What Does GLA Stand For In Real Estate

What does GLA stand for in real estate? So let's begin with real estate terms that you need to know. And then let's move to how do you start making some money in real estate with little money or little investment capital? Then we're going to switch gears to some corporate structure and moving, growing into how do you achieve that $10,000 a month in passive income that all the real estate gurus say is just so easy to do. Let's break that down. What are some ways and pathways to get to $10,000 a month in cashflow? And then the last but not least piece I want to talk about is creative financing, leveraging strategies, using good debt, OPM, OCC, etc. So a lot to talk about. First, let's start with some terms. And I'm only going to give you three today. And if you want more, go to my search bar, and I'm going to continue to be layering in more and more real estate throughout the summer of 2024 as we start watching this market kind of get some volatility in different areas. So three terms that I actually want to get into play now is what is EMD? So it's earnest money deposits. So when you actually go into a project, you're going to be putting some deposit money down. It's the amount that you give the home buyer or whoever is the property commercial buyer. When you sign a sale contract on the home or property you wish to buy. When you make a good faith deposit, you're letting the seller know that you're serious about their property. So this is a pretty normal thing that you're going to do. Even in large deals, like when I do my cannabis project, buying a supplement company, you name it, there's usually a good faith deposit. Sometimes you get your deposit back. Sometimes you don't, depending on the criteria and the contract that you set to sign. The second term that I want to talk about is GLA. This one's probably a little more known for those of you that have been in commercial real estate. It's the gross leaseable area. So it's the amount of space in a commercial building that can be rented by a tenant. In most cases, it includes the basements, mezzanines, upper floors, and what the tenant can potentially utilize. You're also going to learn as you get into commercial properties and commercial rents about triple net leases and all sorts of other sorts of ways that you can rent. And there's a whole other section, which isn't today's video on profit sharing in real estate. And then the third term we're going to talk a lot about today is MSA, which is your Metropolitan Statistical Areas or MSAs. The U.S. government designates these for urban areas. MSAs are defined by the U.S. Office of Management and Budget. Isn't that exciting? What's interesting about the statistics around this, this is the kind of area or the kind of structure that you're going to want to go and look at. Because I am a huge fan of buying by zip code. There are zip codes that appreciate at different rates. There's our zip codes that can cashflow at different rates. And a lot of you need to start learning your areas. Those of you who just blanket the U.S. or blanket Canada or blanket the country that you're in without really looking at the zip codes and the structure. I mean, to me, that's a guessing game. Like I love the Midwest. Not only was I born there, Oklahoma, Norman, Oklahoma specifically, God bless those people and all the tornadoes that blew through their town, but that was my millionaire market. That's where I owned a lot of commercial property and became a millionaire in the Oklahoma markets and then expanded into Mississippi, into Arkansas. We went up to Kansas. Obviously I've been in Nebraska, Iowa. So I love the Midwest because I know how to run those markets and I have crews and teams that run those markets from being the broker to actually having the property management company, having the construction company. If you really get strategic, you're going to have distribution within that. Meaning you could actually be the distributor of the siding of the roofing products of the doors of the windows. So a lot of places you can go when you enter real estate. So for people who say they can't get to 10,000 a month, you're done. All right. So those are some of the terms. Now let's go into how to even begin in real estate if you don't have much money, if you have very little money. Well, you can start in reggae offerings. So reggae offering, start engine. We actually have a project up there with iFlip, which is a software for your stock market. There's a link below if you want to grab a free app in iFlip, but there are a lot of REITs, right? Real Estate Investment Trust too. It's a stock and you can buy for as little as like 25, 50 bucks. So you just get started in some reggae offerings. That's an easy way just to start getting oriented. I would highly encourage you to join real estate groups where there's a constant conversation. Be very careful because there's a lot of people that have what seemingly are large followings, but the truth is it's rough out there. It's rough what a couple groups have done to some clients that I'm on the receiving end. Their corporate structure is wrong, their tax structure is wrong. They don't even have the right depreciation schedule. So when you go into it, you've really got to be with a credible team that knows what they're doing. Other ways with little money just to get in the game is you can bird dog for people, which means go out and find some properties, find out what the criteria is, and then cut the deal before you go to work. I don't know how many people get burned because you've gone to work, you find the property, and then they actually can move faster. They're more nimble because they have the money in teams and they will take the property and a lot of my clients didn't get paid. So hence then they came forward and said, I need a mentor to teach me to never get in that situation. Wholesaling is highly, highly encouraged as a beginner game. I would rather see you do a fix and flip because wholesaling requires a database, requires a seller database, requires a buyer database, and you in the middle knowing how to actually create that deal and the contracts. So get on teams of other people who are already successful. That's what I did. In the beginning, I was only getting 10 to 15% of a deal because I could actually bring people together, but I didn't know how to contractually bind to them. I didn't know operating agreements. This is all like early, early, early career stuff for me. But I became a real estate millionaire because I had an asset they all wanted, which was 18,000 people who had played the cashflow game and bought Rich Dad Poor Dad products from me. So I became an affiliate of education to build a database and the database became where I could source to go find people to say, hey, Susie and Sam, do you want to go buy a piece of real estate with me? And then I use the database and we all together just started buying a bunch of real estate. So that's how my track was. The next critical piece, which I think is more fun is how do you get to that 10,000? So again, with teams of people, and like I just described my Kansas team, currently the broker had a construction company, which grew from having an original flooring company, property management company, cleaning