Accountable Equity – Josh & Melanie McCallen – Meet the Team

Watch this short video to get to know our friends at Accountable Equity!

 

 

To contact Josh & Melanie McCallen’s team … simply email jmccallen@vivamee.com.

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Accountable Equity – Josh & Melanie McCallen

Accountable Equity – Josh & Melanie McCallen

 

Get high returns … and a lifestyle upgrade … by investing in resort rehab properties.

Josh McCallen’s career began washing dishes in a hotel in Austria.

In the 20 years since then, he has served as president of a hotel development and management company … and gone on to oversee $100 million in luxury hospitality construction!

Now, Josh is putting his decades of experience to work for YOU.

At Accountable Equity, Josh heads a professional resort investment team that specializes in sourcing, rehabbing and creating phenomenal lifestyle experiences and investments.

Accountable Equity acquires significantly discounted, often downright rundown properties and rehabs them into functional and highly-profitable resorts.

On average, these resort properties increase in appraised value by over 70 percent!

And did we mention these worldwide properties are gorgeous places to rest and relax?

Enjoy major tax benefits, high returns, and the bonus of personal-use time at beautiful resort properties!  

Consider partnering with Accountable Equity to see higher profit margins than you would by buying into lifestyle resorts that are already up and running.

Simply fill out the form below to connect with the team at Accountable Equity!

11/17/13: Rehabbing Realities – A Serial Flipper Tells All

Rehabbing is a rite of passage for real estate investors.  Nearly everyone tries it at some point.  Some people like it.  A few even get really good at it!

As big shot radio talk show hosts, we get to hob nob with nationally known pundits, best-selling authors, and a whole host of industry honchos and thought leaders.  It’s very cool. If we weren’t us, we’d wish we were.

We also get to spend time with real life practitioners and unsung heroes.  These are the guys and gals who get up every day and go out into Main Street USA and make it happen in the real world.  In the trenches, it’s not about theories and ideas, it’s about managing a myriad of minute details in a practical, tactical way.  It’s not glamorous, but it’s where the rubber meets the road and the money gets made.

So after many weeks of flitting above the clouds looking down on the macro-economic factors real estate investors need to be aware of, we bring The Real Estate Guys™ radio helicopter down to street level and talk turkey (after all, it’s nearly Thanksgiving) with a thriving turnkey real estate practitioner.

In the cockpit for this flight into broadcast brilliance:

  • Your pilot and host, Robert Helms
  • His jerk wing man and co-host, Russell Gray
  • Returning guest and rehabbing veteran, Terry Kerr

Rehabbers and property managers are the GI Joes of real estate.  They deal with real estate at its messiest. They do all the grunt work most people can’t stomach.  And finding people that are good at it for the long haul are rare.  Some guys just do it for awhile until they make enough money to get out, or until they get a TV show.

But in spite of it’s messy nature, we still like real estate because it’s real.  It serves a fundamental, enduring human need.  And making it more usable and available is a noble profession.

But making money at it is as much an art as a science.  And learning to do it right takes time in the trenches.  It’s why our friend (and 2013 and 2014 Investor Summit at Sea™ faculty member) Peter Schiff says the hedge fund guys will get ultimately get killed in real estate.  They’re used to trading nice, sterile pieces of paper.  Time will tell how the Wall Street ivory tower guys will fare in the foxholes of Main Street rental property.

So while Peter looks at it from the top, we ask Terry about the ground level impact of hedge fund investing in his market, Memphis, Tennessee.  Memphis just happens to have been ranked by RealtyTrac as the #1 single family cash flow market in the USA last year.  Obviously, this would attract the attention of hedge fund managers.

No shock to find out that the funds tend to overpay and have problems managing.  Once again, we have to say, Peter Schiff was right.

But Terry also corroborates what we’ve heard from other contacts in different markets:  hedge fund activity has slowed.  This explains another phenomenon we’ve noticed – people are contacting us with large “tapes” (pools of distressed properties) they are trying to move.  And the discounts are pretty attractive!  It used to be the funds were gobbling that up.

So all that is good news for Mom & Pop investors.  More inventory for the little guy.

But back to the street level…

In spite of the slowing of hedge fund activity, it’s still competitive to get a property.  And you can’t worry about rehabbing a property you don’t own, so acquisition is important.  Terry reminds us of the age old truth:  real estate is a relationship business.  So he continues to get deals because he’s established himself in the market as a reputable operator.  That means he has credit lines, deal flow, and loyal sub-contractors.  All good things to have.

Terry shares a very practical offering technique he uses to enhance his odds of getting the deal when working through a real estate agent.  We won’t disclose it here, you’ll just have to listen to the conversation (below).  When you hear it, it’s obvious.  But if you don’t know it, it’s easy to miss out.

