Episode 19 – Jay Helms on The Military Millionaire Podcast

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Episode 19 – Jay Helms on The Military Millionaire Podcast

00:00 - 05:00

David:

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

Today is an exciting episode with Jay Helms in which we talk about real estate investing, balancing real estate and running online businesses with a full time w two jobs. This is super powerful for anybody who is a W two employee and I highly recommend you listen all the way through some great nuggets. Jay is an awesome guy.

If this is your first time listening. Thanks for joining the community. This podcast is produced every week for your enjoyment. Show notes are found at Frommilitarytomillionaire.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 military millionaires. It's Dave.

Today I'm here with a special guest. This is Jay Helms, you may recognize him from the Facebook group, real estate investing for the W two employees. It's blown up online and j has honestly I'm kind of jealous of his group. It's always got better posts and more frequent posts than I do.

So I need to step up my game to match him. But, uh, Jay, it's awesome to have you. I'd love to, you know, introduce yourself a little bit to our listeners.

Jay:

Yeah, man, I appreciate you reaching out and including me on this. The closest I've ever been to the military is probably when I took the test in high school, and they just shook their head and said no, right.

But no. So currently, you know, here we are January 2019. I've got 51 units. Some of those my wife and I own ourselves some of those with partners. Who with Tim Kelly, I think you know, Tim.

David:

Yeah, he's been on the show.

Jay:

Yeah, he's a chief Pettis petty officer in the Navy. So I can live vicariously through you guys. But that's kind of me in a nutshell. But this last year, and I've been investing since 2014 when we bought our first rental property in Pensacola, and since then we've grown our portfolio to the point where we're now looking and kind of holding back and kind of seeing what the markets doing because it's really hot, you know, in this area in Pensacola and I have not bitten off the bug of our bitten a chunk off of investing long distance just yet.

I think that's going to change later this year. I'm kind of looking at some things in q3 and q4 of 2019. That may change that. But in the minute interim, I've got to have something to focus on real estate wise.

So we started up this Facebook group real estate investing for the W two employees. And from that is spun off the mastermind group called W2capitalist. And then I've got my blog HelmsRei.com, it's all about our experiences and linking people together, like yourself and Tim and saying, Hey, you know, here are like minded people that are going to lift each other up, right. And I think we're going to talk about that in our next couple minutes about being around like minded individuals and how that can just, you know, change how your goals are accomplished.

David:

Yeah, absolutely.

So I'd like to kind of go back. I know you mentioned 51 units. But before we get into the non real estate side of the business, how did you get started in like, what was your, what are some of your strategies?

Jay:

Well, I got started, probably like a lot of folks, I said, we bought our first rental property in Pensacola in 2014. So rewind back, about eight years before that I bought a was gonna be a live in flip, I was single at the time. And I'd been watching the HGTV shows, you know, flipping the sexy, cool thing to do in real estate. And in the height of the market hit right.

So it didn't work out like I thought it would. I ended up holding on to that property as a rental for a little over a decade. And we were able to walk away with some equity. And I say, week because in between that time I met who's now my wife and she helped me make a lot of the exam decisions throughout the house.

But at that time, we'd also moved down to Pensacola. And we had you know, we've always been written in interest in real estate. My grandparents were real estate entrepreneurs. Now I think they did it had to do it by choice, but you know, we hear the phrase house hacking now and but my grandparents you know, one of the things cool things my grandparents did when they before they passed away as they wrote a book about their life, right and and talk about how they moved about every year for about 20 years and they ended up with us.

05:00 - 10:00

Jay:

Really large house, three bedroom two and one and a half bath. 1900 square foot my dad still owns right next to an apartment complex that they owned and managed. So it really started with them kind of gave me the bug there. But in 2014, we saw the market in Pensacola starting to make some corrections and actually the dip had already happened. And it was on his way up. And we thought, okay, we want to do a real estate fix and flip is not our part day, right. So let's look at buying a home. And that's where we ended up.

So now we've been focusing on buy and hold properties that meet our investing criteria. And we just gobble them up as we can now we're probably a little bit more patient. Because of our investment criteria, we know there's not gonna be a whole lot of deals that meet that, but the ones that do cash flow very nicely. Our overall gross income has increased exponentially. It's probably 60 grand a year from the time we started, and then our overall net worth has been 10 x since we started.

