GAIN THE PASSION
GAIN THE PASSION
Feb. 4, 2022

Jessica Allen - Financial Strategies For Creating Generational Wealth Through Real Estate Investing

Jessica Allen - Financial Strategies For Creating Generational Wealth Through Real Estate Investing

Jessica Allen is a wife to Perry, mom of four, entrepreneur and full-time real estate investor. She has built a successful private lending business and is building out a short-term rental portfolio with her friend and business partner, Nicole. In the last year Jessica was able to bring her husband home from his W-2 so that they can now build their real estate business together. She loves working with people and raising capital for her real estate projects. She has been a serial entrepreneur all her life and loves helping others catch the entrepreneurial vision through coaching her clients in real estate investing and life.

Jessica’s heart for each of her clients, in her coaching program Empowered REI, is for them to create a life of adventure that they love and to help them see that it is possible today; that they do not have to put off “living their best life” for their retirement years. She helps her clients create a vision and a plan through real estate investing to create cash flow and implement financial strategies to help them transition into this life in under 5 years instead of the 20-30 year plan that most of us are led to believe is necessary. Her and her family reside in Western, Nebraska and where she operates her real estate investing and coaching businesses remotely. 

Join the Building Generational Wealth Through Real Estate Investing Group on Facebook
https://www.facebook.com/groups/empoweredrealestateinvesting
Follow Jessica on Facebook
https://www.facebook.com/profile.php?id=100013916735039
Learn more about Empowered REI
https://www.empoweredrei.com/
Episode Transcript
https://www.successcoachingpodcast.com/jessica-allen-financial-strategies-for-creating-generational-wealth-through-real-estate-investing/#transcript

Find out more about GAIN THE PASSION Coaching
https://www.gainthepassion.com
Access past episodes and more of the GAIN THE PASSION Podcast
https://www.gainthepassionpodcast.com

Transcript
Voiceover:

Welcome to the SUCCESS Coaching Podcast. On today's episode, our guest, Jessica Allen shares her own personal journey to success. Because Success is a journey, not a destination. Here's the hosts of the SUCCESS Coaching Podcast, Todd Foster, Alyssa Stanley, and Kelley Skar.

Alyssa Stanley:

Welcome back to the SUCCESS Coaching Podcast. I'm Alyssa Stanley here, as always with me are my co hosts, Kelley Skar, and Todd Foster. We are also really excited to have Jessica Allen, join us today. Thanks so much for hanging in with us.

Jessica Allen:

I am so excited to be here. Thank you, Alyssa. Thank you, Kelley and Todd, excited to share my story and be a part of the podcast today.

Alyssa Stanley:

Iwanted to bring you on here for several reasons. We've known each other for a few years now. But your story is so inspirational, I remember the first time we met and we sat down at the coffee shop here in a small town and I listened to where you've gone and what you went through, just with such amazement of how you didn't give up how you never quit, and you had a smile on your face. And I just was so drawn in by your ability to stay positive and continue to drive through everything that you were facing. And now fast forward. You know, a few years later, you are running a successful real estate lending business, and you have opened up a coaching business. So I really would like to spend this time kind of walking through what you went through and how you took yourself from everything that you went through to this point where Jess is today. But let's kind of start with you tell us a little bit about who Jess is no, your mom and a wife but who is just outside of the real estate business company that you have?

Jessica Allen:

Yes, so I grew up in a rural community much like you. I live in western Nebraska came from a farming and ranching family. So a big part of who I am is my work ethic and drive and determination. You know, getting up doing chores, that whole routine of farm life. It puts something in you that can't be instilled any other way of you show up no matter what the weather is, what the challenge is, what the markets doing, like no matter what you have to show up and take care of, and steward what you've been given. And so I think as I watched my grandparents, my family, my brothers now in their businesses of farming and ranching, those values just are such a deep part of who I am. And I think a lot of where my resilience comes from. Because where I am there just really isn't opportunities for I mean, there is some for real estate investing, but not at the level that I was wanting to do it. And so my path through to where I am now kind of started when I was in college, I went to Colorado State University in Fort Collins, I was able to put a down payment get financed for my first townhome and I rented out some of the rooms to roommates to be able to fund that. And it just kind of lit that spark in me to the power of real estate investing both the cash flow that it created to pay some bills and pay my rent was there. And then as I held that investment, long term, the equity gain and the net worth game as I was able to sell that property later in life.

