The REAL Wealth Formula Podcast

Discover how to buy a hotel with no money down. Brad Hovis shares the incredible story of his Hotel Frisco deal, where he turned a creative finance strategy into over $2 million in profit. He reveals the exact steps he took, from leveraging creative finance to overcoming unexpected challenges. This episode offers a candid, detailed look at a high-stakes real estate investment, including the financial proof. Learn about the mindset, risks, and massive rewards of thinking outside the box in commercial real estate.
Key Takeaways
Creative Financing: You can acquire real estate without using your own money. Strategies like lease options and unsecured hard money loans are viable options.
Control vs. Ownership: Brad's strategy focused on controlling the hotel through a lease with an option to purchase. This allowed him to manage and improve the asset before fully owning it.
Identify Problems, Offer Solutions: Brad recognized that the hotel had a revenue problem and a rooms problem. He proposed solutions, like leveraging third-party booking sites and converting staff housing into additional rooms, to the owner.
High Risk, High Reward: This deal involved significant risks, including taking on unsecured debt, maxing out credit cards, and facing unexpected construction and legal problems.
Profit from Profit: Once the hotel became profitable, all subsequent expenses, including construction costs and legal fees, were paid for using the hotel’s revenue, not Brad's personal funds.
Resources & Links Mentioned
Rebiz
FreedomSoft
Social Media Channels
Facebook: Real Wealth Formula
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Instagram: @realwealthformula
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In this episode of the Real Wealth Formula, you’ll learn how to calculate ROI the right way. The discussion covers why ROI is often misunderstood, the difference between cap rate and cash-on-cash return, and why risk matters when comparing deals. You’ll also discover how to maximize ROI using leverage, human resources, and sweat equity. If you want to make smarter investment decisions and boost your returns, this episode is for you.
Key Takeaways
ROI is simple: annual return divided by your total investment.
Cap rate applies to properties owned free and clear.Cash-on-cash return applies when leverage is involved.
ROI numbers on deals are guesses based on assumptions. Always review actual performance.
Risk must be factored in when comparing leveraged vs. non-leveraged returns.
Human resource ROI can be higher than real estate ROI if people generate more income than they cost.
Sweat equity should focus on unique, high-value skills like acquisitions, not basic labor.
Active ROI (wholesaling, business operations) and passive ROI (buy-and-hold real estate) cannot be compared directly. Both play roles in building wealth.
The Real Wealth Formula: Reduce expenses, Enlarge active income, Acquire passive income, Live on passive income.
Resources and Links Mentioned
REI School
Rebiz 
Real Wealth Formula Calculator
Connect with Us
Website: www.realwealthformula.com
Phone: 877-77-MOGUL
Email: podcast@realwealthformula.com
Social Media Channels
Facebook: Real Wealth Formula
LinkedIn: Real Wealth Formula
Instagram: @realwealthformula
X: @realwealthshow
TikTok: @realwealthformula
YouTube: Real Wealth Formula

Are you a high earner still living paycheck to paycheck? This episode of The Real Wealth Formula is for you. Host Brad Hovis sits down with real estate expert Rob Swanson to talk about how to find and acquire off-market real estate deals. They discuss going beyond the traditional on-market approach and how to locate motivated sellers directly. Discover the strategies for finding distressed properties and turning those leads into successful investments.
Key Takeaways
Go Off-Market for Better Deals: Many investors only look at properties listed on the MLS. The best deals often come from off-market properties, which you acquire directly from the seller.
Direct-to-Seller Marketing is Key: To find off-market deals, you must engage in lead generation. This means finding property owners with a problem you can solve. Common motivations for selling include job transfers, inherited properties, or bad tenants.
Find Success by Following Clues: Don't reinvent the wheel. Look for areas where other investors are already active and making money. Start your search by building lists based on geography and then layering on distress signals.
Absentee Owners are a Goldmine: The most common lead for a deal is an absentee owner, someone who does not live in the property they own. This is often an investor or someone who inherited the property.
Layering Distressed Signals: Combine a list of absentee owners with other factors like "vacant house" or "out-of-state owner." This helps pinpoint sellers who are more likely to be motivated.
The Power of Direct Mail: Direct mail is a consistent and reliable way to generate leads. Using an "ugly" yellow postcard with different fonts and misaligned text can increase response rates by making the mail piece stand out.
Response Rates and Conversion: Direct mail response rates are low, typically 1% or less. The key is to focus on the small percentage of responses that show genuine interest. Once you have a lead, the real work is converting it. This requires strong sales skills to identify the seller's true motivation or "why."
Resources
REIBiz
Freedomsoft
REI School
 
