Real Estate Investing School Podcast
Episode 99: The Power Of Intention: Blake’s ‘Victimless’ Real Estate Journey
Released: October 23, 2023
Host: Joe Jensen
Guest: Blake Erickson
Brief Overview
This episode centers on the power of intentionality and mindset in real estate investing, told through the journey of Blake Erickson. Blake achieved millionaire status by 24, built a six-figure real estate portfolio, manages a high-performing sales organization, and emphasizes removing the victim mentality from both investing and life. The conversation dives deep into actionable strategies for building a portfolio, house hacking, leveraging connections, investing out-of-state, and how reframing limiting beliefs can lead to success.
Key Discussion Points & Insights
1. Blake’s Background, Early Inspiration, and Goal Setting
- Blake left college after being inspired in an entrepreneurship class by volunteer professor Corbin Church – first exposure to real estate’s wealth-creation power (03:16).
- Quote: "Set the goals out there that you want to accomplish, figure out the lifestyle you want to create, and then reverse engineer it from there." — Blake (02:16)
- Started with goals: retire by 29, become a multi-millionaire by 26.
- Inspiration and encouragement came from seeing real estate as an attainable vehicle.
2. Overcoming Early Obstacles: First Property Acquisition
- Spent a year after initial inspiration preparing to meet lending requirements — realized later it was an "excuse" rather than an insurmountable hurdle (04:11).
- Quote: "The issue I was going through, which is now an excuse, was I needed two years of income to be able to get a loan… I just wasn’t creative enough and let that be my story. So I waited…" — Blake (04:11)
- Host Joe explains alternatives for self-employed/entrepreneurial borrowers (05:00–06:42).
- Blake's first property: Six-bedroom duplex in Orem, Utah. Used FHA loan with 3.5% down, lived in one unit, rented out the other—classic house hack (07:59).
3. Scaling Locally via House Hacking & Student Rentals
- Second property: Also house hack near BYU/UVU, student housing model. More creative with layout—converting living rooms into bedrooms (09:44, 10:46).
- Rental strategy: Per-bedroom or shared unit leases; parking/bathroom needs highly considered.
- Established 12-month lease terms to minimize vacancy risk in summer (13:11).
- Quote: "We set up initially a 12 month agreement... So if [tenants] want to get out during the summer... they'd have to sublease." — Blake (13:11)
- Host Joe’s “three Ps” for student housing: Parking, Potties, Parties (11:41).
4. Tenant Vetting and Leasing Process
- Leverages personal network and marketplace platforms, prioritizing referrals but open to vetted strangers (15:31).
- Emphasizes the importance of pre-listing properties as early as possible—even during due diligence—to confirm viability and test market demand (16:46).
5. Out-of-State Investing & Turnkey Properties
- Expanded to Midwest (Kentucky, Indiana, Ohio) through a wholesaler group—using the “1% rule” (rent should be at least 1% of purchase) (19:23).
- Example: $110,000 duplex rented for $1,600/month; $250,000 fourplex generated $3,800/month.
- Cash flow is high; cons include lower appreciation and more tenant turnover than Utah properties (20:56).
- Quote: “My mortgage is going to be 590 bucks a month and I’m cash flowing a thousand. ...The cash flow is what I love…” — Blake (20:14)
- Early deals were “A to Z” turnkeys by the vendor; with experience, Blake now prefers to source and assemble teams himself to retain more margin (24:23).
6. Investing in Short-Term Rentals (STRs)
- Partnered in new construction Airbnbs in Island Park, Idaho (“on a lake, great occupancy… beautiful year round”). Still being built at time of episode (26:35, 27:10).
7. The Power of Leverage: Systems, Networking, and Mindset
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Blake advocates using processes, technology, and people to leverage time and opportunity, not just financial leverage.
- Examples: Automated Zillow alerts, networking with local agents/managers, emails dedicated for deal flow (30:15–31:44).