David:

Yeah, yeah, that's huge.

I like the fact that you mentioned that you're very specific on your criteria, you know, a lot of people go out and they look for houses and deals. And you know, at the end of the day, it might be a deal for someone, it's always good to have an exit strategy. So you could find a house that meets a wholesalers criteria or fix and flip criteria, you can find a way to make a little money on it.

But if you take a house, that's a fix and flip criteria, like this could work and you're not someone who does that. And you're like, yeah, this is a deal. I'm gonna roll with it, even though it meets none of my other criteria. And it's just not always worth getting out of your niche. And I think a lot of people get into trouble when they try to go gamble big with deals that they have no idea they're what they're doing.

Jay:

Yeah, I would say the only time I've ever lost money in real estate or on a particular property is when I abandoned those criteria. And, you know, not setting our criteria is not for everybody, right? But it's one of those things where we know what works for us. And if we're very strict with that, we know what the end result is going to be.

Now, on the flip side of that, knowing that criteria ahead of time, allows us to analyze properties very quickly. So we don't spend a whole lot of time on one property when it comes up. I mean, within about a five minute napkin test. I can tell you if we're going to dive into that property further or not.

David:

Yeah, absolutely. I have like one or two. They're overly simple formulas that I can do in like seconds with like, this times this on my phone. And people like how do you know if that works? Like what if you know, blah, blah, blah? I'm like, look, I don't if it doesn't mean that I don't care if what if blah, blah, blah, there's another app that does meet that.

Jay:

I don’t have some time to get there. Yeah,

David:

We'll just roll that right into what we're going to talk about as far as the work balance, because I've mentioned don't have time to sit here and analyze every deal. And we were kind of talking before the show, but like one of the biggest questions you get I'm starting to get is how do you balance a full time job with real estate and the fact that you also run a, you know, an online presence?

Jay:

You know, it comes down to setting blocks and setting schedules.

Well, I'll tell you what, let's go through, there's there's, there's a few bullet points, and when there's more than a few. But the biggest thing, you know, if you're if you're thinking about getting this, you know, start investing in real estate, military or w two was the biggest thing for me, now I'm married was to get my spouse on board, because you've got to have that close group support to push you because it's not going to be easy. You know, it's not the easiest transition to make. But once you get that, you know, I was talking to a guy yesterday by the name of Darren hay. And he gave me this example. And I thought this is brilliant. But as you get started, your investing career is kind of like a flywheel. And, you know, it takes a little bit of time, it takes several revolutions to get that flywheel going, but once once it's going, it didn't take a whole lot of effort to keep it spinning, right.

And so, got to get that spouse on board. You have to become incredibly organized. That includes everything from your phone, your emails, work, military stuff, everything of that nature. And then you gotta be ready to alter your lifestyle, right, less TV less nights out. We were talking a little bit earlier. You know where you're at? You're it's 4:45 now.

David:

5:45

Jay:

Yeah, but we were talking about how you know, you got to get that. You still want to get that 7-8 hours of sleep every night, as much as possible.

Now, if you're married, you have young kids. You are probably laughing at it . Yeah, 7-8 hours asleep. That's a joke. And I'm with you, you know we've got two we've got our third on the way so I'm interested to see how number three affects my schedule, but we got a few months for it to get here.

10:00 - 15:00

Jay:

But you know, you got to be ready to alter your lifestyle. And that does include finding time when you can focus on this for just an hour or maybe two a day, right. And for me, that is early morning, before the rest of the house wakes up, because by the end of the day, you know, I've worked 8 hours. And I don't do physical work. I'm a keyboard, monkey, right. So I sit here and tap on the keyboard and do conference calls. And, and I do a little travel, but it's not physically exhausting work. But at the end of the day, I'm so mentally drained that I just want to veg out. I want to hang out with my family or hang out with my kids, get the floor and wrestle with them. And then we're going to eat supper, and then it's bedtime bedtime, by then it's probably 8:30. And I'm done, man, I'm exhausted.

And that's regardless, if I get up at seven, or if I get up at 4:45, which is what I'm doing now. So I get up at 4:45 which I know military guys, it's probably not even they're probably laughing at that name is not even early.