Kelley Skar:

Jessica did you go back to the farm after university?

Jessica Allen:

I did not go back to the farm. i My degree was in agricultural business and finance and ag education. And so I ended up student teaching in a small little town in eastern Colorado. And that's where I met my husband, where I ended up getting my teaching job. And he also came from farming and ranching background. And we ended up in that family business for just over 13 years.

Kelley Skar:

The courses that you took at university were did you take them with the intention of teaching or are they with the intention of of actually going back to the farm and running it from a you know, a business perspective taking on that role?

Jessica Allen:

I took it more for the teaching. I definitely love to business. I loved all of those classes, and definitely knew I would use that in some capacity. But at the time, I just really felt called into the teaching space and wanted to work with kids and instill those concepts that I was learning into them which I still have that desire and passion now and I can see In the future, that being a way that I give back is by teaching kids about entrepreneurship and business. I definitely loved Fort Collins. But I think it was more of the hustle and bustle than I really wanted to settle in. And how I wanted to raise my family, I liked the small town values, and wanted my kids out in in the area of agricultural agriculture, instilling those work ethics, those values in them. And I think that's what drew me back out into the area of farming and ranching.

Alyssa Stanley:

So I am curious, how did you? How did you build what you have now, with as many kids as you have? Because you've got a rather large family, they're pretty close together. They're small, I think that's a million dollar question for most working moms and wives is how do you build something like this, while still carrying all of those roles, and not, you know, lose your mind?

Jessica Allen:

Yeah, it's definitely a challenge. It takes a lot of tenacity and resilience, to keep getting up and facing the challenge of being 100% committed to your family and 100% committed to building out this business and this vision that you have. And what kept me going in that was the vision that I had in the business was to create a lifestyle that brought me back to my family, it wasn't like I was trying to create and do two very separate things. My motivation was to create freedom for my husband, time freedom for myself, that we then could invest back into our family. And so I'm eternally far as the logistics I had two little boys at home just a year ago. And instead of going back into my career path that I could have at Vogue teaching, or some sort of agricultural business vocation, I chose to go ahead and decide and commit to building out this real estate business. And that meant, with those two little boys at home, I had to be creative. And so in that I just started cleaning houses so that I could still take care of them, and still have the time freedom to be able to build this business out. So I work in the mornings, on the for the house cleaning business, and then in the afternoons, I would be able to work and build out the real estate business. So it took some sacrifice, I didn't love going into back into cleaning people's houses, I had a college degree, I could have done anything. But it was a sacrifice that I needed to make at the time to be able to invest in this, this business of my own and still still financially provide for my family at the same time.

Todd Foster:

At what point in your career in the real estate portion, were you able to say okay, I'm here, I've made it now I can finally stop cleaning houses?

Jessica Allen:

Um, so it was not long at all, before I realized that it wasn't going to take me a tremendous amount of time to phase out of the cleaning and into full time real estate investing. It was just a matter of really aligning my resources in the right way. And leveraging what I had and what other people had in my network to really propel that in an exponential way and do it very quickly. So there was a lot of just strategizing about how to best utilize my currencies like what I talked about earlier, and those currencies of other people to get myself to that point as fast as I could. So it was in just a matter of months from joining the mastermind starting my private lending business. I kind of created that Launchpad and was able to start phasing out.

Todd Foster:

Were you ever exposed to like income properties and renting and lending? It sounds like you did something that most college students aren't even thinking about, which is pretty much becoming a landlord to tenants during college.

Jessica Allen:

Yeah. So I think again, that comes from the agricultural background owning land. I'm having that asset that's producing income. That thing inside of me that came from generations before me and from the people that I was putting myself with, of not wanting to work for somebody else.