Connect with Us
Website: www.realwealthformula.com
Phone: 877-77-MOGUL
Email: podcast@realwealthformula.com
Social Media Channels
Facebook: Real Wealth Formula
LinkedIn: Real Wealth Formula
Instagram: @realwealthformula
X: @realwealthshow
TikTok: @realwealthformula
YouTube: Real Wealth Formula

In this episode of The Real Wealth Formula, Brad Hovis breaks down the difference between simply doing real estate deals and building a real estate business. He shares why active real estate investing, when treated as a business, can create more consistent income, bigger paydays, and long-term scalability. Brad explains the four essential aspects of running any business, how to balance passive and active investing, and why building skills and systems is key to escaping the rat race without giving up financial stability.
Key Takeaways
Real estate deals can produce large one-time profits, but a business creates ongoing income and scalability.
Active real estate investing should be approached like any other business, with focus on marketing, sales, fulfillment, and support.
Passive income strategies are important, but active operations can accelerate financial freedom.
You do not have to quit your job to start; you can build your business part-time until it replaces your income.
A variety of tools and strategies allow you to adapt to different deal scenarios and market conditions.
Outsourcing tasks you are not skilled at helps you grow faster and avoid burnout.
Learning the business takes time, just like any other professional skill.
The goal is to create a sustainable system that allows you to focus on the parts of the business you enjoy most.
Resources and Links Mentioned
REIBiz
FreedomSoft
Real Wealth Formula Calculator 
Connect with Us www.realwealthformula.com Call 877-77-MOGULpodcast@realwealthformula.com
Social Media Channels
Facebook: Real Wealth Formula
LinkedIn: Real Wealth Formula
Instagram: @realwealthformula
X: @realwealthshow
TikTok: @realwealthformula
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This episode breaks down the BRRRR method for real estate investing. The acronym stands for Buy, Renovate, Rent, Refinance, and Repeat. Hosts Brad Hovis and Brian McClain explain how this strategy allows investors to build a portfolio with little or no personal capital. They share a personal story about their first successful deal, a long-term rental property they've held for over a decade. This proven approach helps people achieve financial freedom and build generational wealth.
Takeaways
Buy: Find a property at a discounted price. The podcast suggests buying at 60 or 70 cents on the dollar. Having a specific "buy box" with clear criteria, such as a 3-bed, 2-bath ranch house, helps define your search.
Renovate: Improve the property to increase its value. Focus on functional renovations first, like the furnace, HVAC, plumbing, and electrical. Cosmetic changes follow to create a nice home for a future tenant.
Rent: Find a great tenant to live in the renovated property. This step is when you stop spending money and start generating cash flow. The tenant pays down the mortgage, making them a key asset.
Refinance: Take out a new, long-term loan on the property's new, higher value. This allows you to pull out your initial investment and renovation costs. The goal is to get your capital back, achieving an infinite return on investment.
Repeat: Use the capital you pulled out to buy another property. You can repeat this process to continuously grow your real estate portfolio.
Resources/Links
REI School 
PropStream 
Connect With Us
www.realwealthformula.com Call 877-77-MOGULpodcast@realwealthformula.com
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Facebook: Real Wealth Formula
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Late rent payments can hurt your cash flow and create unnecessary stress. In this episode, Brad breaks down practical strategies to manage them effectively. He explains why setting expectations from day one is critical, how to communicate with tenants about overdue payments, and when to offer flexible arrangements without putting yourself at risk. You will learn how to enforce your lease terms, apply late fees the right way, and protect your property income. Whether you manage one rental or a growing portfolio, these steps will help you stay in control and avoid costly mistakes.
 
Takeaways
Set clear rent payment expectations in writing before move-in.
Communicate payment terms in a direct and professional manner.
Offer payment plans only when it makes sense financially.
Apply late fees consistently to maintain fairness.
Document every conversation and agreement to protect yourself legally.
Stay calm and professional when dealing with late payers.
Protect your cash flow by acting quickly on missed payments.
Resources / Links Mentioned
Real Wealth Formula 
REI Biz
Connect with Us: www.realwealthformula.com Call 877-77-MOGULpodcast@realwealthformula.com
 
Social Media Channels
Facebook: Real Wealth Formula
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Many believe you need huge amounts of cash to start real estate investing. The truth is different. In this episode, Brad Hovis shares practical strategies that require little to no money, including wholesale deals, lease options, subject-to financing, private funding, partnerships, and the BRRRR method. You will learn why education is your most valuable first investment and how creative techniques can lower your out-of-pocket costs.
 