But the point is you got to find a few hours, you know, one to two hours a day where you can look at this stuff and, and that for me is what is before the house, the rest of the house gets up. And I'm being you know, well rested, and I'm able to focus and the other. So I'll go through a couple of these other things, as well. We talked about setting a schedule, you got to set a schedule, be very specific about your schedule. And one of the things if you read the book, the one thing by Gary Keller, he talks about finding that one thing that's going to make the rest of your tasks throughout the day, either diminish or become not as important.

So whatever that one thing is, tackle it first, right, do it first. And you're gonna be amazed at how the rest of your day is going to just, it's going to open up, there's gonna be so much more opportunity, your mindset is gonna be so different. Because if there's something I'm dreading to do early in the morning, and I don't do it, guess what's on my mind the rest of the day until I get to it.

David:

Absolutely.

Jay:

That thing.

So for all my friends that are listening and watching this, if I call you early in the morning, I've dreaded make a phone call, you know, so that's what I'm doing. So knocking that out first thing in the morning, in the morning.

Um, so a couple other things that, you know, to be real efficient to make take advantage of the most of that one or two hours that you find in your day. You also got to get comfortable with saying no, right? No to anything that does it affect the angle of your goals, right. And for me, my goals, our family excelling at my w two, which is also a good point, yeah, to keep excelling at your W two or in the military career. And then the side hustle, which for us is real estate investing.

So anything that doesn't affect those three big things. I typically say no too, now, I don't have a big social circle. I don't, it's me and my wife, we're also homebodies. I'm actually a very big introvert so I don't do very well in crowds. But I do know, it's one of those things where I figured out I don't necessarily need all those things, because it doesn't affect how I raise my kids. It doesn't show how I love my wife, it does affect how I make money, right?

So if it doesn't help those three things, more than likely, I'm gonna say no to it.

And another thing too, you got to be open to course corrections. And what I mean by that is you may find just like we started trying to do flips, you know, and there was a part of time there where we tried to do wholesaling, being an introvert and wholesaling usually does not add up. And it doesn't it didn't for us, but it was a way we thought we can make some good money, you know, real quick money and raise some capital for our bond old properties. And we just quickly figured out, hey, that's not for us.

So you got to be okay with course course corrections. Don't be beating yourself up. And then you've got to going back to saying no, you've got to evaluate your circle. You know, there's a saying that's floating out there that your net worth is equal to your network. There's a lot of people that are like that, that I'm around, that you guys are around, that you just don't need to be hanging around, right. And it's not one of those things where they're a bad influence is they're just not influencing you toward accomplishing your goals.

And so what I've this year, as I keep saying this year, we're in 2019, last year, I made a very conscious effort of saying no, and also not hanging around those people that didn't support me in those goals.

Now, also, if my friends are watching, there's like, hey, I haven't heard from him in a while. You might fall into that category. No, I'm just joking. You know, there's the thing and I didn't go to these folks and say, look, you're not supporting me here in here, you and I are no longer friends.

15:00 - 20:00

Jay:

You know, I didn't do that, that's not what I'm suggesting you do, what I'm suggesting is evaluate where you spend your time. And if it doesn't affect your main goals, then you need to reevaluate that. And a lot for a lot of us, it includes the people that we hang around on a daily basis, right? Outside of work, right. And the other thing, too, is you got, you have to set time aside to read, and network and mastermind, because there's so many resources out there, I don't know if you've got a book club, David, but you know, there's, there's so many resources out there, you know, we talked about bigger pockets before you record, those guys always recommend bugs, you know, I've learned so much from that site, which is it's a great networking site, it's a great site to gain any really information. And then there's the mastermind, right, which is you've got to get around people who are like minded for you guys, you know, in the military, everybody has a military mindset. But you also need to be around investors, right? That, that go through some of the same struggles that have been where you've been, that you can help along, and they can help you along and push each other.

And then the last point I'll give you is get comfortable with being uncomfortable. Because that's where growth happens, you know, and we'll go back to the time schedule for a minute.
Excuse me, while I blow my nose.

But, um, you know, setting your schedule getting up earlier, you know, altering your lifestyle to where you're going to bed earlier, getting up earlier, do it in 15 minute chunks. That's the way I know, I've tried, okay, I normally get up, you know, up until last year, I got up at 7am. When I hit that when this hit me and said, hey, I've got to get up before the rest of the house, I set my alarm clock at 5:30. Guess how many times I actually got up at 5:30.

