Heather:

Mainly, we have been focusing on fixing and flipping in the affordable housing market space. You have to keep in mind, that you folks from California will think this is nuts. But our average purchase price and resale of a house are probably $250,000.it is our goal to get in and out of those as quickly as we can we actually have our own contracting crew on staff. That way, we don't have to wait on subcontractors and those types of things. I'd say the average amount of time we stay in a deal is about, I'd say 90 to 120 days, approximately like right now we're coming into winter, we have snow here, it's crazy out. Obviously, home sales, slow down a little bit through the winter. I'd say on average 90 to 120 days. But we've had houses that we bought and sold in 10 days that we wholesale. What we do as a fund management team, is we look at what's going to be most profitable, sometimes it's more profitable to wholesale in other times, it's better for us and more profitable for the fun to go in and rehab it. I will tell you we bought a couple of duplexes lately as these markets are shifting, the rental market has also gotten really hot here too. Again, we run our analysis, what's going to be most profitable? And then that's how we move forward with our strategy on the fund.

Brett:

Very well said, Thank you so much for sharing that. How many houses have you guys like fixed and flipped in total?

Heather:

This year, we fixed and flipped 110 houses.

Brett:

Just this year alone and how long have you guys been flipping houses for now?

Heather:

8 years?

Brett:

Now let's dive into California. I have to show I kind of teased that all of California is moving to Idaho. What are you seeing there? Are things slowing down? Are they about the same as they were a year ago? Are they speeding up? Kind of gives me the flavour of Idaho local real estate and just flex and I'm sure there are other states too. They're moving to Idaho. But what's your take on that?

Heather:

We're at the top of Idaho. we're in North Idaho, which is actually right next to Spokane, Washington. If you basketball fan Go Gonzaga. We're right next to Spokane. Both of these markets are very hot for what we call people transplanting here. We have seen home sales cool off a little, but prices have not come down yet. I will tell you, Idaho is like the dream for people to move here. Prices are just off the charts. There are not many places where you can go buy five acres, build a house and, and not have neighbours right next to you. The Idaho Idaho market is still really, really hot. So is the Washington market. We've specifically bought in both of those two markets. I don't, we don't anticipate that that is going to slow down anytime soon. People are looking to get out in big cities, people can work remotely. Now they're not required a lot of times to go into offices. They have the ability to move out of state, and it still continues to be a very, very hot market. Boise is also a great market that's southern Idaho, which is about five hours south of us.

Brett:

What's the biggest difference between Coeur d'Alene, Idaho where you're at in Boise.

Heather:

Boise is a much bigger city, there's a lot more opportunity for employment there. Coeur d'Alene seems to be more people that are retired people that are making very good money on their homes than they're selling in Seattle and, and California, they have the ability to come here and pay cash. You have a lot of more retired folks, in my opinion here than Boise does. There are a lot more job opportunities there. But again, we have a lot of very professional people moving in this market that are working remotely or even travelling for that matter they'll go back and, and travel to Seattle three, four days out of the week, and then they come back home on the weekends.

Brett:

Thanks for sharing that, by the way, to learn more about Heather Dreves at SecuredInvestmentCorp.com. It's SecuredInvestmentCorp.com. We're gonna shift to the part of the show where we're talking about Capital Gains Tax Deferraland all things like 1031 Exchanges and the short time periods and all these things. My experience is sometimes people in real estate, feel frustrated with 1031 maybe even wanting to sell a primary home in Seattle, but there's huge capital gains tax, but they don't know how to get out and invest with SecuredInvestmentCorp.com without getting hammered, and so they feel trapped, or they're selling a business or cryptocurrency. But I'm curious what have you found when it comes to frustrations with Capital Gains Tax Deferral, and or the 1031 Exchange?