company, which is part of property management, but also a big one, especially if you're buying fix and flips. So somebody's got to haul that stuff away. If you've ever priced that 1-800-GOT-JUNK, they price by the pound. You can make so much money hauling other people's crap away. And then I have other people, like a very successful client couple in Denver, and they take the high-end stuff and they bundle it together and they actually do estate sales. And they take the rest and they go actually put it in a storage unit and they actually let it expire. So it goes out in storage war. So they get rid of all of it at the end. They're not storing anybody's stuff, but they haul it to whichever location and they actually do a lot. I mean, they're making hundreds of thousands selling estate materials down to like old jewelry that got left behind. I mean, it's shocking what people leave behind that don't know that there's a bunch of value. So there's a lot of ways. I think when people think real estate, they're thinking rent, right? How many people are going to pay me rent? What's the margin of the rent? Well, I can tell you, I own a lot of apartments and someone drove through like our 23plex and took out like an entire bedroom. Almost, thank God, nobody got hurt. Now we have the tenant improvements. We've got to go back and do all the construction rehab. So by owning it all, we reduce our cost outlay, having to hire outside companies that take a bigger margin. We can actually hire our own companies. And that's where the more successful people play. Also in storage, RV parks, there's all sorts of ways to just fix and flip. I mean, the RV business since COVID has gone through the roof. I know people that are just buying and fixing up a little bit of that and then flipping them. I know people doing mobile home parks. So where do you want to land? Where's your lane that you want to be an expert in? You can't be an expert at all of it. Which strategy are you going to enclose and envelop into yourself to do that? So before I continue, I want you here to subscribe to my channel. So I know there's a lot of beginning stuff we talk about because it's family-friendly from five years old and up. But those of you who want real estate, put it in the comments, say, more real estate, please tell me what you want me to talk about because I can talk about any of it. And if I'm not the super expert in it, I will bring somebody and we'll do an interview of somebody who is in that category. So we could do some really fun ones around different storage models to make millions in storage. Same with RV parks. I mean, there's just ways you could just buy the land, partner together to buy the land, do a little bit of engineering, and then you just sell the dream and then you're out. So where do you want to be in this active or passive game? I call it pactive because really you're never just going to sit back and do nothing. Share this with like 10 or 15 other people and get your kids involved for those of you who have generational wealth. If you're going the real estate route, you're going to have generational wealth because unless you sell it all before you pass, you're handing it to them and they have no idea what to do with the asset. And getting sold out, which I've seen way, way too many people and families do, creates a tax burden that most of you can't afford to pay. And now you're out. And I mean, literally people have gone from multimillion dollar states to renting because they did their exit completely wrong on the generational wealth move. Other ways to get to 10,000 a month is through OPM. I have helped so many people become millionaires in real estate by using other people's money. I know people that can get as low as 8%, 10%, 12% for other people's money, use other people's credit. Again, put the deal together. If you notice everything I teach, it's team-based. It's not just you out on your own risking everything because you don't know what you're doing. Get on teams of people who are more successful and your chances of success and reducing the risk into what's called the blended return. So let's go to the last point that I want to talk about, which is some creative financing and structures. A blended return means something I do in a gas and oil as well. Because if you have say $100,000, wouldn't you rather buy five properties for 20, 20, 20, 20, 20? Well, you can't do it for 20. So then you're going to pool. You're going to go find say four or five other people who have 100. So let's just say there's five of you and you have 500,000. Now you can buy $500,000 down payment properties if you have the right credit and financing. So that's a structure where you come together. So instead of having one problem, you have a 20% problem. If one of them, the properties goes down, meaning you've got to do a tenant improvement, you've got to do a rehab. So blending a return versus one person buying one property for a hundred thousand, that's a hundred percent problem if you go down. So blending your return is extremely creative. Again, using teams of people, other people's money, other people's credit. SBA loans are usually associated. The quicker SBA loans I've seen and a lot of just what I call traditional lending involves real estate. To just go get a loan because you want to go write a book, good luck on an SBA loan trying to do that. I don't know that it actually passed through. They very, very much like the real estate because there's an asset they can take back and sell upon your default or failure to perform. So the last two things would be joining groups. Again, I'm going to take you back to the old Yahoo days. I know there's over 1600 real estate groups, old school groups, which are where you want to be. You don't want to be with the new people who don't know what they're doing. They can be new to it, but I want you in some groups. I want you to understand who's really in the streets, who's really buying, who's really producing the project and the projects. How do you leverage credit cards is 0%. So I have access through our experts to over 500 other financial sources to get 0% financing for up to 21 months if you have great credit. I've had a lot of fix and flippers. I've had wholesalers, people who just start with just basic single family rentals. With the $150,000, they could get on 0% financing for 21 months. That's almost two years. I mean, you get enough to do the down payment. You use the rest to do the rehab. So again, you're not in big coastal markets. You're back towards the Midwest in markets where that kind of money makes sense. The biggest risk to you is to not pay those off because now you're out of 0% and they ratchet to 20, 21% very quickly, which is really expensive money and unnecessary if done right. So be very careful if you decide to do that. We can help you do that. We'll coach you on how to do that. And I look forward to helping you be a fast real estate millionaire. Right now, my fastest real estate millionaire is 142 days. Can you beat it? If you can, call our office, have a strategy session, jump on the team, and say, I want to go and be your fastest millionaire. It'd be super fun. So if you have any questions at any point, go to asklaural.com, A-S-K-L-A-U-R-A-L. Ask a question, make a request. We're here every day.