A short Freedom Real Estate Group vlog (episode 42) featuring Aaron Davis and a co-founder (Danny) discussing multiple ways to make money in real estate. They describe their core product—turnkey rental investing—and other strategies the firm uses or offers: Equity Advantage Series (outsourced BRRRR), Instant Cash Flow (ICF) purchases, private money lending, and syndications (384-unit Daytona Beach deal). The tone is conversational, introductory, and promotional/educational for prospective investors.
Hi, everybody. This is a day in the life of vlog number 42 here at Freedom Real Estate Group. I'm Aaron Davis, the president of Freedom Real Estate Group, and I'm fortunate to be here with Danny, one of the founders.
Yes.
Thank you for getting us here.
Absolutely.
So pleased to be here and doing this little chat with you.
I'm excited. This is our first video together.
It is, isn't it? Yeah. Okay.
Pretty cool.
I've watch of you and then done stuff with everybody else. So glad to finally sit down and chat with you. I get to learn a little bit today because we're going to be talking about fun ways to make money in real estate.
Yes.
Some of the stuff is really familiar to me because I've been in the weeds in it and learning. Some of it I've done myself before I even came here. So, you know, I can speak to some of it and then some of it I'm just going to pick your brain.
Okay.
This is class for me.
All right. I like it.
Fun ways to make money in real estate. We know our core product, obviously is turnkey rentals.
Yes.
That's, you know, the bulk of our infrastructure is kind of built around delivering that for our investors. Yes, we do that really well.
Yes, we do.
I came into the property management organization and so I've kind of learned the service side of that on the back end of it. Tell us a little bit about turnkey and kind of how you got into that work and, you know, anything you want to add to that?
Yeah, sure. Well, we love turnkey because it's one of those things that we can do for we can serve people for a long time, meaning they don't buy one property, they buy 10. So we get to build relationships. And that's what Flip and I are about. And we're about passive income. We've always wanted passive income. So if we're going to do it for us, why not help others do it, too? And we always say we work with the busy professionals.
Right.
Because we're here doing it full time. Not everybody else has that luxury. So because we get to do it, then they don't have to do it and they have the trusted team. And what I love about turnkey is we get to do all the work of finding the right location. We get to negotiate and buy the property, we get to manage the renovations, we get to rent it and we get to manage it, and they just get the cash flow. Now, it's not completely passive. You know, sometimes you got that water heater you know, we gotta. Yeah, yeah, for sure. But it's a really nice product, and as soon as we saw it, we were like, oh, I want to do that. Where would we go to do that? And we landed in Ohio. Here we are.
Love it. Yeah. It is a good market for it. I've been doing it for a while, so, you know, managing rentals and stuff here. It's a great market for it.
Yeah.
I came out of the services industry, so turnkeys make a lot of sense to me. Lifelong relationships, or potentially lifelong relationships and managing delivery and service throughout the duration of it. Right. So that's great. And I came out of Software Services and just got to talk to a couple of software professionals last week that are, you know, turnkey customers that own property. So it's really fun.
Awesome.
We also do EAs. Explain the kind of. The spin or how we. What we're offering there.
Yeah.
So EAS is Equity Advantage series, and most people are familiar with brrrr. The BRRRR model, which is Buy, rehab, refinance, Buy rehab, rent, refinance, repeat. I got it. So we turn that into an equity advantage.
Make the. Make the money cheap.
Yes, exactly. That.
You get to buy the property at a discount. You get to do the rehab or it. Because if you're working with a company like us, we can do it all for you. You can outsource the whole BRRRR model, and then you get the advantages of the discount on the property and the tax advantages of the renovation.
So it's really about moving early when you know you've got a winner, move early and get a little advantage in the equity.
Yes.
Makes a lot of sense.
Yeah.
And I think we say a lot in here. Jump to the front of the line.
Yeah.
Because we're buying it to go signature series anyway. But you can buy it here instead.