Kelley Skar:

This is generational for you. I mean, so you've got a couple of kids, correct? Yes. And they're not they're not growing up on the farm. Are you having these types of conversations with your kids or do you plan on having these types of conversations with your kids? You know, You grew up on the farm, you saw the, you know, the benefits of having the land provide a living for you and your family, there's an entrepreneurial spirit there, did your parents sit you down and say, Hey, this is the way things are, this is the way we're all entrepreneurs, here we are, we own this land, it's providing a good living for us, you know, you might want to think about doing something like this for yourself at some point in the future, and this is how you do it.

Jessica Allen:

No, they definitely never sat down and had that conversation. But in farming families, it's just kind of assumed that the next generation will come in and take over the land and steward it and take care of it, and carry those values and traditions to the next generation. And in paradise situation, that's my husband, um, that opportunity just wasn't there long term for us. And so it's still having that those values that desire for entrepreneurship, we were just able to shift it into the real estate space. And as far as the conversations with my kids, those have started from day one, of instilling the value of entrepreneurship into each of them, my daughter has had a cupcake business, where she sold cupcakes online, she sold artwork, my son has chickens, and takes care of them sells the eggs every week, and he was able to buy himself a little PlayStation in the last few months. So he was super excited about that. And then here recently, we've really been talking to them a lot about our private lending business. And they're actually utilizing their savings within our business, we pay them a flat rate like 10%, every time we pull their money out and use it and they get paid. And just in this last week, we were able to disperse those payments to them from this last year. And it was super exciting for them to see the power of creating that kind of passive income. Because going back to like your question before, my grandparents and parents came from the Industrial Age of Work, Work work, like they had to work their butts off to make what they have now. And our generation, we're heading into the information age, the power of what we know. And the the knowledge in our head is going to take us so much farther than just work alone. And so I'm trying to teach my kids the value of creation, creating value out in the space where they are in learning how income can be created through that, and not just physical labor, like how my husband and I grew up.

Todd Foster:

You aren't trying to teach your kids that I mean, you've taught your kids that. And which is really cool to hear. Because if you look at most people out there, adults in general have a difficult time with anything to do with money. And then and then the kids usually follow in the parents footsteps. And you've almost flipped things a 180 in a couple of parts of your life from, you know, decide not to do the farming thing to teach your kids about the value of $1. And knowing how money works. And those things I believe are one of the most important things you can teach your children or anyone in life, how important money is and what it can do good, what it can do good for you and for others. And so I'd like to go back a little more with that. When you are discussing the financials with your kids and showing them the value of saving money. Do you make it fun for them? I mean, it sounds like it definitely has rubbed off with the going out and doing their own thing being their own boss creating their own money creating own wealth. Yet, how would you recommend like let's think our listeners out there are thinking about doing this yet really don't know where to start? What steps would you really take the first of all, get the resume buy into what you're saying?

Unknown:

Um, so the very first thing we started with our kids regarding money was teaching them kind of the gift save spend. So we set little jars in their room. And anytime they got money, there was a jar that they could designate some of it for giving. And then there was a jar for saving and a jar for spending. And that just kind of got them thinking about there's different ways that we can utilize money. And that money can be used to help others and money can be used to create something for themselves later through the saving part and then spending for fun. So that was the first thing we did. And now like I said with the kids savings accounts that they have built, put those in the bank, we are teaching them the power now passive income passive investing, I'm lending their money out, so to speak into our business, and then them getting paid for it. And then as far as the fun part, letting them spend, like we said, like I said, on the PlayStation, my daughter just bought herself a computer. And she's been creating on there, she loves doing Canva and creating graphic design things on her computer. So that was a fun, fun spend for her.

Alyssa Stanley:

So you are a woman of many talents, which little known secret about Jess, she actually own a bakery back in the day. Very, very good cook. And something that I really love about you is you have zero quit, you figure out how to make things work. So first, for a listener that has many talents, such as you how do you find a talent to settle on? Or do you just keep trying until you're able to make something continue to work?

