Understanding the Real Estate Cycle – Rod Khleif feat. Kathy Fettke
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Understanding the Real Estate Cycle – Rod Khleif feat. Kathy Fettke


Hi! I’m Rod Khleif. Each and every week I record an interview
with a thought leader that I know you’re gonna get a ton of value from. Now here on YouTube are the video versions
of my podcast, Lifetime Cash Flow through Real Estate Investing. Now to make sure you get the latest information
please subscribe and hit the notification bell. Let’s get started. Rod: Welcome to another edition of How to
Build Lifetime Cash Flow through Real Estate Investing. I’m Rod Khleif and I am super thrilled you’re
here and I am super excited with who I’m interviewing today. She is a very good friend of mine. Her name is Kathy Fettke and she’s the co-CEO
and co-founder of the Real Wealth Network. Now, if you don’t know who she is then you’re
really not moving around much in the podcast world because she’s got two top ten shows;
The Real Wealth Show and The Real Estate News for Investors Show, and they’re both, like
I say, in the top ten. Super human being. She’s also a member of my multifamily boardroom
mastermind. She gets interviewed all the time on CNN,
CNBC, Fox, Wall Street Journal. She was named top 100 most intriguing entrepreneurs
a couple years in a row. I could go on and on but she really needs
no introduction. Well, she seems okay I think
Kathy: Thank you so much. Rod: It’s such a treat to have you on. This is gonna be a lot of fun. Kathy: Yeah. Rod: So, you know, now Kathy, you know, is
in lots of different asset classes and I think, you know, we can talk about some of that or,
you know, I think it’d be fun just to dig in to, I know you just spoke at a friend of
mine show in Denver on Market Cycle. Kathy: Yeah. Rod: So, maybe, let’s just go straight there. Let’s talk about where you feel we are in
the cycle because you, you know, you’ve got your Real Estate News for Investors show so
you’re always studying what’s happening in the market and, you know, that’s why these,
you know, these networks are always leaning on you for, you know, counsel. So, let’s, why don’t you talk to us about
how you feel like where we’re at. Kathy: You bet. I mean, gosh. It’s a little bit terrifying isn’t it. First of all, I wanna say the sun is shining
right on me. So, I hope it’s okay. We’re gonna see it changes as we go. It’s a little bit terrifying when you read
the news, right? Because this is what I was telling people,
I tell people, I’ve had four keynotes this month, and the first thing I say is, “I
have a background on the media. My degrees in broadcasting. I worked at CNN and ABC and I’ve been at Fox.” Rod: I didn’t know there. Wow. Kathy: Yeah, in San Francisco when I, that
was my early career. And, you know, back then, there wasn’t a whole
lot of competition. There was a few cable shows but, you know,
not the internet, not the news that we get bombarded with and so it’s very confusing
today to understand what’s really going on because there’s so many opinions. I can tell you with all certainty that the
way that news media makes money is by having an audience and the way you get an audience
is by scaring people. Rod: Scaring a lot of them. Yep. Kathy: Scare them, you know, if it bleeds,
it leads, and, you know, now, back when I started, there were just a few stations that
were watched for news and today, there’s so many. So they have to get even scarier. They had to have crazy headlines that have
you go, “Ahh”, you know, and if it’s like recession around the corner, well, you’re
probably gonna read that article, right? Rod: Right. Kathy: So, we have to really look closer at
the data and really just understand that it’s marketing. They’re just trying to get your eyeballs to
be able to sell advertising. That’s the bottom line. So, when you really look at the data, the
data. Now, I like single-family homes. I like multifamily. We build homes. We, you know, building a wine village. There are a lot of asset classes that I’m
in but at the end of the day, I do love residential, whether it’s single or multifamily. So, we we’ve got a kind of look at the data
there and the data is showing that we still have an incredible lack of supply of housing
and with, mainly, with builders having a tough time ramping up after the last recession,
they’re getting better and they’re building more but it’s expensive. And land costs have gone up, labor costs have
gone up, regulations have gone up and being in the building industry, it’s been challenging
over the past three to four years, for sure, to bring, to be able to bring on new inventory
