The MindShift Podcast

Real Estate Cash Flow Secrets with Willie Mandrell

1/19/23 3:01 PM

5 Minutes Read

Episode 56

How do you go from buying one investment property at age 23 to over 60 in 15 years? Actually, backtrack, how do you buy one property at age 23 while still in college?

A dream to many but a reality to Willie Mandrell.

In today’s episode, self-made millionaire and author Willie joins us for a fascinating and inspiring conversation about his real estate cash flow secrets. He walks us through the process of buying his first property at 23 to scaling to a portfolio of 75 by the year’s end.

We discuss the importance of cash flow. How to use leverage to scale your business and how to use your skills and talent to their full potential. Finally, we discuss the importance of financial literacy and building income streams to replace your 401K that allow you to retire on your terms.

Listen if you want to discover the real estate cash flow secrets that will help you build wealth.

Here are three reasons why you should listen to the full episode:

1. Learn how you can use leverage in your business and personal life to grow your business and keep your attention laser focused on the priorities
2. Understand why your 401K will not protect you in retirement, and what you can do now to build financial stability
3. The one thing he’d want to keep if he lost it all
4. Why flipping houses is not the same as building wealth

Episode Highlights

Willie’s First Property – at age 23

- Willie’s first business venture was selling cups of cool aid on the school playground to classmates. His obsession with money started young and only grew
- Growing up in shelters and housing projects he learnt to deal with adversity from a young age, a mindset that he credits to his current success
- In 2006 at the age of 23 he bought his first property a two-family unit with tenants covering 65% of mortgage payments
- In order to do this, he staked his school schedule, worked 3 jobs and made enormous sacrifices. This showed tremendous mental focus and purpose that continued strong during the 2008 housing crash
- He understood the power behind real estate as a wealth builder and that was when he decided to expand

Leaving a corporate career and venturing solo

- After being told from his boss that “he was lucky to have a job” he realised the fragility of having your income determined by someone else
- Despite having numerous qualifications in the financial sector, he realised there was a ceiling in corporate finance which he intended to break.
- He experienced firsthand how the journey of an entrepreneur can be lonely and, in an attempt to have others join him in his journey, tried to involve his family in real estate
- This attempt failed but it forced Willie to look for other like-minded people and form positive relationships
- Tune in to hear what Willie is doing now to create a community and network of real estate entrepreneurs

How to go from 1 property to 75 in 15 years

- In growing from 1 investment to 75 by the end of 2021 Willie learnt the important lesson that “you can’t time the market”, instead you need to buy for long term income
- Willie stresses that he bought in 2006, two years before the market crashed and he is still standing today
- He underscores the importance of knowing your time horizon as it will influence your risk and business model as a 25-year-old and 75-year-old have extremely different risk tolerances

Understanding and using leverage to level up

- If you are not sure what leverage is then tune in to hear Willie explain it using the concept of a car wash
- In his 20s Willie hired a housecleaner, not because he was rich but because understood that he would make more money if he used the time spent cleaning his house working on his business
- He explains the importance of putting a figure on the value of your time “if you are worth $100/hour, why are you doing a $20/hour task?”
- Initially Willie was running all aspects of the business from the plumbing to the paintwork to the customer service. Now, by using leverage he only works in roles where he is most needed and most valuable
- He highlights the ease of hiring staff online through services like Fiverr and Upwork to utilise leverage

The one thing you can’t take away from Willie

- The most important thing to Willie in the world (apart from his family) is his credit score. You can take away everything else and throw him in the middle of Wyoming and he will still be able to start and run a successful business
- Whilst Willie is in $10 million debt, he explains that debt is a sign of credit success because you can’t get million-dollar loans from a bank on bad credit. Whilst that number scares others Willie takes it in his stride
- He warns against store-bought retail cards and high interest rates. If you want to learn more about managing your credit, then visit his website

The difference between a job and a business

- He explains why flipping houses is not the answer to building long term wealth because flipping houses is a job, and you want to build a business.
- A job requires you to be present at all times to make progress and thus, a business can run by itself.
- This is the definition of “passive income” and what Willie sees as real success in business.

Why your 401K isn’t enough

- Willie explains that the best way to understand why your 401K isn’t enough is to do the maths. Calculate how much money you will have at retirement and how much you need to continue living your current lifestyle.
- For most people the numbers don’t add up
- He argues that you need to create cash streams of income that last into retirement
- This gives you flexibility to retire on your terms, not the government’s

The Legacy He Wants to Leave

- He wants to help people follow his journey. He has reached the top of the mountain and is now shining a spotlight on the path he forged.

5 Powerful Quotes from this Episode

24:00 - “You can’t time the market, people always think you can wait till the market bottoms out. You must buy right and buy for income. If you are buying for cash flow, you don’t need to time the market.”

28:00 - “You have to put a value on your time, if you are worth $100 an hour, why are you doing a $20 hour task?”

28:00 - “I learn to do something and learn to do it really well and then I hand it off to someone else and go and do the higher dollar task”.

34:00 - “Use the services and skills and talents of other people and put yourself in your highest and best use. Your job as an entrepreneur is to fire yourself from as many jobs that is not your highest and best use and only do the jobs that no one else can do”.

38:00 - “Take everything away from me but leave me my credit score and I guarantee that I will make it all back again and faster”.

About Willie

Willie Mandrell made his millions buying investment properties in Boston. As the founder of The Mandrell Company, he provides coaching, mentorship, and investment for others who want to follow in Willie’s footsteps. He is also the author of Cash Flow Secrets a guide on real estate investing and finance.