BABL 065: Affordable Real Estate Investments with Lisa Phillips

Lisa Phillips is in the process of building a bigger life for herself through somewhat unconventional means… and it’s working remarkably well!

In 2006, Lisa got her first job after graduating from school and in 2008, she was in her first round of a series of layoffs in her industry after having bought a home well above her means. That experience: of being unemployed, of looking for work, and of trying to keep a house while struggling to make ends meet taught her some valuable lessons.

The job market took her to Ohio where Lisa was able to buy a condo for substantially undermarket and it showed Lisa that she could find affordable homes in virtually any market. And most key to the learning was people would live in these homes and pay market rents for properties bought substantially under market!

Lisa ended up having to foreclose on her home in Las Vegas (the one that was too expensive to maintain during the recession), so was faced with having that on her credit report. As a result, the homes that she’s buying in depressed or stressed markets are being financed creatively.

She started out taking money out of her 401k, then began to get creative by refinancing her car, taking advances from her credit cards, and finding short term loans through banks and credit unions. And she’s cash flowing the properties, paying off debt, and building wealth.

She paid $13,000 cash for one house that generates $900 a month in rent. Others were closer to $20,000 or $30,000, but still create really incredible cash on cash returns.

Lisa (at 16:00) admits to the fact that some of what drives her is the desire to prove people wrong. Yes, she says, she lost a home in Las Vegas because of poor decisions, but that will not be what holds her back from achieving everything she sets her mind to. In fact, in inspires her to work harder.

The main point Lisa makes in her online training platforms is you don’t have to be born wealthy in order to create wealth. She also spends a great deal of time figuring out how to make the most amount of money doing the least amount of work.

Property managers are critical to Lisa’s success. Because the closest home she owns is 3 hours away, she has some strategies for how to find managers (which she shares around the 22:00 mark).

It’s okay to start small is a prime takeaway from this podcast. At the beginning, this will be slightly uncomfortable, but totally worth it once you get your feet under you.

Around the 32:00 mark, Lisa talks about her offer strategies, many that depend upon the demographics of the neighborhood, how long the property has been on the market, and the condition of the property.

To find out more about Lisa, check out www.affordablerealestateinvestments.com or www.youtube.com/affordablerei.

Books Lisa Recommends:

Retire Young, Retire Rich by Robert Kiyosaki

Rich Dad Poor Dad by Robert Kiyosaki

Tax Free Wealth by Tom Wheelwright