and yet, in the last 10 years, since the last recession, we have 25 million more Americans. Our population is growing. We have the highest record household growth. We’ve got wage growth. We’ve got, you know, growth. Lots of growth and not enough housing to keep
up with it. And based on some of the studies that I look
at, one is, it was metro study. There was a chart that showed that we may
not be at equilibrium with supply and demand until 2025. Rod: Wow. Kathy: Yeah. Rod: Wow. Kathy: So, when you hear all these things
about a recession, there could be a recession potentially in some places, you know. There could be, it may be in the stock market
they’ll be in effect but in housing, we’re not gonna be the problem this time at least
in my opinion. You know, do your own research. Don’t take my word for it. Rod: No. it’s a really valid, really valid
point. You know, the other piece that’s happening
as well as we become a renter nation, you know. Kathy: Yes. Rod: And, you know, Millennials, they don’t
wanna be, they don’t wanna be tied down and so and there’s, god, I don’t know, that they’ll
ever fix the affordable housing crisis in this country. So, …
Kathy: That’s a big opportunity, isn’t it? Rod: Right. Yeah. You know, you’re talking about geographic
specific pull backs and we saw a lot of that in 2008. Now, of course, I was in ground zero here
in Florida. You know, I thought we were set for life and
8 million boomers getting old and getting cold, we’d be good. Same in California. And, of course, Nevada. And those were all ground zero for this, for
that crisis. But what was interesting is, there were areas
of the country that really didn’t pull back that much at all. So, ….
Kathy: Correct. Yeah. Rod: You know, it is kind of strange now. I really like what you said about the fact
that, you know, that pull back could be, you know, specific to different parts of our economy
versus, you know, being and be driven by real estate like they were last time. I really, that really makes sense to me. It could be stock market driven and, you know,
now, you know, there is some, of course, a lot of craziness in politics and we won’t
go down that rabbit hole but, you know, who knows what’s gonna happen in November next
year and, …. Kathy: Correct. Rod: You know, and you know, obviously, there
are things that you worry about as catalysts for something to happen. You know, terrorism or things of that nature
but, you know, what you just said really makes a lot of sense. So, let’s talk about, did you wanna expand
on that anymore? Or, you know, if you pretty much said your
piece on …. Kathy: Well, I mean, there is so much fear. Like I said, I’ve been the keynote at four
different events this month. I talked to a lot of people. There’s a lot of fear but when we see the
headlines we have to know that there’s a positive and a negative to everything. So, if you could see the recession coming
in 2008 and for some people they could see it. They could see that, “wow, these loans are
gonna go bad”, “people aren’t gonna be able to pay them”. It was very predictable because if you pulled
up, I was a mortgage broker at the time, and if you pulled up the data, you knew that these
loans were gonna start resetting in 2008, 2007 ….
Rod: And, if you fogged the mirror, you could borrow money in 2006, okay? Which was, I mean, talk about a recipe and,
you know, yes, anyway, sorry, I interrupted you. Please. Kathy: But it was like, it was predictable
but nobody could see it but it was obvious, you know. Now you look back and go well, of course,
how could those people, that when I was lucky enough to have the Real Wealth show back then
and I had Robert Kiyosaki on. And people like that, with years of experience,
they’ve been through downturns, that’s the benefit you and I have as we get to interview
these people that have been around maybe longer than we have and, you know, can see these
things and for him, it was the most obvious thing in the world. And because he could see it coming, he was
able to help, he was able to sell all the assets that wouldn’t survive that kind of
a crash. So, on the show he said, “you know, you
gotta sell everything in California” or at least he said, he was. He was selling all of his assets in California
because in 2004, home prices in California and Florida too, went up almost 40% and that’s
not … Rod: Listen, in 2005, in 2006, my net worth
went up seventeen million dollars in one year. Kathy: Yeah. Rod: Okay? Kathy: That’s amazing. Rod: I mean, it was crazy and then, I lost
it all, of course, you know that story but …
Kathy: But that was what was happening. Rod: He saw it. You have your show back then. When did you start your show? Kathy: Oh man, I’m like an old wise sage in
this business. Now they’re calling me a pioneer which I’m
grateful for and I’m also like, man, anyway, it’s hard getting old but ….