David:

It takes some getting used to.

Jay:

You got to get used to it just like a workout, right? You don't walk into the gym. And if you've never, you know, say your max is 200 you don't walk in the gym the next day and say I'm gonna bench 400 right, you've got to work your way up.

So the same thing with setting the alarm clock, and I did it in 15 minute increments, I'd set my alarm clock 15 minutes earlier, do that for two weeks, get used to it, then set another 15 minutes and then set another 15 minutes. And on the flip side, I'm setting my bedtime alarm, which the iPhone has, which is amazing because we need a bedtime alarm, but it's a great reminder. So the night doesn't get away from us is that you know, setting it 15 minutes earlier, just you know the idea of getting up earlier does not equal. You're losing sleep. Just changing your lifestyle where you're spending your time.

David:

That's huge.

I actually got lucky when I had done the four or five in the morning for a little while and had some success. And then I kind of got sidetracked and I was struggling to get back into it. Well, I went to fin con in September. And so that was in Orlando. I spent a week in Orlando.

T
Jay:

I’ve been there but we didn't meet there but I saw you walking around the way. I remember you walking around because you always had the Hawaiian shirt.

David:

Yeah, I don't think we had really connected yet, which is a bummer, you go in next year?

Jay:

I plan to we're Alex asked me that yesterday. And we're trying to but with baby number three coming. I don't know how that's gonna. So we'll see it's on my list actually.

David:

We’ll actually hang out this time.

Jay:

Yeah, absolutely.

David:

But I got so set I had the whole week and I got set on that timezone.

So I was like, I'm using it. I made it back here. And I was like, I don't care what time it is here. Whatever time it was in Florida that I was waking up is when I got up in the morning. So I and I did it. And then I was like, okay, tomorrow I'm sleeping until four and I haven't missed. I mean, maybe 4:15-4:30. But even still, my alarm goes off before four and I hit snooze at least once before I'm out of bed. It's just like yeah, right that there were two things in your schedule, or your list that I really wanted to just touch on because they've hit home to me recently.

One is to get comfortable with saying no, because that is not easy.

Jay:

It's not.

David:

At all, especially when it's like people you enjoy being around, but they're just not doing things that you need to do, I go out or whatever. Like I went out once. Two three weeks ago is probably the first time in a long time but even then I was like alright guys, I'll drive you know they want to do Uber. I'm like, I'm gonna drive because I'm leaving at 7:30 though.

Jay:

Yeah.

David:

We know we're not gonna stay out that late like no, I'm taking control of the situation. I'm driving.

Jay:

Yeah, cuz at 7:30 rolls around, they're gonna be like one more bar.

David:

They were out to one or two.

Jay:

Yeah.

20:00 - 25:00

David:

The next morning I'm looking at Instagram and I'm like, what in the world are these guys doing? I'm like, Oh my goodness. I'm glad I didn't get that. stuck with that?

And the other one is evaluating your circle. I say that because what we were talking about earlier, as I'm debating whether to stay in the military or not say the military, it's very interesting to see the groups of people who tell me their opinion. And it's very easy to say, there's, you know, people on the fence for staying in, there's people on the fence for getting out. And the ones who are telling me and the reason it's a very tough decision is because I like the Marine Corps. But every person who's telling me, I say, every should ever talk in absolutes, I need to get better than most of you do, that are telling me to go ahead and get out of the military and focus full time are the people who have been where I'm at and are where I want to be. And that's what it's like, I'm leaning that direction, not necessarily because I don't want to be in the Marine Corps anymore, but because these very influential people that have been there done that are that are the circle, I want to be around.

Jay:

Yeah.

David:

The words have meaning to me.

Jay:

Yeah. And that's the thing to you know, just like earning, you know, working a W two job, it's not that I hate my job is, you know, I actually enjoy what I do, like, I think you enjoy what you do.

David:

Yeah.