Heather:

It's interesting, we work with a lot of high net worth dentists, we're in quite a few groups and, and a lot of those clients are in our funds and buying notes. What I found with a lot of them, unfortunately, our fund is cash flowing fund. Like we're just turning that money over and over. For people that are selling, practices, for example, and they're looking to repair or replace their income. Our fund is great for that because it has cash flow. The fund also has the ability to reinvest their earnings so they can roll their earnings back into their equity, and they can grow those accounts. Most of my high net worth individual clients that I work with are doing that through tax-deferred strategies like IRAs, and 401 K's. We don't work a lot with people with 1031 exchanges, just because our fund doesn't have the benefit of that. I will tell you we are exploring syndications right now for self-storage, and larger multifamily. I believe we will in the next 12 months have the opportunity for that. But my experience has mostly been with self-directed IRAs, self-directed 401 K's that are more tax-deferred or tax-sheltered accounts. That's how those people have gotten around that.

Brett:

Excellent thanks for sharing that. Like likewise, we work with dentists, in fact, just closed the deal in New Jersey for a dental practice owner for like 30 years built up his business. he's facing a huge capital gains tax and his wife and he is trying to make sense of this. They have no basis and hundreds of 1000s of dollars in capital gains tax. They were able to use a unique strategy that most people just don't even know about. It's called a Deferred Sales Trust, to sell them for all the tax. Now they can invest it into passive real estate deals, hard money lending, they can go into active real estate deals, all tax-deferred without using a 1031 exchange and so anyone's listening to this right now.

If you're a dentist and you're considering selling your practice or dealing with veterinarians, optometrist car dealerships, cryptocurrency owners, high-end primary homeowners who did an $8.3 million deal in Palo Alto. A primary homeowner who was moving to Nevada, and he was faced with huge capital gains tax and he's like, I can't even sell unless I can defer the tax. He was able to actually sell and defer the tax whereas 1031 doesn't work for a primary home. But a Deferred Sales Trust does work by the way if anyone wants to learn more about that they can go to CapitalGainsTaxSolutions.com, that's CapitalGainsTaxSolutions.com. But I'm curious Heather, for people who are coming to you, or they if they're not doing retirement plans, IRAs, or self-directed IRAs, or self-directed 401K's type of thing? How are they just paying the tax on the sale of the business? And then showing up? I mean, what's been the typical fact pattern there?

Heather:

That's a great question. We actually work with an attorney's office out of New York that does exactly what you're talking about, sets up these tax-deferred trusts. A lot of them will filter their earnings through that. A lot of them is that dentist, I mean, unless they had IRAs and 401K's that they set up years ago, most of the bulk of their wealth is in their practice or cash. So some of these groups that we're involved with, are really educating those types of professionals on how to set that up ahead of time when they start getting into that industry. But unfortunately, some of the folks that are at retirement age, are ready to sell their practice, and they didn't plan ahead.

A lot of them, we are pointing towards this attorney that has helped them set that up. Then once they get that organized, and do their planning, then they'll come back to us and we can look at what would the fun be better for you, even if, even if they're more growth-minded, or cash flow they can do either that option is there. A lot of them like to buy the notes too, because once they retire, these are people that have worked five days a week, and they want to replace their time with something, the notes are a nice option too because we've taught them how to do their due diligence, go through the checklist, we're very transparent, we give them the entire underwriting package. That's been a nice option for them to they're still able to deploy capital, but also give themselves something they're educating themselves about.

Brett:

Absolutely love it. Fantastic. Thanks for sharing, Heather. With that being said, are you ready for the lightning round?

Heather:

Yes.

Brett:

All right, knowing what you know now, if you go back to your 25-year-old self, what's the one golden nugget, he'd make sure to tell yourself to do?

Heather:

Invest in real estate sooner.

Brett:

Very good. What's the number one book you've gifted or read as he would recommend the most in the past year,

Heather:

I have read Atomic Habits, which is a great book, I've actually sent that on to my kids to read.it's just always a good reminder habit are very important. Being able to even break bad habits is an option. But you have to have rituals.