Rod: You have a lifetime achievement on real estate and you know you’re in real trouble. That’s funny. Kathy: So, yes. I was doing a show back then. It was not a podcast cuz that didn’t exist. It was in San Francisco on a radio, radio
station. Rod: Okay, okay. So, you had him on and he’s, like I’m selling
my California stuff Wow. That’s amazing. Kathy: He goes in writings on the wall. The price, you can’t have prices go up 40%
with people who don’t know how to pay the loan back and think that’s gonna work out
okay. Rod: Wow. Kathy: So, he sold everything. H showed me how in Texas at the time nothing
was happening. They didn’t have crazy loans. They, the home prices were 26% undervalued. So he said he sold everything and bought multifamily
and single-family in Texas. So I did the same, you know. Rich and I bought, like, nine properties in
Texas. Those properties did amazing. We helped, we ended up helping hundreds if
not thousands of people do the same thing and sell all their California holdings exchange
into Texas and, like you said, because not all markets are the same at the same time,
California had peaked but Texas had not. Texas was just at the beginning of its boom
in 2005. Rod: So, to drill down on what you just said,
where we are right now? I mean, I will tell you. I, you know, we were actively, we’ve got LOIs
on eleven properties. We’re kissing about 200 frogs to find a deal. Now, we’ve closed on a thousand doors, you
know, this year or maybe even a little more than that, but the, you know, I’m scratching
my head sometimes when I see what some of these properties are trading for right now,
and I’m concerned if there’s any pushback at all. They’re not gonna get the returns they’re
quoting them. They may not lose the property, they could,
but they’re, I know they’re not gonna get the returns that they think they’re gonna
get, so, you know, back to your point about geographic, I mean, do you feel like they’re,
I mean, you know, are you willing to share publicly? If you do feel this way, or do you feel like
there’s any pockets like that now? And, you know, based on what you know now? Kathy: Yeah. Rod: Any areas that ….
Kathy: Oh yeah. Rod: That you think, yeah, we’ll talk about,
talk about them Kathy: There’s, lucky for you, you know. The area between Tampa and Orlando is the
fastest growing in the country. And according to John Burns Real Estate Consulting,
he consults home builders, like us, and he’s seeing that the demographic shift towards
the southeast, it’s massive. Rod: It’s happening. It’s starting. I was just ahead of my time. Kathy: You were early. Rod: With my thought process. Yeah. Kathy: Yeah. Rod: Would put a show there. Yeah. So, ….
Kathy: You were just early and prices have gone up because of bad loans that’s all. But now, it’s heading that way but I’ll give
you a kind of a difficult story I’m going through right now. We bought an apartment in, about a 250 unit
apartment, in Mountain View across from Google. Great location, lots of job growth but it
was expensive. Its California, you know. I know you would never ever ….
Rod: Alright, alright. I’m sitting down. I’m sitting down. What was the per door cost? Kathy: Too much. I don’t even, I have it in front of me but
it was high. Rod: Alright, alright, alright, alright. Kathy: But the business plan was not to do
necessarily a, you know, we weren’t just going to renovate, we were going to re-entitle from
200 to 800 units …. Rod: Oh wow. Kathy: And then, tear the thing down and rebuild. Rod: How exciting. Okay. Kathy: Yeah and just, actually, just do the
entitlement of that and flip it, basically. Rod: Okay. Okay. Kathy: And we have done a lot of entitlement
deals like that. Yeah, we had an entitlement deal in Dublin
where we bought an office building, an old office building. We knew that the city of Dublin wanted more
housing. This is right outside of San Francisco, so
we, basically, leased, we did a lease option on this office building in that time. The two-year option with another third year
just in case. We were able to re-entitle it to residential
lots. Tear down that office building and build,
you know, build out some lots for builders and just sell that. We didn’t have to build. And we expected we’d get fourteen million
dollars for it. We got twenty. So it was a very-very profitable thing so
I love entitlement when it goes well. When it doesn’t go well, it’s really difficult
so on this apartment building, it really, you know, the idea was to entitle it to eight
hundred units, we did. Mountain View desperately needs housing. There’s, you know, no affordable housing in
California and we’re 30% of this was going to be affordable, unfortunately, because in
the last three years in California, it’s become the regulations for building have become worse
even when they need more housing. Rod: Wow. Kathy: So, in the process, it took longer. Its take, it’s about a year delayed. We just put, we just got the entitlements
just put the thing on the market and then our governor, Governor Newsom, passed a bill
on rental control …. Rod: On rent control. Oh my god. Kathy: That we, that voters voted down last
year. The very bill we’ve put it down, he passed. Like, how is that possible? Anyway, the bottom line is, the timing has
been terrible. We’re not getting what we thought we were
going to get and so, it’s just important to understand …
Rod: So, what’s the lesson? What’s the lesson? Let’s talk about the lesson in all that. Because …
Kathy: Yeah. Rod: Wow. You know, to retitle something from two hundred
to eight hundred doors that’s, you know, you’re back flipping all the way to the bank on that.,
So, …. Kathy: Oh yeah. Rod: So, you know, it ….