Jay:

But there are financial things that I want to accomplish that my W two job can't allow me to do. You know, we talked a little bit about that before recording. But back to before we jump over to that, the circle thing is huge, you know, and I've heard it, I saw this yesterday. And it's the first time I've witnessed this. And it was just like mind blowing, like, how have I not seen this before. But if you talk about your circle, but in this case, it rings, right? You put yourself in the middle, and you put those core five people. It was a relationship analysis, I think is what it was called. I wrote it down somewhere. Basically, you put yourself in the middle and you put your core five people there. And then you start doing rings outside of that. And then you put those people on those rings of where they're going to be so those people who are influencing you.

David:

I think so.

Jay:

I just can't say it, I would, I would like to say it's because it's 5:45. But that's not my problem, right?

David:

It is somewhere

David:

Where you're at, right? But those people who are pushing you to get out of the military are not saying hey, ditch the military, because it's horrible. They're saying follow your dreams, right? And that's the people that you need to have in your circle, right.

And then those people that are gonna affect you differently, they need to be on the next rank, you know, and then the next ring, and then the next ring, until the outer ring are those those those what I call just basically losers and deadbeats who no matter what you do, they're going to tell you that, you know, you shouldn't do that, you know, doesn't matter what you're going to do, they're going to say, you should do this, or you you know, you should do something totally different.

So when I saw that yesterday, I was like, you know, that's I love that idea. Because if you focus on who's in your core rings, you know, whether they're in that, that top five that everybody talks about, or they're just, you know, a couple of rings outside of that. And if you focus on just those people and getting feedback and hanging around with those five people or those core people, how much more your dreams are going to be easy, more easily accomplished.

So when I saw that, I was like, I've got to draw me relationship analysis. And you better put your wife in the center of it. If you're married,

David:

Ironically, the people in the outside rings are also the loudest and the hardest to get away from sometimes.

Jay:

Yeah, yeah.

David:

And that sounds like a messed up thing to say but it is what it is.

Jay:

No, but with enough persistence, they will there they will finally quiet now, you know.

David:

Yep, yep. Or you just ignore them. I do this wonderful thing. I found this feature on Facebook the other day. I didn't find it but I've just never used it where you just unfollow someone so they don't know that you are not paying any attention to them, but you never hear from them again. And man it has made my Facebook feed so much more inspirational for what it is and want to hear.

Jay:

That is one of the best features I think they've that in unfriend is actually fear the best feature

David:

Depending how mad I am, yeah. Yeah, it's like.

Cuz there's, I mean, there's people that are still friends that I want to stay in touch with, but they just, you know, the stuff they posted. I don't need to see that I really care. And I'll be honest, most of it is politics. And it's politics in either direction. Like if you are a left wing nutjob or a right wing job or somewhere to either one of those extremes and you can't post if you're the type of person no matter what your political view is, who cannot see somebody else's argument and discuss it civilly.

Jay:

Yeah.

David:

Like, I don't care what your point is. I don't care if I agree with you. Like I can't. You can't discuss it. I don't need it on my feet.

25:00 - 30:00

Jay:

You know, with the government shutdown going on right now? Um, you know, I'm a right wing. I don't know if I'm a nutjob, but I'm a right wing kind of guy. And there was a, you know, there's a meme going around of, hey, I need to go with the government shutdown because I, it hasn't affected me, you know, so I thought it was pretty funny because most of the people that I run around with or talk to it doesn't affect, you know, there's been some questions about you know, what if you, what if you have HUD housing, you know, aren't is that going to be paid or whatnot.

So I posted that just trying to be funny. And then three or four people immediately responded and said, what's affected me this way, and they were talking about the Coast Guard not getting paid. And then they were talking about how the IRS hasn't released the final tax strategy or tax schedule for this year, and how that's going to affect taxes. And then, and then somebody else posted something else about how is it affecting I was like, now, I appreciate those comments, you know, saying, hey, Jay, get out of your bubble, you know, but it did it open up my eyes and say, look, you know, here are people who and I don't know their political views, but they did say, well, here's how it's affecting this. Here's how it's affecting this, which opened my eyes up, you know, nobody came in and started bashing me for anything. They just said, hey, just FYI. And I was like, that's great.

David:

I'm doing my since you mentioned Alex earlier, I'm doing my first attempt at a truly viral video that should have been posted an hour and a half ago. Hopefully, by the time this airs it, you've seen it that I did my job, but the title of it courtesy of Alex is, if the government shutdown has you worried you're socialist?

