I am Patricia Red Hawk and I currently live
in Philadelphia, Pennsylvania, and I’m originally
from northern California, Bay Area.
I’ve been a real estate investor for many
And I’m sort of constantly tinkering with
my portfolio, tinkering with the tactics that
I think that one of the things that we learned
through the 2008, 2009 debacle is that those
investors that were savvy enough to have multiple
tools in their tool belt actually didn’t
take a bath as badly as a lot of folks did.
So, I’m constantly adding to sort of the
arrows to my quiver as it were, to make sure
that I can continue my business and make money
wither the market’s hot or whether the money,
the market has cooled down.
And so I stumbled onto Joe’s YouTube videos,
I think, and talking about lease options and
other kinds of creative financing techniques
that could be used.
Joe has a lot of YouTube videos out and I’ve
actually viewed every single one of them.
And some of them more than once.
So, I tend to have a kind of leave no stone
unturned approach when I’m picking the mentors
and coaches and teachers that I’m willing
to invest with.
And so, I’m relatively new to Joe but I
feel like I’ve viewed all his material.
As I mentioned, I have sort of multiple strategies
that I employ, but one of those sort of classic
ones I do, because it’s so easy for people
to understand is I buy houses in my local
market and other emerging markets and I buy
them at deep discounts.
And so, and that could be, I might buy them
from other investors, I might buy them from
home sellers who inherited something or something
Or, I could buy them at tax sales, too.
But, in any case, I buy houses at deep discounts.
And these are houses that have many, many
years of deferred maintenance.
So I go in and I do a full gut rehab.
So, let’s say I buy something for thirty
thousand dollars and let’s say I put fifty,
fifty-five thousand dollars into it.
So I’m all in, let’s say at eighty-five
And then I put a tenant in it.
The tenant might be paying say $1,500 a month
And then I go in and refinance.
So, I happen to know that I can pull out,
so let’s say the house reappraises at $150,000.
Well, I bought it for $30,000 and I put $55,000
into it, so I’m into it for $85,000.
I’ve got a tenant paying $1,500 a month
rent and there are a number of asset-based
lenders that will lend on, say, 70% or 75%
of loan to value.
So, they’ll, they’ll put a mortgage on
$150,000 valued house at 70% of that value.
So I happen to know off the top of my head,
$150K house, I can pull $105, 000 out.
And I know that with a tenant paying $1,500
a month rent, their rent will cover my principal,
my interest, my tax and insurance, plus property
management fees and still throw off positive
cash flow for me.
So, basically I do those, I do those all day
And it’s, has it’s own kind of ecosystem
within my own portfolio and company and so
we do that day in and day out.
And I’m primarily targeting, as I said,
some emerging markets in the Midwest as well
as the counties surrounding Philadelphia.
It’s a little difficult to assess.
So, because I’m not, for instance I’m
not flipping houses.
My portfolios are buy and hold.
So, if I use money to buy it and then also
fix it up, and I put $85,000 say, or $90,000
into it, and then I’m putting new financing
in place to pull my money out, you know, one
way you could look at it is my profit is the
difference between what I put into it, $85,000
or $90,000 and $105,000 which is, you know,
the 70% of loan to value on this $150K house.
So that’s one way you could look at what
my profit is.
So, maybe my profit might be $10,000, $15,000
or $20,000 per house.
That’s one way to look at it.
But the other piece of that, too, is you know,
I’m also getting a positive cash flow every
month as well.
And, I have no more money in the deal.
I have all my money back.
So, you know, the classic trick question is,
well, what’s my return on investment?
Well, my return on investment is infinite.
I have no more money in the deal.
I’ve gotten all my money back.
So, this is why I say it’s little difficult
to say, you know, because I’m not a flipper
and I can’t say, well, gee, I make an average
of $45,000 on a house.
So, that’s kind of a difficult answer to
Again, kind of harkening back to the idea
that the more tools you have in the tool belt
the more able you are to solve problems.
And that’s really what I do.
So, when I meet with folks who have a house
problem or, you know, a property problem of
some sort, the more things that I’m able
to do, the more solutions I’m able to bring
to the table the more likely I am to be able
to help somebody and do the deal.
And so it’s, I’m fairly straightforward.
I’m super straightforward, actually.
You know, I have those kind of common sense
kitchen table conversations.
And if I, if I have a broad ranging conversation
with the house seller, I can typically figure
out what’s the sort of easiest way or what
the kind of range of options are that they
And I’m, it’s got to be win-win.
So, you know, I have no problem educating
the seller saying, look, it looks to me like
this maybe are your four options.
And if you’re interested in working with
me I can help you with option A, B or C, but
option D, there’s no place for me to make
money so I’m not going to be able to help
you in that regard.
But, you know, I give everybody all the information
because the need to make the best decision
You know, when you’re transparent like that,
it’s instant credibility, credibility, and
people know that when you’re, you know,
trying to mess with them or screw them and
I’m not interested in doing that.
So it’s super straightforward to you know,
kind of lay out folks’ options and you know,
I’m actually a physician by training and
so one of the things that I do is I actually
use this skill set from being, from practicing
medicine, from being a doctor, with potential
house sellers, too.
And I go in with really broad open-ended questions
because I want to hear, you know, what’s
the story of the house?
Why are we here?
And I’ll get a lot of information but it
also helps me understand sort of where they
are and sort of what are the challenges that
And if I have, if I have a good idea of what
that is, I can sort of connect the dots and
then figure out sort of, of all the things
that I’m able to do, you know, or all the
options that exist for the seller, period,
some of which I can help them with.