Kathy: So, what happen? Rod: Who knew, you know? Who know, you know, like rakes, you know,
I was just thinking, you know, I have an interest in the Airbnb phenomenon, okay? You know, I know there’s some people out there
that are renting house, leasing houses and then, Airbnb and just making a lot of money,
but, you know, that’s another industry that and I don’t wanna go too far down the rabbit
hole either but where regulations can just literally put you out of business. Kathy: Yeah. So, I would say, the really important and
now, we don’t do business in California anymore but this project we got in when we were still
able to make a ton of money. So, it was just in the last three or four
years that these regulations have really-really gotten out of control. Which is ironic, right? This is a time when we’re seeing less regulation
just not in California so, you know, the bottom line is, you really gotta pick your market
and I know you do that. You go into markets that want your business. That are business friendly. Where there’s less regulation. We’re building homes now in places like Nevada,
in Reno, and building apartments there, because they want us there. Rod: Right, right. Kathy: So, you gotta be…. Rod: And makes such a huge difference, you
know. Kathy: Yeah. Rod: I mean, in getting your entitlement and
getting your permitting and getting, you know, just so many benefits to being in a business
friendly environment. Kathy: Yeah. Rod: But ….
Kathy: Exactly. Rod: So, okay. So, that’s the lesson. Is really be more geographic focus, pay attention
to where you’re, you know, the market and the sub market that you’re investing in. So, you say you’re buildings ….
Kathy: Yes, that’s one. Rod: That’s one. Kathy: That’s one. I definitely wanna tell you the second important
thing that I learned and I see this a lot and I know you do too. I know you’re conservative. I know you don’t wanna, you know, you don’t
wanna go through what you went through before. I don’t wanna go through what I went through
before. So, one of the things that I’m seeing and
where we got stuck on this one, is short-term thinking. So, you know, a lot of people are buying apartments
and, you know, planning on doing the, you know, deep value-add
Rod: Sure. Kathy: And then, you know, in marketing it
in a couple of years which is similar. We were just doing an entitlement but, you
know, it’s not that different. You’re, basically, buying something, fixing
it and trying to sell for more. It’s basically a flip. That’s what a lot of people are doing on the
deep value-add. They’re not necessarily buying an apartment
for the cash flow. Rod: Right. Kathy: They’re buying it to fix it, improve
it and flip it. And so it’s important to understand the difference
because a lot of people are saying, “I wanna buy apartments for cash flow”, which they
should but they’re not buying them for cash flow. They’re buying them to do something in a couple
of years and that’s fine as long as you have a back-up plan. Rod: Yeah. Kathy: So, in this case, ….
Rod: That’s the key. Kathy: Right. That’s the key so let’s say, you can’t sell
it for what you thought or rents didn’t go up but you bought it at a good enough price
that you can still hold it. Rod: Yes. Kathy: And then, you didn’t over leverage. These are the things and I’m seeing too many
people not having a back-up plan. I’m not gonna say any names but I met with
a very big name. I don’t think anyone that’s been on your show
but somebody who buys a lot of apartments and when we discussed this at dinner, at the
VIP dinner, and I was like, “well, what’s your backup plan if these value adds don’t,
you know, if you’re not able to sell them for what you’re expecting”, and he didn’t
have one. And I said, “what’s your backup plan if
you can’t get the financing in two years that your expecting? ”.