Basically my way of and it's it gets pretty serious, but it basically starts out with me reading the definition. And then reading the fact that the synonym to socialism is welfarism. And then saying, look, I don't really care what your political views are. But if you are one of these people who hates communism, socialism, and welfarism, and all this negative stuff that people often say is negative. But you can't survive without a paycheck for three weeks, you depend on the government and what's depending on the government. Oh, that's right. Socialism, communism, welfare is yeah, need to figure out like the government shutdown all the time, and you can't figure out how to live without a paycheck.

What happens when you get out of the military or the federal government goes into the civilian world, all of a sudden, you get fired?

Jay:

Yeah.

David:

How are you gonna retire? You can't even survive for a month without a paycheck. Yeah, so that's my short rant. But I tried to split it into a teaching tool, but I'm kind of hoping that it gets picked up in the trending viral. Yeah, it gets me some, some views, we'll see what happens.

Jay:

I think it will. But it does lead to an interesting point, you know, you've got to have that runway of whether you're in the military or you know, your full time investing, you've got to have that cushion. Runway account, right.

So for us, you know, we keep six months of our column operating spaces, but it's just basically what we would take to live off of if I were to lose my W two job. And you know, the other thing when it comes to our individual properties we have, and I think this quote came from it, I didn't come up with it. But that might have been granted and said this, but you have those sacred, do not touch accounts for each property.

And basically, every month when rent comes in, we take a percentage of the rent, and we are depositing into those accounts that are strictly for that property, for when the septic tank messes up, you know, has to be replaced, or the H fat goes out, or the roof has to be replaced any of those capital expenses that you can't necessarily plan on from month to month, and that those sacred accounts have saved us so many times in the last couple of years.

I mean, we were placed in two air conditioners last year, a total of 7 grand, you know, in Florida, it seems like they don't get as much at home as we want to. But, you know, I came up with seven grand price tags. And if I had been putting that money back, I'd be stressing, okay, where am I going to get that money? You know, because I don't want to go in our personal savings account to grab it. But because we've been doing that, we went directly to those accounts and made the payment, right.

So it was it, I think, you know, you're tied back around, you've got to have some cushion, you know, whether it be on your personal property or with or obscuring your personal situation or for your investment properties.

David:

Absolutely.

All right. So, Jay, if some young 18,19,20 year old walks up to you asking you for advice, we think you'd give them where they should start?

Jay:

So I'm going to allow my dad to answer this question. And by that I mean when I was in high school, about to go to college. I didn't know what I wanted to do. You know, I still am trying to figure that out. I guess I must be unfortunate. But I don't want to be a real estate investor. But other than that, you know, my dad tried to get me for every summer that I was out of school. When I became of working age, he wanted me to work for a tradesman.

30:00 - 35:00

Jay:

You know one summer work for an electrician, one summer work for plumber next summer work for, you know, Hfac handyman, you know, any tradesmen that is the bad thing about and he's a retired fireman now. But he had the guys that did this, you know, because most firemen work a second job, and they're usually some sort of tradesman lawn care guy, you know, something along those lines.

So he had the guys that could really show me guys that he trusted, they can really show me how to do that. Well, I didn't do it. You know, I'm 18-19 years old. I know, you know, I know more than you, Dad, I'm sorry.

But, you know, that was probably one of my biggest regrets growing up, because, you know, not that I wanted to go into those fields. But now, you know, the situation we're in now where we're wanting to invest and do more, you know, I've had to learn those skills, you know, not necessarily somebody teaching me, you know, and not necessarily know, and hey, should it cost this much to have that plumbing fix. Or should it cost this much for like, you know, to replace a breaker box.

You know, so it's, if I were to talk to an 18-19 year old kid and say, look, if you really want to get into this, here is a part of if you're going to school, you know, if you're going to full full time school, here's a part of the business you can learn on the side. Not that you're going to end up you know, being a plumber, or an Hfac guy. Now, obviously, you can always rely on those skills, but you're not going to end up there. But it helps you learn a side of the business, that's not property management, that you know, all these other things you can learn from somewhere else. But when you're 18 year old, and you've got summers off, and you're looking for a summer job, spend it with a carpenter, spend it with a plumber, spend it with an electrical guy and you know, and make sure you're learning the business.