Jessica Allen:

I think it's the Keep trying. With every No, that comes, you learn what you like and what you don't like what you're good at what you're not good at, where you can create value and make money where you can't. So I don't think there's ever a path that's wrong. Every path that I've been on, like the bakery. And some of the other things that I've done, I can see very clearly now were very important parts of the season that I am in now they were teaching me very crucial things, either in my mindset about finances, about resilience and perseverance, that had I not had those experiences, I wouldn't be where I am now. So I think that the best thing is just to take that step, try something stick with it at least long enough to know if it's a yes or no. And, and push through the resistance, there's usually resistance for either to two reasons. Either you're not aligned, and you have to internally go inside yourself and figure out, okay, this really isn't for me, because of whatever reason, it doesn't align with my values. It doesn't align with my long term vision of where I'm going, it doesn't align with how we want to use my time. Or else we face resistance internally because of fear. And that fear a lot of times can keep us from doing things to get us to that next level. And so it's just really learning to lean into that resistance and pushing through it because that is where the growth is gonna happen. That is where you you are going to find your path your thing that you're good at. And it's those things that literally make can make you want to puke can scare scare the living daylights out of you to say yes to it's on the other side of those things where success can happen. I'm just gonna share another thing that touches on what Todd asked about money and teaching our kids. I think a big shift that's happened for Perry and I in the last couple years. If you haven't read the book, Rich Dad, Poor Dad, it has the power to change your life. We were avid Dave Ramsey followers. From the day we got married and so thankful that we were because we stayed out of financial trouble, so to speak, we establish good credit. We saved we had our house paid off. All those things are wonderful. But what Dave Ramsey didn't do and what a lot of financial instruction in schools and colleges doesn't truly teach is how to really become financially free. How to get out of the W two job how to create financial independence so that you can create a life that you are doing what you truly love, and what you're truly gifted and called to do. I don't think any of us were put here to have to work a W two job that we hate, that we don't love that we don't want to be in. Because we have gifts and talents we were meant to use. And I don't think money should ever be the thing that keeps people from being able to pursue those gifts and talents. And so the big shift that happened for us was seeing that putting our $6,000 a month or a year away in an IRA and hoping that one day at the age of 60 or 65 We would have enough money to then live our life. It's such a lie that so many of us buy into and I hate it and I will speak against it until the day that I died because we were faced with some family tragedies that were huge wake up calls for us but the age of 65 may not Come, and we are working our butts off trying to save and put money in these accounts that may or may not be there for us at that point, and putting the life we want to live on hold until our kids are gone. And maybe we're here, maybe we're not. And so the big shift for me was just why can't we create that life that supposedly is 2030 years out? Why can't we create that now? Through through creating investments that are cash flowing for us, so that we can have the freedom to live how we want right now.

Voiceover:

The SUCCESS Coaching Podcast is a partner of the SUCCESS Podcasts Network, visit success.com/podcasts to discover additional SUCCESS Podcasts, including Rich and Regular with Julian and Kiersten Saunders, SUCCESS Stories with Madison Pieper, The SUCCESS Line with Ben Fairfield and Brilliant Thoughts with Tristan Ahumada. That's success.com/podcasts.

Todd Foster:

The greatest thing is you have a plan, you have a plan in place. It doesn't matter if you're here or not. There's a plan in place. Did you learn that from your parents? And they learned that from their parents or?

Jessica Allen:

Um, yeah, I definitely think the desire was there. The vision was there. But I didn't know logistically how to make it happen. My my family had created success and generational wealth through farming and ranching. But I knew that I was probably going to end up going a different direction than farming or ranching and the path wasn't completely clear to me. And so I did like what Alyssa was talking about earlier of just starting to try things, starting to find my path starting to find my way. And so we invested in that tower, I invested in that townhome, we tried land investing, we tried the rental, long term rentals, and then eventually found my way into that mastermind, that then it was like the lightbulb started going off of this is how I create that path. This is how I make this vision, this desire that I have a reality because it was so fuzzy before. And I was just kind of throwing spaghetti at the wall, trying to figure out what would stick what would work. And then once I aligned my resources, plug myself into a network of other investors who were experienced, who could kind of hold my hand and guide me along the path, who I could also leverage their resources, their knowledge, then, yeah, I was able to finally put all those pieces together.