Rod: That’s the bigger one. That’s the bigger one. Kathy: He had no plan. Rod: So, he’s using, so, what he’s doing
is he’s using bridge debt …. Kathy: Yes. Rod: Which, and by the way guys, bridge debt
is the hard money lender equivalent of residential, okay? Kathy: Yeah. Rod: So you when, you know, you’re in the
single family space and you find a hard money lender and you’re paying 12% and five points,
that’s what a bridge lender is, okay? Kathy: Yeah. Rod: And I’ve heard so many horror stories
and that’s the thing that, and Robert and I talk about this all the time, that’s the
thing that is the most dangerous. Kathy: It’s so dangerous. Rod: Yeah. Because they can’t be financed, you know. There are bridge lenders and their business
model is to end up owning property. Okay? Kathy: Absolutely. Rod: Yes. Kathy: That’s how we get our deals, right? Rod: Right. Kathy: From people who can’t pay their note. Rod: Right. Kathy: That is what will take you down when
you’ve got bad debt. If you, the thing about multifamily is, you
don’t have to take those kind of risks. Rod: Right. Kathy: You can get long-term debt. Rod: Right. Kathy: The difference is people, you know,
we’re, you know, we’re gamblers a lot of times. We want big returns. Rod: Sure. Kathy: If you’re going to hold an apartment
for cash flow, what would you say, people should expect if it’s not, if we’re not doing
the flipping model, we’re buying it for cash flow, what kind of returns should people be
expecting? Rod: I mean, I will tell you what we insist
on and it’s hard to find. Like I told you before we started recording,
we’re kissing 200 frogs right now but our minimum is 10% cash on – cash over a five-year
period. That’s our starting point minimum. Now, the first couple of years we may only
be at five, six percent and then, you know, but we make it up, you know, once our repositioning
is done, but that’s our minimum return, you know, projections. You know, based on, a very conservative by
the way, based on, you know, competitors and how we feel we’ll fall into the competitive
landscape with our rents and the demographics and everything. What your answer? Kathy: Well, you know, it just depends, like
we were gonna build an opportunities on an apartment in the Reno area because there’s
such a demand for jobs there. Rod: Right. Kathy: It really, you know, you have to hold
it for ten years, so the return over ten years it’s not sixteen percent or, you know, some
of these big numbers that we’re seeing in pro formas, it’s, the longer you hold it,
it just kind of comes into its, it just becomes normal cash flow and the rate, you know, I
guess what I’m saying is people need to kind of understand the difference between holding
for cash flow and flipping. Rod: Yeah. Kathy: Because the returns are gonna be different
and in the opportunity zone, I remember, I’m talking to the developer going, “These aren’t
very exciting returns.” He’s like, “well, that’s the cash flow you
get from an apartment. That’s how it works”, you know. If you’re holding. If you’re holding. If you’re, you know, ….
Rod: You know, let me say this. I mean, you know, it’s and, you know, our
IRR projections are typically over twenty and again, because we’re very-very picky and
these are and our numbers are with very conservative loan-to-value. I mean, I’m thinking about our Texas asset
worth sixty-five percent loan-to-value with those numbers. Okay? Kathy: Awesome. Rod: Yeah. Kathy: That’s great. Rod: So, and we’re very-very careful with
bridge debt but, where was I going with this. Now, it you’re, you know, that’s the thing. I was just listening to Tim Ferriss, his podcast. He was interviewing a, astrophysicist. They were talking about how you can play with
numbers and they were specifically talking about statistics but it made me, it tied me
back into how people are, you know, you can make a pro forma look any way you want it
to look …. Kathy: Yeah. Rod: …. and so guys, those of you that are
investing passively, you know, you’ve gotta learn this business. You know, come see me in LA. Kathy, you better be there by the way. I’m gonna be in LA January 17th, 18th and
19th, and you better come. Kathy: It’s my anniversary and that is where
we’re spending it. With you. Rod: Okay, okay. Well then. Alright. By the way, Kathy’s in my mastermind and she’s
so busy and she’s always getting pulled to every different direction. She’s missed the last couple, I mean, where
she, you were sick at one of them. Kathy: I was there and I was so sick. I couldn’t believe it. Rod: And you have to go home. Yeah, yeah, yeah, yeah. I remember
Kathy: Yeah. Rod: Alright. Well, anyway, you know, the point is guys,
if you’re thinking about investing, even passively, come to my events. You get a basic understanding of what you’re
looking at. Don’t invest in something unless you have
at least some basic understanding of what the heck it is. Don’t give someone your money. And I’m gonna tell you, there are operators
out there, like Kathy just referenced, you know. This must be somebody using bridge debt thinking
he can, you know, do whatever he’s gonna do and refinance or sell and if, you know, if
you don’t have, if that rug gets pulled out from under you because of cap rate expansion
or, you know, you don’t hit your mark, you’re gonna lose. Those properties are going down. They’re not just gonna not have the returns. They’re actually gonna get lost and so very-very
important to have that understanding. But, yeah, by the way Kathy, I’m gonna do,
and I did this in Baltimore, I’m gonna do an all-female panel on Saturday night at the
LA event and I did this in Baltimore and it was, I mean, there were 10,000 doors on stage
between three women and …. Kathy: Wow. Rod: I want you on that panel, Saturday night. So just know that. Kathy: Okay. I will be there. Rod: Alright. Anyway, so, ….