David:

Yeah, I actually really like that. And those are skills that you know, never go away. You're never gonna, no matter what happens with technology, we will always need a plumber I think.

Jay:

Yes, absolutely, right.

David:

Yes. So I clogged by stupid sink the other day, I don't know what happened, I guess something I didn't plug in with something broke. You know, sure I'm renting. So I didn't have to pay for it. But it was frustrating to like, look at it and be like, I don't know how to fix this.

Jay:

Right.

David:

You know, if it was if it was my house, I would still have to pay someone to fix this. You know, which is why I learned stuff on cars, because I get sick of paying people to fix it. So I started learning how they go, you know, I bought an old truck, and it gave me a lot of education. But yeah.

So what is one resource that you would recommend to anybody looking to get started in real estate?

Jay:

Um, so you're talking about like, educational?

David:

Yeah, like books, websites, you know, whatever.

Jay:

So the biggest. So this is probably a little different than anything that's, I don't know. Are you familiar with Simon Sinek?

David:

Sinek? Yeah. Got some pretty popular TED Talks.

Jay:

Yeah, he, you know, he's a very inspirational guy might be the accent I don't know, that draws me to him. Um, but he, he has a book out, it's called start with why.

And that's one of the big things that you know, when you and I are both in bigger pockets, and we talk to different folks on there and in the forums are awesome. But you know, I love when people post on there and say, hey, is this a good deal. And they'll give very minimum information about it. So, you know, my, usually if I see one of those, and I want to respond to it, I'll say, well, what's your What's your goal? You know, or why do you want to buy this property? or Why do you want to get started investing in real estate at all?

Everybody says money typically is the first answer. But it's not about money. It's there, there has to be a deeper passion for you to get to. So I try to engage with those folks to really ask them, you know, drill down, there's a concept called seven levels deep, I think, what it's called, where you basically go through that evolution of what why do you want more money?

Well, I want to be able to be my own boss, okay. Why do you want to be your own boss? Well, I want to be able to spend more time with my kids. Okay, well, why do you want to spend more time with your kids so you go through that you finally get to and it takes some time, at least for me to really get to that reason of why you want to invest in real estate.

So the reason why that is so important is because there are times when real estate investing sucks. And if you don't have that, why, you're gonna abandon the dream, right? And you're gonna abandon that if it's just money. Now don't get me wrong, money is a byproduct, right? I mean, we are in a capitalist country and we're in a society that you've got to have money to do almost anything, right? So money should be a byproduct. And that's where it gets into your investing criteria to make sure you're hitting those numbers, but it's not your overall why.

So long answer to your question, I would say Simon Sinek book starts with why it is a great, great resource.

35:00 - 40:00

David:

I actually love that book. And not that this really has any weight on whether you should read it or not. But for those of you listening, that are in the Marine Corps, that book is actually on the comedones reading list. So you will get credit for your promotion as its bigger annual really required books. So you should go read it, because it's awesome. It's one of the few that's on there that actually, there's a couple so like, that one's on there. There's outliers.

There's a couple books on technology in the future, but most of the books on their war in history, which is cool, but as far as, like, the real estate thing, there's not very many that you know, can tie into your motivation in your life. And that's one of them, and I loved it. I read it on there, cuz I was like, Oh, I don't know what this book is. In fact, I didn't actually realize I put two and two together that it was Simon Sinek until like, after I finished. I watched his TED talk. I was like, I've seen this TED talk before. And then it was like, wait a minute. I know that. But yeah, that's a great book. I love it.

Alright, so before we wrap this up, is there anything else you'd like to add any big ideas we should talk about that we haven't mentioned yet?

Jay:

Man, you know, I don't know what's, what's the real estate market gonna do this year? Is it gonna? Is it gonna pommel and fall like everybody thinks?

David:

I think no, just because everybody thinks that it has softened a little bit. But there's a lot of the and a lot of the criteria that were met last time haven't been met. Although they brought non prime, I mean, subprime mortgages back as non prime mortgages, which is scary.

So if you're listening to this, and you don't qualify for a normal loan at all, and someone says, I've got this awesome non prime mortgage that you can take, you walk the other way and figure out how to qualify for a normal loan, you don't need no seven 7% interest starting adjustable rate crap with nothing down with no credit. Like, if there's a reason you didn't qualify, you're setting yourself up for failure.