Brett:

Fantastic. The next thing is our Rich Dad Poor Dad part of the lightning round. Imagine you read the book, maybe you have, I'm sure you have Robert Kiyosaki. What's your best-kept secret that you try to implement as a, as a rich dad poor dad strategy? What would you like to share with our audience here?

Heather:

One of the things that until I was in private lending, I didn't realize, I grew up in a very traditional family, my, my family wasn't extremely wealthy, but we also weren't wanting for anything. But I always assumed that you had to have the cash to be able to invest. that's not the case, my husband and I have flipped multiple homes, we bought rentals, using private lending, to get to our goals. I think that's something that everybody needs to become more educated about, is just because you don't have $200,000 in your account doesn't mean you can't invest in that piece of real estate. There are options out there. I don't think enough people know about that. I really do believe strongly in creating wealth through real estate.

Brett:

Beautiful. I couldn't agree with you more. Second, the last question, what are you most curious about right now?

Heather:

The market, where it's gonna go probably the same thing everybody else is, we are seeing housing markets cool off. I don't personally think it's going to be as bad as 2008. But as a fund management team, as a real estate investor, and as a private lender, I do believe there's going to be a lot of opportunity coming up when I mean, as we know, foreclosures have forbearances have been lifted, and there is going to be a lot of inventory. I'm curious how much. My question is how much is the market going to decrease? And I think that's dependent upon geographics. I don't think that every state is exactly the same. But I'm curious how deep those discounts are going to be?

Brett:

Very well said, if you had a crystal ball, we're going to start seeing an increase in these foreclosures, is it 12, 24 or 36 months? What's kind of you if you had?

Heather:

I think, six months from now, you're going to start to see those on the market, and that's going to start to affect values.

Brett:

Very well. Thank you for sharing that last question. After all your success helping the people you've helped build wealth, and everything else that you've accomplished, how do you stay centred in your values? How do you stay encouraged to charge forward to reach new heights?

Heather:

I continue to educate myself by reading books. I'm constantly taking care of myself physically exercising every day. Just staying true to myself and my core values being Tran transparent on missed having great follow through with our clients. I think that's really what has made me successful in this industry and just, treating people the way that I would want to be treated and putting our clients first and then the success comes.

Brett:

Fantastic, Heather, for our listeners who want to get in touch with you, would you remind them one last time what's the best place for them to find you.

Heather:

You can always visit our website at SecuredInvestmentCorp.com You can get information about both of our funds on there. Then also all of our notes are also uploaded there. You can get quite a bit of information and then obviously if you want to explore the Notes Further, we have full due diligence packages on there so secured investment corp.com would be your best resource.

Brett:

Heather Dreves, thank you for being on the show and also want to encourage you to keep using the gifts and talents of your leadership accountability team player, being a team player to help more people create preserve more wealth in real estate. I also want to thank our listeners for listening to the episode of the Capital Gains Tax Solutions Podcast. As always, we believe most high net worth individuals and those who help them they struggle with clarifying their Capital Gains Tax Deferral Options. Now having a clear plan is the enemy and using a proven tax deferral strategy such as the Deferred Sales Trust, the best way to exit your highly appreciated business commercial real estate, save afield 1031 Exchange, Cryptocurrency, Primary Home so you can defer the tax and create and preserve more of your wealth. If you want to learn more about that you can go to CapitalGainsTaxSolutions.com where we have our mastermind going on right now it's a Free Mastermind every Friday at 10 am. Pacific Standard Time 1 pm. Eastern, where you can join me, my team members, my business partners, my some of my clients. Some of some folks are looking at this for the first time trying to learn about this thing called a Deferred Sales Trust. We'd love to have you as a guest come to check us out go to CapitalGainsTaxSolutions.com to Register. If you're listening to us on expert secrets, eXpert CRE Secrets Podcast as well we appreciate everyone out there and we wish everyone well.