Alyssa Stanley:

I love that so much. Because I think, you know, as we just spoke, so many people spend their lives working in jobs that they don't enjoy. A while ago, I actually looked up a statistic of how many hours you spend at work in a lifetime and obviously was 1000s and 1000s and 1000s. So I'm a firm believer in creating your own path in life. And sometimes people won't understand it. Sometimes people will think you're crazy. Yet it's your life to live and it's your future. So if you make it another three days on this earth, are you doing what you enjoy? Are you clocking in and out of a job and making someone else's dreams come true. And then you go home too tired to care for your kids too tired to make dinner, too tired to be the wife that you want to be both mentally and physically? So it sounds like that's something you're also incredibly passionate about. And with a coaching, one on one coaching that you just launched? Is that part of what you teach? Because I know it's targeted towards real estate?

Jessica Allen:

Yeah, so I wouldn't necessarily call myself a real estate strategy coach, I'm not going to break down every real estate strategy and handhold you through all of those. But what I'm going to do is come along in those steps before and help lay out this vision. Create the runway, so to speak of if you're wanting to get out of your W two job, or you're wanting to create a set amount of passive income. We're going to start with where you are, and kind of lay out like what I talked about before your resources, your network, all of those things to help create that pathway to freedom so to speak.

Alyssa Stanley:

That's so needed, because coming out of a W-2 is very, very scary. What is your number one recommendation for battling that unknown fear?

Jessica Allen:

To just lean into it? Like get to know what it feels like? And this might sound weird but literally get to know what it feels like in your body get to know, what are the thoughts that come up when that thing arises. Because it can be a real monster that can scare us and keep us from what what it is we were meant to do. And I definitely have faced that at every point of this journey. Whether it was making that huge investment to join a mastermind and put myself in that space, each time you are with me on that path, each time that I let one of those cleaning clients go and face myself further in. And then trusting that every time you say no to something, there's going to be a yes, on the other side of that, that I believe, whatever you call it, God or the universe, honors those knows that each time that we step further into alignment, and get closer to what it is we truly want. There will be opportunities and yeses waiting for us when we're willing to make that leap, so to speak without fully being able to see that whatever that goal is, whether it's that you have the $10,000 a month of income, that you have this business coaching business and clients coming in every month, every time we're able to push ourselves and have to kind of trust and have faith. I can speak from experience in this journey that we will be met with the things that we need.

Alyssa Stanley:

If you could literally just pick us up and put us in there with you in that moment where you had that switch. That's it. And I'm going to do this. I don't care what it takes. What does that what did that look like for you?

Jessica Allen:

The moment that comes to mind is just over a year ago, last fall. And I was looking at the hours that my husband was working. We were seeing each other about 30 minutes on the front side and back side of the day. He was exhausted, I was exhausted. The we were not having any quality interactions with our kids. We were just surviving. And I remember thinking, I hate this. Like I knew there was something coming I knew I was building this business out. But I was in the thick of this is not fun. And this is hard. And I can't do this. And and that breaking point is just I mean, that's what catapulted me and motivated me to keep going and to keep investing in myself to keep knocking on doors, so to speak until one opened, because I knew that I could not that place where we were was not sustainable. It wasn't sustainable financially, it wasn't sustainable. Emotionally, it wasn't sustainable for our marriage, or a relationship with our children. And it wasn't the way of life that we wanted at all. And so I just, I remember it very vividly of thinking, I can't live my life like this. And I'm going to do whatever it takes to get me to that next step.

Alyssa Stanley:

When you got to that breaking point of I'm not doing this anymore. I'm not living my life like this. Was it easy to take this opportunity to your husband? I know I talked to a lot of women a day who want to do exactly what you did create financial freedom by jumping off the W two train on to kind of an unknown and they're afraid to take that to their husbands because it is so unknown. And they're afraid their husbands are going to be like No, we know. And then they feel like they're going to be trapped in this sense of unhappiness for so long. So was that a scary conversation? I know you and your husband have a pretty, pretty great communication. But was that scary for you? Or was he did he know Jess is done?