Jay:

Yeah, there's just remember the banks, whether they're doing yourself a favor and lending to that money, they're trying to make money. They're trying to make a sale. So you're right.

I think I think the market is due for correction. But I think it's gonna be longer and not as sharp. But that's what my crystal ball tells me

David:

And, you know, a year and a half, two years from now, we'll both be sitting back watching this and going, huh. I think we kind of got it right.

Jay:

Yeah.

David:

Who knows?

When we're both on the sideline, wishing it had crashed, because it doubled a week ago, I didn't buy.

Jay:

Yeah, well, that that's somebody that somebody told me that the other day, because they had a different viewpoint. I wish I could remember the guy's name, but he was very, had a very strong opinion about where the market was going.

And he's like, fine, sit on the sidelines and a year from now, I'm gonna be, you know, looking back at him when all my properties have doubled. And I said, well, look, buddy, I said, here's the thing about that. I don't buy for appreciation, you know, I buy for cash flow.

So as long as I can make a property cash flow, I don't care what part of the cycle that I buy it, you know, and by that, and the reason why we bought a whole lot here recently is because I can't get anything to cash flow, you know, the rents are not in, well, I can't get anything because I'm still, you know, local guy, two hours from where we live. But I can't get anything to cash flow based on what the asking prices are, you know, because it's that part of the market that is so inflated, that rents are not keeping up with what those asking prices are going to do.

So that's when I say hey, I'm waiting for the market correction. I'm waiting for those buying prices to come down or at least correct with what rent rent values are.

David:

Yeah, absolutely.

I'm lucky enough that most of my stuff that I invested in is in an area where appreciation flatlines you know, there'll be like a blip. But so it's pretty, pretty stable. So I do the cash flow thing, and I generally don't have to worry about the markets going up and down much.

Jay:

Yep.

David:

All right. So Jay, where can people get a hold of you?

Jay:

So our landing page is HelmsRei.com, and then from there you can jump over to our Facebook group, you can find more about the W two capitalist mastermind group from there.

There's also some free resources like you know how to buy and hold a small multi family. And then there's several other things there as far as you know, our there's LLI that I have out there, just all sorts of resources. But most the landing pages HelmsRei.com is where you guys can get there and you can hop off to wherever.

David:

Awesome.

I actually really liked that I did like a landing page for my Instagram. But I didn't ever think about doing like a full on landing page for everything and that's brilliant. I'm going to go like poke around yours and then not steal your idea.

Jay:

No, steal it. I didn't come up with it. But hold on, hold on one second. My wife's in another room and I want her to hear you say that I was brilliant. So.

I'm just kidding. I'll show her the replay of it. Cut that out.

David:

No, no, no, that will not go out.

Hey Jay we really appreciate you taking the time out of your morning afternoon, middle of the day, whatever to come hang out.

Jay:

This morning just not as early as your so I appreciate you doing this. I felt like you because we're trying to get some do some stuff with the kids today. And you schedule this at the right time for us to do that. So thank you very much.

No, of course. It's been a pleasure.

Jay:

Absolutely.

Episode 19 - Jay Helms

Jay Helms on The Military Millionaire Podcast

Episode 19 – Jay Helms

Jay Helms is the founder of Real Estate Investing for the W2 Employee!

Jay is a W2 employee that has achieved success from real estate investing, and passive income. Jay has built a large tribe on Facebook, and his group is one of my favorites! Jay is very insightful, and this is a great interview!

His advice to an E-1/E-2 (18/20-year-old) is:

Work for a tradesman for a little while! Learn some valuable skills, and a skillset that will help you later in life! (handy to know)

the resource he recommends is:

Start With Why by Simon Sinek

His big idea/parting advice is:

block scheduling, we talk about some great points for scheduling your time to maximize success in your W2 job, and your side-hustle

– Get your spouse on board!

– Become incredibly organized!

– Find 1-2 hours to work on your side-hustle

– Do the most dreaded task first!

– Get comfortable with saying “No”

– Be open to course corrections

– Evaluate your circle – your network = your net worth!

– Read, network, mastermind – make time!

– Get comfortable with being uncomfortable!

If you want to reach out to Jay you can visit his website at: https://helmsrei.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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