 
Key Takeaways
You do not need hundreds of thousands of dollars to start investing in real estate.
Education is the most important investment for beginners.
Wholesale deals and lease options can be done with minimal cash.
Subject-to financing allows you to take over existing loans without paying them off immediately.
Private lenders and partnerships can fund your deals if structured correctly.
The BRRRR method can produce infinite ROI when done right.
Master leases can create cash flow with zero purchase cost.
Proper legal structuring is critical to avoid SEC violations and other penalties.
Free content is helpful, but structured education reduces mistakes.
Action plus education is the formula for success.
Resources and Links Mentioned
REI School
REBIZ
PropStream 
FreedomSoft 
Book “Over to Retire” by Brad Hovis (for self-directed IRA rollovers)
Real Wealth Formula Calculator
Connect with Us: www.realwealthformula.com Call 877-77-MOGULpodcast@realwealthformula.com
 
 
Social Media Channels
Facebook: Real Wealth Formula
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 If you are flipping houses, timing matters. In this episode, we talk about how market seasons can make or break your profit. Learn why selling in the right months can increase your returns and how to plan your projects to match buyer demand.
 
 
Key Takeaways
Market timing affects property sales prices.
Homes often sell for higher prices in spring and early summer.
Selling in winter may reduce your profit potential.
Plan your acquisition and renovation schedule with the market cycle in mind.
Compare your projected sale timing with past market trends before listing.
 
Resources / Links Mentioned Free course: Visit www.RealWealthFormula.com
 
 
Connect with Us www.realwealthformula.com Call 877-77-MOGUL
podcast@realwealthformula.com
 
 
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Facebook: Real Wealth Formula
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Podcast
In this episode of the Real Wealth Formula Podcast, we dive into the question: Is now a good time to invest in real estate? The short answer is yes, it always is. Whether you're considering long-term buy-and-hold strategies or short-term flips, understanding market dynamics is key. We discuss strategies that work in today’s market and how you can approach investing, whether you’re a passive investor or an active one. From market cycles to the power of holding rental properties, this episode provides valuable insights on how to make smart real estate decisions right now.
Takeaways:
Real Estate is Always a Good Investment – Real estate appreciates over time, especially if you're holding it long-term.
Market Cycles Matter – Understanding when to buy and sell is critical. Spring is typically the best time to sell, but consider local market conditions.
The Power of Passive Income – Buy and hold properties are ideal for building wealth through consistent cash flow.
Active Investing Requires Caution – Be mindful of market conditions when flipping properties. Local market knowledge is essential.
Wholesaling is Always Viable – Flipping contracts can be done in any market. Learn the mechanics to become a better investor.
Don't Sell in a Down Market – Like Warren Buffett says, don't sell unless you absolutely have to. Hold and let your property mature.
Resources/Links Mentioned:
REI School
Warren Buffett’s Investment Strategy
San Antonio Real Estate Market
Connect With Us:
Visit us at: www.realwealthformula.com Call 877-77-MOGUL Email us at: podcast@realwealthformula.com
 
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 In this episode of Real Wealth Formula, Brad Hovis and guest John Webb dive into the question: What local markets work for real estate investing? They break down how to evaluate markets using price-to-rent ratios, distressed inventory, and neighborhood quality. From success stories in Memphis and St. Louis to wild experiences in challenging neighborhoods, they reveal the art and science behind choosing the right markets for buy-and-hold strategies.
Takeaways:
Focus on single-family homes in B and C neighborhoods for buy-and-hold investing.
Price-to-rent ratio is critical; markets like Denver fail to meet the 1% rule.
Memphis, St. Louis, Indianapolis, and San Antonio are top-performing markets.
Neighborhood evaluation requires both data analysis and on-the-ground checks.
Key indicators include the level of upkeep, visible commerce, and tenant demand.
Avoid high-vacancy areas and markets lacking job diversity.
Job presence from companies like FedEx, Nike, and Amazon makes Memphis attractive.
Market trends shift slowly, so constant monitoring is essential.
Boots-on-the-ground visits reveal insights data alone cannot provide.
Vacancy is the fastest way to lose money in real estate.
Resources/Links Mentioned:
Memphis real estate market insights
St. Louis investor activity
San Antonio real estate trends
Wichita job and housing market data
Business Journal (local market research)
Connect with Us: www.realwealthformula.com Call 877-77-MOGUL podcast@realwealthformula.com
 
Social Media Channels
Facebook: Real Wealth Formula
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Instagram: @realwealthformula
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