Kathy: Like I said, it was my anniversary and what a way to spend it. Rod: Okay. Well, I will definitely announce that. I mean, fifty thousand years and you’re gonna
hear that in a couple weeks but, alright, good. So, alright. So, we talked about market cycle and again,
what you said is really compelling in that, you know, it likely it’s not gonna be a
real estate driven recession because the all the markers are positive. You know, who knows again, stock market, but
we also talked about, you know, a lesson you got as far as investing geographically. Let’s, you know, talk, you know, you are fantastic
at getting investors. I mean, you’ve got 44,000 plus members in
your network and …. Kathy: Close to 50, 000. Rod: That’s dated. No kidding. My bio has updated as well. You know, awesome. So, talk about methodologies for, localized
methodologies for people to brand themselves and/or start building a network, like you’ve
built? Give us, you know, I mean, you’re the queen
of that. So, give some advice, you know, as to how
somebody can, you know, if they wanna build their own network, what advice would you give
them? Kathy: I’ll tell you what, Rod. There’s never been a better time to make a
name for yourself. It’s, you know, you came to me when you were
just starting out and …. Rod: Right? Kathy: …. you know, and then, bam. I’m like, how did he? Rod: Five downloads. Five downloads. And I’m about to hit seven million. Kathy: I watch you go and I, you know, you
came to me brand new, not knowing you’re doing and then, I turn around and your ratings are
ahead of mine. So, you’re the one with ….
Rod: You’re right and you know, you know, it’s funny. I ask the question but listen, I don’t want
to interrupt you. I just did a Facebook live on a version of
this question but I wanna hear what you’ve got to say. So, you’re right. The time could never be better. Expand on that. Kathy: It’s incredible. I was on a panel with five other women just
a month ago and, you know, these women really honored me. I couldn’t believe it. All of them said that it was me that inspired
them. Kind of like crushed the ceiling or whatever,
broke through the ceiling that kind of made them feel like they could do it too and I
had no idea. I was so really truly so honored. Rod: Such a blessing when you hear that. Kathy: It was so sweet. By the end of the panel, I was kind of sitting
there the same way I sat with you going, “what? did I inspired but them? but then, they just took off. Rod: Wow. Kathy: And I’m talking about in just a couple
of years. Some of these women are buying hotels, some
are buying multifamily, some are doing senior housing and they just started and they’re
killing it. And they all have a following, so I see this
more and more with these people who come in and they just, they just crush it so quickly. So, it’s not actually that difficult. You have to be committed. You have to be passionate. You’ve gotta be willing to bring, you know,
if you bring in experts like, you know, you start a podcast and bring Rod, you know, bring
you on or me and …. Rod: Right. Kathy: You can build your following very-very
quickly. I’m teaching my own daughter this …
Rod: What’s her vehicle gonna be? What’s her vehicle gonna be? Kathy: She literally isn’t sure she wants
to follow mom, you know, cuz that’s what kids do, someday she will. But she likes art. Now, I don’t know how she’s gonna make money
in art but, you know, we’ve paid money for art so people do make money in art like you
make money in anything but she’s focused on art. So, I said, “well just do a meet up and
see what happens”. So she did and she had, you know, fifty people
that wanted to come to her event where she was gonna teach them how to make, you know,
something, and so, you know, it’s we’re in an environment today where people can find
you pretty easily if you’re very targeted and you offer value and you care, you know. Rod: I’m gesturing in the background because
I’m so excited about what you’re saying and yes, care. Authentic. You really do care about helping them. Kathy: Yes. Rod: That’s so critical. And the key is adding value. If, you know, the people that add the most
value on this planet are the most successful in the world, okay? And so, but the point is, if you go out there
with the mindset of adding value, your success is inevitable. But you said something else that is really
important. You said you need to be passionate and to
be passionate you have to love it. And so guys, if you’re listening, if you don’t
love whatever it is you’re doing, for God’s sakes, go do something else, this is not a
dress rehearsal, this thing called life, okay? So, you know, and if you don’t love it now,
associate, pleasure with it and learn to love it or go do something else because, you know,
that’s the only way you’re gonna be passionate about it. You truly have to love it and that’s the only
way, the only way you’re gonna inspire other people to invest with you or get involved
with you is if you’re passionate about it. So, it all goes back to making sure that you
really love what it is you do. Would you agree with me? Kathy: Absolutely. I mean, there’s too many obstacles, you know,
I saw you had the tornado situation. Rod: Oh yeah. We had 101 door. You know, all the families had to move. Horrific. Yeah. ….