- Quote: “...put the right processes in place where I necessarily don’t need to be trading my time to buy real estate.” — Blake (30:36)
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Joe emphasizes overcoming excuses: “There is a solution, literally, to every single one of those excuses… a lot of it is just leverage.” (30:15)
8. Creative Deal Structuring: Example with Brother
- Recent joint deal with brother: Orem, Utah, house with six bedrooms, expanded to seven, plus a separate ADU ("casita").
- Not all features were listed, leading to minimal competition.
- Used a 3-2-1 interest rate buy-down: offered above list, had seller contribute buy-down funds, which dramatically improved cash flow without extra actual cost to seller (36:27–38:40).
- Ensured that even after buy-down resets, the deal still cash flows (41:08).
- Quote: "What’s really vital though… even when it [interest rate] is on the normal rate, the numbers still pencil." — Joe (41:08)
9. Mindset and Life Philosophy
- Action > information: Learning comes by doing, not just studying or wanting (42:52).
- Quote: “The best way to learn investing is to do it… the day you realize no matter what your excuse is… you can buy real estate today.” — Blake (44:03)
- Introduction to 'becoming victimless': Blake is writing a book—"Becoming Victimless"—on taking ownership and removing excuses (01:03, 48:38).
- Quote: “Life happens for you, not to you... Everything that happens to you is a gift." — Blake (48:38)
Memorable Quotes
- “Set the goals out there that you want to accomplish, figure out the lifestyle you want to create, and then reverse engineer it from there.” — Blake (02:16)
- “The issue... which is now an excuse... I just wasn’t creative enough and let that be my story.” — Blake (04:11)
- “We set up initially a 12 month agreement... [for student tenants] ...to avoid that [summer vacancies].” — Blake (13:11)
- “You could set up automated notifications from these tools like Zillow and Redfin and they’ll tell you... That’s a tool, I don’t think everybody’s using.” — Blake (31:44)
- “There is a solution, literally, to every single one of those excuses... a lot of it is just leverage.” — Blake (30:15)
- “Life happens for you, not to you... Everything that happens to you is a gift." — Blake (48:38)
- “The best way to learn investing is to do it.” — Blake (44:03)
Notable Timestamps
- 03:16: Inspiration from Entrepreneurship 101 at BYU
- 04:11: The initial "excuse" of not qualifying for a loan; alternative loan discussion
- 07:59: Blake's first real estate deal, house hacking details
- 09:44: Second house hack, creative space conversion, student rentals
- 13:11: Leasing strategy for student properties to avoid summer vacancy
- 15:31: Tenant vetting and leasing process
- 19:23: Out-of-state investing: 1% rule and first duplex example
- 26:35–27:10: Entry into short-term rental/Airbnb investing
- 30:15–31:44: Discussion on leveraging networks, automations, and systems for efficient investing
- 36:27: Creative deal structure: 3-2-1 buy-down in current market conditions
- 41:08: Importance of making deals self-sufficient beyond incentives
- 42:52: "Do it/don’t just plan" action philosophy
Resources & Recommendations
Books:
- Who Not How by Ben Hardy (45:44)
- Think and Grow Rich by Napoleon Hill (46:52)
- “If you can create it in your mind, you can hold it in your hand.”
Concepts:
- House hacking (live in one unit, rent the other)
- The 1% Rule for cash flow in rentals
- Out-of-state turnkey investing vs. building your own team
- Leveraging time, connections, and technology for deal flow
- Creative financing (interest rate buy-downs)
Final Four Quickfire (44:22–48:38)
- Bucket List: Become a fractional owner in a Lake Powell houseboat.
- Currently Reading: Who Not How by Ben Hardy.
- Most Impactful Content: Think and Grow Rich by Napoleon Hill.
- Text Message to the World: “Life happens for you, not to you.”
Connect with Blake
- Instagram: @theblakeerickson
Takeaways
- Intentionality & Mindset: Remove excuses; there’s always a way to get started.
- Leverage: Use technology, people, and systems to multiply your capacity.
- Practical Strategies: House hacking, student housing, out-of-state turnkey, creative financing—all are viable.
- Action: Learning comes from doing, not just thinking or reading.
End Note (Host):
Be smart with the stories you tell yourself—your mindset determines your outcome.