from his 401k.

His advice to an 18/20-year-old is:

Financial education is key, learn the difference between an asset and a liability, and then act accordingly!

the resource he recommends is:

BiggerPockets, Facebook (niche real estate investing groups), and stories from other investors!

His big idea/parting advice is:

TAKE MASSIVE ACTION

If you want to reach out to Bo you can find him on Instagram at @biggercashflow or at https://www.biggercashflow.com/

SUBSCRIBE: https://bit.ly/2Q3EvfE

Blog: https://www.frommilitarytomillionaire.com/start-here/

Instagram: https://www.instagram.com/frommilitarytomillionaire/

Facebook: https://www.facebook.com/frommilitarytomillionaire/

Audible: https://amzn.to/2K0wzxL

Join me in the BiggerPockets Pro community! https://www.frommilitarytomillionaire.com/we-recommend-BP-Pro/

Books I recommend

First read: https://amzn.to/2KcTEww

Real Estate Investing: https://amzn.to/2ltPRNm

Real Estate Investing: https://amzn.to/2yxFBNf

Real Estate Investing: https://amzn.to/2IhQ1QI

Building Wealth: https://amzn.to/2ttiwpf

Efficiency: https://amzn.to/2K1eRdy

Efficiency: https://amzn.to/2yvuu7K

Negotiating: https://amzn.to/2tmCyT7

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David Pere

David Pere

David is an active duty Marine, who devotes his free time to teaching personal finance and real estate investing for service members, and the working class!

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