That’s kind of a broader conversation and
ultimately more helpful for them because they
have all the information, not just for instance,
only the information that a real estate agent
wants them to have.
So I feel like the more tools I have in the
tool box the more solutions I can provide
Here’s what I don’t want.
I don’t want someone to look at this video
and think, oh, well, she’s a doctor and
she’s got special training and blah blah
That’s not really it.
What I want people to hear is, there are ways
in which you work in other aspects of your
life and look at those skill sets – what
is transferrable to those kitchen table conversations
when you’re talking with the seller and
you’re trying to help them solve this problem?
And that’s really it.
People should be able to draw from other aspects
of their life and bring that to the table
Because you know, the kind of listening that
you do with your kids or your family or your
friends, those are the same listening skills
you need to bring to the conversation.
If I know what I’m able to do, and I also
know, have a sense of sort of what the range
of options are for the seller, I can more
easily you know, kind of lay it all out for
And they’ll pick the stuff that works for
And I even try to sort of prioritize.
It’s like, you know, even if it’s to my
disadvantage, that’s a lot of credibility.
I can say the most money you’re going to
make is maybe this.
And it might be an option in which they don’t
work with me.
Or, you know, I don’t get paid, or, you
know, something like that.
So, I have no problem, you know, having that
But, again, the skill set comes from other
areas as well.
And folks should be, they should know that
they probably have that skill set.
You need be really conscious of it and considering
it and how they can bring it into their rea
estate investing role.
I’m, I specifically look at Joe’s techniques
because I want to be able to increase my income.
So, I’m able to, you know, buy properties
and I’m a buy and hold investor in large
But many of the techniques that Joe teaches
are ones in which I can actually increase
my income right now.
And I don’t have to pull money out of, say
the passive income I’m able to generate
from the rental income.
And that can circulate right back into the
business and help grow that.
So, I actually look to these techniques to
help me increase my income and that way I
don’t have to leach off of other monies
in my company and I can just basically survive
on these techniques.
I have to say being a real estate investor
is the most fun I have ever had.
There’s a level of creativity associated
with solving problems and putting together
the deals that is fantastic.
But I have a lot of control over my time.
I’m able to have a super-flexible schedule.
I spend more time with friends and family.
I don’t have to pay malpractice insurance.
That’s very nice.
So it really is, I’m happier, I make more
money and I have a better lifestyle.
So I’m actually able to craft the kind of
life that I really want to lead.
So, it’s the freedom, the range of options
and choices that real estate investing allows
Yeah, the Automarketer in particular is going
to let me automate the parts of my business
that need to be automated.
I mean, if I can reduce the amount of time
that I’m doing that kind of stuff, and it’s,
you know, that’s how you’re able to leverage
My company makes money when I am in my zone
doing the things that I’m really, really
So, going out and doing the lead generation
and reaching out on an automated basis, that’s
not a good use of my time.
So I’d much rather outsource that to software
and leverage technology to be able to do that.
I can get my time back for that.
And they’re much more efficient at it than
I would ever be.
So I have really two things.
One is you have to commit yourself to financial
And there are tons of websites out there,
lots of podcasts, YouTube channels, et cetera,
and read books – the old fashioned thing.
I am a huge believer in education and I will
tell you that I typically in any given week
I listen to fifteen to twenty hours of educational
podcasts every single week.
I do that because I’m listening in my truck
as I’m driving around and doing my job.
Not too many people can really touch that.
I consume a lot of educational information.
And what I would say to newbies is two things.
There are plenty of ways in which you can
get into real estate without money.
We all know that.
But you’re going to pay with time or you’re
going to pay with money.
So, if you don’t have money, you’ve got
to make sure you’ve got the time.
Make sure you’re spending that time efficiently
in the areas that will give you the best results
and the greatest yield.
You won’t know what those are unless you
have financial education.
And then you keep adding to it.
Once you start to get a little bit of success,
and you’re practicing your craft, you have
to stay in your lane.
Don’t get distracted by shiny penny, oh,
Super easy to do so.
Stay in your lane.
Get really good at that one thing and commit
yourself to it and all the education you can
Stay in that.
Get good at it.
And use that as a stepping stone to the next
series of techniques.
There’s another piece of advice I would
give potential real estate investors that
I don’t think people are talking about.
Lot’s of folks will say just what I said.
Financial education, find a mentor, that’s
always a great one, too.
Talk to other people in your local network.
Start, you know, intersecting yourselves in
those local real estate investor groups.
And all that’s pretty classic kind of advice.
But the thing that I would actually recommend,
even before that, is clean your own house.
And what I mean by that is understand your
Your own finances.
Understand where your debt is.
Pay down debt.
You know, it’s kind of like training.
You want to do some, a lot of practice and
a lot of training for a real estate investment
career and if you’re personal finances are
messy and scatted and all over the place and
you don’t have your act together when it
comes to your own personal finances, it’s
gong to make that process even more difficult
and a lot less likely that you will succeed
or succeed well, or succeed right away.
So, really step one I would say is clean up
your own house first.
Take care of bad debt.
Start to take care of the other financial
aspects of your life that you know might need
to be cleaned up.
Do that first.
That might take three to six months.
At the same time you’re doing that you should
be pouring on the financial education as well.
So, three, six months, you know, down the
road, you’ve got a ton of education under
your belt, your personal finances and your
personal life is tight and clean and kind
of taken care of.
You know, that way you can launch from a very
solid platform and then move forward with