Right. Why be on the waiting list? You can, you know, jump in early with us and get a little advantage.
Yeah.
Cool. ICF is a little bit of a different. You know, we don't. We don't see those every day.
Right.
But we see a bunch of them.
Yes.
So tell us about icf. How do we get into those situations?
Sure. So that stands for instant cash flow. And that's when we buy a property that's already tenanted, so the cash flow is already there. And some people are like, even our project manager, Steve, I love. He loves ICF properties. He's like, that one's tenanted. It's already cash flowing. I can rehab it later. And so he Collects that. So he buys the property at a discount, gets the cash flow. As soon as the tenant does exit, then he does the rehab. He has a tax advantages of the rehab, rents it. And if he wants to refinance that point, surely he can because he raises the rent.
Yeah. That's awesome. I didn't know to call it ICF when I did it, but I've done that before.
Yes.
And when you buy a property and it has a good tenant in it, Maybe it needs $10,000 of work, but it's not urgent. Right, right. The water's not coming through the ceiling and that kind of thing, right?
Yes, exactly.
So. So why turn away the money? Instant cash flow makes a lot of sense. It's also, you have an opportunity to not disrupt somebody's life. Right. And they're home and they're happy, and so you get to do the good thing and the right thing for you financially.
Yeah, that's a very good point.
Yeah. I love it. Private money lending is. Is. Is new to me. So I'm learning. I'm learning that one conversation at a time.
Absolutely.
This is one of my favorite worlds. So I'm the one that is usually always talking to the private lenders and developing those relationships. Now I have CJ on my team. He's helping me do that. We have over $8 million that is working for us 247 on all the properties that we're buying. And the way you guys are going, we're going go raise some more. So that's a great diversity piece, you know, for people who are buying turnkey properties or doing the brrrr method or buying instant cash flow. They can be a private money lender and do something a little bit different to diversify their portfolio. And they'll get 6 to 10% returns. And it's super easy, you know, look at the deal, approve the deal, and then you're gonna approve the deal at the. At the front and at the end, sign the payoff statement, collect your money.
What's the lifecycle on those deals?
Anywhere from. So single family that's vacant four months. We're in and out really fast.
That's right.
Congr to Steve, you know, he's awesome. And then larger deals or deals that are tenanted that we end up taking all the way to the.
Yeah, might be wrong for a lease to come up or somebody to move, that kind of thing.
Yes, exactly.
Makes sense.
Yeah.
Cool. All right. So it gets fun when we talk about syndications. Yes. A little involved. And it also gets a Longer term and whatever.
Yes.
School me on syndications. That's kind of a new world for me.
Yeah, syndications is a new world for me too. We just got into it. We just closed a 384 unit apartment deal in Daytona Beach, Florida. And so I was.
Yeah, yes.
Business trip.
I love it.
So I was wowed by it. And it's SEC regulated, so that was new to me too. You create a fund and then investors get to participate by investing into that fund and now they're shareholders of this property and they get a higher return. Syndications are usually around 12% and some of it's through quarterly cash flow, some of it's upon the exit. It's usually a longer term, but you get really great tax benefits depending on the syndication. So every syndication is different. But when a cost segregation study is done at the very beginning, and Randy, I think has done a podcast or something about this, when it's done, then everybody gets tax benefits.
You know, year one tax benefits, longer duration, better payoffs, and you get to go to Florida.
Yes.
Yeah. 384 units.
Okay, cool. I love it. I'm learning a little something every day. That's an opportunity for me to put my kind of FINRA background to use and do a little research. So I'm kind of in that, reading a little bit up on that. So it's fun stuff. Anything else you want to add?
No, this is.
This is a lot. This is a lot.
Yeah.
And these vlogs are meant to be kind of short and sweet, so we just gave the high level.
Sure. I hope that's insightful to you. Gu. Guys, thank you very much for listening. As we always say at the end of these Invest smart, live happy.
Bye, everybody.
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