Now, once you have the house, you need to decide how to attack the task of getting it ready to sell or rent.  Of course, how you re-had will depend on who your target customer is.  A house you plan to sell for an owner-occupant, is different than a house you’re prepping for a tenant or a landlord.  But once you’ve figured that out, it’s time to get to work on the re-hab.

Terry tells us, “Just because you can, doesn’t mean you should.”  THAT is a golden nugget of wisdom!  Listen to any personal productivity expert like Brian Tracy, Les Brown or Tom Hopkins (another Summit at Sea faculty member), and you’ll hear them talk about the importance of investing your time in high paying activities.

In this context, Terry cautions us to be aware of “lost opportunity”.  That is, if you’re busy painting a property, you’re not negotiating the purchase or sale of another, or working with your team to manage your re-had costs..  The point is you can hire a painter for a fraction of the money you can make cultivating relationships and making profitable deals.

The solution, Terry says, is to build a team.

Now this doesn’t mean you need to have a payroll and a high overhead.  But you do need to have access to technical experts in all the key trades.

But where do you find those people?  Terry uses a technique he calls “The Saturday Pow-Wow”.  The great news is, it’s so SIMPLE that anyone (even us) can do it!  So be sure to listen for this next golden nugget of street smart wisdom.  He tells you exactly when and where to go to find the best guys and gals for your project.  And it’s free!

Once you have your team, you need to decide how to lead them.  You might think, “Oh, I can do that.”  Okay.  But what did Terry say?  “Just because you can, doesn’t mean you should.”

How many job sites can YOU be at at one time?  Only one?  That’s a little  limiting, don’t you think?  Think BIG! Terry rehabs over 100 houses a year.  That’s 2 a week.  With that kind of volume (isn’t that what you want?) you can’t be on every job site supervising your teams.

So Terry’s golden nugget number 3 is to develop crew leaders.  And he tell us how he goes about that.  Good stuff.

Next (yes, there’s more), for gold nugget #4, Terry tells us how he gets great pricing from his contractors without having to beat them up.  This is important, but because if you haggle your contractors too hard, you an adversarial relationship. That’s like cussing out the waiter before he brings your soup.  You never know what you’re going to get.

Terry tells us that the key to getting good pricing simply comes down to being educated about the trade and knowing how to talk the lingo.  It doesn’t mean you know how to do the work.  But you know how to sound experienced.

When you talk like someone who knows what they’re doing, your contractors will give you better pricing because they think your savvy. Sure, they’re your team.  But they’re like mercenaries (aren’t we all?).  They work on your job to make a buck.  And they want all they can get.  Your job is to pay them fairly, get good quality work, and still make a profit.

Remember, next to the purchase of the property, your rehab expense is your biggest component of cost.  In fact, in some cases, the rehab will cost MORE than the property!

So, getting the right people to do quality work at a reasonable price is one of the most important skill sets you develop as a re-habber.

It’s tempting to buy a work belt and start swinging a hammer.  It’s fun to shoot a nailgun and slather on taper’s mud.  You might think it’s cool to sweat pipe, run a table saw, or set tile.  You might even get a charge out of installing an electrical outlet or light fixture (sorry, we couldn’t help it).

But, that’s not what being a rehabber is all about.  If you want to do it and make money, you’ll want to build a team and master the art of controlling costs without alienating your contractors.  Because if you get it wrong, the market won’t let you raise the price to cover your mistakes (or theirs).  You can’t control the takeout price.  The market dictates that.  But you can manage your purchase price and rehab expenses, and when you get good at that, you can make real money as a rehabber, just like Terry Kerr!

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10/21/12: Property Possible – Repositioning Assets for Better Profits

Rehabbing is all the rage right now. The opportunity to snap up distressed properties, pretty them up and sell them for a quick profit has probably never been better, and lots of newbies and Mom & Pop investors have jumped on the bandwagon.  Heck, the opportunity is so good in single family homes that even big Wall Street private equity firms are gobbling up inventory in some of the markets most devastated by the financial crisis.

Now rapid fire rehabbing is hardly “passive investing”.  There’s certainly nothing “passive” about it – and one could argue that true “investing” is making the money do the work, not you.  So we contend that rehabbing is more of a business than an investment strategy.  But that’s beside the point.

If you decide to be in the business of forcing value into your properties, whatever property type you’re in to, then you’ll like this session because we have a couple of very experienced “turnaround” specialists on the microphones.

In the house for this episode of The Real Estate Guys™ radio show:

  • Possibly the finest host, Robert Helms
  • Your impossible co-host, Russell Gray
  • Hotel Impossible star and hotel turnaround expert, Anthony Melchiorri
  • General manager of the 21c Museum Hotels, Craig Greenberg

No matter what kind of income property you own, success is all about occupancy.  But if you think it’s hard work to turn over a tenancy every six months, try doing it every night!  That’s the challenge every hotel operator faces.