Kathy: That’s very similar to, you know, my experience with our multifamily in Indiana
where we had the gas leak. Rod: Gas issue. Yeah. Kathy: Yeah. So, you know, if you don’t love it, it’s hard
to get through those kinds of difficulties. Rod: Yep. Kathy: You know, you just have to be able
to roll of your sleeves and dive in and fix it and love that even, you know. Rod: Yeah. Kathy: And not everybody does so, you know,
dive in, understand whatever it is you’re doing. You know, when I started and I’m sure when
you started you were reading everything, you were getting training, you were going to mentors,
I mean, …. Rod: Sure. Kathy: I’ve got books. I’ve got books on my desk right now. I’m still learning. You know, obviously, looking around. I’ve got stacks of books and, you know, yeah,
that’s the, learning is earning, bottom line. You know, it’s funny and back to adding value,
you know, when I started mine, I used to tell people, “I’ll never sell you anything.” All I care about is, I want you to succeed
and, you know, and I wanted to get that message out there. And, of course, you know, I’m not a liar but,
you know, that wasn’t my sign, you know, once they hit a million downloads, kind of
like, “hey, I better do something with this, other way I’m a moron.” But, you know, I, actually, did the truth
of it is, I started taking free phone calls from listeners and I got so much freaking
pleasure from that. And like you do, we get, so rewarding. I’ve got a wall behind me with hundreds of
thank you cards. You know, we get so much pleasure out of,
you know, adding value and loving what it is we do, you know, it’s just incredible blessing. Kathy: You are loved lot of people, Rod. It’s really amazing. Rod: Well, likewise. Likewise. 44, fifty thousand people in your network,
good lord. Well, guys, back to what she was talking about
in that question about how to build, you know, it’s and this is, I did a Facebook live on
this, you know, yeah, there’s meetups, there’s podcast, there’s LinkedIn, there’s Instagram,
there’s Facebook, you know, I’ve got, you know, 30 almost 31,000 people in my Facebook
group on multifamily. You know, there’s no, we’ve never lived at
a time where there are so many opportunities to create reach. Kathy: Yeah. Rod: But the key is passion and adding value. Kathy: Tha’s right. Rod: And if you go at it from that angle,
you are, your success is inevitable. So, ….
Kathy: Yep. Rod: Kathy, I really appreciate you being
on the show. It’s such a treat to talk to you and, you
know, you always had incredible value. Guys, check out her podcasts. She’s a hitter. Real Wealth Network and then, The Real Estate
News for Investors and I can’t wait to see you in January. Kathy: Thank you. I can’t wait. Rod: Alright, take care. See you later. Kathy: Take care. Thank you so much. Rod: Alright. Bye, bye. Hey thanks for watching. Please subscribe to my channel and if you
listen to podcast, join me on iTunes, Stitcher, or wherever you listen to those podcasts. Just search for a Lifetime Cashflow to Real
Estate Investing.

2 thoughts on “Understanding the Real Estate Cycle – Rod Khleif feat. Kathy Fettke

  1. Very informative and insightful episode. Kathy seems like a genuine rockstar!!! I may have to take that drive to your LA seminar Rod! 😁

  2. This one is too short, Rhod. She is too experienced(not particularly in real estate) to not let us pick more of her brain.

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