Jessica Allen:

Yeah, um, it was scary. Because up to that point, I had already faced a lot of I mean, what traditionally we would call failure from the outside looking in. I had lost some money and investments I had went down this road of the long term rentals not working out. I had started some other endeavors that didn't work out. And so with this thing, I just thought I've already I've already asked too many times, like he's not gonna say yes, one more time to one of my crazy ideas. But there was Grace in that moment. And he just said, I believe in you. I'm committed to being there for you, supporting you, helping you in this journey, whatever it looks like. And surprisingly, he did say yes to this step, but it wasn't because I thought he was going to

Kelley Skar:

I think that's interesting. What you just said, I think if your partner 100% believes in, in who you are, your work ethic is, and the idea that you had, or have and the plan that you've got in place to execute on it. I mean, I don't know, I just, I think in a true partnership, there's discussion, there's disagreement there is back and forth, there is bouncing ideas off of each other there is, you know, jointly laying out the path for one another to, you know, travel down, you know, together hand in hand, you know, not necessarily skipping and singing la dee da. But you know, at the end of the day, I think there's a lot of a lot in, you know, in that intimate relationship and that intimate, intimate partnership. And so, I don't know, I don't know, I just I find that interesting is, I find it interesting, because there's some parallels in my own life, where I felt like I had to sell my wife on certain ideas, when all I really needed to do is just kind of lay out when my vision was lay out what my path was, and then invite her to be to come along with me and help me build this thing that we're going to build together. So yeah, I just I don't really have a question. I just think it's an interesting conversation, when you got a great partner. They're there to support you 100%. And it's not about asking for permission or trying to sell them on an idea. It's like, here's what it is, this is for the betterment of the family, you know, poke holes in it for me.

Jessica Allen:

Exactly. And I think at the stage we were at initially, I mean, he was working a lot, and he was tired, and didn't have the energy to invest in fully understanding the plan. He saw what you said he saw the vision, and he believed in me. But now as we've transitioned him out of his job, now we can start building this vision together, creating this plan together, seeing where we each can be a part of different things. And we're definitely still figuring that out. That's a whole whole other topic for another day of once your husband does come home, and you both are working from home, building out businesses together. How do you find that balance, so to speak, and what roles each of you fit in? But now we get to embark on that journey. But yeah, I really appreciate what what it what you just shared Kelley is really good.

Kelley Skar:

Do you feel like you've in all of your endeavors? From your along your journey? Do you feel like you've failed forward? And what I mean by that is Do you Do you feel like you've learned from the mistakes that you've made in every aspect?

Jessica Allen:

Most definitely. And I have learned to embrace failure, as part of the journey, that it's a sign that I'm taking action, it's a sign that I have momentum and forward movement. If I wasn't failing, then I wouldn't be doing anything, because failure is just a part of success. And I think the word failure failure just has such a negative connotation. But really, it's a it's a power word in my world.

Kelley Skar:

Yeah, maybe that's let's not use failure. Let's use lesson. And so I'll ask you this question. What was the what was one of the biggest lessons that you've learned in, you know, over the course of the last? You know, I don't know, five, six years, I guess.

Jessica Allen:

I think it goes back to what Alyssa mentioned at the beginning of the lesson of resilience. So physically, in my world, there were so many challenges, either health, financial, family, church, like so many challenges with my kids, so many challenges on every front, in my physical reality, that I literally could not just lay down and die ahead for kids to take care of. I had to keep going through each one of those heart wrenching, emotionally exhausting, physically wearing events. And so that became a picture for me of the internal resistance that we face, in, in business when we are on our path to success, that every time we get when we hit resistance when we hit a wall when we hit those negative thinking patterns or people that are trying to keep us small, or those places where we don't know what the next step is. I had physically trained I guess, so to speak, to push through that resistance. And so then I took that into my my internal world and have been able to just over Come those barriers, I think a little quicker than maybe some other people would. Because I've just learned to embrace them as part of the journey, learn from them, and keep pushing forward.

Alyssa Stanley:

And that right there is why I find you so inspiring in what you do and where you're going with this lending business. And that's, and that's something that I find really intriguing, intriguing, because from the outside looking in, I hear real estate lending, and I go, Oh, my gosh, that's high risk. I don't have the money to lend someone you know. So can you explain how your real estate lending business works?

