Bob Zachmeier was born in Mandan, North Dakota and has been a landlord since 1982, but currently lives in Tucson, AZ where he and his wife, Camille have built a substantial residual income from real estate notes. Bob and his wife Camille started Win3 Realty on a bar napkin and have sold more than 4,000 homes in the past 13 years. He is a member of the Arizona Real Estate Association (AZREIA).
Please tell us a little about who you are and what you did before getting into real estate investing:
After college, Bob took a job with Texas Instruments and during the next 6 years worked as an Instrument Engineer on oil exploration crews in 17 states, including 6 winters on the North Slope of Alaska and running a 40-person crew in the Australian outback for a year as the only American! Bob transferred to a more stable position in the Defense Electronics division in Lewisville, TX, but when Raytheon purchased their division from Texas Instruments, Bob and his wife Camille transferred to Tucson, AZ.
They didn’t like the corporate culture at Raytheon, so they obtained their AZ real estate licenses in 2000 and began selling homes and building a rental portfolio. Three years later, their rental income enabled Bob to quit his high-paying, 22-year career to pursue real estate full time. A year later he surprised Camille by flying her parents to Tucson and picking her up in a limousine on her 40th birthday to celebrate her last day of work (she didn’t know)!
Where is your current market and what is your focus or area of expertise?
After decades of owning rental properties, Bob discovered notes and realized that “mailbox money” was far superior to the “tenant and toilet” hassles of rental property. He transformed their real estate business to specialize in private financing for the self-employed business owners that banks turn down. Bob created NoteCarry.com to structure notes, wraps, rentals, etc. with reports for buyers, sellers, and investors. His creative solutions have helped hundreds of buyers across the country purchase homes without banks.
How did you get started?
In 1982 I was making good money in the oil field and was looking for a way to decrease my tax burden. Several of the people I worked with owned rental properties so I decided to give it a try!
Describe a typical work week for you as a real estate investor:
I meet with several sellers per week who want to sell their home without going through the traditional real estate process. We have a line of qualified buyers who are not “bankable” so I show the Sellers how they can net more money with less hassle and a faster sale that creates residual income by carrying the loan for self-employed business owners (the hardest working people in America) who can’t qualify with banks.
How long have you been investing in real estate?
I bought two rental properties in 1982 when I was 22 years old before I ever bought a home to live in!
Tell us about your first deal:
I bought a condo and duplex in my home state of North Dakota where I was familiar with the market and my Mom was my property manager for a decade. A year later I partnered with three friends to build a 4-plex near two hospitals that’s been full ever since.
How do you fund your investments?
The buyers typically put 10 to 20% down and we find retirees to fund 1st position loans around 70% of the MLS market value. We purchase the 2nd notes at a discount.
Do you have a real estate license?
Yes – I’ve been licensed since 2000 and the broker of Win3 Realty since 2004
What projects are you currently working on?
I am developing training to share my success doing local seller financing with others.
How much time do you put into your real estate education?
I’m a life-long learner the market can change daily. I attend every AZREIA meeting and plan to attend at least a conference per quarter to network and stay abreast of industry changes.
Has coaching or mentoring played a part in your success?
Absolutely! In 2005 Camille and I were killing ourselves selling one home a week. We heard about a guy in Canada (Craig Proctor) who was selling more than 500 homes per year. We attended his conference, joined his program, and using Craig’s methods to leverage people, technology, and systems we began selling over 600 homes per year!
What are your current and future goals?
What has been your top struggle in this business?
Educating people (especially real estate agents) that they can be the bank and help people in their own community obtain home ownership.
What do you like most about what you do?
Every situation is a “win” for everyone. Buyers get a home nobody else could sell them, Sellers get a faster sale with less hassle and a higher net, Retirees get to enjoy a better lifestyle with 35 times more income than banks pay them, Neighbors benefit from homes being renovated and sold at higher prices, Investors like me win, which enables us to donate our time, talent, and resources to less fortunate members of the community.
Do you have a tip or advice that you would pass along to other investors?
Do what’s right and treat people fairly. Unfair deals don’t last, so try to make every deal a WIN-WIN-WIN for everyone (hence Win3 Realty). I’ve NEVER sold a home in my life to earn a commission, in fact I’ve sold dozens without making a dime! If you listen more than you speak, and help people first and worry about getting paid later, you’ll be wildly successful with a referral-driven business.
How important is joining a local REIA to a new investor?
Belonging to a REIA is like having a private tutor at school. Local REIA’s bring in national speakers that educate people about new investment ideas and also provide a local network of people who have the experience that a new investor lacks. Joining a REIA would be the first thing I’d recommend to a new investor!
What is your favorite self-help or business book?
The book that impacted me most was Seeds of Greatness by Dennis Waitley. His “Wheel of Fortune” exercise helped me create a perfect life measured by my standards!
Do you have any interesting hobbies or something unique that you like to do?
I enjoy writing and have published 5 books (my sixth is in the works). I also enjoy teaching, which started in 1992 when I taught a personal finance class to 6th and 7th graders for Junior Achievement for 10 years. I travel too much now to stick to the schedule but will probably go back to that when I retire.
Does your business have a website?
Social media accounts?
Find me on Facebook Bob Zachmeier, Win3Realty, and NoteBusinessBuilder