Now even if you aren’t in the hotel business and never plan to be, there are great lessons to be learned from those who are.  Because at the end of the day, when you pretty up a property, you do it to please another person: the home buyer or the tenant.  No one knows more about the importance of pleasing the customer than people in hospitality.

So lesson #1 is to be sure you prep the property properly to optimize it’s appeal to your target customer.  Of course, this pre-supposes that you are clear on who your target customer is, what they want and what they’re willing to pay for it.

If you’ve ever watched an episode of Hotel Impossible, you know that Anthony Melchiorri helps owners see their properties through the eyes of the customers.  What a powerful, but sadly overlooked concept!  Property owners often create a property that pleases them. Oops. They aren’t the customer!

You’ve probably also noticed that Anthony often discovers what the customer wants by talking to the staff.  Why?  Because when the customer expresses their need or dissatisfaction, the staff are the first ones to know.  So a wise owner listens carefully to the feedback from the staff to respond quickly and accurately to the needs and wants of the customer.

Do these concepts apply to other kinds of real estate investing?  Of course they do.

If you’re a fix and flipper, your real estate broker is a great source of information about what the market wants and what they’re willing to pay.  Doesn’t it make sense to listen to your broker?  Say yes because that’s the answer.  Yet, so many flippers go to the market with their own need, instead of focusing on the needs of the market.

News flash:  the market couldn’t care less about your need.  If you want to make money, you need to give the market what it wants.

Whether you rent our single family homes, apartments or office space, your property manager and leasing agents will tell you what the market wants.  Once again, it pays to listen.

“Well, that’s just common sense,” you might say.  Yes it is.  But have you ever known someone to buy a property in an area they don’t know and then go find a property manager to manage it?  It happens all the time.  Wouldn’t it be smarter to have the property manager tell you what kind of property, location, amenities, etc. is most in demand, and then go buy that?

You get the idea.  There’s a lot of real estate wisdom to be gleaned from the hospitality business.

And while our second guest isn’t as famous as Anthony, his story is every bit as enlightening.  Craig Greenberg takes old, dilapidated “historic” properties and adds a unique attraction to bring people and their money into the property.  It’s a fascinating study in creativity and one you can learn from.

So listen in as we talk to Anthony Melchiorri and Craig Greenberg and glean valuable lessons from their experiences in finding ways to extract more profit from problem properties.

Listen Now:
  • Want more? Sign up for The Real Estate Guysfree newsletter
  • Don’t miss an episode of The Real Estate Guys™ radio show! Subscribe to the free podcast!
  • Stay connected with The Real Estate Guys™ on Facebook!

The Real Estate Guys™ radio show and podcast provides real estate investing news, education, training and resources that help real estate investors succeed. Visit our Feedback page and tell us what you think!

 

 

1/23/11: Finding Financing When Funders Are Fickle

I love you.  I love you not.  I love you. I love you not.

Financing is the life blood of real estate – especially for real estate investors, developers and re-habbers.  When times are good, lenders are BEGGING for your business.  Do you remember when there was so much money chasing deals, if you had a pulse you qualified?  Ahhh….the good ‘ole days.  But we digress.

Today, it’s a different story.  Lender’s lust for lending has grown cold unless you’re stacked with cash and have a nice asset base.  And even then it’s hard to get a date to the funding dance.  Lenders can be so fickle!

Of course the drive to reproduce profits is hard to suppress.  To find out what’s happening on the funding scene from a developer’s perspective, we decided to call someone who’s been on the prowl for funding for most of this real estate recession.

In the radio love shack for this episode:

  • Your host with the most, Robert Helms
  • Your co-host with the almost, Russell Gray
  • Special Guest, International Real Estate Developer and Summit at Sea Faculty Member, Beth Clifford

What are you going to do when the well runs dry?  Are you going to run away and hide?  (Hint: Fats Domino – late 50’s when the Godfather first started investing.)

When the flow of capital to the market place abruptly stopped, many real estate investors’ and developers’ financial hearts stopped beating.  Despite various attempts by the Federal Reserve and Washington DC to get money flowing again, it still hasn’t happened.  So vulture firms sprang up and have been carrying off the carcasses of the permanently broken-hearted, while there are many walking wounded who may never love real estate again.

But there are also a number of stalwart real estate lovers who refuse to be put off by a little (okay, a LOT) of adversity.  How may times are you willing to take “No” to get to a “Yes”.  A yes is SO worth it!

And even though many of the old haunts like commercial banks aren’t too flush with good prospects, new establishments are opening all the time – where private capital and creativity are coming together to hook up investors with capital.

To cut to the chase, and avoid an NR rating, in this episode we get our special guest to reveal some of the lengths she’s willing to go to find money for her projects.  And though you may never be an international real estate developer managing multi-million dollar projects, you can take the same business principles and apply them to your project – no matter how small.   Yes, it’s true.  When you’re in love, size doesn’t matter.

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