Jessica Allen:

Traditionally, private lenders can lend on all types of different projects, what but what we have done is we've kind of narrowed down into the fix and flip arena, those projects typically lasts anywhere from three to six months. So we're getting in and getting back out. Before we have to really look at any kind of market volatility, because in that six month window, you're relatively safe. As far as market fluctuations go. Um, we use our own capital at this time, so money that we have saved and put away. And then something that I have learned this year is that you can actually convert an IRA or 401k, into what's called a self directed IRA, or 401k. And you can direct where those funds go. So you literally can have control back of that money. So that it's not just in the star stock market. It's not just a long term hold type of thing. And you can invest in either private lending, or actual real estate deals. So once we realized the power of that, that we could grow our retirement accounts so much quicker. And we did end up pulling some of that money out to create the life that we wanted right now. Because I think so many of us are saving for the future, we have some money put away in these retirement accounts. But then we don't have cash for today to invest in, let's say, a coaching program, or this mastermind that I did, or a physical property or asset that's going to cash flow and generate revenue for today. So make seeing like how powerful that was, to use some of that IRA money and money that we have saved for later, that we could actually use that in our business. So all that to say, we lend on fix and flips, we get paid. Traditionally, a flat rate, so anywhere from like 10 to 15%, flat on that money. So there's let's say we lend $50,000 into a project, we would make $5,000, in that six month timeframe, at a 10% flat rate. We secure all of the loans with a deed of trust. So that's our risk protection, we have a lien on the property. And then when the property sells at the end of the flip, then we get paid through the title company.

Todd Foster:

How long did it take for you to have people trust you?

Jessica Allen:

I think a lot of it comes down to it's a relationship based business. I'm really getting to know people. And that answers all this question too, of how do we know who to trust, it goes both ways. For borrower and lender. We're building relationships with individuals who have experience in the space who've been through it point A to Z of projects, they know what they're doing, they know what their costs are, their time frame all of those things. In in the same sense. People are building that relationship with us. And so when we were first starting out, it came down more to my character as I got to know them. My financial ability, so to speak, of understanding the deal, understanding of how all the financial breakdown worked in that deal. And then just I mean, there is a level of trust that I think, as a real estate investor, it is key to get into some sort of network so that you have those types of relationships. The investors that I see trying to just do things on their own, I was one of them. Their path is typically a lot slower than one two are building a network around them and building their business. with other people.

Voiceover:

The lightning round.

Kelley Skar:

Question number one, what is your favorite part about working from home?

Jessica Allen:

Getting to set my own schedule. I am my own boss.

Kelley Skar:

All right? Yeah, I think that's what most people love about working from home. So on that note, what is the what is your least favorite part about working from home?

Jessica Allen:

Being surrounded by all of the things that I think sometimes I should be doing that I don't want to do? Housework, laundry, it's also staring me in the face when I come out of my office.

Kelley Skar:

Okay, what trait most defines who you are?

Jessica Allen:

Resilience, the ability to just keep going, keep getting back up, no matter what the circumstances are just continuing to push forward and stay focused on my vision.

Kelley Skar:

Awesome. All right. Here's a funny one for you. What was your last Google search?

Jessica Allen:

Oh, gosh. Probably the SUCCESS Coaching Podcast today.

Kelley Skar:

Right answer SUCCESS Coaching Podcast. There you go. All right. Last question. Salty or sweet?

Jessica Allen:

Salty all the way. I almost posted this on my Facebook story yesterday. Am I the only weirdo that works from home with a salt shaker by her computer? Because every time I eat in my office, I need my salt.

Kelley Skar:

Yeah, I wouldn't go that far. I prefer a bag of chips over a chocolate bar any day of the week. So I don't know.

Voiceover:

Thanks for listening to this episode of the SUCCESS Coaching Podcast. If you've enjoyed this episode, please follow or subscribe to the SUCCESS Coaching Podcast at your favorite podcasts provider. For special access to past recordings, videos of past episodes and more, please become a SUCCESS Coaching Podcast Companion at successcoaching podcast.com.